How to improve your overall KPI results by understanding the concept of Every Part Every Interval.

It is not very often you come across someone in the field of supply chain who is not familiar with concept of Every Part Every Interval (EPEI) and its importance in the main production process. Understanding EPEI and the use of simulations can result in a significant differential for your business, as the actual markets are very dynamic and mixed.

Lets’ begin by explaining the overall concept of Every Part Every Interval. EPEI is the relationship between your available time for production of a determined process and the number of setups your process is capable to accepting, in a practical application. As you reduce the batch, less time for production is available, due the amount of time you are producing the same part.

Following there are a couple points about how it can influence on main KPI.

• Inventory Level: As you work with batches sizes reductions it is possible improving inventory level, however it will demand a higher number of setups (which can be an opportunity of assigning a taskforce working on a Kaizen for changeover reductions). Let me give one example: as much as you reduce the batch size, less time for production will be available due the changeover quantity, but you are going to be improving the buffer needed of raw material or purchased components. The frequency of production of the parts are going to get bigger, the EPEI of it will decrease. The tricky point here is implementing a Milk Run or Kanban with the runners’ parts with suppliers in order to increase the delivery frequency and to match with the production batch size for this specific frequency.

• Improving the on time delivery and time to market: Due to the lower batches sizes, the process gets more flexible, making easier attending customer’s new demands, also providing lead time reduction, once the material stays less time queued.

• Quality: It is more likely to manufacture a whole batch before making quality controls. As the batches size drops, it gets easier recognizing quality problems, as you are going to make an earlier control. This supports improvements on scrap reduction and makes the process more reliable, saving money; time and not letting these problems reach next process or even worst, your final costumer.

I hope you have enjoyed this brief article and that it can help in a better understanding of this subject and bring new opportunities for the different businesses.

Jo?o Peres

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Cover photo: Heijunka box, used to sequence the production in the correct frequency and quantities.