TOWARDS BETTER SUSTAINABILITY AND PROFITABILITY
Supply Chain Process and Material Flow Steering
We study alternative production models, analyse facility material flows and generate order-delivery development Master Plans.
Production Planning and Control
Benefits gained by developing production planning:
- Maximizing production throughput and improving resource utilization
- Reducing tied-up capital in intermediate and final goods inventories
- Faster reaction to altering customer needs
“Challenge for production is to react fast and cost-efficiently to ever more unpredictable demand … and to do it faster than competitors.“
Developing Production
Planning
Goal:
To define S&OP processes and rules which ensure service-level and cost-efficient production.
Implementation:
Workshops to define new model of operation and to commit personnel to change.
Deliverables:
New developed process, responsibilities, contents of plans and tools.
Production Optimization
Goal:
To define rules to minimize total costs of production and ensure desired service-level.
Implementation:
To define rules using cost-based production planning tool (Oracle PSP).
Deliverables:
Definition of make-to stock and make-to-order products, batch sizes and production cycles, production sequence and safety stock levels. Production cost calculation model.
PSP - Production Scheduling Process
PSP – tool used by PlaNet Logistics in production optimization
When optimizing production, there is a huge amount of different factors which can not be handled without a mathematical model
PlaNet Logistics uses in optimization projects PSP (Production Scheduling Process), a cost-based optimization model by Oracle, which is one of the best commercial tools for strategic production planning
Total cost is the key driver; model chooses optimal production schedule for each resource to minimize total cost
Model fulfills demand while taking care of changeovers (time and waste), line capacities, shift plans, constraints, stock levels and stock constraints and total costs
Shift plan can change during planning period
Daily production planning does not need cost optimization, but as a strategic tool it helps to create planning rules and parameters.
Once rules and principles have been created, production planning can be effectively performed with existing ERP and other tools by using optimal product-level parameters in ERP.
Master plan
Master Plan ensures good productivity of work and capital as well as expandability and convertibility of operation in ever changing market situations.
Benefits from Master Plan:
- To prepare changes is volume and product mix according to business strategy
- To ensure correct dimensioning of space and equipment resources
- To create basics for efficient use of work and capital
Content of a Project
Goal:
To draw a feasible Master Plan for a production plant, distribution centre and warehouse.
Implementation:
Scope and objectives are defined to develop a functional and technical solution utilizing most advanced and economical technology.
Plan will be developed in cooperation with customer’s experts.
Deliverables:
Business-case including technical solution, evaluation of investment costs and profitability calculation.
Productivity of Capital and Work
”Greatest lesson from the project was that capacity of production can be significantly increased without investing in new equipment”
-Director, Operations
Benefits from developing productivity of capital and work:
- Profitability of products will improve
- Financial position and equity ratio of the company will improve
- Capital will be released for investments
- Quality of operations from customer’s point of view will improve
- Motivation of personnel will improve
Content of a Project
Goal:
To increase efficiency in use of work and capital
Implementation:
Efficient, sustainable practices are developed and deployed with customer by using LEAN-tools.
Deliverables:
- Distribution routes and work effieciency development
- Increasing availability of production lines by minimizing disturbances
- Improving change-overs
- Process efficiency (order-to-delivery cycle, sourcing, IT) and control rules for improving material flow
- Lay-out, workstations and technical solutions which support efficient operations
- Elimination of complaints and waste
- Development of job descriptions and line manning
- Outsourcing operations and controlling service partner
