Faced with a raw material shortage, how can you adapt your production schedule effectively?

Focus on producing high-value or high-demand products that maximize profit to compensate the possible plant stoppage losses. Mandatory plant stoppages period due to delayed raw materials can be utilized for plant maintenance was planned ahead, once the raw materials arrive plant can be back to operation. Hence, the long term production plan might be achieved.

Determine reasons for shortages. A supplier’s quality losses that impact delivery is very different from them refusing to ship because you are slow paying. Priority may need to be on faster turns of product and quicker to cash. Slow payments from customers can have nasty cash flow effects.

Prioritizing orders is a good perspective wrt to RM drying up situation. In such a scenario, reconnecting with the client/customer, and asking for the minimum supply required for a shorter span of time, till when the next lot of RM is available. Keeping in mind the morality of not losing a customer, being honest always helps. Providing minimum FG supply to maximum number of customers, will help adding value to the company's business as well.

I completely do agree since that might bring an option to assess the possibility of using alternative materials already available in the inventory and might meet production standards and quality requirements.

Here comes the planning part. Assessing the inventory in prior, and timely, will add to successful and timely delivery of ordered products to the customer. In addition, keeping in view the particular orders, maintaining an order wise Minimum&Maximum quantity of mandatory material required handy, and with quick supply and alternative supply options ready, the targets can be easily achieved. In case of any shortage of material, the quick supply will be used and in case of excess material remaining after order completion, can be used for another order planning and execution.

Determine schedule alternatives for which orders you can fill and assure you maximize value and speed of cash. Involve sales, operations, and maintenance in scenarios.

Optimizing your production processes should be a continuous thing. In the event of material shortages, it is vital that process, design/formulation, be reviewed and modified to extend supply. A good example is finding an alternative material that can supplement a vital material that is in short supply. This can optimize use and extend the amount that can be produced. Slight changes to process may enhance this effect as well.

Seek ways to quickly remove time wastes between processes, even if it means some additional attention or labor to speed things along. Use care in shortening any process, as you may create quality issues and losses that make the problem worse.

Effectively, any business owner should not rely on one or limited raw materials suppliers, deals and communications should be always maintained with multiple suppliers within different regions to ensure fulfillment of his business requirements. Waiting till the issue happen and start looking for alternatives most probably will delay the operation.

Yes, looking for alternatives always helps, in any activity. Or sometimes alternatives are the only options, one is left with. Indulging a good back up/alternative plan/ in realtime shortage of anything, always works out to be a relieving factor. At least, it can help buy sometime, till the next lot available. So, a good planner will always look out for alternatives as well, before starting up any new project, is what I believe in, and who knows the possibility, may be the alternative can be a best solution to all the problems being faced. Trying new things, always helps with the current problems.

This one must be approached with combined engineering and supply chain help. These changes are often not allowed in many industries, like pharma or aerospace.

Adjusting the lead times to your customers during g material shortages may be an unavoidable option. It can have positive benefits in buying time to find solutions to catch up, such as finding, testing, and implementing alternatives. Being on the buying side, I hate being on the customer end of this, but I usually am able to find a way to work with it. Your customers won’t be happy, but they will appreciate the communication and usually will stand by you.

Check with customers to see if they can offer relief. It’s possible they may also need some process downtime for maintenance and can schedule sooner to offer you relief. And if not the transparency will help your relationship, regardless of outcome. Purchasing managers deal with this often.

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