In the dynamic manufacturing landscape, planning orders into production is no longer a routine task. It’s become a pivotal competency that can significantly impact a manufacturer’s efficiency, productivity, profitability and service levels.
Why is intelligent production planning so essential? Because, in today’s disrupted supply chain, both demand and supply have become fast-moving and ever-changing targets. In the first six months of 2023 alone, there were 8,197 supply chain disruptions recorded across all industries. And, as manufacturing supply chains become more global and more complex, incorporating more supplier tiers, the chance for something to go wrong at any node grows exponentially. In fact, 43.6% of organizations report that they’ve experienced supply chain disruption due to third-party failures in the supply chain.
From medium-term production planning — spanning several months — to short-term sequencing into individual production lots, manufacturers are challenged to optimize their resources and capacities to achieve the best possible utilization, while also meeting cost and service targets.
The production optimization journey involves accurate forecasting, supply planning, production planning, order prioritization, and even looking at the availability of warehouse space and trucks to accommodate materials deliveries and finished products. Operations need to be grouped intelligently. Batch sizes need to be defined. The process involves an incredible amount of data, at an amazing level of granularity.
Nor surprisingly, manufacturers are finding that this planning challenge exceeds the cognitive abilities and bandwidth of their human planners. Specialized software — called Advanced Planning and Scheduling (APS) solutions — have emerged in response. And the market for these solutions is expanding quickly as manufacturers discover the value of APS in precisely and profitability matching supply with demand. The worldwide APS market was valued at $1.3 billion in 2023, but it’s expected to grow to $3.4 billion by 2033.
APS solutions rely on specialized algorithms to consider volumes of upstream and downstream data — then they plan, schedule, and allocate production orders and resources efficiently. Intelligent APS solutions transform massive amounts of data into smart plans aimed at meeting production deadlines and delivery dates, optimizing materials and finished inventory, and reducing operational costs across the manufacturing network.
As manufacturing complexities grow, the need for robust APS solutions becomes increasingly apparent. These solutions encompass long-term, mid-term and short-term order planning horizons, while considering internal constraints and resource limitations. They bridge the gap between supply chain planning and execution, ensuring seamless data transfer and decision support.
In today’s volatile landscape, production planners confront various challenges and disruptions, including global component shortages, just-in-time production mapping, increased product range and customization, and logistics complexities. APS solutions have proven to be indispensable tools in navigating these challenges effectively.
Looking for an APS? Look for these three capabilities
For manufacturers who are just exploring the promise of modern APS solutions, what features and functionality should they be looking for? Based on Blue Yonder’s decades of experience — and hands-on engagements with hundreds of manufacturers — following the following are three must-have APS capabilities.
1. A modular, extensible architecture
Order slotting software engines ingest both real and forecasted production orders to create a “bill of materials” that spans those orders. It compares the total parts needed to real-time information about parts availability and constraints, so materials can be ordered in an optimal way. As real orders come in and forecasted orders change, the slotting engine automatically conducts new analysis. In today’s volatile production environment, manufacturers can avoid parts shortages or disruptions caused by large, unexpected orders.
Because order slotting solutions provide companies with enhanced visibility across all points of the supply chain, it’s best to work with a software provider that offers slotting as part of a modular, extensible APS architecture. Top-tier software providers offer modular APS capabilities that can be added in a flexible, incremental manner.
Modular implementation allows for flexibility and scalability, ensuring that the APS solution can adapt to evolving needs without significant disruptions. A cloud-native architecture is imperative to support easy extensibility and add-ons. With state-of-the-art, composable cloud services, additional services for additional needs can be implemented quickly and efficiently, ensuring adaptability and agility in the face of evolving production requirements.
2. Best-in-class order sequencing
In manufacturing environments marked by fluctuations — which is true of just about every industry today — order sequencing emerges as another crucial aspect of production planning. After order slotting engines create monthly order buckets and distribute production work evenly, sequencing software takes over.
Order sequencing involves grouping production operations into lots, then arranging those lots based on productivity and priority, a technique also known as pearl chaining. However, choosing the right batch size is equally essential. Sequencing is best managed by advanced software because it must support a delicate, careful balance between lean production — making small quantities in chronological order to reduce inventory — and fulfilling productivity goals by opting for longer production runs. Sequencing software also helps minimize unproductive times such as cleaning, changeover or setup, which significantly enhances productivity and yield.
With the ability to run sequencing scenarios multiple times a day, manufacturers can ensure optimal planning, even in today’s dynamic conditions. By relying on sequencing solutions and their optimization algorithms to schedule flexibly and dynamically, manufacturers can accommodate disruptions and pivot rapidly. Optimal order sequencing not only reduces lead times, but also minimizes work-in-progress inventory, leading to enhanced operational efficiency.
3. Easy, seamless integration with other systems
Finally, manufacturers should look for an APS that’s designed to seamlessly integrate with other production systems and tools, creating real-time connectivity and an intuitive user experience. Without proper integration with other systems — such as the enterprise resource planning (ERP) solution — it becomes challenging to gather all the essential information to drive accurate production planning decisions.
When the APS solution is seamlessly integrated with the ERP solution and the manufacturing execution system (MES), data can be shared swiftly and efficiently, ensuring that production plans are always driven by real-time, relevant information. This integration significantly reduces the risk of duplicated or inconsistent data, which enables better, more accurate planning decisions.
A cloud delivery model is essential here, as well. Cloud-native, connected solutions enable access from any location at any time, empowering production planners to respond promptly to changes and remain aligned with fluctuating market trends.
Your search stops here, with Blue Yonder
Modern manufacturers are navigating complex terrain, characterized by both challenges and opportunities. More companies are discovering the value of an intelligent APS solution to streamline their production processes, minimize disruptions, and pave the way for a more agile and responsive manufacturing ecosystem.
In a world where agility and efficiency are paramount, mastering production planning is key to staying ahead in the competitive manufacturing landscape. Why not start your journey to optimized planning by contacting Blue Yonder today? You can also learn more by reading our helpful eBook, “A Guide to Production Planning in Manufacturing.”
