Buffers?

On Friday, the subject of variability addressed by buffers was introduced.? Where should buffers be built? First, intimate knowledge of your Supply Chain is needed before buffers can be designed. Defining the Goal (paging Eli Goldratt), and identifying the constraint is the first step. Recall that the constraint can move within the Supply Chain depending upon the circumstance. This makes the constraint dynamic, not static so buffers must likewise be dynamic..??

The second step is identifying historical breakdowns that can impact the supply chain. Recall that breakdowns are not the same as constraints. This exercise can be quite specific within a plant or it can be more general across a supply chain. That is, a production facility can and should identify the key constraint and work to protect it both upstream and downstream.?

Or, a more general approach can identify “production” or “sales” or “transportation” as the key constraint limiting the organization from reaching its Goal. Of course, details matter, but so does higher level Supply Chain analysis.?

The third step is to design and implement buffers upstream and downstream of the constrained asset as well as design scenarios where dynamic buffers need to be implemented.? Keep in mind that buffers do not necessarily mean inventory. Capacity, time, backup supply, product swaps, and other contingency plans are other buffers.?

The fourth step is to continuously monitor the buffers to ensure they are appropriate, healthy and maintained. For that to happen, the buffers must be carefully defined and visible.??

1) Identify Constraint

2) Identify Breakdown Vulnerabilities

3) Design and Implement Buffers

4) Monitor Buffers