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HOW TO IMPROVE YOUR ON-TIME DELIVERY WITH A SMART PRODUCTION PLANNING AND SCHEDULING SOLUTION MICHAL PRĘTCZYŃSKI PROJECT MANAGER FOR SIMATIC IT PREACTOR APS IMPLEMENTATIONS AT PRĘTCZYŃSKI LTD.

4/15/2016

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AGENDA AGENDA

1. Understanding the problem

2. Finding the solution with SIMATIC IT Preactor APS

3. Presentation of SIMATIC IT Preactor APS

4. Areas of potential benefits

5. Questions and answers

A REAL-LIFE EXAMPLE

• Manufacturing company was aware that due to changing market requirements, one of its main problems was the process of production planning. Ineffective planning process influenced their responsiveness and on-time deliveries.

• Company went from understanding market requirements, through creating business requirements for better process, to looking for better software tools that would help.

• The goal was to help Planner in Make to Order environment with many products, smaller batch sizes, more orders = more data to be scheduled by Planner.

• To ensure maximum flexibility in generating a production schedule while extending planning horizon.

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A REAL-LIFE EXAMPLE

• To achieve higher optimization with possible cost reductions and to consider many criteria while scheduling.

• To integrate with new ERP system and to distribute schedule within organization.

• To introduce the concept of priorities set by Management and not individual Sales representatives within Sales Department.

• To change the planning process that was divided into three planning departments and to introduce a concept of a central schedule with a ‘Main Planner’.

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First department - planning using

Excel/manual work

Third department - planning using

Excel/manual work

Sales Department

has received new

order enquiry from

Customer

24 Hours to answer - 72

Hours in total ->

Unacceptable waiting

time.

24 Hours to answer

order enquiry

24 Hours to answer -

48 Hours in total

When we can deliver

this order ?

Second department - planning

using Excel/manual work

A REAL-LIFE EXAMPLE

CHALLENGES IN PRODUCTION PLANNING

• Planning using Excel / Decision on shop floor. All in the mind and hands of Planner / Planners. Little support from ERP system with its standard functionality.

• No central planning using global priorities. The necessity of arrangements between different departments.

• No representation of actual capacity. No interactivity and no automation in sequencing. A need to optimize sequence to reduce cost.

• Short planning horizon. Unknown impact of changes (new priorities, machine breakdown) in a longer term.

• Problems with due date performance and the answer to the question "When we can deliver this order?" The pressure on Planning Department.

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BASIC FUNCTIONALITY THAT IS NEEDED FOR SCHEDULING SYSTEM

• The ability to schedule more accurately at the machine level and to schedule precisely (hours, minutes) as opposed to time buckets like week.

• The ability to integrate with other systems like ERP.

• The ability to sequence orders based on due date, priority or minimize changeover times.

• The ability to schedule using multiple constraints, such as tooling and operators. The ability to synchronize the schedule with material constraints.

• The ability to schedule quickly (minutes or seconds) and maintain a real-time view of the schedule.

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AGENDA AGENDA

1. Understanding the problem

2. Finding the solution with SIMATIC IT Preactor APS

3. Presentation of SIMATIC IT Preactor APS

4. Areas of potential benefits

5. Questions and answers

INTRODUCING SIMATIC IT PREACTOR APS

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Siemens SIMATIC IT Preactor is a range of advanced

planning and scheduling (APS) software for the

manufacturing industry.

Quick facts:

SIMATIC IT Preactor AS is a scheduling tool primarily for

manufacturers who need to schedule machines, production

lines and resources, but Preactor is also used in services and

logistics.

SIMATIC IT Preactor AP considers forecast and long term

orders to decide feasibility and set general direction of

production; Dynamically sets target stock levels to meet

future demand; Load balance across multiple resources

considering eg constraints, materials shelf life.

INTRODUCING SIMATIC IT PREACTOR APS

Key functionality:

• Modelling actual production capacity (machinery / operators / tooling) - operations planned when resources and materials are available.

• Automating planning by generating production plan using scheduling rules. The rules may include customer priorities/due dates or minimization of changeovers.

• Interactive planning board where Planner can change sequence. Analysis of different versions of the schedule before accepting.

• Simulations "When we can deliver this order?" Analysis of due date performance. Early information on potential late orders.

• Including material control calculations to check that all materials required are available

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INTRODUCING SIMATIC IT PREACTOR APS

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Examples of integrations

available: Microsoft Dynamics

AX and NAV.

INTRODUCING SIMATIC IT PREACTOR APS

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Large install base serving the manufacturing sector

across the globe. Implementations in Baltic region with

Columbus.

Quick facts:

Customer base ranges from mid-size to some of the largest

multi-national companies in the world.

Operates across multiple sectors, this shows the flexibility to

solve any scheduling requirement.

