Replenishment -Plan For Every Part
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- Replenishment - Plan For Every Part (PFEP)
Plan For Every Part (PFEP)
Implementation Engineers partners with client to execute Plan for Every Part (PFEP) strategies used in supply chain management to manage and optimize the handling, storage, and movement of every individual part or component within a production process. PFEP provides essential data about each part used in manufacturing, including its sourcing, storage, packaging, inventory levels, transportation, and handling requirements. Implementation Engineers team members are experienced in developing and rolling out PFEP, and assist clients in developing these strategies and component details in a hands-on engagement. By working with clients to develop and execute a structured plan for every part, our clients streamline their operations, reduce waste, and improve inventory management. We work with our clients to ensure that all necessary components and materials are available and delivered to the production line when needed, minimizing manufacturing delays and disruptions in the production process.
96% reduction in vehicles on hold due to missing parts
>7B value of new defense contract secured
75% reduction in missing parts per vehicle
IX® in Action
Our client, a defense contractor which produced military vehicles for the U.S. and foreign governments, experienced part shortages causing semi-completed vehicles to be placed on hold pending receipt of parts. Lead times for raw materials increased significantly and created longer lead times across the board. There was no system in place to set parameters for every part and review those parameters on a regular basis to react to changes in our client’s supply base. Our client engaged with IE to implement PFEP and activities during IX® included:
- Created an Inbound Plan For Every Part and a Storage Plan For Every Part to ensure stabilization and as a mechanism to adjust purchasing parameters as necessary
- Institutionalized Planning Time Fence (PTF) in SAP with expectation reporting
- Developed safety strategy with five parameters for both Safety Time (ST) & Safety Stock (SS)
- Developed Safety Time (ST) method and accounted for suppliers and logistics lead times
- Developed Safety Stock (SS) method with statistical modeling
- Developed all inputs to PFEP master files and automated calculations
- Implemented a monthly PFEP cadence meeting with a Terms of Reference
