Network Capacity Model
Company size: 22,000 employees; Valuation $45B
Industry sector and location: Biologics US, Europe & Asia
Assignment Duration: Three months
Client Sponsor: Global Head of Network Capacity and Planning
Following a major acquisition which more than doubled the client’s product portfolio, the client wished to consolidate the legacy network capacity planning models which had previously been in place. The client wished to establish a standardised capacity model for the new business which could be used to profile internal and external capacity utilisation over various forecast planning horizons.
There were three main requirements for this new model:
- The first requirement was to create a demand repository where all long-range forecast and near-term horizon S&OP demand requirements would reside, could be uploaded seamlessly from the legacy host systems and could be compared for all the products in the expanded portfolio.
- The second requirement was to create a capacity utilisation repository, which would be informed by the demand data and the output capacity from each of the unique capacity work centres across the entire network’s internal and external work centres. In turn, this repository would produce graphical representations of work centre capacity utilisation, and the utilization analysis capable of expressing utilization at the level of work center, product family and network.
- The third requirement was for both the demand and utilisation output files to be available for use by the wider organisation without the need to have access to the detailed working files which operated behind the output files and contained all the technical characteristics of the various work centres.
Primecore was retained to create and deliver the network capacity model which would satisfy these requirements.
Primecore developed a deep understanding of the existing demand models across the enterprise to appreciate the extent of demand data configurations which needed to be standardised e.g. Units of Measure (UoM), dose presentations, sizes, strengths, marketed countries and regions.
Primecore connected internally within the client organisation with each of the demand data system owners to gain in-depth knowledge of the system functionality which could help identify opportunities to extract demand data in an efficient and standardised format.
Primecore worked with the existing Network Capacity team to understand the work centre capacity characteristics for all internal dedicated and multi-product work centres and for all external work centres.
Primecore successfully managed to have demand output formats from the host systems converted into an efficient format which could be uploaded seamlessly to an XL based flat file demand repository.
Using a variety of data manipulation functions, array functions, list tables, and conversion factors, a demand summary tab was created with a product drop down which displayed the long-range forecast demand and the S&OP demand side by side for each product in the portfolio, using standard Units of Measure.
A graphical output was also produced which enabled the client to immediately identify any discrepancies in the long-range planning forecast and the short-term S&OP demand horizon.
The demand file was also constructed with the capability to automatically highlight the addition of any new product or country demand in new forecast data sets.
Primecore was able to identify and automatically resolve legacy discrepancies in product, country and region nomenclature which previously had to be manually corrected.
A further XL based flat file structure was created to capture the demand and capacity characteristics for every unique work centre. Using a similar variety of data manipulation functions, array functions and list tables, a graphical representation of capacity utilisation by work centre, product and network was created.
The demand and utilisation output files are now available to the wider enterprise to support demand and capacity utilisation analysis without having to access the detailed working files.
Connecting with internal demand data system owners across the enterprise can highlight quick win opportunities which can result in more efficient demand data extracts being provided for the business.
Time can be well spent by companies in the phase immediately post-acquisition to develop standard nomenclature for product names, countries, regions and Units of Measure.
XL based flat files are extremely versatile interfaces with complex Financial Planning and Analysis (FP&A) and ERP systems