Re: Calculate top level lead time based on component lead times

Wow, both Roy and Dave pretty well nailed this one.  I had the CMLT package 
(Cumulative Manufactured Lead Time), it was from Phoenix and I'm pretty sure 
they don't exist anymore.  It worked well, but I consistently ran into issues 
with Purchasing inflating their lead times (as Roy said would happen).  In spite 
of repeated education sessions where I demonstrated over and over again the 
problems with inflating the lead times, there was a stubborn insistence on doing 
so.

What we ended up doing was doing the CMLT run, and eliminating any lead times 
over a specified number of days, assuming that the lead times were either 1) 
totally bogus, or 2) irrelevant because if the lead times were that extreme 
Purchasing would "always" keep some on hand.  Believe it or not, that approach 
worked fine for us.

 Dale (Cork) Gindlesperger, CPIM 







________________________________
From: Dave Turbide <[email protected]>
To: mapics-l-Zwy7GipZuJhWk0Htik3J/[email protected]
Sent: Wed, March 9, 2011 1:24:56 PM
Subject: Re: [MAPICS-L] Calculate top level lead time based on component lead 
times

All single level bills? If only single level, you can use the longest
component lead time and add the end item's (production) lead time to get a
total. I don't have any code to do this but it should be pretty easy.

If the bills go down more than 1 level, it's a lot more involved - you would
have to identify the 'critical path' - the longest cumulative lead time
chain. There used to be a third-party add-on that calculated cumulative
lead-time. Don't remember who had it (Viking? Phoenix?)  but maybe someone
out there has an old copy or remembers who sold it.

The other thought is how accurate your item-level lead times might be?
Purchase lead times tend to be inflated (but maybe that's what you want).
Manufacturing lead times may not reflect reality - when you release MOs
according to MRP recommendations, do the orders start out on schedule (not
early or late per the priority assigned)?

Dave Turbide, CFPIM, CMfgE, CIRM, CSCP
[email protected]
(603) 964-6903
www.daveturbide.com

  
message: 2
date: Wed, 9 Mar 2011 09:47:51 -0500
from: Peter_Vidal-/[email protected]
subject: [MAPICS-L] <*> Calculate top level lead time based on
    component    lead times

Good morning / afternoon list!

We need to establish updated lead times for parts sold to our customers. 
The business is proposing using the technique of blowing up the BOMs and
based on the component leadtimes, use the greater of any of the resulting
values and apply it to the finished goods' lead time values.

I have also thought about using current MRP results to get this because the
bill is already exploded; however, this will only be valid for finished
goods that have demand: all others will not be analyzed then.

So I would like to know if you have done something like that and if so, can
you share your thoughts and suggestions on this?

I appreciate your help on this one, as always.

Very best regards,

PETER VIDAL
PALL CORPORATION
SR System Analyst | WH Application Development
10540 Ridge Rd., Suite 203, New Port Richey, FL 34654-5111
UC#: 262-2414 | Direct: 727-844-2414 | Fax: 727-815-3120 | www.pall.com 

"Think like a wise man but communicate in the language of the people."
William Butler Yeats (1865 - 1939)

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