Global presence of the Siemens Manufacturing Operations

Management Team - probably the largest Manufacturing IT

organization in the world.

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AGENDA AGENDA

1. Understanding the problem

2. Finding the solution with SIMATIC IT Preactor APS

3. Presentation of SIMATIC IT Preactor APS

4. Areas of potential benefits

5. Questions and answers

PLANNING SCENARIOS FOR LIVE DEMONSTRATION

• Automating planning for all orders. Are all orders on-time?

• High priority order that requires re-planning. Which orders will be delayed?

• A breakdown of machine occurs. Which orders will be affected?

• How changes in material delivery will affect our plan?

• Can we combine priority for due date and a need to minimize changeover times?

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AGENDA AGENDA

1. Understanding the problem

2. Finding the solution with SIMATIC IT Preactor APS

3. Presentation of SIMATIC IT Preactor APS

4. Areas of potential benefits

5. Questions and answers

A REAL-LIFE SUCCESS STORY

• To introduce a concept of a central schedule with a ‘Main Planner’ -> central schedule with Preactor and changing planning procedures.

• Flexibility in generating a production schedule -> visualization on Gantt chart and drag & drop on planning board.

• Optimization with possible cost reductions -> sequence dependent changeover time matrices and scheduling rules minimizing changeover times.

• Priorities -> introducing concept of customer-based priorities.

„Together with an instant feedback about expected delivery dates it has improved effectiveness of work in the sales department and decreased time needed for customer service.”

„Flexibility and an easy way to change schedules gives us the ability to react quickly to market requirements.”

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PLANNING PROCEDURE FOR PLANNER

1

All the production data from previous day,

including quantities produced, must be

entered by Shift leader into ERP till 8:00

Importing current status of

operations and orders from ERP

to Preactor

2 Planner can analyze changes in Preactor and

initiate schedule repair function

Updating schedule in Preactor

with current status of

operations/orders

3 All new production orders, generated from

sales orders by Sales Department, must be

entered till 12:00, so Planner can schedule a

batch of orders and look at priorities

Importing new orders from ERP

to Preactor, updating orders in

schedule with changes

4 Planner reviews new orders, applies

preferred sequence rules, runs What-If

scenarios, accepts the schedule

Generating new schedule in

Preactor

5 Around 14:00 Sales Department receives

information on new dates for work orders

within ERP system

Exporting schedule with new

order dates back to ERP system

6 New production plan is send to Shift Leaders

in each of Departments. Gantt chart is

published on website

Printing new 'Work to-do list'

reports for resources

A REAL-LIFE SUCCESS STORY

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First department - planning in

central schedule with APS, view on

all resources

Third department - Preactor Viewer

Sales Department has

received new order

enquiry from Customer

-> Order in ERP

When we can deliver

this order ?

Second department - Preactor

Viewer

Exchanging information

based on prepared

schedule - dealing mainly

with exceptions

Answer with expected

Order End Date

within hours

Before 72 hours

-

After within 4 hours

AREAS OF POTENTIAL BENEFITS

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Improving the planning process

Automation of the process, compared to manual system or Excel can allow for extra time that can be used to optimize the process.

In the case of centralized schedule less demand for planning resources, for example reducing overtime.

One of the users with Case Studies reported 70% reduction time needed for production planning.

Improving the customer service

The ability to quickly give feedback on the planned delivery date of the order, especially in the case of changes to the plan.

Lowering the cost of delays for example penalties or additional costs for the logistics.

Some of the users with Case Studies reported up to 80% improvement in delivery performance.

Improving the productivity

Better use of resources, for example by minimizing changeover times due to dynamic aggregation of operations on machines, or reduction of overtime.

Better use of subcontractors based on real production plan.

Some of the users with Case Studies reported up to 25% increase in productivity.

Improving material management and make span reduction

Extension of the planning horizon and better synchronization of raw material purchases to the production plan based on the limited manufacturing capacity.

Improving synchronization of operations and orders between departments.

Some of the users with Case Studies reported 50% reduction in raw material stock.

AREAS OF POTENTIAL BENEFITS

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More than 200 case studies published at preactor.com

25% increase in productivity

50% reduction in raw material stock

50% reduction in work-in-process

80% improvement in delivery performance

Preactor

Detailed

Scheduling

(figures taken from various Preactor case studies)

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AGENDA AGENDA

1. Understanding the problem

2. Finding the solution with SIMATIC IT Preactor APS

3. Presentation of SIMATIC IT Preactor APS

4. Areas of potential benefits

5. Questions and answers

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Contact local Columbus just now:

Estonia: [email protected]

Latvia [email protected]

Lithuania [email protected]

Presenter:

Michał Prętczyński

E-mail: [email protected]

www.pretczynski.biz

THANK YOU!