CONBON Analysis

For all JIT parts that use CONBON, this module analyzes the factors that determine the number of cards needed to smoothly support production, such as size and variability of demand, safety stock of BONs required, container quantity, and delivery frequency.  The CONBON module then suggests the proper number of cards to be printed.  This key concept explains the calculations made during CONBON analysis.

MFO.  In the CONBON Analysis Program, the Most Frequently Occurring Rate (MFO) is a contributing factor in figuring the number of CON and BON cards needed for a production center/part combination.  As the name suggests, the MFO is the daily rate of demand that occurs most frequently over a flow interval.  This number is commonly called the mode.

For example, consider the following demand for part A:

Flow interval = 10 days

    Demand for Part A.

In this example, 30 is the MFO because it occurs the greatest number of times in the flow interval (four times).  Thirty will be the basis for calculating the number of CONBON cards needed.

CON Calculation.  The suggested number of CON cards is calculated as follows:

Where:

·     MFO is the most frequently occurring rate.

·     Queue Days are the number of days-worth of production to be held as dynamic safety stock at the production center.

·     Lead Time is the fixed lead time for the part, defined on the Part Master File.

·     Safety Qty is the amount of fixed safety stock to be held to buffer unexpected demand, defined on the Part Master File.

·     Authorized Qty is the amount of demand required for the item before production can begin.

·     Container Quantity is the standard container capacity defined on the Container Master File.