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Be Ready for the VMI Blues
September 1, 2007 By: Chris Raney Paperboard PackagingHaving won orders by promising your customers a Vendor Managed Inventory (VMI) program, you may be looking forward to a workload planned for maximum efficiency, rather than based on reaction to customer panic. However, like many things in life, it's not quite as simple as that.
 Chris Raney |
VMI work should be treated as you would any just-in-time (JIT) order — unless of course, your accounting department is content with maintaining high levels of finished product and their associated expense. However, even the most sophisticated VMI models cannot allow for sudden, unexpected demand for cartons driven by unseasonable weather, a record-breaking run by a popular sports team, or unscheduled downtime. So this situation, perhaps more than any, mandates that your machinery is always ready to run at peak efficiency when you need it.
Know What You Are Dealing with
The one thing you do have in your favor is the ability to schedule and synchronize your preventative maintenance (PM) program with your VMI program. If the equipment has been neglected, perhaps thanks to fire fighting hot orders, it will be worth getting a detailed condition survey carried out by the original equipment manufacturer (OEM). This will identify worn or failing parts, the condition of the machine's safety devices and items that may not be obvious to the untrained eye. After a survey, you should be in a position to rectify any issues that need immediate attention and allow time in your PM schedule for those that don't.
Most OEMs now offer complete PM programs for their customers and many, us included, offer programs at varying levels to meet customers' needs. These may range from straightforward scheduled service visits to extended warranty programs covering virtually all eventualities. The advantage for the carton maker is that the OEM's engineers and technicians have had all the relevant training on their equipment and will, most likely, have seen and fixed many more problems than your in-house technicians are likely to encounter in a lifetime. A further advantage is that OEM personnel will be aware of potential upgrades, which may improve the safety, performance, or quality of your line.
Expect the Unexpected
Even the best PM program can't guarantee breakdown-free performance. When you encounter a problem, it's how well prepared you are that is key to how effectively you cope with the issue. The availability of a trained technician to diagnose your problem is vital, whether it's in person, over the phone, or electronically using a remote diagnostic system that allows them to dial into the control unit of your machine.
Managing your spare parts inventory is another key to efficiently coping with a breakdown. Minimal inventories may keep accounting happy, but it won't keep your customer's business if you can't meet your commitments. If you're tempted to source your parts from third parties instead of OEMs, however, remember that the repair is only as good as the weakest part.
The ability to provide what you promise is the cornerstone of customer satisfaction and successful businesses. Being prepared for the expected and having the capability to efficiently react to the unexpected is key to possessing this ability. A good PM program, sufficient spare parts inventory and OEM support isn't all that it takes to meet your JIT and VMI requirements, but they will certainly give you the upper hand.
Chris Raney is vice president, Folding Carton products for Bobst Group USA, Roseland, N.J. He is responsible for the Folding Carton Business Area for the North American market. He can be reached at christopher.raney@bobstgroup.com.
