CAPA at the C-Level  

Michael Rapaport insists that  CAPA is (still) a very time-consuming process. He is correct that not too long ago CAPA - and all quality management processes for that matter - were wholly based upon manual, paper-driven processes. The fact that CAPA touches so many different aspects, from engineering to production and beyond can have a profound impact on the deliverables that are typically associated with its successful implementation, such as engineering change orders, control plans and rework orders, and often in ways that are far from apparent and only reveal themselves upon implementation and validation testing.

CAPA, consisting of two separate but very related processes, are not one dimensional, flat quality processes. Rappaport puts it succinctly, plant-level CAPA can have a very different scope and context than enterprise-level CAPA, which may not necessarily share the same point of view. Consider the example of an in-line production process deviating from specification. On the shop floor, this issue would need immediate attention, which a C-suite executives would not know about one minor issue at one particular plant on one particular day.

C-level executives see one of the main challenges with CAPA as defining scope and context within a large company. For a global manufacturer, one plant site may literally speak a different language than another plant site, but this comparison is also applicable internally, too. One department may use a different vernacular than another department, which can introduce unnecessary complexity into CAPA. Likewise, it is not uncommon to find different software tools in place within the same company to manage the same quality process, which only makes it more difficult to achieve consistent CAPA internally when scope and context remain amorphous and undefined.

Some CAPA software are simply modules for enterprise resource planning systems or product life cycle management (PLM) solutions; some are stand-alone solutions that require their own IT resources. In the absence of a concerted strategy to streamline CAPA, it is easy to choose a software that may not be the best solution based on your needs. Often, CAPA software is used as an extension of PLM because many manufacturers have invested very heavily in these systems, so it makes sense to manage CAPA in this manner. However, it is not necessarily need to manage CAPA through PLM; there are many, many other possible deployments.  Rapaport correctly identifies that the accurate and timely flow of information is the key - and with the integration abilities of specialized software systems today, there are many choices.

Certainly, the challenges with CAPA are numerous, but these are the most common pain points. The key lesson you can take away is that CAPA does not have to be a lengthy, manual quality process if you define scope, context and deploy the right software. Learn more.  

Supply Chain Professionals Balance Same Day Delivery with Correct Inventory Levels 

Supply Chain Brain noted that same-day and next-day delivery are not services normally associated with furniture stores, but City Furniture is changing that in South Florida. City's fast delivery program, which began 12 years ago, has become a key competitive advantage and is changing customer expectations for the industry.  

City Furniture, which has a chain of retail stores in South Florida, was ahead of the curve on same-day delivery - especially for an industry known for long customer wait times. City began offering same-day and next-day delivery across its network a dozen years ago and has aggressively advertised the service, building it into a key competitive advantage, says Andrew Koenig, vice president of operations. Customers who place an order at any of City's 26 showrooms by 2:00 p.m. on weekdays or 3:00 p.m. on weekends can opt for same-day delivery within a 120-mile radius at no additional charge, Koenig explains. From 40 percent to 50 percent of customers choose the same-day option, he says. 

Each day when the cut-off time is reached, same-day delivery orders are batched and sent to the routing system, Koenig says. After routing is optimized, orders move on to the warehouse management system. "In the warehouse, we will have anywhere from 20 to 30 guys, who have about an hour to pull and stage up to 200 orders." These orders are then loaded onto company-owned trucks. Drivers leave the dock by 4:15 on weekdays and 4:45 on weekends and continue working until all orders are delivered, which can be as late as midnight. "Sometimes our trucks beat the customer home," says Koenig. The biggest challenge with this service has been on the customer side, he adds. "Things change in people's lives and sometimes they can't get home to accept delivery. It's frustrating to have to haul it back and do it all over again."   

Providing this service means carrying a lot of inventory, says Koenig. "We have a great purchasing team and we work really hard to maintain a high in-stock percentage. "The company operates a million-square-foot DC. With more big-box retailers getting into furniture sales and new online competitors gaining traction, the trend for very fast delivery will continue to grow.

