Sales Order Scheduling – MTS

In this sample, scheduling a Make To Stock (MTS) production will be explained. Using the same sample in the previous articles, go to the item table to set parameters: set item “AX” auto-replenish flag to “Yes”, set production lot size Min/Max to 500 units.

Assu1

In the Order Table, set the current inventory of item “AX”. Use “Inventory (absolute)” as order type and input 300 as order quantity.

Assu2

Run the Reschedule button to check the output. The order requires 500 items of “A” to be able to produce 500 items of “AX”. Since we have set item “A” with 400 pcs inventory, a production order of auto-replenishment “A” is created with a quantity of 1000. Go to the Resource Gantt chart to check the output. You will see that the sales order requirement for item “AX” is 300 and its current inventory is also 300. Therefore, no more production is created. For the second sales order of 500 “AX”, 500 items of “A” are necessary. Since the 400 items of “A” were used already from the first order, manufacturing orders of 1000 pcs each are generated automatically.

Assu3

To learn more about Asprova specific to this sample demonstration, you may visit Asprova’s e-Learning videos and see 22. How to make a prototype.

 

Push and Pull Manufacturing: A brief comparison

tug-of-warDifferentiating Push type and Pull type manufacturing is simple: Push type refers to Make-to-Stock (MTS), where production is NOT BASED on actual demand; on the other hand, Pull type refers to Make-to-Order (MTO), where production is BASED on actual demand.

Here’s another way of saying it:

MTS – A manufacturer producing items before orders are received. Now, you might be wondering where MTS manufacturers base the number of products that they produce over time. This traditional production strategy looks at the demand forecasts generated from data that they gathered. These will then be synchronized to the quantity of items to be made. The key to this type of manufacturing is to be as accurate as possible in making forecasts.

MTO – A manufacturer producing items after orders are received.

As you might have derived from the facts above, MTO manufacturers move right after an order is received. The usual case in this type of production strategy is that each order is unique—giving producers a hard time making them. The processes for every product, of course, vary from one another and this makes scheduling quite a handful.

The downside

In MTS, the biggest disadvantage falls into the forecasts itself. Here, inaccuracy will definitely result to losses producing high or excessive inventory ratings—where there are more products in the real demand and even stock-outs—when there would be a shortage of produced items when the demand is high.

In MTO, there are also many disadvantages and one of them is shortening lead time. If the company accepts many orders without having the ability to schedule them right, it will result to aggravating the consumers who, in that case, might be receiving their orders late or not receiving their orders at all. If the company refuses to accept orders because of certain issues, this results in loss of profit.

The Solution

In this blog site of Asprova, we can see a couple of examples regarding MTS and MTO. The article about Make-to-Stock clearly states that by using the Advanced Planning and Scheduling Software, a vibration-proofing manufacturer achieved great results. In short, using a production scheduler is the biggest factor that led to more accurate forecasts.

Also, in another article focusing on MTO manufacturing, the solution was the same: using a production scheduler that can cope with the flexibility needed in MTO. This enabled them to cut-off late deliveries in half.

To wrap this up, be it Pull or Push, there is a simple solution: Join the Winners!

Would the PDCA cycle become faster when accuracy improves?

Make-to-Stock

Vibration-proofing products are the specialty of this Make-to-Stock (MTS) manufacturer that we will try to analyze in this article. There are two reasons why they installed Asprova mainly: to improve efficiency and to upgrade accuracy.

The Production schedule, before Asprova introduction, was made three times a month. Because the company needed a lot of help with their vulcanization processes, they wanted to focus on narrowing this out for it to be automatically scheduled. Scheduling only three times a month made it hard for them to do so. But, after Asprova installation, they were able to schedule every day and made the processes more efficient and accurate. After this event, the company plans to expand the use of Asprova in other aspects of their production processes.

Production Planning Enhanced

According to their managers, the improvement of efficiency in making production plans is one of the best effects after Asprova introduction. Another is the accuracy enhancement of production plans.

The use of Asprova does not end in just the aforementioned details. The company predicts that in the future, there will still be effects like great reduction in-progress inventories.

What are the Benefits of Synchronizing Sales Production Orders?

Manual Scheduling

We’re now going to focus on an international company which does Make-To-Stock (MTS) manufacturing. This company is known for supplying disks to aircraft engines. Like other companies, this one had problems in scheduling because of their manual approach. This often caused delay in production operations. They also had to respond to frequent order changes.

The company needed a high-speed production scheduling tool that can function well in a fast-paced production environment—and also promise results. They tried a lot of schedulers to solve this issue before, but among all the production schedulers they tried, there was  one who could perform better than others.

It was Asprova.

Synchronizing Sales and Production Orders

According to the manager of this company’s production department, they chose this production scheduling software because it has large parameters that can be assigned by the user. “There are particular conditions and requirements here that are unique to us. Asprova’s flexibility fills the bill in that regard,” he adds.

The software helped the company synchronize their sales orders as well as their production orders. With Asprova, they were able to attain a uniform production planning and created precise production plans. Another noticeable achievement after the installation of Asprova is the automation of the previously manual scheduling operations.