What is Plan for Every Part (PFEP)? PFEP – an acronym is originating from the Lean Community. The PFEP is used to define a plan (at part level) for the most efficient replenishment and movement of each and every part used in business through the complete Supply/Value Chain
Get Excess and Obsolete Inventory Policy
Material handling is always a big issue in all small to large scale product base organizations, but it most important sector to need concentrated. The reason behind that; having correct material at the right time and the right location can cut the operations/processing cost into 30 – 40%. Here comes lean manufacturing comes under the picture. Reducing waste (all non-value adding activity) is always profitable but critical to implement in all levels of an organization. Once, if we imagine not only at the manufacturing level but performing at all levels, which work inside demand to delivery (D to D) can provide the ultimate outcome.
For this kind of result, we need a more visible path of information flow under the organization, including who all connected to that product. For example, if the production manager knew the delivery date, he can schedule all the production operations as per that. But the catch is here what if he/she does not know about its supplier delivery time? He can’t generate sound output with this incomplete, or I can say hidden information.
What is Plan for Every Part (PFEP)?
So, PFEP can connect all the data points of the organization and make a product, material, and information flow more visible inside the system. Having all the information about each part and plan as per that information for each part is the best way to get the optimal output from the same resources.
PFEP can be a ten-time bigger version of the Material Resource Planning (MRP) system, which includes more data points to generate product information and make that information available at the required location or to a responsible person. It’s nothing but having a data set of each part required to deliver a finished product and combine them.
PEFP includes data generation points like Modeling, Supplier, Logistic, Demand, Warehouse, Process Plan, Material handler inside the factory, Floor worker, Quality department, and customer data too. Here I am talking about include all the information which is directly or indirectly connected to that particular product. We can subdivide these main attributes, for example, supplier, how many suppliers, material cost historical data, quality of material, lead time, uncertainty performance capability, core competency, and many more.
PFEP saves all the data related to each product like Modeling, Planning, Sourcing, Procuring, Storing, Manufacturing, and Sales/Distribution & Accounting; in a centralized system. This data, most of the time hidden, because it gets stored in different locations not accessible at the required location and time. PFEP can be get connected to the MRP system where it will be working simultaneously and make information available in a more simplified way to the others who deal with the same product at different levels.
- Secure the collective and require data: Each part has its whole journey in the organization; its travel to supplier, material handler, assembly worker, distributor, and at the end customer. All of these points can be a data point and become a source of information in PFEP templet for that particular part. The Bill of Material is a great source to track all parts inside the organization, which can become your starting point to list all the parts. After that, by starting reverse engineering from customer to supplier, you can track the path of part traveling under the factory. Note all the information and move to the next step of segregation that information.
- Segregate data in key points: After collecting enough information, segregate the data in key points. Consider only value-added data for which directly relate to that particular product. Also, consider confidentiality when selecting data. Some data maybe get repeat under different sections, so that time focuses on reducing the extra attributes if it’s possible.
- Create PFEP Templet for each part: Once we get enough quality adding that start creating PFEP templet for each of the parts listed. At the time creating a templet, not all columns can get considered in each of the parts. Some columns may vary as per part details and availability information. But; try to create a list of core columns which should always present in each of the part PFEP templet, for example, part no. SKU, Supplier information, Leadtime, Annual demand, ABC analysis, Warehouse Storage location. Consider the cross-functional teams to consider what should get included in PFEP.
If you are looking for example on how to create template, you should get The Complete Guide to Plan-For-Every-Part (PFEP)
- Select the key member to modify and enter the data: Create one team member at the mid-upper level of management in each department who can modify the data whenever is required in the allotted section. Also, that person can do the routine analysis of PFEP data to see any unusual fields under PFEP.
- Active PFEP in to get redundant data: In the end, enroll the PFEP into daily operations; maybe the 1st enrolment will not successful, but it will get better and better as per time and usage. Try to keep the updated information inside each PFEP on daily bases; monitor the data source for correct information. Also, provide the training to the PFEP handler; also limit the access to enter certain data as per their responsibility with that particular part.
- At floor level: On the floor, productivity is very important, for that using your time and resources appropriately will help get the best output. PFEP provides great visibility of information to the workers who work on the shop floor. Including data like storage location and material volumetric data help the responsible person to understand what they are dealing with? It helps them to analyze which appropriate tool is necessary to handle the bulky part or critical parts.
- Manufacturing level: PFEP improve the planning of material, which can reduce the lead time for the finished product. It will keep away the Stock out, Waiting time terminology from manufacturing planning. A production manager can have a good source of information to do long scale scheduling of production output.
- Supply chain level: Having all the relevant information for product suppliers, Logistics, and internal material handing together; can make easy decision making for supply chain professionals. It will help them to reduced extra inventory for uncertainty; for example, if we know, there is a supplier who can deliver a product in certain situations when primary suppliers fail.
- Financial level: PFEP help in tracking of location, status, and availability of each part, which results in good manufacturing output. It significantly reduced the operating cost and helped to generate more revenue from the same resources. And at the time reducing cost, it doesn’t affect by any kind on the quality of finish good.
Supplementary Supply Chain Policies & Procedure You Should Have in Your SCM Policy Book
- Stocktaking: The Ultimate Guide (Stocktaking Procedure)
- Excess and Obsolete Inventory Policy Guide – Revised & Updated
- The Ultimate Guide to Inventory Planning Methods
- The Ultimate Guide to Demand Forecasting
- Cycle Counting Procedure Made Simple: A Step-by-Step Guide
- 5S – Kaizen Guide: Organizing the Workplace for Flow
Supply Chain Self-Assessment Improvement Tools
- Crane, W., (2018). A Plan for Every Part Is the Answer for Sourcing Speed. Inside Supply Management Weekly. [ 29/4/2020]. Available from: http://ismmagazine.org/a-plan-for-every-part-is-the-answer-for-sourcing-speed/
- Fan, L. and Deng, J., 2016, October. Application of lean logistics in engine plant. In 2016 Manufacturing & Industrial Engineering Symposium (MIES)(pp. 1-6). IEEE.
- Khedkar, A.P., 2015. ” PFEP-Plan for Every Part” to Boost Supply Chain Planning!. KHOJ: Journal of Indian Management Research and Practices, pp.27-31.
- Lyles, A.,(2018). How to Create a Plan for Every Part (PFEP) Part 2 of 2. Falcon fasting Solution. [28/4/2020]. Available from: https://falconfastening.com/lean-learning/inventory-management/how-to-create-a-plan-for-every-part-pfep-part-2-of-2/
- Piatkowski, M., Introduction to Plan-For-Each-Part [09/05/2020]. Available From: https://marekonlean.files.wordpress.com/2010/12/introduction-to-pfep.pdf
- A plan for every part – Inside Logistics. https://www.insidelogistics.ca/features/plan-every-part/