QRM Planning: What it is and how it works

What is QRM?

QRM (Not to be confused with QRMS) stands for Quick Response Manufacturing, a concept in the manufacturing industry with the central idea of ​​reducing order lead time. Companies incur many additional costs related to a (longer) order lead time. Examples of additional costs with a longer lead time include:

To counteract these costs, Rajan Suri, a professor at the University of Wisconsin, developed the QRM method. Many companies have already achieved stunning results with his method. QRM is well applicable to companies with relatively small series but many different products. Low in volume, high in variety.

How does QRM work?

The goal of QRM is to shorten the order lead time, also known as Manufacturing Critical-path Time (MCT). QRM involves thinking in terms of time rather than costs. By thinking in terms of time, lead times are shortened. QRM is a cross-departmental way of thinking, so it should not only affect production but also preceding and subsequent processes, such as sales and transportation.

The following steps are necessary to introduce QRM:

1. Organize your production into cells With the QRM methodology, a shop floor is not organized in lines but in production cells. These cells are called Quick Response Cells (QRC).
2. Introduce autonomous teams In a QRC, one multidisciplinary team works on developing a complete semi-finished or finished product. The team oversees the method and the process itself. Team members should be able to take over each other's tasks to avoid unnecessary delays. The team collectively strives to make this process as efficient as possible.
3. Adjust the planning Ensure that your planning applies the QRM methodology. It is crucial to efficiently manage the flow of work in progress between cells. There should be no congestion or unnecessary waiting times. For this purpose, the POLCA system is used, which is a kind of Kanban variant for QRM. Below, we will delve into POLCA planning.
4. Focus on lead time reduction Teams are determined to shorten lead times in production. The best ideas do not come from the top down but from the teams themselves. They come up with measures, for example, to reduce setup times.

QRM Planning with POLCA

As mentioned, POLCA is a variant of Kanban and a methodology that supports planning in QRM. POLCA stands for: Paired-cell Overlapping Loops of Cards with Authorization.

When a product needs to be made, the routing of the production order is determined first. Each order may follow a different routing if needed. The characteristic of POLCA planning is that the production process is divided into production cells. Each production cell starts production when the receiving cell gives permission.

Route-bound cards (POLCA cards) are used as a communication tool between the different production cells. Essentially, a POLCA card contains information about the supplying cell and the receiving cell, along with a serial number (often an order number).

We'll explain the methodology using an example:

An order goes through the following cells V2, M3, A1, and P1. The order starts in V2, a cell working in pre-assembly. It then moves to M3, an assembly cell. From there, the order proceeds to the assembly cell A1, and finally to the packing cell P1.

The order starts in V2, but M3 must indicate whether production may commence. Upon approval, V2 initiates production. When the order is released by the first supplying cell (V2), it moves to the receiving cell (M3).

Upon release, the order enters the to-do list of the receiving cell (M3). A new card is generated at this cell, now serving as the supplying cell (M3) for a new receiving cell (A1), the next workstation. This process continues throughout the entire route. Ultimately, one or two cards are created per production phase, which can only move to the next phase upon completion. This allows for easy tracking of throughput, and it forces orders to be completed before starting the next one.

In summary, a production cell may commence work when there is an order and when it receives approval from the receiving cell that it can accept the order.

POLCA in vPlan

The principle of POLCA (QRM) can largely be applied within vPlan, thanks to its flexible setup. We'll illustrate this using the example above.

Productiecellen en -proces

In vPlan, the production process is divided into stages. We assign production cells to each stage. These production cells are represented as resources in vPlan.

The order

The order is created manually or through integration as a 'card' in the backlog. The card clearly defines the routing sequence. It also includes several custom fields indicating when a production cell is ready to receive the order. Additionally, work instructions and comments can be added directly to the card.

The POLCA principle with automations

We can implement the POLCA approach in vPlan by utilizing automations. Cards are created and exchanged between production cells based on actions and statuses.

The cards are part of a collection (all cards within an order). At the collection level, each production cell can give its approval, allowing the previous phase to start.

The planning and track

The pre-assembly can start once Assembly gives approval. Assembly has two cards, one to approve the pre-assembly and one for their own tasks later. The status of the approval card indicates that Assembly needs to take action. The other production cells already have their task cards ready, but the status of these cards is set to 'Do Not Start' for now. This way, they already know what potential orders are coming their way.

Each production cell has its own overview. They know which orders are still expected and need to be executed. Each cell knows exactly what actions are expected from them.

Production cell M3 approves, and pre-assembly is notified accordingly. This can be a message within vPlan in the message center, via email, or even through push notifications on mobile devices.

This principle also applies to the other cells. When M3 is ready to start, they change the status to 'Ready to Start', triggering the creation of a card at A1. A1 must then approve before M3 can start again. Cards are automatically generated, saving a lot of time.

The POLCA planning aims to execute the lead time as quickly as possible, ensuring no unnecessary bottlenecks occur and that production cells are synchronized with each other.