Frequently
Asked Questions
- What are the requirements
to run OTTO?
AS400
Release 3.1 or higher of OS400
- 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.
- 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.
- 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.
- Does OTTO update the Host
data base?
No.
- 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.
- 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.
- 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
- 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.
- 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.
- 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!
- 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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