Planning optimization with dynamic material replenishment.
This strategy is based on the original kanban method, where consumption of a material/part triggers replenishment of that part. Traditionally, this method works with minimum and maximum limits for semi-finished and finished goods, batch sizes, safety stock etc. These limits are valid for a certain period of time; then you review them and make adjustments for the next period.
Although kanban has a number of advantages in comparison with “push” production, it still cannot adjust to changes in customer demand. What does it mean? You probably produce more than is necessary, and have cash tied up in inventory. This is where the true power of a demand driven planning solution lies. Analyzing current customer demand (based on the orders for the nearest time period), it automatically sets limits that reflect the situation, and adjusts them dynamically as the situation evolves.
Besides customer demand, Productoo planning module takes the following variables into account when when creating the production plan:
Productoo checks new customer orders and distributes them to the right (and available) production lines based on the required finish date. It notifies you of current and future material shortage. Then it breaks down all the finish goods according to the bill of material and creates the plan for all the workcenters involved in the upstream process.
Material availability and the development of estimated stock levels over time (based on the plan and consumption) is monitored using the “virtual coverage” functionality. The system notifies you if there is the possibility of a lack of material.
Thanks to this, it is possible to transition towards just-in-time, lean production.
What are the benefits of demand driven planning?
No more overproduction, stock/inventory levels optimization, right-size/optimal batches, producing (just) in time.
Would you like to find out more about how you transform your planning operations with Productoo?
Would you like to support your clients on their path towards smart, efficient production?