Using Plan for Every Part (PFEP) to Turbo Charge Your Supply Chain
A Plan for Every Part (PFEP) is all about determining the right part at the right time, in the quantity needed. Turbo Flow: Using Plan for Every Part (PFEP) to Turbo Charge Your Supply Chain explains how to take this detailed inventory plan from the manufacturing arena and apply it to boost performance and cost efficiencies in your supply chain. It explains how to use PFEP to improve management of your raw materials, WIP, and finished goods inventories.
Tapping into two decades of combined experience at Toyota Motor Manufacturing, the authors explains how to use PFEP to determine how much you need to build, the proper frequency for deliveries, how often you need to pick up from suppliers, and how much inventory you require.
- Presents an overview of PFEP for finished goods
- Discusses internal route planning and design using PFEP data
- Details external logistics and synchronization of manufacturing, logistics, and inventory cycles
For those willing to fundamentally change the way they do business, this book will light the path to more efficient and profitable supply chain management.
Table of Contents
Toyota Practiced Lean before It Was Called "Lean"
Origins of a New Idea
Improving on the New Paradigm
Moving on Toward PFEP
Understanding Plan for Every Part
Inventory Buffers Explained
What Should I Build Today?
How Much Inventory Do I Need?
When and Where Do I Need the Inventory?
Management of PFEP
Who Owns the PFEP?
Breaking Down the "Every"
The Toyota Cost Reduction Model
Ownership of the PFEP
What Do I Need to Build What I Need?
Takt Time Calculation Example
The Role of the Supplier
What Do Suppliers Need?
Understanding the Bill of Material to Populate the PFEP
Value Stream Mapping
ABCs of the Part Number
Life Cycle Code
The Right Quantity—Daily Usage Rate
Why Do I Need All This Stuff?
Finished Goods Planning
Manufacturing Planning Time
Supply Chain Cycle Time
Using PFEP for Internal Planning
Internal Route Planning
Coupled versus Decoupled Delivery Routes
A Pull-Card Market
Rules for Supermarket and Usage Point Flow Racks
Receiving/Shipping Address System
Safety First—If It Is Not Safe, Do Not Do It!
Delivering Parts to the Operators’ Fingertips
Small Part Delivery (Known Time—Unknown Quantity)
Kanban Calculation Examples
Understanding the Breakdown of the Product Mix
Planning at the Cell Level
Delivering the Parts to the Cell
Calculating Delivery Frequency
Calculating the Number of Kanban Delivered
Making Your Routes More Efficient
Call Part Delivery (Known Quantity—Unknown Time)
Sequence Part Delivery (Known Time—Unknown Quantity)
Planning: Supporting Processes
Modeling Our Scheduling Process
True Assembly-Based Production
The Role of Production Control
Supply Chain Complexity
Supply Chain Integration
Other Supply Chain Considerations
Tim Conrad serves as Director of Operational Excellence for Gates Corporation, one of the world’s leading manufacturers of industrial and automotive products, systems, and components, and a subsidiary of Tomkins PLC, a world-class global engineering and manufacturing group. Conrad oversees projects that link Gates Corporation’s manufacturing plants and distribution centers with key customers.
Conrad served previously from September 2004 to August 2007 as Lean Implementation Manager of Gates World Wide Power Transmission operations. Prior to that Conrad spent nine years with Toyota Motor Manufacturing Kentucky, located in Georgetown, Kentucky. At Toyota, Conrad held positions in production planning, materials, and internal and external logistics.
Conrad holds a bachelor’s degree from Northwood University in Midland, Michigan, and a master’s in business administration with a specialty in international management from the University of Maryland.
Robyn Rooks is founder and president of MPnL Solutions, Inc., and has been helping companies in the United States, Canada, Mexico and Europe for the past 10 years to develop and implement Lean production systems with great success. He has created a culture change within nonunion and union organizations by working with management and the shop floor. He emphasizes building a “doing it with you” not a “doing it to you” culture.
Rooks started his Lean career in 1988 at Toyota Motor Manufacturing, Inc. (TMMK) in Georgetown, Kentucky, where he was one of the original 1,700 employees hired to start the facility. Rooks spent two years on the production floor learning the material flow of TPS. He spent six years in the pilot “new model prototype” organization designing inter-departmental, external and internal assembly route delivery systems and balancing work content, writing standard work, designing supermarket layouts, setting kanban standards, ensuring flow and performing packaging approvals for new models.
Rooks spent four years in the production control and conveyance department, as a specialist, where he performed monthly planning for overseas suppliers, was North American engineering change implementation coordinator, was build-out and start-up coordinator, and as a North American parts ordering specialist was responsible for ordering components for the assembly lines. Rooks worked directly with suppliers to develop a Lean environmentto support the needs of TMMK.
This book defines the role of production control and supply chain management from both a broad view and a ‘nuts-and-bolts, how-to’ perspective. The Plan for Every Part (PFEP) process will help your organization cut across the traditional silos of distribution, manufacturing, purchasing and logistics to create a transparent process that will enable you to truly supply the right part at the right time in the quantity needed.
—Mike Hoseus, Co-Author of Toyota Culture, Former General Manager, Toyota Motor Manufacturing Kentucky
Tim and Robyn have taken the PFEP to another level. Their detailed approach of applying PFEP principles to the entire supply chain will help any company eliminate waste and make progress on their lean journey.
—Earl D. Wilson, Co-Author of Making Materials Flow, President, Wilson Lean Concepts, Inc.
Robyn and Tim so humbly point out that every part has a story, and you have to listen to that story. This is a subtle, but very important point…. Plan for Every Part (PFEP) builds the foundation for supply chain excellence and if truly embraced, will lead to a sustainable competitive advantage with your customers.
—John Bohenick, Executive, Consultant, Board Director, & Former President of the Gates Corporation
A must read for any organization creating a lean enterprise by improving speed in the supply chain.
—Tribby Warfield, Gates Corporation, President, Power Transmission Division North America