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TST : Think globaly


Problem

  • Where: Buffalo New York (USA);
  • What: Severe snowstorm;
  • Occurence: average one time per year;
  • Severity: Traffic delayed up to 24h;
  • Impact: 80% of inbound flow, 100% of outbound flow (exclusively EXW).

Source: Google Earth

Blue: Inbound flows
Red: Outbound flows


Solution

This event has been not taken in the TST because all outbound trucks were coming through Buffalo to pick-up material in Rochester New York and going back through the same city. During a snowstorm, Customers were not able to come to pick-up parts.
So the lack of RAW material impacted the plant (production line down) but not Customers. The theorical cost of this solution is the cost of production been down. But this event is rare and at the same time some operators are not able to come to work. So the real impact is minimum.

TST calculation The best way to calculate a TST is to analyse the history of transportation arrival time.

Safety Transit Time (STT) Safety Transit Time impact the transportation route or/and its transit time.

Delivery Safety Time (DST) Delivery Safety Time has to cover the maximum delay of an order.

Learn more...

Transportation Safety Time Transportation Safety Time (TST) has to be known to insure a good sizing of the VRO loop.

Using TST for weather events A classical example used by a lot of companies during winter.

Eliminating TST based on receiving hours An analysis of truck arrivals and receiving schedule may help to optimize your TST.

Optimizing TST of a 3740 km milkrun A real example showing how you can optimize the TST and its cost.

Eliminating TST based on production hours An analysis of truck arrivals and consumption schedule may help to optimize your TST.

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