‘Do it right the first time’ would be the ideal goal for projects aimed at the successful further development of core processes. On the way there, a targeted diagnosis with an action plan helps to overcome initial uncertainties about the right steps to take. A project example will show how the analysis and evaluation of the status quo within a business unit can look:

The first step involves examining roles and responsibilities in their current state (R&R analysis). This analysis roughly reflects the current process organisation. It is intended to stimulate internal discussion in order to ultimately ensure understanding, clarity, efficiency and process reliability (covering all tasks, reducing duplication of work).

Focused interviews with participants from different organisational units and functional levels clarify responsibilities and provide deeper insights into the processes of the relevant specialist areas from different perspectives. Performance deficits and areas of potential for process improvement are identified – with simultaneous recognition of the risks involved in their implementation. In the example project, discussions were held with specialists and managers from three business units at five different locations, with the involvement of the relevant central units.

The findings obtained are used to determine the current ‘process maturity level’ in the underlying maturity model (according to GARTNER), that is, to determine what stage the organisation is currently at. The definition of the maturity level forms the basis for determining suitable measures for reaching the next stage. The focus is on reaching the next level. No stage in the maturity level model should be skipped. Following a specific development path is highly recommended.

Buchbach-Consulting supported the successful step-by-step implementation of primary measures and subsequent readjustment of supply, inventory and operations planning (SI&OP) processes. Cooperation between the go-to-market organisation and the business units, as well as between business units and plants, has been improved long term.

Contact us. With our many years of experience, we can actively support you in the diagnosis and further development of your SI&OP processes!

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Familiar SAP tools, closely integrated with many processes within companies, need to be replaced after some time due to expiring usage rights. A successor solution is needed, but is it even possible to integrate the potential solutions into the existing corporate system landscape?

This was the case, for example, with a group of companies with numerous production plants in several European countries. Not all plants had even implemented the SAP standard (CM21/CM25) by then.
The challenge was to take into account the requirements of different divisions in the individual plants, which differed, among other things, in terms of discrete manufacturing, process manufacturing, and even in varying degrees of vertical integration. There was a typical system landscape with various subsystems, in-house developments and legacy planning tools such as Excel and Lotus.

For this reason, the task encompassed various project objectives: replacing SAP standard transactions, optimising detailed planning processes, harmonisation, standardisation and integration into the overarching (master) planning process, as well as flexibility and expandability for out-of-the-box requirements.

The requirements were grouped into four areas. In addition to the standard functionalities of CM21/CM25, other generally applicable and specific functionalities for automatic detailed planning and process-industry-specific functionalities were defined.

The requirements were categorised using the MoSCoW method. This means that the project team and the requesters (facilities) jointly categorise the hierarchical requirements and agree on indispensable, important (but not mandatory), and desirable requirements, as well as those earmarked for future projects.

In addition to licences and pricing, integration capability and the degree to which requirements are covered are key factors when selecting a suitable software solution.

Contact us. We can support you in the further development and re-selection of your tools for production planning and scheduling:

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In this successfully completed contract, the task was to conceptually restructure production planning for the client’s main production site. The improvement measures defined in the project for various production areas (e.g., colour pastes, small batches, 2-component production, manual filling, automatic systems) were then implemented step by step.

Restructuring began in the production areas, which already had experience with rolling weekly planning and were characterised by plan-driven scheduling. The focus of the implementation work here was on extending the period for drawing up a feasible detailed plan. Production gaps were deliberately incorporated into the weekly and daily schedules. Depending on requirements, special products can be manufactured during these gaps, e.g., products with small quantities, components that are difficult to plan, special colours or additional quantities for promotions and product changes and, of course, outstanding production orders.

As the project progressed, the significantly more complex filling areas for storage products and products with interchangeable tanks and the volume ranges of the automatic and semi-automatic systems were taken into account. This is where the greatest effect was achieved in the overall production system – but it was also associated with resistance to change.

The top priority for all production areas was that once production orders had been approved, the production plan for the following week should no longer be changed. The prerequisite was the establishment of uniform release times and horizons, as well as the measurement of process effectiveness using a production plan implementation rate (adherence). The aim was to achieve a consistently high implementation rate – depending on the production area.

Consideration of disruptive factors: technical malfunctions, staff shortages or unreliable suppliers (delays in the delivery of components that have already been promised) may necessitate rescheduling. In some cases, inventory discrepancies in empty containers (buckets, cans, lids) also trigger rescheduling. However, internal order processing and scheduling logic can also sometimes cause changes to plans. Notable here were ‘unchecked’ EDI orders from the DIY sector, products with consumption-controlled scheduling (falling below reorder points) and internal action requirement planning. In this regard, the ‘concept of production gaps’ proved to be extremely helpful!

