Effective production scheduling takes place over many stages, facilitating a production planning process that starts in the sales department with customer sales demand planning, and ends with feedback collection from the customer after receiving shipments. In this article I will go through relevant production planning stages one by one, and point out how each stage can be improved with simulation and analytics.
Implementing multi-stage production scheduling
Production scheduling in manufacturing involves a series of interconnected steps to ensure that products are produced efficiently and meet customer demand. These stages flow from the initial customer demand forecast through to production execution and monitoring.
Stage 1: Demand forecasting
This initial stage involves estimating future customer demand for products. Accurate demand forecasting is crucial for setting production goals.
Simulation allows for the creation of sophisticated demand forecasting models that take into account historical data, market trends, and various influencing factors. By running simulations with different scenarios, manufacturers can better understand the potential impact of changing market conditions on demand and adjust their production plans accordingly. Mathematical programming can help optimize demand forecasts by considering multiple factors and constraints, resulting in more accurate predictions. Advanced analytics techniques, such as time series analysis and machine learning, can uncover hidden patterns in historical data, improving the accuracy of demand forecasts.
Stage 2: Order entry and reception
Orders from customers are recorded and entered into the production scheduling system. Details such as product specifications, quantities, and delivery dates are noted.
Stage 3: Master Production Scheduling (MPS)
MPS is a high-level planning stage where a rough production schedule is created. It considers factors like customer orders, forecasts, and available capacity.
- Related article: Optimization via master production scheduling
Simulation helps refine the MPS by modeling different production scenarios. Manufacturers can simulate the impact of variations in production capacity, resource availability, or order priorities to optimize the MPS for efficiency and on-time delivery. Mathematical programming can create optimized MPS by considering various constraints, such as production capacity, resource availability, and inventory levels. Analytics can provide insights into historical MPS performance, helping identify trends and areas for improvement.
Stage 4: Material Requirement Planning (MRP)
MRP calculates the materials and components needed for production based on the MPS and inventory levels. It generates purchase orders or production orders for required materials.
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Simulation can predict material requirements more accurately by considering variations in lead times, supply chain disruptions, and demand fluctuations. It helps in determining safety stock levels and optimizing order quantities. Mathematical programming can optimize MRP by minimizing material holding costs, order quantities, and lead times while ensuring timely availability.
Stage 5: Capacity planning
This stage evaluates the production capacity of the manufacturing facility. It considers factors like machine availability, labor resources, and production lead times.
- Related article: Simulation-based capacity planning
Simulation models enable manufacturers to analyze different capacity scenarios, helping them identify bottlenecks and resource constraints. This information allows for better resource allocation and capacity expansion decisions. Analytics can provide insights into supplier performance, helping in supplier selection and risk management. Mathematical programming can optimize capacity planning by determining the most efficient resource allocation to meet production demands. Analytics can analyze historical capacity utilization to identify peak demand periods and optimize resource shifts or expansions.
Stage 6: Detailed production scheduling
At this point, a detailed production schedule is created for each product or order. It specifies the start and end times for each operation and allocates resources accordingly.
- Related article: Free scheduling software for manufacturing
Simulation can fine-tune the detailed schedule by considering variations in processing times, machine breakdowns, and workforce availability. It helps in creating schedules that are more resilient to disruptions. Mathematical programming can optimize detailed schedules by considering dynamic factors like machine changeovers, sequencing, and workforce assignments. Analytics can monitor real-time production data and provide recommendations for schedule adjustments in response to unforeseen disruptions.
Stage 7: Dispatch scheduling
Dispatching involves assigning work orders to specific machines or workstations based on the detailed schedule. It also considers priorities and real-time capacity constraints.
Simulating different dispatching strategies allows manufacturers to evaluate which approach is most effective in optimizing production flow and meeting customer deadlines.
Stage 8: Execution, monitoring, and production control
During execution, production activities are carried out as per the schedule. Operators follow work orders and produce goods according to specifications. Continuous monitoring of production progress is essential. Any deviations from the schedule or quality issues are addressed promptly.
Stage 9: Quality control, material handling, and logistics
Quality checks and inspections are performed at various stages of production to ensure product quality and compliance with standards. Material handling, transportation, and logistics play a critical role in moving materials and products efficiently within the manufacturing facility.
Simulation can model quality control processes, helping manufacturers assess the impact of different quality assurance measures on production efficiency and product quality. Mathematical programming can optimize quality control processes by determining the most efficient inspection points and sampling strategies. Analytics can analyze quality data to identify trends and root causes of defects, facilitating process improvements.
Stage 10: Inventory management
Managing inventory levels, including raw materials, work-in-progress (WIP), and finished goods, is vital to avoid overstock or stockouts.
- Related article: Optimized inventory management
- Related article: Price and inventory optimization
By simulating inventory levels and reorder points, manufacturers can optimize their inventory policies to minimize carrying costs while ensuring that materials are available when needed. Mathematical programming can optimize inventory management by determining the optimal reorder points, safety stock levels, and economic order quantities. Analytics can analyze inventory turnover rates, lead times, and demand variability to fine-tune inventory policies.
Stage 11: Shipping and delivery
Finished products are prepared for shipment, and delivery schedules are coordinated with logistics providers to meet customer delivery deadlines.
Simulation can help optimize logistics and delivery schedules, taking into account various factors such as transportation routes, vehicle capacity, and delivery time windows. This ensures on-time delivery while minimizing transportation costs. Mathematical programming can optimize shipping and delivery schedules by considering factors like vehicle routes, load balancing, and delivery time windows. Analytics can provide real-time visibility into logistics operations, helping to track and improve delivery performance.
Stage 12: Feedback and improvement
After production, feedback is collected on scheduling accuracy and efficiency. This feedback informs process improvements and adjustments to future scheduling.
Continuous improvement efforts benefit from simulation by allowing manufacturers to experiment with process changes in a risk-free virtual environment. This helps in identifying and implementing the most effective process enhancements. Mathematical programming can support continuous improvement initiatives by modeling and simulating various process changes to identify the most effective ones. Analytics can provide performance metrics and KPIs for ongoing evaluation and improvement efforts.
Stage 13: Analysis and reporting
Data collected throughout the production scheduling process are analyzed to identify bottlenecks, optimize resource allocation, and improve overall efficiency. Reports are generated to assess performance against targets and KPIs.
Simulation provides data for in-depth analysis of performance against targets and KPIs. Manufacturers can use simulation results to refine their strategies, make informed decisions, and set realistic production goals. Mathematical programming can optimize data analysis processes by automating the extraction of actionable insights from large datasets. Advanced analytics can uncover hidden patterns, correlations, and anomalies in production data, guiding strategic decision-making.
Concluding remarks on multi-stage production scheduling
Effective production scheduling is a process that facilitates production over multiple stages. Each stage should make use of the broad range of analytics and simulation methods available for e.g. improving forecast accuracy, refining production control strategies, identifying bottlenecks in the factory layout of manufacturing process, evaluating capacity expansions, and optimize the various schedules themselves.
Data scientist focusing on simulation, optimization and modeling in R, SQL, VBA and Python
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