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On-Time Orders (OTTO)
Question and answer with Richard C. Ling
Internationally recognized manufacturing systems consultant
2001 Recipient of APICS Lifetime Achievement Award
- What problem is On-Time Orders (OTTO) addressing?
Manufacturing companies are under great pressure today to improve customer delivery performance. For many companies the result has been an increase in expediting and production disruptions with either added expense, late deliveries or both. Planning is necessary but it's no longer sufficient by itself to meet customer expectations. The problem is information can't cross organizational boundaries quickly enough to provide users the visibility to quickly recognize what's necessary to support current customer commitments.
- Why isn't everyone looking for OTTO?
Rapid advances in computer technology have blurred the distinction between the roles of the computer and the people in modern business systems. The current perception is technology by itself can solve the problem. But manufacturing is a complex process made-up of a series of least-worst decisions; there are no simple, magic answers. Management appears to have lost sight of the role people play in solving the challenges short-term problems present and aren't considering options that would improve the productivity of their knowledge workers - planners, schedulers and buyers.
- What does OTTO do that APS doesn't?
APS identifies what constraints need to be overcome and provides the best schedule given the constraints. But the objective isn't only to overcome or remove the constraints but to prevent them from even occurring. Only people can anticipate and overcome current constraints. But this requires time for analysis; for people to apply their knowledge to the data. OTTO removes the non value-added tasks of extracting and manipulating data and provides the visibility to support people in solving near-term, complex problems.
- What is the solution?
OTTO is a people-based, post-planning, pre-expediting function. It enables people to understand what actions need to be taken immediately to satisfy customers. OTTO makes good people better by allowing them to quickly answer the question, "What should I be working on now to prevent problems in the near future?" It's the superior tool to aid suppliers (internal as well as external) in determining real near-term priorities.
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