Introduce Mr.Rho CEO of Asprova Korea

Mr. Rho (Rho Choongho), CEO of Asprova Korea graduated from a Korean university and studied earth science using the computer at the University of Tokyo.

Then he joined Asprova corp. , and became one of the development members.

“The project was hard because it was to make a new Asprova be the world No.1, which could deal with all the problems which the previous Asprova could not handle.”


“Asprova is now the world’s best with 2880 sites in 44 countries. I am glad as one of the developers of Asprova. ”

Then, Mr. Rho returned to Korea and is now president of Asprova Korea. Rho has more than 40 users, including Korea’s major business group.

But he often says, “Business is difficult. I can’t get a profit.”It’s natural because he cares too much about customers. But he is loved by everyone.

Rho is an expert in Japanese and loves tuna and grilled chicken, so he wants to do support work in Japan as well.

He should have got a manufacturing award from the Japanese government.

If he was in Japan in 2018.
He would have got the noble award.

You can see the economic
minister and our development
members in this poster.

Mr.Rho should have been here.

Asprova Korea Co., Ltd.#524, Hyundai Parkville 41, Gongwon-ro, Guro-Gu, Seoul, 08298, Korea(주) 대표 이사 노츈호 배상 휴대폰 : 010-5511-9190 http://asprova.co.kr/E-mail: rch@asprova.co.krrch_1234@hanmail.net

Vendor Managed Inventory

VMIVendor Managed Inventory (VMI) was introduced by Kurt Solomon Associates in 1992. VMI is a collaborative strategy between the buyer and supplier to optimize the availability of products at a minimal cost. Under VMI, the buyer authorizes the supplier to manage the inventory of stock-keeping units (SKU) at the buyer’s site(s) under a mutually agreed framework of performance targets. The buyer provides the supplier with sales and/or inventory status information whereas the supplier makes and implements decisions about replenishment quantities and timing.

VMI provides the supplier with the opportunity to better manage its own production, inventory and transportation cost. In exchange, the buyer typically receives price discounts or improved terms of payment from the supplier. A well-designed and developed approach to VMI can lead not only to reductions in inventory levels in the chain, but also to secondary savings arising from simplification of systems and procedures.

A supplier of industrial fasteners to a customer in the automobile industry supplies track-side and assembly positions, and is paid a predetermined sum for each vehicle completed and shipped. VMI avoids accounting for single or small quantities of low-cost items, and consolidates a large number of small payments into a smaller number of larger payments. The benefits are shared where buyers receive higher service levels, and improved cash flows. In return, vendors enjoy better visibility of changing demand and greater customer loyalty.

The real benefits are those which attach neither to the buyer nor the seller in particular, but to the supply chain as a whole. These include management undertaken by whoever is best positioned or qualified, a smoother flow of materials, an enhanced flow of information, simplified administrative procedures, and the placing of the competencies of supply more firmly with the supplier.

It is unlikely that vendor management will be seen as appropriate for all classes of inventory. Generally speaking, it is likely that category C items (wide range, low cost) might be seen as being particularly appropriate, where there is a wide market and a number of suppliers wishing to differentiate their offerings by virtue of service. Items where there is a strong interdependence between seller and buyer might attract consideration of the possibilities of VMI.

The great news is that a data-driven approach using Asprova has shown to achieve big improvements in forecast accuracy. Our users can now precisely estimate the future inventory of materials based on the quantity of finished products that consumers will purchase. In VMI collaborative environment, clients can then easily furnish their suppliers with these prospective materials requisition or their suppliers can simply access these records via Electronic Data Interchange. Hence, Asprova has been instrumental in successful implementation of VMI between our clients and their suppliers.

Photo credit: Flickr © Nick Saltmarsh

Asprova Modules and Options

Asprova is a lean-manufacturing solution that provides a high-performance scheduling tool for manufacturers. It offers various modules and options that help meet the demands of customers in the manufacturing industry.

modules and functions

Asprova MES – Manufacturing Execution System
This enables viewing and confirmation of the schedule and/or input the results of the production.

Asprova BOM – Bill of Material
This is the terminal for the master data maintenance.

Asprova MRP – Material Requirement Planning
This module allows creation of a schedule with more simplified Integrated Master settings. This is most useful in calculating the required material quantities assigning them with infinite capacity.

