Using cyclic planning to manage capacity at ALCOA

ALCOA makes aluminum-tubing products to order. The product lines' success c aused a backlog of customer orders and long customer lead times. This probl em was exacerbated by frequent machine breakdowns at a bottleneck operation . ALCOA implemented cyclic planning to improve capacity management. The res ults were immediate and dramatic. Over eight months, output increased by ov er 20 percent, almost eliminating the backlog of customer orders. The cycli c-planning implementation resulted in additional benefits throughout the or ganization, including improved workforce planning and better machine mainte nance scheduling.