by Kelsey H | Dec 15, 2020 | Planning & Scheduling
Production planning is at the heart of all manufacturing operations. Planning decisions are often the catalyst for chain reactions that can quickly derail all the other production processes. With so many decisions and factors involved, it can be difficult to identify where to focus their planning efforts.
As a new year approaches, manufacturers should use this opportunity to take a more calculated and strategic approach to their production planning. We’ll share our recommended areas to focus on to help make 2021 an even more productive year for your organization.
Keep Inventory Updated
Inventory mismanagement is a common challenge for manufacturers, and it can also be one of the most costly. The worldwide cost of inventory distortion is an estimated $1.1 trillion, nearly equal to the GDP of Australia, according to research firm IDL Group. Much of this waste starts from simple logging errors – a recent GS1 US survey found that inventory is only accurate about 63% of the time. When you start with an inaccurate account of your inventory, the rest of the production planning process will be unable to run effectively.
To best manage your inventory, we recommend using inventory management software. This will help your employees keep the most accurate records, while also tracking supply and demand in real time. Your plant may also want to conduct regular inventory inspections to identify small problems before they become a larger cost-draining issue. The insights you gain from software and inspections will help your organization create the most economical plans for inventory management.
Understand Capacity Limits
Even if your current processes seem to be running smoothly, many manufacturers are not actually utilizing their facility to its full capacity. In the years leading up to 2020, the average US capacity utilization had hovered around 75%, according to the Federal Reserve. Then, in April 2020, the pandemic caused a record low utilization of just 63.97%, and the industry still hasn’t quite bounced back. These manufacturers have an opportunity to adjust their plans and find more efficient options.
The first step in determining the optimal process efficiency of your plant is studying the current schedule to calculate any delays or bottlenecks. If you can resolve these time-consuming issues, you can better sync your processes, shorten changeover, and cut out unnecessary idle times. With more efficient processes, your organization can decide to either create more product or shut equipment down for longer periods. Choosing to turn equipment off will save costs and create more time for preventive maintenance, while more product brings the opportunity for more sales.
Perform Calculations Quickly
The secret to creating the perfect plan for your organization lies behind a series of complicated calculations and equations. With so many factors to account for, it’s easy to make small mistakes when trying to find the solution manually. You’re also often working against the clock to find answers quickly and cause minimal delays to production. When you discover an error, it’s frustrating and incredibly time-consuming to start over.
With manufacturing planning software, all calculations can be completed instantly, producing a feasible and optimized solution each time. Our software, VirtECS, can be automated and will simplify cumbersome spreadsheet-based approaches. Even for highly detailed plant models, VirtECS can track inventory levels and generate solutions spanning months of time in seconds. VirtECS offers superior planning and scheduling capabilities due to more than 25 years of R&D and has been employed globally at manufacturing locations by many of the world’s leading companies. If you’re interested in implementing a more strategic approach to planning in 2021, please fill out the form below to download our overview.
by Kelsey H | Dec 3, 2020 | Planning & Scheduling
In manufacturing, production rests on a complex network of procedures. As we head into 2021, manufacturers will be looking to increase efficiency and lower their costs by evaluating their processes from every angle to identify potential improvements. For many, that improvement will start with planning and scheduling.
Planning and scheduling sound similar, but they actually represent distinct aspects of manufacturing production. When these two procedures are properly interconnected, it can produce a myriad of benefits for manufacturers. But first, we need to identify the differences between planning and scheduling, and why one must occur before the other.
The Difference Between Planning and Scheduling
For manufacturers, planning involves big-picture strategy. In a broad sense, planning is the process of determining a proposed course of action a company needs to reach their desired results. In the planning phase of manufacturing, decision-makers determine what they will aim to achieve and how they will make it happen. Planning must be done before scheduling can begin.
Based on these plans, plants can then create detailed schedules. Schedules determine the specific timing and order of the individual tasks needed to carry out the plan, along with the resources required for each step. A schedule will include when each action will occur and who will get it done. Once the schedule is complete, production can begin.
When plans and schedules are created without regard for each other, manufacturers may be surprised with the number of challenges they face. If your organization creates an ambitious plan to initiate sales growth, your production will need a precise schedule to achieve any results. Coordinated planning and scheduling can make reaching goals simpler and more achievable for manufacturers in a number of different ways.
