When Planning Rates Fail Us

12 Mar When Planning Rates Fail Us

When Planning Rates Fail UsStudies show that 30 percent of SKUs in a typical manufacturing facility have at least 10 percent error between the current planning rate used and the ideal, “desired” planning rate. Most manufacturers aren’t even aware of this problem. That’s why frequent, detailed analysis — reviewed more often than annually or even quarterly — are necessary to ensure accurate standard and planning rates.

A new methodology to establish accurate planning rates is required, including:

  • Review data sufficiency.
  • Analyze minute-by-minute production data
  • Look for data anomolies and SKU differences
  • Recommend rates based on historical performance

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