Manufacturing Inventory Management

Demand-driven production represents a top goal in manufacturing. This, in turn, requires a highly accurate material requirements planning process that results in minimized inventory levels. This can be achieved through the use of precise forecasts, sophisticated exception management and a high degree of transparency.

Overview

Manufacturers strive for high service levels to end-consumers, short delivery times, optimized warehouse management and the efficient use of resources in the production process. However, market demand fluctuations, supplier risks and high production depth can all complicate the realization of these goals and materials management optimization. The belief that high levels of inventory lead to a smooth production process, constant capacity utilization and high service levels is still prevalent. However, with cost pressures continually on the rise, overfilled warehouses are no longer an optimal solution.

 

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Andreas Schäfer

Andreas Schäfer
Consultant
Tel: +49 (0) 2408 / 9456 - 1333 A.Schaefer@informinform-software.com

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Solution ADD*ONE Features

ADD*ONE supports manufacturing companies in the purchase planning of bought-in parts and ensures the optimization of the production planning process. Product features include:

  • Self-adapting forecasts

    Detailed determination of the future demand situation with no manual maintenance required, including the identification of trends, outliers, seasonality and sporadic demand

  • Multi-Level BOM-Explosion

    Early procurement of components and purchased parts based on requirements planning

  • Cost-optimal orders and batch sizes

    Reliable decision proposals for each individual item with the use of intuitive workflows, showing where action must be taken

  • Feasability check

    Evaluation of the feasibility of planned orders which were calculated by the system on the basis of the planned situation and a detailed summary of the reasons why a plan may not be feasible

  • Material Availability check

    The user is provided with valid information whether a customer or production order is realizable or not. The availability of bought-in parts or components can be checked ad-hoc, prior to releasing or committing to a given customer order.

  • Capacity Visualization

    Clear presentation of the degree of utilization of the production equipment across the entire planning horizon - The focus is on the analysis and visualization of potential capacity bottlenecks.

Benefits

Precise demand forecasting builds a solid foundation for a smooth and effective manufacturing process. ADD*ONE supports companies in their daily operations by providing production planners with future demand figures, a cohesive production program and optimized procurement of raw materials. Further benefits include:

  • Reduced inventory levels

    Precise demand forecasts enable reduced inventory levels

  • High delivery capability

    Effective inventory management results in optimized demand coverage

  • Shorter Cycle-Times

    Reduced cycle times through optimized material availability and capacity utilization

  • Increased Productivity

    More effective production through optimized batch sizes

  • Transparency

    Visualization of bottle necks within current planning process

Simultaneous production planning

Simultaneous Master Production Scheduling

The simultaneous master production scheduling with ADD*ONE is specially designed for the process industry and serial production. Due to the simultaneous consideration of capacities and material availability, ADD*ONE ensures an optimal production plan, and, as a consequence, the cost-effectiveness of the entire production process. The simultaneous master production scheduling already considers the available materials and equipment capacities when the planning process begins.

Learn more here.

Success Story

Success with ADD*ONE at Kampmann

Specializing in high-quality heating, cooling and ventilation systems, Kampmann now processes approximately 96,000 different items of which 15,500 are kept continuously available. For the family-owned company, maintaining high service levels while simultaneously keeping warehouse costs to a minimum is vital. With increasing product variety and the development of new production facilities, Kampmann contends with a growing number of challenges. However, with help from INFORM and the ADD*ONE Inventory Optimizer software solution, Kampmann was able to reduce stock levels by up to 40%.

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