Production Scheduling to Optimise WIP and minimise Operational Cost
|Potential Value Gains – Planning & Scheduling|
|Reduce missed shipments to less than 2 per week|
|Reduce overall Cycle Time by more than 10%|
|Achieve greater than 90% On-time Delivery (OTD)|
|Reduce no. of hours of daily schedule to less than 4|
|Reduce product give-away by more than 2%|
Lead Time vs Process Time
A reduction in cycle time will have a positive impact on customer lead times, so it’s important to develop a shop floor production schedule to optimise the amount of Work In Progress (WIP) and minimise operational costs. Having visibility of cycle times is a good measure of process capability, and gives an indication of areas to improve production capability. A key challenge may be to reduce or manage cycle times’ better and completing unit work quicker and first time round; creating a positive impact on throughput lead times. Scheduling systems help to minimise the production time and costs by telling a production facility what to make, when to make it, with which staff, and on which equipment. Production scheduling aims to maximise the efficiency of the operation, meet customer demands on time and reduce costs. Lead time, capacity and load relationship can have a direct impact on delivery performance. Shorter lead times don’t necessarily mean lower manufacturing costs and improved customer satisfaction, only if the deadlines are actually achieved.
Delivery performance issues such as missed shipments can be very costly and cause serious implications for your customers. Maximising delivery performance can significantly improve customer relations and satisfaction. Using traditional methods of manufacturing resource planning such as allocating material, production and resource capacity and availability, and adapting to changes in customer demand can cause major constraints. Materials and capacity need to be planned together so that plans can be executed on time and shipments go out on time. Advanced Planning and Scheduling systems can be integrated in real-time to existing Enterprise Resource Planning (ERP) systems to simultaneously plan and schedule production based on available materials, labour and plant capacity – optimising Key Performance Indicators (KPIs) such as On Time in Full (OTIF). Visibility and understanding into production capacity is vital to the shipment of products on time. Missed shipments means that customers don’t get their orders delivered on time and you do not ship to schedule – causing finance issues, schedule disruption, excess inventories and waste.
On-Time Delivery (OTD) performance issues such as late deliveries can be very costly and cause serious implications for your customers. Advanced Planning and Scheduling (APS) systems can be integrated in real-time to existing ERP systems to simultaneously plan and schedule production based on available materials, labour and plant capacity – optimising on time deliveries based on customer demands. Establishing an ‘on time, all the time’ culture of improvement on the shop floor will improve On-Time Delivery. Delivery commitments should be a promise to the customer, based on achievable facts, not just to keep them happy in the short term.
Effective Advanced Planning and Scheduling creates visibility into what is actually happening in production. Having detailed information about workflow patterns, process capabilities and production constraints can help reduce waste levels and product giveaway. Too much product waiting? Access to more accurate scheduling information such as historical performance data can increase net operation time through efficiency-savings in planned downtime, less products waiting and improved change overs.
New Product Introduction
Excess capacity can have a drain on manufacturing resources and prevent new projects, such as New Product Introduction (NPI) from being discovered. For many new products, being late to the market can be disastrous, especially if competitors are not far behind. When making a decision on whether to introduce a new product to the production process, knowing how much capacity is available to run the work will need to be visible. Having visibility of the whole production process through an Advanced Planning and Scheduling system means that process resources can be optimised to the fullest. Actual vs forecast orders can be planned, WIP inventory reduced; giving light to any spare/excess capacity to introduce new projects to the market in the most effective and timely ways. Visualisation into the full process of workflows such as batching, tableting, packaging etc means that better business decisions can be made as to which production line/equipment is best to run the scheduled orders on, for the very best yields and performance.
For further information about planning & scheduling systems please call us on 01274 599955 or email us here