1. What are the requirements to run OTTO?
• AS400
• Release 3.1 or higher of OS400
2. How difficult is it to install OTTO?
OTTO operates as an additional module, which is integrated to the Host database. The process to install OTTO is:
• Load the tape.
• Run an initial CL.
• OTTO's now installed and can be executed on request.
It is designed to extract and data warehouse information from the existing MRP/ERP software. OTTO makes no changes to your existing software and requires no data entry. Installation takes about an hour.
3. How does OTTO work?
Conceptually, it uses the concept of data warehousing. OTTO retrieves data from the Host system. This separates the actual OTTO logic from the database
4. What is OTTO really doing?
In simplest terms, it provides quick visibility to the balance or in-balance between Demand and Supply. On the surface this seems obvious and almost trivial, however it can become quite complex due to a combination of:
• Forecast vs. actual orders
• Number of line items on customer orders
• Number of levels in the bill of material
• Number of open shop orders & status (partial issues)
• Number of components at a level
• Lead-times - The more customers and vendors move to JIT relationships the more important it is to have correct execution priorities
• Number of purchased items, purchase orders and number/location of vendors
OTTO identifies the material and resource constraints and specific actions necessary to overcome the constraint and meet the goal. The Theory of Constraints Center identifies a constraint as anything that limits you from achieving higher performance relative to your goal.
5. Does OTTO update the Host database?
No.
6. Could OTTO update the database?
Yes, it has user-defined programs to allow customers to insert logic to interface with their system. User selections exist in standard OTTO to call these programs. This allows the user to define their own interaction between OTTO and their system
7. How often should OTTO be run?
At least daily but in reality it can be run as frequently as required depending on the business environment.
8. Who needs OTTO?
Any manufacturer that either wants or needs to improve customer delivery performance or increase production throughput. However OTTO is really aimed at those mangers that believe properly managing priorities is the key to managing capacity.
9. Can you give an example of how OTTO would be used?
Using bicycle assembly as an example:
The planning system will certainly "plan" to have all components available when the assembly order is released. However, it's possible, and sometimes a reality, that shortages do occur! Should the order be released if the shortage is:
• Handlebar grips?
• Handlebars?
• Seat?
• Frame?
The answers are likely to be:
• Handlebar grips - Yes because they can easily be added later.
• Seat - Probably because it can also be easily added later
• Handlebars - Perhaps not because the cables and levers would have to be specially wrapped to protect them, an unwanted step
• Frame - No because nothing can be done without the frame!
It's also possible a planner expedited the seat to arrive on time without knowing the frame wouldn't be available because there's virtually no visibility in a planning system to see this situation developing ahead of time when corrective action can be taken.
With OTTO, several ways could be used to detect this situation ahead of time before it became a shortage:
• Frames - The planner responsible would have known they wouldn't be available and alerted the bicycle assembly planner
• Bicycle assembly - The planner could have seen the potential problem and asked the frame planner if anything could be done. If nothing could be done, the assemble plan could have been changed to eliminate the premium freight on the seat.
It's generally assumed this type of visibility is inherent in a planning system but it isn't. Planning assumes proper planning will prevent the problem. But good planning does not result in good execution. OTTO addresses the execution of the plan.
10. Our problem is capacity, would OTTO be of any value to us?
Material is what moves through the plant, consumes capacity and eventually ships. If demand is very stable or can be controlled, then detailed scheduling for efficiency is what's needed. If determining capacity is a challenge, then OTTO can be of significant help.
11. It really sounds like OTTO replaces planning, is that the real objective?
No, definitely not!
Execution of the plan same thing as working the planning run. However, working with planning run data has been the only tool available to users.
Planning is a periodic function. Execution provides the daily visibility of what's necessary to meet the plan.
We once asked a materials manager how often he ran his planning system. He said "daily." Why? "Because I have to." When asked if they planned every day, his response was no, they really planned once a week. Then why did he do a planning run every day? "To catch what's falling through the cracks." He thought about this for a few seconds and said, "That's what OTTO does, it catches what's falling through the cracks. So OTTO does not replace planning, it supports it. The correct relationship is:
• Planning, identifies what's needed to meet the projections
• OTTO identifies what's needed for current production.
OTTO is to execution what MRP is to planning!
12. What are the benefits of OTTO?
• Improved delivery performance
• Improved manufacturing throughput & efficiency
• More effective use of inventory
• Improved productivity of indirect employees such as planners, schedulers and buyers
• Reduced expediting costs such as premium freight.
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