• Improve Schedule Stability By Matching In-Plant Production Scheduling With S&OP And Demand Plans

    by Vasu Netrakanti | Sep 18, 2015 | Achieved Benefits & Examples

    OVERVIEW

    Schedule Stability provides significant benefits for manufacturers. There are 2 key elements to production schedules that provides “Schedule Stability”:

    • Schedule should match the planned allocation of orders to weekly buckets, like S&OP or demand slotting
    • Rescheduling should conform, “maintain bias”, to the original schedule

    A global manufacturer, with over 40 manufacturing plants, uses a metric of schedule stability as a key measure of plant performance. The plant that has highest score for schedule stability uses Optessa MLS for scheduling.

    THE PROBLEM

    Plants struggle to produce to a demand plan, since planning systems do not consider plant level detailed scheduling rules and constraints – such as multiple production lines operating at different rates or sequencing rules. For schedules to match the plans, the scheduling system has to be able to comprehensively model both planning rules and detailed scheduling requirements.

    A second reason for instability in schedules is that rescheduling is required on a daily basis – due to changes to sales orders, plant over/under build, supplier or quality problems. Scheduling systems that consider each change separately increase the extent of instability. To improve stability the scheduling system must concurrently optimize all changes while maintaining a bias to the original schedule. For example, if there are problems with both red paint quality and leather seats delivery, then the best reschedule, with the least disruption, will defer orders that require both features.

    THE SOLUTION

    Optessa MLS improves schedule stability by providing both capabilities:

    The rich rules and constraints library accommodates the definition of an unlimited number of constraints at planning and scheduling level. Schedules can be synchronized with plans by mapping planning level requirements into the scheduling model or applying a bias to the plan.

    Secondly, the patented solver can rapidly reschedule based upon one or more changes while maintaining a bias to the original schedule.

    For every scheduling run, Optessa MLS:

    • Handles the changes
    • Satisfies all rules and constraints
    • Ensures conformance to the plan

    The chart below shows the plant using Optessa MLS (Customer) as having the highest schedule stability rating, close to 100%, as compared to over 40 other plants.

    Chart showing the plant using Optessa as having the highest schedule stability rating close to 100 as compared to over 40 other plants

    BENEFITS OF SCHEDULE STABILITY

    • Ensure that the orders are delivered as per plan
    • Production schedule matches requirements sent to suppliers
    • Lower inventories as schedule builds to parts on hand
    • Lower inventory carrying and expedite costs
    • Reduced floor space and stock overflow areas
    • Accommodate over and under builds while maintaining high throughput
    • Improved supplier relations due to less frequent rescheduling

    HOW DOES OPTESSA MLS ACHIEVE THESE RESULTS?

    Optessa MLS has the capability to address all plant level constraints and arrive quickly at complete solutions that do not need any further manual intervention. The comprehensive model can meet the plant’s current and future scheduling requirements.