Asprova MS – Manufacturing Scheduler
This performs short term scheduling and creates detailed production schedule through finite capacity scheduling.

Asprova MS Light – Manufacturing Scheduler Light
This is a module based on the MS module which splits several features as options for customers. There are 5 available options for MS Light which will be the same as MS if all are taken. The available options are as follows:

  • Scheduling Command allows detailed customization of the structure of scheduling parameters by editing (add/delete/reorder) the commands executed during rescheduling.
  • Auto-replenishment generates orders automatically to prevent inventory from going below the safety stock level based on lot sizes and time period grouping.
  • Sub resources allows assignment to more than one resource at the same time. For example, you can assign workers, jigs or molds with machines.
  • Operation split option splits operations specifying lot size in order to assign them to several machines to shorten lead time.
  • Branching process allows assignment of processes which produce multiple outputs.

Asprova APS – Advanced Planning and Scheduling
This allows performing long, mid, and short term scheduling across sales, manufacturing and purchasing in a single module.

In every module, a Gantt chart is available as user interface. The following modules: APS, MS, MS Light, MRP can make the production schedule while MES can be used to confirm a schedule or input the result. BOM, on the other hand, is used to maintain the master.

Furthermore, there are seven advanced options in Asprova that you can choose from:

Option Description
Sales Ties-in the sales orders information with the production plan. Based on the results of the production schedule and knowing the confirmed quantities of inventory, we can easily and accurately forecast the situation and provide due dates for the orders.
Purchase Links the production plan with the purchase information through scheduling purchasing of the materials with the constraints of the material delivery plan.
KPI Shows calculation and evaluation of KPIs for the whole project or specific orders, resources, and items.
Optimization Reassigns the operations to control the work sequence.

For example, the same products are grouped to shorten the set up time or products are sorted from based on color (light to dark)

Time constraint MAX Limits the time between the end of the previous process and the start of the next process. This is efficient for perishable WIP such as food, medicines, chemicals, etc.
Resource lock Locks a resource to prevent assignment of other operations within a certain period of time or until the current operation is completed. This is efficient for tank facilities or molds which cannot do other operations until the end of the next process.
Event Generates events in certain conditions e.g. maintenance, equipment clearing

Using these features will help you in efficiently making a schedule. For more details of the modules and options, please refer to Asprova’s online help. You can also request to download the free trial version of Asprova that has all these modules available for you to study.

 

How to Address the Top Problems in the Manufacturing Industry

flickr ©Carmella Fernando

A customer orders 100,000 pieces of apparel. Manufacturer promises to deliver 2 months from the date of order. Due to challenges in the line, the request was not delivered on-time. The customer lost a week’s worth of profit and so does the manufacturer.

One of the most common problems in the manufacturing industry is the lack of ability to quickly calculate and provide an accurate Available-To-Promise (ATP) quantity and delivery dates. ATP is the ability to project quantity and commit delivery dates based on availability of resources. It is essential for a manufacturing company to know its available resources first before committing quantities and dates to the customer.

A manufacturer needs to know how much inventory it has to be able to commit on ordered quantity. It is critical that the company has an accurate record of inventory as any shortages may lead to delay in due dates.

When a customer places an order, the manufacturing company checks available inventory plus incoming supply and projects when to deliver the order. This information is vital as this is what the customer holds the manufacturing company accountable for. A few delays on the promised date can affect the company’s credibility and may lead to customer disappointment.

These problems are inevitable—some within the company’s control, while others are caused by external and uncontrollable factors. Any changes in orders due to material shortages, machine breakdown, and labor absenteeism can impact order availability. The key in addressing these problems is to plan within these limits also known as constrained production scheduling. Planning with all constraints considered guides the company in giving a more realistic production schedule.

One major way to deal with this is through Asprova, Japan’s No.1 production scheduling software which has been around for more than 20 years and is deployed in almost 2,000 factories worldwide. The system helps manufacturers achieve a bird’s eye view of their detailed production schedule wherein any changes can be easily taken into account. The system will aid the company in planning the right schedule at the right resource, at the right quantity and at the right time, thus driving business growth and increasing customer satisfaction.

