Frequently Asked Questions
  1. What are the requirements to run OTTO?

    AS400
    Release 3.1 or higher of OS400

  2. How difficult is it to install OTTO?

    OTTO operates as an additional module which is integrated to the Host data base. The process to install OTTO is:

    Load the tape.
    Run an initial CL.
    OTTO's now installed and can be executed on request.

    It's designed as an extension to your existing AS400 software and makes no changes to your existing software and requires no data entry in order to function. You can be reviewing your live data within hours of receiving the tape.

  3. How does OTTO work?

    Conceptually, it can be thought of as a large data query. OTTO retrieves data from the Host system via a front-end program (API or File Driver) and all reads to the Host are done from this program. This separates the actual OTTO logic from the data base. The main OTTO logic is actually a separate object insofar as it has no idea what the Host data base is. We have a single main logic program.

  4. What is OTTO really doing?

    In simplest terms, it's attempting to provide quick visibility of the balance between Demand and Supply. On the surface this seems obvious and almost trivial, however it can become quite complex due to a combination of:

    Forecast vs. actual orders
    Number of line items on customer orders
    Number of levels in the bill of material
    Number of open shop orders & status (partial issues)
    Number of components at a level
    Lead-times - The more customers and vendors move to JIT relationships the more important it is to have correct execution priorities
    Number of purchased items, purchase orders and number/location of vendors

    OTTO identifies the material constraints and identifies specific actions necessary to overcome the constraint and meet the goal. The Theory of Constraints Center identifies a constraint as anything that limits you from achieving higher performance relative to your goal. In this sense material is always the constraint in manufacturing because it causes the load on production facilities.

  5. Does OTTO update the Host data base?

    No.

  6. Could OTTO update the data base?

    Yes, it has user-defined programs to allow customers to insert logic to interface with their system. User selections exist in standard OTTO to call these programs but, the programs have no logic in them. This allows the user to define their own interaction between OTTO and their system and yet there's no problem upgrading to new versions of OTTO.

  7. How often should OTTO be run?

    At least daily, perhaps more often depending on how dynamic your environment is. The real issue isn't runtime but coordination of people and their focus - ensuring everyone is on the same page at the same time.

  8. Who needs OTTO?

    It would be easy to say any manufacturer that either wants or needs to improve customer delivery performance or increase production throughput. Our customers range from high volume, quick turnaround to capital equipment. However OTTO is really aimed at those mangers who believe properly managing material priorities is the key to managing capacity. In general, our customers demonstrate one of two primary characteristics, or a combination of them:

    Complex products
    Quick response to customer orders

  9. Can you give an example of how OTTO would be used?

    Using bicycle assembly as an example:

    The planning system will certainly "plan" to have all components available when the assembly order is released. However, it's possible, and sometimes a reality, that shortages do occur! Should the order be released if the shortage is:

    Handlebar grips?
    Handlebars?
    Seat?
    Frame?

    The answers are likely to be:

    Handlebar grips - Yes because they can easily be added later.
    Seat - Probably because it can also be easily added later
    Handlebars - Perhaps not because the cables and levers would have to be specially wrapped to protect them, an unwanted step
    Frame - No because nothing can be done without the frame!

    It's also possible a planner expedited the seat to arrive on time without knowing the frame wouldn't be available because there's virtually no visibility in a planning system to see this situation developing ahead of time when corrective action can be taken.

    With OTTO, several ways could be used to detect this situation ahead of time before it became a shortage:

    Frames - The planner responsible would have known they wouldn't be available and alerted the bicycle assembly planner
    Bicycle assembly - The planner could have seen the potential problem and asked the frame planner if anything could be done. If nothing could be done, the assemble plan could have been changed to eliminate the premium freight on the seat.

    It's generally assumed this type of visibility is inherent in a planning system but it isn't. Planning assumes proper planning will prevent the problem but good planning is a lot like calling the right play in football. While play-calling is certainly important, it alone won't result in the desired performance. Even a superficial knowledge of football reveals execution is just as important as planning and the same is true for manufacturing. However, the tools to manage execution haven't existed before. Finally, ensuring all the components are actually available really isn't a planning responsibility, it's an execution responsibility.

  10. Our problem is capacity, would OTTO be of any value to us?

    Perhaps, depending on the situation. To begin, material is what moves through the plant, consumes capacity and eventually ships. If demand is very stable or can be controlled, a good plan to execute transition is in place and the plant rarely experiences an overload, then detailed scheduling for efficiency is what's needed. If determining capacity is a challenge, then OTTO can be of significant help.

  11. It really sounds like OTTO replaces planning, is that the real objective?

    No, definitely not!

    We once asked a materials manager how often he ran his planning system. He said "daily." Why? "Because I have to." When asked if they planned every day, his response was no, they really planned once a week. Then why did he do a planning run every day? "To catch what's falling through the cracks." He thought about this for a few seconds and said, "That's what OTTO does, it catches what's falling through the cracks." Executing a planning run isn't the same thing as planning. However, it's been the only tool available to users to "catch what's falling through the cracks." Planning is a periodic function, execution should provide daily visibility of what's necessary to meet the plan.

    So OTTO does not replace planning, it supports it. The correct relationship is:

    Planning, identifies what's needed to meet the projections
    OTTO, identifies what's needed for current production.

    OTTO is to execution what MRP is to planning!

  12. What are the benefits of OTTO?
  • Improved delivery performance
  • Improved manufacturing throughput & efficiency
  • More effective use of inventory
  • Improved productivity of indirect employees such as planners, schedulers and buyers
  • Reduced expediting costs such as premium freight.

 

 

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BPCS Application Consulting