Production scheduling: daily production planning

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Production scheduling: daily production planning

It may be somewhat confusing, but the English terms “production planning” and “production scheduling” both translate to the word production planning in Dutch. Yet in practice, they mean slightly different things. Production planning is the process of developing a schedule to ensure that production activities run smoothly. We distinguish between the longer term (for example, the coming year), the upcoming period (for example, the next two weeks) and the short term (today and the coming days). Production scheduling refers to the latter form of planning.

Production scheduling

In production scheduling, we look at the sequence of production tasks at a detailed level. It is a more operational step within the broader framework of production scheduling. In production scheduling, specific production orders or tasks are assigned to available resources, such as machines, labor and raw materials, within a specific time frame. The goal is to ensure efficient and streamlined production, taking into account factors such as production lead time, equipment capacity constraints and personnel availability.

Production scheduling thus focuses on determining the exact timing and sequence of production operations to ensure that products are produced on time and meet demand, while at the same time optimizing the resources used.

Production planning and production scheduling thus differ in their focus and time frame:

Production Planning:

  • Production planning focuses on setting long-term goals and strategies to meet product demand.
  • It includes determining what, how much and when to produce based on forecasts of demand, available resources and capacity.
  • Production planning answers questions such as: What products should be produced? How many should be produced? What resources are needed? What is the overall schedule?

Production Scheduling:

  • Production scheduling, on the other hand, focuses on the detailed planning of daily or weekly production activities within the framework established by production planning.
  • It takes into account real-time factors such as the availability of labor, machinery and raw materials, as well as any unforeseen circumstances or changes in demand.
  • Production scheduling answers questions such as: On what specific date and time are the various tasks and activities performed? Which machines and workers are assigned to each task? How can production best be optimized based on current conditions?

In short, production planning is about setting long-term goals and strategies, while production scheduling focuses on the day-to-day management of production activities to ensure efficient execution of the plan.

Production scheduling software

Factors within production scheduling

In production scheduling, you must consider several factors to create an efficient and effective schedule. Some important factors are:

  • Orders: Starting point is to be able to have orders ready for the agreed delivery time in the most efficient and effective way possible.
  • Availability of resources: Ensure that all necessary resources, such as machinery, labor and raw materials, are available at the time they are needed for production.
  • Production Capacity: Understand the capacity of each production asset and ensure that planned production quantities are within capacity limits.
  • Lead time: Define the time required to complete each production process, including set-up time, machining time and any waiting time between operations.
  • Critical Paths: Identify critical steps in the production process where delays can have a knock-on effect on overall production time.
  • Priorities: Assign priorities to specific production orders based on factors such as customer demand, urgency and strategic objectives.
  • Inventory levels: Consider available inventory levels of finished goods and intermediates to avoid over or under production.
  • Flexibility: Be flexible to accommodate unexpected events, such as machine downtime, changes in demand or material shortages, and adjust to schedule.
  • Sequence of tasks: Determine the optimal sequence of production tasks to maximize efficiency, for example, by grouping similar tasks or taking setup times into account.
  • Cost: Look for ways to minimize production costs, such as using cheaper raw materials or reducing overtime.
  • Communication: Establish clear communication between different departments and stakeholders to ensure that everyone is aware of the production schedule and any changes.

Production scheduling within ERP

Enterprise Resource Planning (ERP) systems are designed to integrate and streamline various business processes, including production scheduling. While ERP systems are useful for managing various aspects of production, they have some limitations when it comes to detailed production scheduling. We list below some of the reasons why ERP systems are not always ideal for production scheduling:

  • Limited flexibility: ERP systems can sometimes have limited ability to respond quickly to changes in the production environment. They are often focused on planning for larger time intervals and may have difficulty dealing with the dynamics of daily schedules.
  • Complexity of manufacturing environments: In complex manufacturing environments with multiple production lines, product variations and flexible production routes, ERP systems can struggle to adequately manage and optimize all variables.
  • Lack of real-time data: Production scheduling often requires processing real-time data on the status of machines, labor and materials. ERP systems sometimes have delays in collecting and processing this data, which can compromise scheduling accuracy.
  • Limited optimization capabilities: Although ERP systems include scheduling tools, they may not be as sophisticated as specialized production scheduling software. These specialized tools often provide sophisticated optimization algorithms to model and optimize complex scheduling scenarios.
  • No integration with external systems: In some cases, ERP systems may struggle to seamlessly integrate with external systems such as production machines, IoT devices and advanced manufacturing software, which can limit the effectiveness of production scheduling.
  • Slow calculations: Because ERP systems are not set up for flexible, real-time scheduling, calculations can take a long time.