To experience Asprova first-hand, you can download the trial version by clicking the button below:

 

Classifications in Manufacturing Industries Part I

Silk factory

BY PRODUCTION PROCESS

Assembly type

This is one of the most commonly used classifications. It pertains to factories where parts are assembled to make a product. This is also known as “discrete type”.

Process type

This is also one of the most commonly used classifications. It is where the product is produced from the material through a chemical change. Process type is also known as “non-discrete type”.

BY PRODUCT TYPE AND PRODUCTION VOLUME

Mass production of scant kind of products

From a factory’s point of view, this classification is efficient. This is mainly because it is easier to mass produce than to create different products.

Small volume production of diversified products

Recent trends show that mass production of scant products is slowly dropping away. This is why small volume production of varied products came to be. This is developed to meet the different needs of consumers.

BY STOCK POINT

Make-To-Order (MTO)

As discussed in the previous paragraph, consumer needs vary. So, in order to satisfy the growing needs of the populace, MTO was conceived. MTO is generally a business production strategy that allows customers to buy products that are customized to meet their specifications.

Make-To-Stock (MTS)

This is the traditional production strategy. It relies on demand forecasts that determine how much stock should be produced.

 

Can Asprova Tell the Material Inventory Availability?

Answer summary:

Yes, through inventory graph. You can also use Auto replenishment so that you will be notified as to when you need to purchase materials (raw). See Videos 22.04 to 22.08

royalty-free-warehouse-clipart-illustration-439310Presidents, CEOs, directors, and other high-level executives recognise the importance of inventory management. Even the most attentive and detailed-oriented manager is no match in getting the exact level of it. Most of the time decision makers rely only on the external benchmarks that seldom deliver the expected insights. This might lead them to the wrong path when they are making the operating assumptions. Getting the right levels of the inventory is important since it not only controls costs but also measures the company’s overall health.[1].

Accounting for inventory in manufacturing environment is often more complex compare with inventory accounting in other business setups. Manufacturers account for production inventory when making plans, schedules and valuating raw materials needed for production. One of the most essential steps in managing your inventory while making production plan is knowing the availability and quantity of every resources and materials[2].

Inventory Graph

Asprova can easily monitor the availability of materials through the inventory graph.  It can check whether there is a shortage of materials or none. The graph will tell you the exact date and time on when the materials will be depleted and can give you a visualization of which operation will have a shortage in materials. In addition, Asprova has an auto-replenishment function where it can automatically replenish insufficient and depleted items for production orders and purchase orders. Auto-replenishment will also notify you if you already needed to purchase raw materials.

Monitoring the quantity and availability of every material is only one of many ways on how Asprova can help you manage your inventory. It is still best to have a hands-on experience on monitoring your inventory using Asprova. See it for yourself. Download the free trial version of Asprova and watch the tutorial videos for more information.

[1]www.bain.com/publications/articles/ten-ways-to-improve-your-inventory-management-wsj.aspx (Date Accessed: June 15, 2014)
[2]http://smallbusiness.chron.com/production-inventory-17468.html (Date Accessed: June 15, 2014)

 

The Basics of Production Management

Scheduling is just a small part in the entire collage of production management. It is an important factor that influences the other areas involved in achieving the goals of production. We’ve published many articles focusing on the different scheduling angles of production. This time, however, we’d like to try to review and reanalyze the fundamentals of managing a production system.

Tomoichi Sato, an expert in production management, defines the production system as a “system to convert demand information into products.” That statement also serves as the main goal of production. “This system is composed of humans, machinery and the space provided by normally a kind of building.

They are generally called resources, human resource and mechanical resource,” he adds.

Human resource – this is generally defined as the set of individuals who make up the workforce

of an organization, business sector, or economy.

Mechanical resource – this refers to the machines that are used in production.

According to Sato, the ability to create a production plan can also be termed production control. He underscored that “control” is a more detailed (or stronger, in a sense) word as compared to “management”. Schedulers have the ability to control and influence the results of the entire production system.

PrdSys02-thumb-522x267

Mr. Sato also has a different perspective about what is the main input in production. Conventional view, he said, is to “regard raw materials or parts as input into production system which converts them into products” but his view is quite unconventional, he continued by saying that “The main input is not the raw materials or the parts but the demand information.” In his view, the raw materials, parts and resources are the needed support to convert demand information into products.

Do you agree with Tomoichi Sato’s perspective?