Buffer Calculations Example
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Transcript of Buffer Calculations Example
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CIPG
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Author:Updated: 11/26/2010
Strategic Buffers Area:Value Stream Radiator TanksPart Part Standard Avg. DailyDescription Number Pack Demand
DESC PN PK ADD075-700 160092-700 135253-700 96473-700 144484-700 196
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Strategic Buffers Area:Value Stream Radiator TanksPart Part Standard Avg. DailyDescription Number Pack Demand
507-700 208 425508-700 196517-700 196619-700 208
724-700 135732-700 60753-700 96755-700 135759-700 144
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Strategic Buffers Area:Value Stream Radiator TanksPart Part Standard Avg. DailyDescription Number Pack Demand
790-700 135799-700 160906-700 208907-700 196
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CPIGDemand Variation MFG V
QLF Adjusted CV Variation VariationAdjust Demand Pcs %
QLF ADDa CVd STDVd0 00 00 00 00 0
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CPIGDemand Variation MFG V
QLF Adjusted CV Variation VariationAdjust Demand Pcs %
0.98 417 30% 125 10%0 00 00 0
0 00 00 00 00 0
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CPIGDemand Variation MFG V
QLF Adjusted CV Variation VariationAdjust Demand Pcs %
0 00 00 00 0
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riation Cycle Stock Stock Levels are in StVariation MAX Murphy Temp Cycle
Pcs Pcs Days Stock Stock
STDVm CS Max M0 00 00 00 00 0
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riation Cycle Stock Stock Levels are in StVariation MAX Murphy Temp Cycle
Pcs Pcs Days Stock Stock42 10 0.1 10 00 00 0
0 00 00 00 00 0
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riation Cycle Stock Stock Levels are in StVariation MAX Murphy Temp Cycle
Pcs Pcs Days Stock Stock0 00 00 00 0
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ndard Packs MAX MINVariation Safety STD STD
Stock Stock Packs Packs
MAX MIN0 0 0 00 0 0 00 0 0 00 0 0 00 0 0 0
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ndard Packs MAX MINVariation Safety STD STD
Stock Stock Packs Packs1 1 3 20 0 0 00 0 0 00 0 0 0
0 0 0 00 0 0 00 0 0 00 0 0 00 0 0 0
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ndard Packs MAX MINVariation Safety STD STD
Stock Stock Packs Packs0 0 0 00 0 0 00 0 0 00 0 0 0
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MAX
PCS
MAX00000
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MAX
PCS624
000
00000
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MAX
PCS0000
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Data Required What it is and how do you get it.Part NamePart Number Standard Pack Qty Whatever the smallest quantity is that moves from supply to consume operation.
Average Daily Demand
QLF - Adjusted Demand
CV
Mfg Variation %
Cycle Stock
Murphy in Days
Look at what has been consumed daily for the last 30 days and calculate average.Should also look at forecast to determine any trends.The quality load factor is calculated by using the formula 1+ (returns + scrap)/ADD.The returned units from the customer plus the units scrapped at the supplyingoperation is divided by the ADD for the same time period. This is added to 1 andmultiplied times the ADD to adjust it upwards.
This is the Coefficient of Variation. It is the Standard Deviation divided by theaverage of a series of numbers. Here is is used a reference of the level of variationseen.
Demand Variation -Standard Deviation
Can be statistically calculated or estimated. If you have good use data, try to get 30days of consumption data and use Excel worksheet to analyze. If not, look for thehigh and low points in the demand and take 1/2 of the difference from the average.
Estimated variation seen in supplying operation. Used to estimate StandardDeviation.
Manufacturing Variation -Standard Deviation
Can be statistically calculated or estimated. If you have good use data, try to get 30days of production data and use Excel worksheet to analyze. If not, look for thehigh and low points in the difference between what was scheduled and what wasactually built. Take 1/2 of the difference or estimate the percentage missed by.
This is the difference between how the part is built and how it is used. Use thecycle stock worksheet to determine how much stock you need to have just to cover the lack of synchronization between operations.
Pick a fraction of a day or number of days of stock you want to keep a just safetystock. Pure gut feeling here.