ERP systems may thus be inadequate for detailed production scheduling. In such cases, organizations may choose to use additional specialized production scheduling software to meet their specific needs. The Data Refinery Planning System is one such example.

The role of AI in production scheduling

Artificial intelligence (AI) offers many opportunities for improving daily production planning. Some of the ways AI can contribute to production planning are:

  • Predictive analytics: AI can identify patterns and trends in historical production data, market demand and other relevant factors. Based on this, predictive models can be developed to forecast future demand and adjust production planning accordingly.
  • Resource allocation optimization: AI algorithms can be used to determine the optimal allocation of resources, such as machines, labor and raw materials, to maximize production efficiency and minimize costs.
  • Real-time adjustments: AI systems can continuously collect and analyze production data to suggest real-time schedule adjustments based on changing conditions, such as machine downtime, material shortages or changes in demand.
  • Autonomous decision-making: Advanced AI systems can independently make production scheduling decisions based on predefined objectives, business rules and optimization criteria. This can reduce response time and improve efficiency.
  • Simulation and scenario analysis: AI can be used to create complex simulation models that can evaluate different production scenarios and predict their impact on costs, lead times and other performance indicators. This enables planners to make informed decisions and assess risks before implementation.
  • Machine learning in planning systems: Machine learning allows planning systems to learn from previous experience and feedback, allowing them to adapt to changing conditions and make better and better decisions over time.

AI can thus play a valuable role in improving production planning by enabling faster and more accurate decisions, increasing efficiency and reducing costs in dynamic and complex manufacturing environments.

Production scheduling in Excel

Because ERP lacks the flexibility for production scheduling, we see a lot of production scheduling in Excel. And yes, it is possible to do simple production scheduling in Excel, especially for smaller production environments with less complex needs. For example, you can create Gantt charts to visually represent the timing and sequence of production tasks, and use basic formulas to calculate schedules.

However, using Excel for production scheduling has some significant drawbacks:

  • Limited functionality: Excel does not offer the advanced features and capabilities available in specialized production scheduling software. It can be difficult to model and optimize complex scheduling scenarios.
  • Manual input and updates: Updating the schedule in Excel often requires manual input and updates, which can be time-consuming and error-prone. This can lead to inconsistencies and outdated information in the schedule.
  • Lack of integration: Excel offers limited integration capabilities with other systems, such as ERP systems, production machinery and external data sources. This can lead to discrepancies between planning in Excel and the actual production environment.
  • Collaboration difficulties: Sharing Excel files for production scheduling can lead to version conflicts and difficulties in collaborating on scheduling simultaneously with multiple team members.
  • No automated optimization: Unlike specialized software, Excel does not offer automated optimization of production scheduling based on predefined goals and criteria.

Thus, while Excel can be a useful tool for simple production scheduling, its limitations canbe problematic in more complex production environments. For organizations with larger scale and complex scheduling requirements, the use of specialized production scheduling software may offer more benefits.

Production scheduling software

Modern production scheduling software aims to provide optimal planning. Using the possibilities of AI and without the disadvantages of your ERP system and Excel. Production scheduling software is used to automatically plan and manage the timing and sequence of production tasks within a manufacturing environment. It enables your company to make more efficient use of resources, such as machines, labor and raw materials, by optimizing and adapting complex production schedules to changing conditions.

This software often offers features such as visual scheduling, capacity planning, real-time updates, and scenario analysis to help planners make informed decisions and maximize the productivity and profitability of their production operations. Check out the production scheduling capabilities of the Data Refinery Planning System.

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