Suppliers: Auto Suppliers & Suppliers to Product Manufacturers


The OEM assembly plant schedule (or sequence) generates requirements for in-house manufactured and outsourced parts and commodities. The schedule is typically broadcast (sent) to OEM suppliers, which forms the basis for planning and scheduling at the supplier level.

The following is a typical configuration for a Tier 1 supplier, in this example headliners for cars.

•	Representative image showing the Auto OEM product and OEM Suppliers production relations

At the OEM level there are 2 car assembly plants. Cars are produced in 2 car models in 5 body styles and 5 colors. Each body style and color requires a distinct headliner. The headliner supplier operates 2 press lines, one of which produces headliners for both car assembly plants; while the other produces for only 1 car assembly plant.

Optessa provides the complete functionality to model such planning and scheduling problems at the supplier level.

Tier 1 / 2/ n supplier plants have complex scheduling needs

The complexity arises from:

  • Need to be just in time with auto OEM assembly schedule
  • Demand derived from multiple customers, assembly plants and after market
  • Demand includes product variety and combines high and low volume SKUs
  • Need to balance multiple production lines
  • Need to maintain high throughput
  • Inventory buffers: standard and build ahead inventories
  • Smooth overtime or idleness across multiple lines
  • Minimize changeover / setup times and costs
  • Manage auxiliary resources such as tools, dies, racks, pallets etc.
Optessa MLS Provides Complete & Effective Solutions for Suppliers

Some examples of auto suppliers who have obtained significant benefits by applying Optessa MLS for scheduling.

  • Engines
  • Powertrain
  • Stamping
  • Machining and Diecasting
  • Seating and Interior Parts
Scheduling with Optessa MLS at assembly level

Examples are products like engines, transmission assembly and seats.

  • Virtual line setup balances requirements across multiple lines while optimizing both capacity and line capability.
  • Ability to set process times based on product and line for flex or line specific models.
  • Ability to adjust requirement due dates based on shipping lead time for multiple destinations which allows parts to be scheduled in such a way inventory can be minimized.
  • Ability to minimize and smooth overtime usage across multiple lines based on optimal conditions and/or user specified shift preferences.
  • Capability to manage multiple constraint types that consider:
    • Inventory targets
    • Due dates
    • Changeover / setup times
    • Over time smoothing
    • Capacities
    • Ramp up / down plans
    • Customized scheduling process: for example, daily / weekly / monthly.
Scheduling with Optessa MLS at sub-assembly / parts level

Examples are stamping, machining, die-casting and parts such as headliners.

  • Derive requirements from multiple sources including main / feeder line requirements
  • Consider exceptional requirements such as special builds, service parts, and any other demand sources.
  • Manage multiple constraint types such as inventory targets, ramp up / down requirements, order due dates and build order preferences.
  • Manage fluctuating demand of main / feeder lines across available capacity by using inventory targets to maintain a smooth schedule.
  • Consider planned down time due to part change over / line setup, line efficiencies, scrap rates and part cycle times.
Benefits from using Optessa MLS for scheduling
  • Tight synchronization of schedule with requirements.
  • Schedule multiple lines simultaneously based on a “Virtual Line” set up.
  • Maintain high throughput
  • Optimal schedule based on actual operating conditions and constraints.
  • Reduce operating costs.
  • Overtime smoothing.
  • Better inventory management while maintaining delivery conformance.
  • Improved accuracy and reduced scheduling process times.