SupplyChainBrain recently reported that same-day and next-day delivery are not services normally associated with furniture stores, but City Furniture is changing that in South Florida. City's fast delivery program, which began 12 years ago, has become a key competitive advantage and is changing customer expectations for the industry. City began offering same-day and next-day delivery across its network a dozen years ago and has aggressively advertised the service, building it into a key competitive advantage, shared Andrew Koenig, vice president of operations. Customers who place an order at any of City's 26 showrooms by 2:00 p.m. on weekdays or 3:00 p.m. on weekends can opt for same-day delivery within a 120-mile radius at no additional charge. From 40 percent to 50 percent of customers choose the same-day option, Koenig explained.

Each day when the cut-off time is reached, same-day delivery orders are batched and sent to the routing system. After routing is optimized, orders move on to the warehouse management system. Koenig noted, "In the warehouse, we will have anywhere from 20 to 30 guys, who have about an hour to pull and stage up to 200 orders." These orders are then loaded onto company-owned trucks. Drivers leave the dock by 4:15 am on weekdays and 4:45 am on weekends and continue working until all orders are delivered, which can be as late as midnight.

Providing this service means carrying a lot of inventory. "We have a great purchasing team and we work really hard to maintain a high in-stock percentage. I am so thankful we chose to go down this path 12 years ago because it is no longer a big deal for us. The whole world is shifting to this mindset and we already are there. I feel good about that," commented Koenig. The company operates a million-square-foot DC.  With more big-box retailers getting into furniture sales and new online competitors gaining traction, the trend for very fast delivery will continue to grow.

Manufacturing and Distribution CEOs Find Hidden Opportunities in Supply Chain  

Manufacturing Supply Chain Professionals Managing with Demand-Driven Data

The supply chain manufacturing managers recognize the need to respond to customers' needs by becoming more demand-driven. From plant floor managers to operation managers the interface with suppliers is helping supply chain manufacturing leaders discover how demand-driven principles help organizations profit through more effective methods. The notion of demand-driven is not new; it is undergoing great expansion by helping manufacturers become more competitive and better equipped to meet customer needs, create synchronized systems that solve common manufacturing challenges, and achieve critical business goals. The visibility gained through demand-driven and synchronized factories enable manufacturers to quickly adapt to change and come out more profitable for it whether the change is based on competing market conditions, evolving needs of customers, increasing consistantency, or achieving quality with less error and waste.

Supply chain professionals must aggregate information from both machine-level and disparate enterprise systems, providing real-time visual information systems that empower everyone - from the top floor to the shop floor - with actionable information. More than any other role in manufacturing and distribution, supply chain execution requires managing constraints, improving flow, driving on-time delivery, and maintaining a competitive edge.   

Forecast Errors
Volume 2, Issue 23, June 15, 2015

A forecast error is the difference between the actual and predicted value. The consequences are expensive inefficiencies that can be resolved with lean manufacturing technology.

Do Your Forecasts Hurt As Much as Help?

At the heart of supply chain visibility is a clear understanding of customer demand. Unfortunately, many manufacturers rely on frequently changing sales forecasts as the primary means for tracking customer demand. Such forecasts typically err on the side of optimism and create excess-inventory situations. As those forecasts become more realistic, customers frequently delay, cancel, or make changes, which can result in shuttering production lines, running expensive overtime operations, absorbing the cost of excess inventory and suffering penalties due to changes in shipping plans. Get everyone on the same page with true visibility. Read more.

Forecast Errors
Volume 2, Issue 22, June 8, 2015

A forecast error is the difference between the actual and predicted value. The consequences are expensive inefficiencies that can be resolved with lean manufacturing technology.

Kanban Better Choice for Projects than Scrum

Neil A. Chaudhuri recently suggested why Kanban may be a better choice for projects than Scrum.  Scrum is a process. Kanban is more of a metaprocess, asserting key principle without prescribing how to accomplish them. There is nothing about sprints, Product Owners, formal planning meetings or any of the ceremony associated with Scrum. Based on the lean manufacturing model espoused by the “Toyota Way,” Kanban is in a way a superset of Scrum.  The ability to visualize work in an explicit way is vital.  Kanban demonstrates unequivocally where everything is in workflow. It also reveals potential bottlenecks where manufacturers may apply the Theory of Constraints. Establishing pull systems using Kanban as the core underlying methodology, has been critical to the movement toward lean manufacturing processes during the past few decades. Read more.