The success of a feasible production plan with a low change rate depends on the interaction of different roles from several functional units, as well as on the willingness of all those involved and the organisation to embrace change.

Contact us for more information. We can help you achieve a higher level of process maturity and increased stability in production:

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The effects on purchasing behaviour due to supply bottlenecks, crises, and rising costs were clearly noticeable in 2021 – and will also shape the coming years.

The most prominent example in 2021 was the blockage of the Suez Canal by the Ever Given, a huge container ship. Hundreds of ships were stuck at both ends of the canal, with serious consequences for global trade due to extreme delivery bottlenecks and production losses.

The canal blockade was compounded by the ‘China container crisis’, with its massive supply chain disruptions caused by China’s zero-tolerance COVID policy, partial port closures, and a global shortage of containers. The crisis dragged on well into 2022, as the backlog of ships and the difficulties in returning empty containers could only be resolved slowly.

Added to this were steel shortages and skyrocketing prices. Last year, the steel market was characterised by extreme shortages and historically high raw material prices – a situation that had an impact on everything from cutlery manufacturing in Vietnam to the core sales market in Europe.

All these crises greatly affected Buchbach-Consulting’s activities as ‘Interim Demand Planning & Allocation Manager’ for a brand of an international corporation in the household goods sector.

Example: stainless-steel cutlery. In this case, allocation plans for distribution channels within the sales regions had to be drawn up regularly, taking into account allocation targets. In addition, the limited available quantities of individual cutlery items were allocated to the various relevant ‘cutlery sets’ for each product model. Preference for certain sets for branches, e-commerce, specialist retailers and key accounts had to be considered – and everything had to be done within the framework of the underlying contractual terms and conditions on ensuring the availability of goods.

In addition to the complex creation and coordination of allocation plans – even in the face of resistance from various parties – their smooth execution had to be ensured in detail. A clear time slot schedule specified which activities, such as blocking stocks, packing, rebooking, order prioritisation and ATP checks, had to be carried out and when.

Contact us. We can support you in sales planning and inventory allocation, even in times of constantly changing external influences!

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An open and stress-free working atmosphere offers the best conditions for optimal corporate success. In reality, however, it in many cases becomes clear how full of conflict and tense communications and interactions in business life can be.
Conflicts arise for a variety of reasons. However, they always occur more frequently when the partners concerned in an organisation are dependent on one another and pursue different goals. It is usually impossible for those involved to see a conflict-free solution.

In order to expand its own business in mediation techniques and process design, Buchbach Consulting has acquired knowledge and skills for working as a mediator in business conflicts and has completed several months of training to become a certified business mediator (IHK).

This qualification involved acquiring psychologically based skills in communication, conflict and negotiation. Naturally, a great deal of attention was paid to observing the legal and ethical framework.
The use of short-term mediation and online mediation is a special form. Through the use of suitable online mediation techniques, emotionally intensive and confidential conversations can also be conducted virtually, a skill that is, of course, gaining in importance under the current conditions.

We help you to solve your SCM conflicts in a way that suits your interests and saves you time, gets business relationships back on track and avoids unnecessary escalations or even legal disputes!

Contact us. We will support you in business mediation:

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To achieve long-term sustainability in processes, it is necessary to track KPIs consequently, followed by identification of root-causes for deviations and definition of appropriate actions to improve process quality.

Current projects show some similarities regarding KPIs: initially KPIs are defined and monitored. Suddenly reasons arise, why the goal is seemingly set too high and unreachable. But never forget: Quick target achievement is not always the objective – in the majority of cases the long and cumbersome way to the target value is the real success!

In running projects, Buchbach-Consulting is responsible to achieve sustainability in planning processes by consequent monitoring of defined KPIs, evaluation of root-causes for deviations in process performance and system settings and finally initiating actions for continuous improvement of demand and supply planning quality.

For more information please get in contact with us:

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Strictly targeting to service level management, applying rule based demand planning, and consequent checking of allocated quantities during order entry are the basis to achieve customer service levels beyond 98%.

At present, Asia is #1 focus market for European Companies in the luxury cosmetics segment. Especially, supply chains are faced by huge challenges due to long distance shipments. Service level achievements beyond 98% are necessary to be successful against local and international competitors.

In the past, Buchbach Consulting coached the S&OP process of a supplier of luxury cosmetics. Introducing concepts of a rule based demand and supply planning process and consequent service level monitoring highly supported the upper management to cope with the challenge of 100% service level.

Despite dynamic market trends, now reliable forecast figures are available, considering the background of product life cycle, significance in sales and volatility. By continuous alignment with sales objectives, customer requirements are performed respectively.

Monitoring KPIs – precisely defined in line with customer’s processes – is the base for Close-the-Gap activities and guarantees the sustainability of the actually accomplished high degree of service level

For more information please get in contact with us:

info@buchbach-consulting.com