Supplier Scheduling Systems
Min/Max and PODS
Suppliers
Greg Smiley
Central Supply Chain
Procurement Systems
Min/Max Supplier Training
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Min/Max Concept
Min/Max History
Min/Max Web Screens in the Portal
Order Policy - Min and Max Values
Min/Max System Updates
PODS – Purchase Order Discrete Scheduling system
Instructions and Reference
Supplier Scorecard
Assistance
Slide 2
Min/Max Supplier Training - Concept
 Simple system where minimum and maximum
inventory quantity are set for each part number
 Vought inventory levels are then managed by the
supplier between the minimum and maximum levels
 Replenishment: The supplier action of ordering,
producing and shipping product to Vought
 Vought receiving parts up to the max qty, prior to the
inventory quantity going below the min qty
Slide 3
Min/Max Supplier Training - Concept
40
Maximum 35
Inventory Quantity
30
25
Replenishment
Replenishment
20
Consumption
Consumption
Consumption
15
10
Minimum
5
0
0
1
2
3
4
5
6
7
8
9
10
11
12
Time
Beginning Inventory = 25 pcs
Monthly Demand = 2 pcs
Slide 4
13
14
Min/Max Supplier Training - History
 Late 2001 Min/Max inventory management was identified as a
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process and system to replace APORs
In 2002 the first supplier began working to an early MM
process (Excel spreadsheet)
In July 2009 we have 42 suppliers in MM and approximately
50% of all parts purchased by Vought are managed in the
Min/Max system
2009 decision was announced to abandon APORs and move
to Min/Max as much as possible
In August 2009 we moved most suppliers out of APORs and
into Min/Max or PODS.
Slide 5
Min/Max Supplier Training - Portal
Slide 6
Min/Max Supplier Training - Portal
Slide 7
Min/Max Supplier Training - Portal
 Part Number
• Part Number as listed on Purchase Order
• Only Part Numbers with open POs are listed
Slide 8
Min/Max Supplier Training - Portal
 CH – Change Flag
• An asterisk is shown when one of following conditions are
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present: New Part Number, changed Min or Max value, new
Purchase Order, or a new receipt is listed.
The asterisk remains for 7 days
Slide 9
Min/Max Supplier Training - Portal
 Site
• Site that uses the part: STU, HAW, MSF, JSF, NAS,
MIL
Slide 10
Min/Max Supplier Training - Portal
 Min Qty – Inv Qty – Max Qty
• Min value that inventory is to be maintained above
• Inventory Qty (updated nightly)
• Max value that inventory is to be maintained below
 Colors
• Red = Under Min
• Blue = Over Max
• Green = Contact Buyer
Slide 11
Min/Max Supplier Training - Portal
 Dir – Direction
• Inventory vs Min or Max
– U = Under = Inventory < Minimum
– O = Over = Inventory > Maximum
– V = Vought = Contact Buyer
Slide 12
Min/Max Supplier Training - Portal
 Priority Need Date (Initial sort of web screen)
• If the Inv Qty does not support a manufacturing need date within
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the next 30 days, a Priority Need Date is displayed
This is to help the supplier to identify critical PN requirements and
potential shortages
Slide 13
Min/Max Supplier Training - Portal
 Metric Eff Date – Metric Effective Date (MED)
• For purposes of measurement of seller’s performance to min/max inventory
management, the parties will agree to a metric effective date (MED) which shall be
the date after which the seller agrees to manage the buyer’s inventory within the
Min/Max range. If there is no date, the expectation is that the supplier is
responsible for maintaining the inventory between the Min and the Max.
Slide 14
Min/Max Supplier Training - Portal
 Behind Sch Demand – Behind Schedule Demand
• If Vought’s manufacturing operation is behind schedule and did
not pull parts from inventory in a prior month, the qty of those
parts is listed. These quantities will be consumed prior to
consuming parts in the “current” month.