Benefits of Coordinated Planning and Scheduling
Without plans and schedules that are aligned, it can be difficult for manufacturing production to run smoothly and accomplish set goals. According to a survey of manufacturing professionals, two of the top challenges manufacturers face when trying to achieve their goals include a lack of collaboration and disparate systems. A well-honed schedule based on strategic plans can eliminate these common issues to meet or even exceed expectations.
Manufacturing equipment is also always becoming more advanced and complex. These new processes can help improve overall plant efficiency, but only if production schedules are also updated to handle the increasingly complex plans. With an innovative, coordinated approach to plant planning and scheduling, manufacturers can update schedules in real time to reflect new improvements or changes.
As plans and schedules work to make production run harmoniously, it becomes easier to reach your organization’s desired results. An effective plan and schedule will beget an effective outcome. When plans and schedules are coordinated, plants are much less likely to overlook conflicts and fall behind on production. In return, manufacturers are able to improve their capacity utilization, produce better on-time delivery rates, and ensure customer satisfaction.
As with most things today, the most effective way to manage planning and scheduling is through advanced technology. Software like VirtECS is designed specifically for manufacturers’ planning and scheduling challenges and can be customized to fit the unique specifications of your organization. It can even integrate with existing manufacturing software systems to resolve the universal shortcomings of their scheduling capabilities. With more than 25 years of research invested, VirtECS software has been employed worldwide by leading companies in biologic pharmaceuticals, chemical, electronic assembly and other industries. To find out more about our planning and scheduling software, simply fill out the form below to access our VirtECS Overview.
by Kelsey H | Nov 17, 2020 | Sustainability
As we discussed in our previous article, creating a sustainable manufacturing process is strategic for both environmental and financial reasons. All sustainable manufacturers have a common characteristic: an efficient process. To keep those processes running smoothly day after day, manufacturers need a robust plant maintenance program. Maintenance is an area that is easy to neglect, but it’s actually one of the most crucial pieces of the manufacturing sustainability puzzle.
Optimizing schedules and practices for plant maintenance has been proven to have a positive effect on operations costs and environmental impact. According to Schneider Electric, organizations that establish enterprise preventive and predictive maintenance programs find that maintenance costs can be reduced by more than 40 percent, while energy consumption drops by 10 percent. To discover the methods manufacturers have used to make their plant maintenance more sustainable, continue reading below.
Limit Cleaning Waste
In our current manufacturing environment, cleaning is absolutely essential to meeting industry regulations and creating faultless products. Equipment that isn’t cleaned properly is at risk for producing unreliable products, which is especially important in industries like pharmaceuticals. However, many manufacturing cleaning practices result in excessive water and chemical usage. Some manufacturers still choose to clean equipment by hand, which can be precise, but is also incredibly time-consuming. Other plants may use spray washers, which work quickly, but may not be very precise and tend to use more water than necessary. To conserve the most time and water, try using pressure washers for fine equipment details, and employ water cannons for larger pieces. As for cleaning agents, when possible, use a biodegradable cleaner. Chemical cleaners produce hazardous waste that is difficult to dispose of and harmful to the environment, and they’re typically not any less expensive than biodegradable options.
Repair Equipment
From time to time, your plant will inevitably experience equipment breakdowns. When possible, repair or refurbish equipment rather than purchasing brand-new machinery. Repairs can incur less than half the cost of a brand-new machine, so for smaller issues or solutions that will last for years, repairing is an especially economical decision. Plus, repairs can be done relatively quickly, while ordering new equipment may take weeks, leaving your facility operating at a less-than-optimal level. If you can’t repair the machinery, consider donating it to a trade association or educational facility instead of scrapping it. According to the EPA, repairing or reusing equipment will save nonrenewable resources, conserve energy, reduce greenhouse gas emissions and lower pollution.
Plan for Preventive Maintenance
When your manufacturing equipment unexpectedly breaks down in the middle of the production process, your plant is faced with an extensive amount of waste. The unfinished materials may need to be discarded, and subsequent processes will be delayed, resulting in less output and higher changeover times. Every minute spent rectifying the situation creates more waste. To avoid this issue, it’s essential to schedule time for regular preventive maintenance on equipment.
