Simultaneous Production Planning

Growing product portfolios, on-time deliveries and high quality standards pose ever-growing challenges for companies. Attempts to conform to these challenges result in smaller batch sizes, exhausted capacities and higher stocks. Planning managers can achieve efficient supply chain management and cost-optimal production plans by using a simultaneous planning approach that considers all the relevant factors in one step and synchronizes them across the entire supply chain.

Overview

With classic planning concepts, e.g. the MRP concept, cost-efficiency is difficult to obtain. They often consist of step-by-step planning procedures, which result in material availability and machine capacity being evaluated successively. Moreover, planning is based on unlimited capacities and constant availabilities. This results in the lack of raw materials and primary products as well as overloaded capacities, which must all be manually rescheduled, ultimately leading to delivery delays. This kind of procedure cannot be cost-efficient.

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Stefan Auerbach

Stefan Auerbach
Consultant
Tel: +49 (0) 2408 / 9456 - 1333 s.auerbach@informinform-software.com

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Adrian Bock

Adrian Bock
Consultant
Tel: +49 (0) 2408 / 9456 - 1333 a.bock@informinform-software.com

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Solution add*ONE Features

add*ONE Simultaneous Production Planner disbands the separation of the individual steps of successive planning methods, which isolate the procurement of raw materials from production and distribution. It instead considers all cost factors and constraints in just one step when calculating the master production schedule. Availability of goods and capacitive feasibility are already considered simultaneously at the stage of lot sizing. The result is a robust master production schedule at optimal cost.

  • Consideration of multi-level dependencies

    The availability of primary products, raw materials and purchased parts is not determined during downstream BOM explosions, but already considered during lot sizing.

  • Consideration of available capacities

    The process of determining production lot sizes already considers available capacities which leads to their optimal utilization.

  • Simultaneous consideration of all products to be manufactured

    Since raw materials and purchased parts are used to manufacture different products, and several products can be manufactured on one machine, the simultaneous production scheduling does not consider each product individually, but rather considers them simultaneously.

  • Consideration of production and storage costs

    The results of the simultaneous production planning method are at optimal cost, i.e. factors such as assembly and storage costs are included in the calculation.

  • Precise forecasts about future consumption patterns

    Field-tested forecast algorithms enable reliable demand planning. The consumption pattern is recognized autonomously and dynamically, automatically providing suitable forecast procedures.

  • Automatic consideration of pre-production

    If a production process cannot be scheduled for a requested date, it is automatically scheduled for an earlier point in time.

Benefits

Due to the simultaneous consideration of all planning steps at all production levels, as well as the available capacities, production planners receive a cost-optimized and feasible master production schedule. This consequently creates significant competitive advantages for companies.

  • Overall planning at optimal cost

  • Stock reduction

  • Increased adherence to delivery dates

  • Short processing times

  • Avoiding manual rescheduling

  • Flexibly adapting to the growing product portfolio

Consumer Goods Industry

Consumer Goods Industry

The consumer goods industry is highly diversified: increasing item variety, periodic product innovations and high demands on availability and service require a strong market orientation. Complex delivery networks, the growing online market as well as high competitive pressure represent additional challenges. An innovative planning approach for the entire supply chain can help master the high volatility of the consumer goods market through

  • using reliable demand forecasts under consideration of seasonal sales,discounts and historic dispatch values,
  • the calculation of optimized safety stocks,
  • the simultaneous consideration of machine capacities and material availability,
  • establishing high planning quality across all planning levels

at optimal cost and thereby significantly adding to competitiveness.

Series Production

Series Production

The main challenge faced by series producers is keeping the product portfolio available and to distribute it to the market, or the next stage of the value-added chain. Accurate forecasts for future demand behavior are necessary to master this challenge, since all too often, seasonal peaks and structural breaks occur unexpectedly.

Production capacities cannot be utilized to the fullest, which means that the production process is not cost-optimized. Determining when to start pre-production and which items to prioritize is crucial.

Processing Time Syndrome

Reduce processing time

The so-called processing time syndrome is a frequent phenomenon in production. It emerges when fixed processing times are used for scheduling within a production plan. If an order cannot be realized due to conflicting plans, the processing time is exceeded in order to buffer further potential conflicts. Since this happens over and over again, as a result, very long time periods are permanently used for planning the production process, which mainly consists of long idle times. This results in a very inefficient production process and high stock levels.

With add*ONE Simultaneous Production Planner, the processing time syndrome is avoided and processing times are minimized.

Bucket Planning

Bucket Planning

Classic concepts provide detailed plans with production steps which, on paper, look as if they were planned down to the minute, but in reality tend to fail and have to be rescheduled in the end. add*ONE Simultaneous Production Planner uses the principle of bucket planning, which is a planning method based on time intervals.

With bucket planning, the system determines how the quantities of all production batches must be set within a defined planning interval (bucket), so that, with a given capacity, all orders can be realized. The outcome may be rougher but is also more robust; it can be applied easily and constitutes a much more precise basis for procurement processes.

The Model of Simultaneous Planning

The Model of Simultaneous Planning

Among all feasible master production schedules of a company, which all fulfill every constraint, such as resource capacities and material availability, add*ONE chooses the one with the lowest total cost. The mathematical model of add*ONE Simultaneous Production Planner considers and optimizes all planning parameters at once. All planning areas from the procurement of raw materials up to the finished product are synchronized. Manufacturing companies are therefore able to eliminate the intrinsic weaknesses of classic "step-by-step" planning and receive a master production schedule that is not only feasible but also cost-optimized across all levels of the internal supply chain.

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