Why is Effective Planning Important

Planning problems tend to be large and complex. For example, in the automotive industry, a monthly plan could involve:

  • Forecast and actual order pool of 1,000,000 cars
  • 10 assembly plants
  • 20 vehicle lines
  • Select 200,000 cars for a particular month
  • 200 regional allocation rules
  • 1000 dealer allocation rules
  • 1000+ material, plant and labor constraints

With such large problems, legacy systems tend to produce sub-optimal plans, with many problems –

  • Critical production or supplier capacity is not maximized.
  • Many high priority / actual orders are not included.
  • Planning process is not responsive to demand forecast or capacity changes.
  • Re-planning does not maintain material stability.

Optessa’s planning solutions can deliver “near optimal” plans, with significant benefits.

  • Maximize performance against manufacturing, supply chain and demand constraints.
  • Select an optimal proportion of high priority / actual orders
  • Allow for quick re-planning.
  • Maintain integrity to an earlier plan during a re-planning exercise: enable material stability for long lead time parts.
  • Align demand, capacities, and constraints at a regional or global level.
  • Minimize the number of forecast orders required to generate a “near optimal” plan.
  • Enable flexibility: reduce response and lead times to deal with changes.