Effective preventive maintenance practices can cut costs and lower your overall plant waste levels. When creating your preventive plan, consult the equipment’s manufacturer to find out which machines will benefit from regular maintenance checks. Be sure to check on the appropriate frequency and find out how long it will take your team will need to perform the maintenance. With these details finalized, you can block out time for regular maintenance in your plant schedule. Ideally, preventive maintenance is best performed when the downtime will present minimal disruption to the rest of your processes.
For further sustainability, your plant may consider optimizing its entire manufacturing schedule to find the most efficient production process and identify the best time to shut down for maintenance. VirtECS manufacturing planning and scheduling software can deliver a wide range of capabilities to address these types of challenging production constraints. To receive more information on our planning & scheduling software, simply fill out the contact form below.
by Kelsey H | Nov 9, 2020 | Sustainability
If you’ve watched the news recently, you know environmental sustainability is at the top of the mind for consumers and businesses alike. According to a survey from Nielsen, 81 percent of consumers think it’s “extremely” or “very” important for companies to implement programs that help protect the environment.
For manufacturers, focusing on sustainability is not only about pleasing the environmentally conscious consumer. It can also be a strategic financial choice. Many people assume “going green” will be expensive and time-consuming, but in actuality, creating a sustainable and efficient plant actually saves money and time.
One of the most valuable tools in developing efficient processes is an optimized plant schedule. Advanced scheduling and planning tools help manufacturers increase output, lower costs, and conserve energy to minimize environmental impact in a number of keys ways, which we’ll discuss below.
Improved Resource Management
Over the past ten years, manufacturers have hit a lull in their ability to decrease waste. Since 2010, production-related waste disposal has remained steady at about 1.4 billion pounds per year, according to the EPA. Although there will always be some degree of waste as a byproduct of manufacturing, there is still work to be done preventing the disposal of misused materials. Improving your plant’s resource management through efficient planning and scheduling will help cut down on unnecessary waste. Mismanaged planning often leads to poor control over inventory and disjoined equipment processes, which result in costly wasted material and overuse of machinery. With an optimized schedule, your plant can better identify your ideal inventory and the timing of each process, with the ability to make quick adjustments if needed to generate less waste and minimize the effect on the environment.
Enhanced Energy Efficiency
In 2018, the industrial sector was responsible for nearly one-third of the total energy consumption of the United States. To lower the energy used by manufacturing production, equipment must be running at an optimal level to produce your desired output. If equipment is not needed for hours at a time throughout the production process, consider turning off as many parts as possible, or shut the machine off completely rather than letting it idle. Shutting down equipment can extend the lifespan of the machines, leave time for planned maintenance and lower utility bills.
With an advanced scheduling tool, manufacturers can identify ideal shut-down times of each piece of equipment, saving nonrenewable energy and lowering overall operating costs. In short, scheduling and planning will keep your plant from straining equipment when it’s not producing output and consuming unnecessary energy.
Higher Capacity Utilization
In addition to minimizing idling time, an optimized schedule will also identify how to maximize equipment output while in use. High changeover time can be one of the biggest roadblocks to reaching manufacturers’ output targets. Scheduling software can identify the constraints contributing to overall higher changeover times and help test potential solutions. For the biggest initial impact, concentrate on the processes with the greatest changeover time first, and then continue on to adjust the shorter changeovers where needed. The end result is higher product output and reduced energy usage.
Clear Communication
In order to lower waste, employees across the plant need to be able to communicate in real time as issues come up. Without streamlined communication, details can fall through the cracks. The ability to communicate back and forth keeps the flow of work moving most efficiently across the entire plant. A simple message about a delay can allow employees to enact short-term conservation efforts, which quickly add up to create a big impact on your company’s bottom line, as well as the environment.
An advanced scheduling and planning software tool, such as VirtECS, should include a communication module allowing any employee to access schedules and chat with others across the location. Here at Advanced Process Combinatorics, we can provide VirtECS Symphony, a web-based module which allows everyone in the plant to access the VirtECS schedule and send messages to other users. Our scheduling tool can also be updated quickly or automatically to reflect the plant’s current status and shift timing to account for delays communicated by employees or MES system. To learn more about VirtECS Symphony, download our overview here.
by Kelsey H | Oct 20, 2020 | Planning & Scheduling
If you work in manufacturing, you may have discovered that even small challenges can require systematic production changes. As a leader at your company, you’ve also felt how overwhelming it is to sort through the many factors involved in finding a solution. Now imagine you had a way to outline every scenario and instantly complete all the calculations needed to determine the right course of action. What would this kind of access to information mean for your plant’s efficiency and productivity?
