Why Production Scheduling

Business across industries are getting highly competitive. To profit in this competitive world great business would require lowest cost of production along with high level of customer service. In this context efficient production scheduling  becomes critical for achieving high return on investments. Lower production costs require longer production runs. This require long production runs resulting into higher inventory of this production but longer lead time to meet customer demand of other products unless higher inventory is maintained for that product also. increasing investment in inventory thereby reducing ROI.

Optimal Production Schedule

KamatSoft eValueMax v10.1 Production Scheduler generates optimal production schedule using sophisticated proprietary algorithm. Production Scheduler keeps production cost lower by ensuring lowest change over and transition costs and inventory holding costs while maintaining high customer service level. Scheduler schedules production of final products, its intermediates for various stages of production across large number of machines and plants.  It generates schedule for every machine used to last minute to support optimal production.

Sophisticated Scheduling Algorithm

Scheduling thousands of machines for producing tens of thousands of products including intermediates programmatically is most challenging task. Combinatorial analysis which can work for few machines runs out of computational power for solving this problem in reasonable time. KamatSoft eValueMax v10.1 therefore uses sophisticated innovative method of generating optimal schedule by using mixed integer programming for lot sizing and machine allocation and cominatorial analysis for scheduling allocated production on individual machines by choosing best sequence out of thousands of possible sequences using proprietary algorithm.

Production Configuration at machine level

Production capacity at machine level is defined in terms of production rates for different products on individual machine or category of machines especially useful where thousands of machines are to be configured. Production rates can be defined at material level or at user defined combination of attributes of materials where thousands of products are produced.  User can fix maximum utilisation for individual machine, can have one or more planned/breakdown shchedules which would constrain capacity also known as hard capacity constraints.

Constraint Modelling

Beyond hard constraint in terms of production capabilities, production scheduler allow soft constraints (which can be enforced with high costs or penalties for their violation) like production level constraint, minimum run level constraints, changeover constraints, positioning constraints (for fixing urgent orders), spacing constraints and raw material constraints (beyond considered in supply chain planning). These constraint ensure overall cost of production is kept low while maintaining high quality standards.

Cost Modelling

Production scheduling ensures that EBIT maximisation achieved in supply chain planning by value chain planner is not compromised while running schedule. So production scheduling still supports overall EBIT maximization (in which case plants fixed by supply chain planner change) or restricted  contribution modelling in which case plants fixed by value chain planner would be honoured.

Production scheduling also consider other costs which can be considered only in scheduling stage. These costs include changeover cost (including intermediate product which may be produced during changeovers), transition cost in terms of lower grade transition material which may be produced (including setup times), inventory carrying costs to ensure inventory is not built too much in advance to maintain longer production runs and backordering costs which delay in dispatch of materials against original ETD.

Master Production Schedule

Master production schedule is drawn for the whole planning period either across the plants covered in production schedule or for group related plants which share common resources. Master schedule always give priority to confirmed orders with forecast scheduled at later dates. Master production schedule invariably translates value chain plan into date-wise production schedule and therefore even if schedule is carried for group of plants at a time it does not compromise holistic planning. Normally group of plants share same version ref which can be defined while defining schedule.

Daily Production Schedule

Daily production schedule is run to respond to emerging situation proactively to ensure that production costs are kept to minimum while meeting delivery schedules as orders are materialised against original plan based on forecast. Daily production is generated for remaining period of planning period for which master production schedule is generated. Of course daily production schedule can run directly against plan in absence of master production schedule. For companies which does not have supply chain plan daily production schedule can be solely based on customer orders. Daily production schedule ensures that supply chain planning responds to changing scenario promptly without resulting into higher production costs. Like Master production schedule daily production schedule can be generated for group of plants though supply change planning is always done holistically for whole company.

Changes to Automated Production Schedule

User with proper permissions can always override automated production schedule generated by scheduler like for handling urgent order or (which can be anyway handled through positioning constraint)for other reason by one of the three ways.

1. Excel upload of production schedule generated as report my making required changes.

2. Editing production schedule generated.

3. Drag and Drop support.

Reports

Production schedule module provide rich set of reports for efficiently managing production schedule which is critical component intelligent supply chain. These include schedule comparison, comparison with original plan, packing schedule based on schedule, emerging material balance from schedule etc.

Production Scheduling Presentation

KamatSoft eValueMax v10.1 Production Scheduler is powerful tool for comprehensive Production Scheduling for large multi-factory company for ensuring lowest cost of production along with high level of customer service thereby achieving high returns on investment . It uses mixed integer mathematical programming for deriving basic production plans at machine level which are then sequenced using combinatorial algorithm for optimal automated production schedule. You can refer to our Production Scheduler presentation for learning more about Production Scheduler, its capabilities, benefits, constraint modelling used, cost and profitability modelling and Reports generated from production scheduler and technical specifications.

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