The setup matrix for production optimization
A setup matrix is a powerful tool for detailed optimization of production for recurring lots of similar or identical products. The challenge is to determine the transition times from one product to the next with sufficient precision and to provide the data for a planning system.
The Benefits of Production Stabilization and the Sorcery of the Product Wheel
Volatile demand is everywhere, and companies facing it typically choose between two options: One, attempt to meet demand as it arises (chasing the volatility). Two, maintain a certain inventory level as a buffer from volatility. Of course, there are situations where option one is viable, but option two is the one that most companies take. Still, pursuing the benefits of production stabilization, even in this environment, is worth the effort.
The product wheel is a framework for consuming capacity by making specific products – on a particular asset, in fixed quantities – over a defined time horizon. Therefore, the ability to populate the wheels with products that can conform to smooth production is essential. Determining which products work with this strategy and which don’t is an analytical effort requiring product segmentation, statistical forecasting, replenishment policy selection, and inventory parameter development.
The Next Revolution: Industry 4.0 in the Intelligent Enterprise
Which companies benefit from being able to automatically control the entire supply chain through machines and sensors?
“Auto-control” management means saving effort in manual processes along the entire supply chain and realizing the full potential of intelligent machines and sensors. Businesses in Europe in particular are creating opportunities here – their strength is traditionally more in customer-centric manufacturing, rather than mass production. However, standard products also benefit from flexibility. The global crisis of supply and logistics poses challenges for every manufacturer. Only those who dynamically parameterize production to deploy alternative materials and processes at the push of a button will win the global race for capacity and resources.
Part Level Demand Forecasting at Scale
The challenges of demand forecasting include ensuring the right granularity, timeliness, and fidelity of forecasts. Due to limitations in computing capability and the lack of know-how, forecasting is often performed at an aggregated level, reducing fidelity.
In this blog, we demonstrate how our Solution Accelerator for Part Level Demand Forecasting helps your organization to forecast at the part level, rather than at the aggregate level using the Databricks Lakehouse Platform. Part-level demand forecasting is especially important in discrete manufacturing where manufacturers are at the mercy of their supply chain. This is due to the fact that constituent parts of a discrete manufactured product (e.g. cars) are dependent on components provided by third-party original equipment manufacturers (OEMs). The goal is to map the forecasted demand values for each SKU to quantities of the raw materials (the input of the production line) that are needed to produce the associated finished product (the output of the production line).