Friday, May 29, 2009

A Big Time Mistake Again

Yesterday's post dealt with reserving time to handle unplanned situations that otherwise would render a daily time management plan to be useless. Today I want to share with you how a similar technique can be used to schedule operations where a certain amount of work arrives at random with short delivery dates that in turn require immediate use of resources.

A job shop had problems meeting customer delivery dates. Promised dates meant little and most jobs were scheduled in terms of "asap" or "must go" or "must must go," or "customer needs asap now." Even jobs that had promised dates usually ended up late after being converted to "asap" etc., and adding to the confusion. Each day several expediters tripped over each other bumping jobs and resetting priorities. Much turmoil, a fair amount of arguing, and some screaming and yelling followed many orders through the shop.

For years I suggested that a more structured scheduling system be put into place. For years I was told "it was impossible to do because 50% of the orders are from customers who order today and need it now if not sooner. That's just the way it was, it is and always will be."

What baloney. If 50% of the orders (let us also assume those orders represent 50% of capacity) are "need it now" orders, then set aside 50% of daily capacity for those orders. That would allow us to schedule the other 50% of capacity for orders that can be delivered on a scheduled date basis. We then have the best chance of delivering those scheduled date orders on time so they don't become "asap" at the last minute and add to the confusion. And we can better coordinate the last minute rush orders as we at least have a handle on available capacity.

About Pelleyblog. This blog covers topics of interest to managers, particularly those at the first-line supervisor level. Topics include handling difficult employees, leadership, counseling, coaching, problem solving, lean thinking, motivation and time management. We welcome your comments on this post.

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