Time Fence

What is Time Fence?

Time Fence

In the world of logistics, time is of the essence. The ability to effectively manage time can make or break a company's success. One important concept in logistics planning is the idea of a "time fence." A time fence is a specific reference date that is used as a boundary for policy changes in planning or other systems.

The purpose of a time fence is to provide stability and structure to the planning process. It serves as a cutoff point for making changes to the existing schedule or reacting to demand. By establishing a time fence, companies can ensure that there is a certain level of predictability and consistency in their operations.

Let's consider an example to better understand the concept of a time fence. Imagine a company that produces a popular electronic device. They have a master production schedule that outlines the production quantities and timings for each product. To stabilize this schedule, the company may implement a policy that prohibits changes to the existing schedule inside the time fence.

The time fence is typically based on lead time, which is the time it takes for a product to be manufactured and delivered. For example, if the lead time for the electronic device is two weeks, the time fence may be set two weeks prior to the scheduled delivery date. This means that any changes to the production schedule cannot be made within the two-week time fence.

However, there may be certain circumstances where changes are allowed after the time fence. For instance, if there is a sudden increase in demand or a production issue arises, the company may need to make adjustments to the schedule. In such cases, the policy may allow changes to be made after the time fence, but with careful consideration and approval.

Another example of a time fence is in the context of demand management. Companies often receive customer orders as well as forecasts of future demand. To ensure efficient planning, they may decide to react to customer orders only within the lead time fence. This means that any changes or adjustments to production will be based on actual customer orders received within the lead time. However, for demand beyond the lead time, the company may rely on forecasts to plan their production.

In summary, a time fence is a crucial concept in logistics planning. It provides a reference date that serves as a boundary for policy changes in planning or other systems. By establishing a time fence, companies can stabilize their production schedules, react to customer orders within a specific timeframe, and ensure a certain level of predictability in their operations. Effective management of time fences is essential for maintaining efficiency and meeting customer demands in the dynamic world of logistics.