High Impact Coaching & Strategies

DFT

DFT (Demand Flow Technology)

Developed in the mid-80’s, DFT is a scalable and comprehensive, mathematically-based business improvement strategy designed to drive high levels of response capability, lead time compression enabling manufacturers to be more effective in meeting the needs of their customers on a daily basis. Demand Driven manufacturing with world-class customer service is achieved through alignment of advanced planning strategies with actual customer demand matched to the response capability of the factory defined by DFT.  This creates a shift in fundamental production strategy that forms the foundation for a responsive Demand Driven manufacturing organization.

DFT is a powerful structured mathematically-based toolset, that drives substantial response, cost and productivity improvement through the simulation and design of mixed-model production flow lines within any manufacturing environment. Production processes are synchronized, balanced and reorganized in a flow to enable substantial improvement of product velocity through production, while material replenishment systems are designed to provide flexibility, reduce overhead and provide early visibility of shortages.

As we all know, customer demand is extremely variable, and at times often volatile, requiring traditional business operations to maintain customer service levels by deploying inventory throughout production as well as in Finished Goods.  Conversely, DFT excels in providing the math and science to synchronize and balance every manufacturing process to manage changing customer demand requirements with minimal supporting inventory requirements.  DFT establishes mixed-model flow with optimized resources within manufacturing supported by dynamic material replenishment strategies to achieve a faster and repeatable response to daily demand.  With repeatable and consistent response cycles that are synchronized to the daily demand, global organizations are transformed, regaining control of previously unbalanced production environments with high levels of inventory and ever increasing operational costs.

The goal for any company running DFT is to have an agile production facility that is adaptive to changes in daily demand and one that is aligned to the entire Supply Chain.  The business needs to become Demand Driven to survive and transition itself away from business processes that permit production environments to add significant costs to the business through long lead times and excessive over-production.

Equally successful in all industries, DFT is the science behind flow manufacturing techniques utilized by leading companies such as Advanced Energy Industries, American Standard, Boeing, Garmin, Hyster-Yale, Industrial Scientific Corporation, John Deere, and Nortek. The importance of DFT to manufacturers was stressed by the former Chairman and CEO of GE, Jack Welch, when he stated “DFT is an absolute business discipline…it’s another way to simplify the business.”

Employing a proven framework, manufacturers around the world have been adopting DFT for over three decades with transformational results. Utilizing tools such as Product Synchronizations, Sequence of Events, Mixed-Model Process Matrixes along with DFT Operation Methods sheets companies are able to establish mixed-model flow lines and resources that have the capability to adjust product volume and mix every day aligned to actual demand rather than planned or forecast orders delivering repeatable and predictable response to the customer. Employing a proven framework, manufacturers around the world have been adopting DFT for over three decades with transformational results. Utilizing tools such as Product Synchronizations, Sequence of Events, Mixed-Model Process Matrixes along with DFT Operation Methods sheets companies are able to establish mixed-model flow lines and resources that have the capability to adjust product volume and mix every day aligned to actual demand rather than planned or forecast orders delivering repeatable and predictable response to the customer.

DFT mixed-model flow lines are designed to be balanced to support agility and flexibility.  Through design, potential for over-production is eliminated, flow is established reducing lead times and thereby directly reducing WIP and Finished Goods inventories.

In machine intensive environments, unique tools determine mathematically defined minimum run quantities enabling high setup machines to produce closer to actual demand, while facilitating production of a greater number of product types each day. Consequently, machine environments become more agile and adaptive to customer requirements while at the same time freeing up capacity, significantly reducing quality exposure and the working capital position of the business.

Flow lines and machine cells are established to process multiple products that would have previously been manufactured on product specific assembly lines or machine cells that lacked flow and balance. Specific tools are used to determine the optimal product mix based on commonality of processes, times, and materials etc. while aggregating demand facilitating the mixed-model design and management of a flow line that will accommodate changes in mix and volume on a daily basis. Seasonal or cyclic fluctuations in customer demand will be less severe in impact with a wider range of products being manufactured on the same line.

DFT requires, and puts in place, necessary operator training to promote certification to at least three operations on the flow line. This flexibility allows staffing to be calculated and adjusted based on actual daily rates of customer orders. Adjusting staffing on a daily basis and utilizing flexible operators, the DFT flow line can accommodate changes in demand without any redesign of the production environment.

Flow-based metrics are used to measure performance. On a daily basis, supervisors are provided an hourly Flow Rate target to attain to ensure customer demand is achieved.  During each hour, the line is measured against planned Flow Rate and appropriate corrective actions applied to ensure the planned daily rate is achieved. Overall performance through a month is defined through measurement of Linearity for each line and an entire facility. Linearity provides a business with the ability to closely measure how effective the production environment is at meeting plan and hence the ability of the business to respond to the customer. By transitioning to Flow-based metrics a business can ensure that performance measurement is aligned to the Demand Driven goals of the organization.

DFT will enhance profitability by leveraging increased speed and response.  Working capital reductions of 41% on average and 49% reduction in average lead times are achieved through the capability of DFT flow lines and the creation of balance and flow. Average improvements of 8% on Cost of Goods (COGS) are attained as a result of significant productivity gains and a focus on flexible employees. Customer satisfaction is seen to improve on average by 9% through a consistent, predictable, repeatable response and improved on-time deliveries. Furthermore, a DFT organization can achieve greater competitive advantage and increased market share realized through the capability to manufacture any product based on actual customer demand rather than a forecast.  Non-DFT competing organizations have few options available to them; they can tie up more working capital with additional inventory, increase levels of overtime, or increase capacity.

DFT will impact your business with improved customer satisfaction, compressed lead times, reduction in working capital and reduced Cost of Goods Sold, elevating the business to become a market leader.

High Impact Coaching & Strategies
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Phone: +1 888 841 8621

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