This strategic advantage is possible through virtual plant modeling. Virtual plant models best show their value in the identification of potential process improvements and schedule changes in critical situations. Once your system can understand the many variables in your plant’s current workflow, you can then test possible outcomes from a range of different adjustments. Below, we’ll get into how a virtual plant model works and the many circumstances where manufacturers may find it beneficial.
Key Benefits to a Virtual Model
Virtual plant models can be helpful in a wide array of situations, from the everyday changes you make to the emergency situations when you need a solution immediately. Rather than making a guess on the most effective solution or spending hours working with a spreadsheet-based analysis, a virtual plant model can produce fast, accurate, and unique answers.
Because virtual plant models can run automatically, they significantly reduce the number of mistakes in your plant’s operating schedule. Plant models eliminate human assumptions about factors like equipment or materials and will base all outcomes purely on the variables added into the modeler. Even if the user has minimal training or programming knowledge, the system will do all the complicated math analysis itself, thus cutting down on human error. Using precise data, the virtual plant model creates an accurate schedule to help you find the most efficient choice every time. In the end, it produces an effective process schedule in critical situations for anyone who may need it.
Emergency Adjustments
When dealing with changes and shortages due to an emerging crisis, manufacturers need a fast and flexible solution to address many rapidly changing variables without shutting down production. For example, in the aftermath of a hurricane, raw materials shipments may be delayed, and employees could have trouble getting to the plant. For most manufacturers, bringing your entire operation to a standstill can be devastating. A virtual plant model quickly adapts to these kinds of situations and identifies a path to the maximum level of operations possible.
As the variables within your plant change, a user will simply make the corresponding adjustments within the model to reflect your lower inventory level, smaller employee shifts or a wide range of other variables which might be disrupted. The software can then analyze your changes and produce a new workflow based on these adjustments. As the user inputs the variables and identifies bottlenecks within the system, you’ll be able to analyze possible adjustments and determine which solution allows for the most efficient production. On the other hand, you may also find that you can’t move forward without a material you’re missing, and you’ll be able to re-shift production to focus on other products in the pipeline.
Day-to-Day Efficiency Improvement
During normal operations, virtual plant models can also tell you which of your day-to-day process gives your plant the highest returns. If you run slightly different schedules each day, you can compare the outcomes to determine which days were most efficient. The model can also account for incoming demands in the coming days, such as an additional employee or delayed material shipment, and ready the schedule to best handle the changes. With this data at your fingertips, you can identify different variables to address to continually boost your plant’s overall output. As you use this schedule that maximizes efficiency and minimizes downtime, you’ll find that over time it can drive better profit margins for your business.
Long-Term Planning
With a flexible virtual plant model, testing out potential improvements and investments into your facility becomes simple. If you’re considering making a major investment into your plant, virtual plant modeling allows you to create multiple what-if models with each of your investment possibilities to see where your money will be used most effectively. For example, if you plan to put $10 million into one piece of equipment, your model can tell you whether or not more product will be created faster. Based on the outcome, you can either decide it’s a smart investment or continue looking for other bottlenecks in the system that should be addressed first.
A virtual plant model of this kind lives within a manufacturing planning & scheduling software model editor. To create the model, a user will input their plant’s unique specifications to create a full description of the facility. This includes pieces of equipment, shift schedules, the materials used to create the product, etc. Once the current model is set, the user can begin changing variables to identify the best adjustments or improvements as discussed above.
Virtual plant modeling is one of the unique features of VirtECS planning & scheduling software. Everything within the model can be customized, creating a unique and specific tool designed to help manufacturers make well-informed decisions. VirtECS differs from other modeling software because of the precision of the resource modeling. From there, it’s able to analyze every material and process available at a plant, along with any adjustments scheduled for the future. To find out how a virtual plant model would work at your plant, download our guide here.