Slide 15
Min/Max Supplier Training - Portal
 Monthly Demand / Planned Consumption
• The web page displays 12 discrete months (rolling) of planned
consumption
Download file has 24 months of planned consumption
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• Suppliers may not have all the planned consumption on PO
Slide 16
Min/Max Supplier Training - Portal
 Total Horizon Qty
• Total quantity of parts loaded into Vought’s Master Schedule /
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MRP System
Supplier may not have the Total Horizon Quantity on open POs
Slide 17
Min/Max Supplier Training - Portal
 Lead Time Calendar Days
• The supplier lead-time in calendar days for the specific PN
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(includes raw material acquisition and fabrication time)
If these values are incorrect, please notify your Vought buyer that
your lead-times have changed
Slide 18
Min/Max Supplier Training - Portal
 Program
• The Vought program that the PN supports
Slide 19
Min/Max Supplier Training - Portal
 PO Number – PO Item – Open Qty
• A listing of all open POs, item numbers & the remaining open qty
• For a PN to show in MM there needs to be at least one open PO
• There can be more than one PO open for a PN
Slide 20
Min/Max Supplier Training - Portal
 Total Open Qty
• This represents the sum of all open PO quantities
Slide 21
Min/Max Supplier Training - Portal
 Last Receipt Date – Last Receipt Qty
• The date of the last receipt of this PN
• The quantity of the last receipt of this PN
• The download file lists the last 5 receipts
Slide 22
Min/Max Supplier Training - Portal
 Colorization of Consumption Plan
Current Inv = 22 – (0 + 3 + 7+
7) =7
7)12
+=7still
5)<<Min
above
0 = =Red
Yellow
Min
Slide 23
Min/Max Supplier Training - Portal
 Online Sort Capability
• Underlined headings indicate a data field that can be
sorted
Slide 24
Min/Max Supplier Training – Download File
Sample Supplier
Slide 25
Min/Max Supplier Training – Download File
Text file, tab delimited that can
be opened by MicroSoft Excel
(from within Excel).
The same data as displayed on
the web, but includes 24 months
of demand and 5 receipt dates
and quantities.
Slide 26
Min/Max Supplier Training – Order Policy
Monthly
$ Usage
Under $160
Min
Ship Qty/
Max
Span
Ships
Year
2 Mo
14 Mo
12 Mo
1
$161 to $300 1.5 Mo
7.5 Mo
6 Mo
2
1 Mo
5 Mo
4 Mo
3
$1K to $2K
0.5 Mo
2.5 Mo
2 Mo
6
Over $2K
0.5 Mo
1.5 Mo
1 Mo
12
$301 to $1K
Slide 27
Min/Max Supplier Training – System Updates
 Real-time Updates (if input or changed by buyer)
• Metric Effective Dates (MED)
• Min Values
• Max Values
 Nightly updates to MM system
• Inventory values
• Purchase Orders
• Receipt information
 Weekly Updates to MM system
• Demand data
Slide 28
Min/Max and PODS Supplier Training
 Min/Max and PODS
• APORs was replaced by Purchase Order Discrete Scheduling
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System (PODS) – August 2009
Vought will have the ability to control by PN those parts that are in
Min/Max vs PODS
– PODS candidate PNs – High dollar, out of production spares, etc.
• Some suppliers will have parts in both systems
• Part delivery requirements/dates will be per the schedule on the
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paper PO and will be reflected on the PODS screen
Nothing automated. If the delivery requirements/dates change,
supplier will receive a revised PO with the new dates
Slide 29
PODS Supplier Training
Slide 30
PODS Supplier Training
Slide 31
PODS Supplier Training
Slide 32
PODS Supplier Training
ABC MACHINE SHOP INC
Slide 33
Min/Max and PODS Supplier Training
Slide 34
Min/Max and PODS Supplier Training
Slide 35
Supplier Training – Supplier Scorecard
Slide 36
Supplier Training – Supplier Scorecard
 PODS
• Measures rolling twelve month average reflecting
percentage of shipments that were shipped on or
before the contract negotiated ship date
 Min/Max
• Measures ratio of Part Numbers with:
– At least one open Purchase Order;
– Inventory under Min – Without a Metric Effective Date
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(MED) in the future;
Inventory over Max – Without a Metric Effective Date (MED)
in the future
Slide 37
Min/Max and PODS – Assistance
 Scheduling Standard Note – S121
• Nick Dyer
• (972) 946-3285
• nick_dyer@voughtaircraft.com
 Min or Max Values and MEDs
• Contact your Vought Buyer
 Portal, Min/Max or PODS Systems & Training
• Greg Smiley
• (972) 946-3181
• greg_smiley@voughtaircraft.com
Slide 38
Min/Max Supplier Training
Slide 39