Sales Order Scheduling – BTO

In this sample, scheduling a BTO production will be explained. Using the same sample in the previous article Sales Order Scheduling – MTO, switch the Auto-replenish flag of item “A” to “Yes” and set its production lot size Min/Max to 1000. By doing this, the production of item “A” is changed to “Make to Stock” production and will produce based on the set production lot size.

Assu1

Run the Reschedule button and switch view to Order table. You will see that three production orders were created automatically. The order quantities 300 and 500 of item “AX” are replenished for each sales order of “AX”. You will also notice that the production order quantity of item “A” is 1000, this is because we have set the lot size as 1000.

Assu2

Looking at the result in the Resource Gantt chart. The sales order quantity is set to 300 and accordingly the manufacturing order quantity of item “AX” is 300 (see Assembly1 bar). The blue bar shows that item “A” is being produced in 1000s as specified in the lot size.

Assu3

In this chart, we can also input inventory of item “A” and see how it is scheduled based on sales orders.Input “Inventory “A”” as Order code and select Inventory (absolute) as Order type. Set the due date and order quantity accordingly. Run the reschedule button to see the result in the Resource Gantt chart.

Assu4

You will see that the manufacturing order of item “AX” is replenished from Inventory where 300 items from inventory “A” are supplied to the manufacturing order of “AX”. Looking at its inventory level, the beginning on-hand is 400, then drops to 100 after replenishment to order “AX”.

Assu5

To learn more about Asprova specific to this sample demonstration, you may visit Asprova’s e-Learning videos at http://lib.asprova.com/ (see 22. How to make a prototype).

 

Sales Order Scheduling – MTO

In this sample, Make To Order (MTO) and sales orders will be explained with an example of registering a sale order. In the Order table, register two sale orders of item “AX”. Set up the due date, order quantity and priority for both orders.

Assu1

Then, go to the Item table and set the Auto-replenish flag of item “AX” to “Yes (one-to-one production)”.
This means that replenishments orders will be generated one-to-one from the base order, regardless of the production lot size and inventory of the item. Set up the same Auto-replenish flag for item “A.

Assu2
Looking at the Graphical master, item “A” is produced through “Cut”, “Press” and “Inspection” processes and then item “A” is assembled with item “X” to produce item “AX”.

Assu3

Running the Reschedule button, the automatic replenishment is done by four manufacturing orders in the Order table. The “AX” items will be produced in two quantities: 300 and 500 according to the sale orders. The “A” items will also be produced in 300 and 500 according to the “AX” related orders.

Assu4
Looking at the Resource Gantt chart, as what is seen in the Graphical master,  item “A” is produced through “Cut”, “Press” and “Inspection” processes and then item “AX” produced through “Assembly” process. Sale orders of 300 and 500 are completed through backward scheduling.

Assu5

To learn more about Asprova specific to this sample demonstration, you may visit Asprova’s e-Learning videos at http://lib.asprova.com/ (see 22. How to make a prototype).

 

Classifications in Manufacturing Industries Part I

Silk factory

BY PRODUCTION PROCESS

Assembly type

This is one of the most commonly used classifications. It pertains to factories where parts are assembled to make a product. This is also known as “discrete type”.

Process type

This is also one of the most commonly used classifications. It is where the product is produced from the material through a chemical change. Process type is also known as “non-discrete type”.

BY PRODUCT TYPE AND PRODUCTION VOLUME

Mass production of scant kind of products

From a factory’s point of view, this classification is efficient. This is mainly because it is easier to mass produce than to create different products.

Small volume production of diversified products

Recent trends show that mass production of scant products is slowly dropping away. This is why small volume production of varied products came to be. This is developed to meet the different needs of consumers.

BY STOCK POINT

Make-To-Order (MTO)

As discussed in the previous paragraph, consumer needs vary. So, in order to satisfy the growing needs of the populace, MTO was conceived. MTO is generally a business production strategy that allows customers to buy products that are customized to meet their specifications.

Make-To-Stock (MTS)

This is the traditional production strategy. It relies on demand forecasts that determine how much stock should be produced.

 

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!

BTO and the Need for High Level Scheduling

Kobayashi Create

Prescale Film

Manufacturing recording papers is the specialty of this featured BTO Japanese company. Due to the innovations brought about by Information Technology and the digitalization of printing, the pressure to supply complete solutions to respond speedily to market demand increased. This made communication between different departments an important issue that should not be overlooked. To realize seamless communication and to quickly respond to customers’ needs, the production management of this company decided to set up a collective management system. However, their scheduler at that time was unable to adapt to the integrated system that they wanted. This led them to find another scheduler that actually can.

A flawless connection

To simultaneously take a lot of factors into consideration and keep delivery dates in check, an advanced scheduler was needed. Asprova is widely known throughout Japan and the company immediately called for its help. By utilizing this Finite Capacity Scheduling software, making optimized production plans became an easy task. With its help, they were able to connect to the ERP they used and it became possible to reduce lead times substantially. “The existing scheduler was not able to connect systems and to create an overall optimized schedule. One reason for selecting Asprova was that it can flexibly be connected to peripheral systems. This made it possible to improve same day delivery responses from 20% to 80%,” says the production management team members.

Progress visualization

To monitor the progress of the production, the scheduling managers used Asprova MES. This greatly reduced the number of inquiries from other divisions as it made the progress available for every department.

After the success of the company in integrating Asprova to their system, the company plans to use Asprova on their other businesses. This company placed their trust on our production scheduler. It’s time for you to discover why!

 

What is the Importance of Scheduling in MTO Manufacturing?

MTO Manufacturing

GammaIn the case of a Mexico-based Make-to-Order (MTO) company, production only starts when the order is received. Each customer order is unique, requiring the really intense coordination of every single activity, from paper purchase to artwork and plate preparation to machine make-readies. There are many restrictions and variants in MTO. Also, there’s the problem of how to deal with shortening lead time.

Without a very flexible and capable tool for scheduling, the operators, in this MTO Company, will only be processing orders chaotically, especially on times when there are tons of orders. Sometimes, the operators might be forced to refuse some orders and would be unsure of the delivery time. This will also prove to be a hassle if the customer cancels the order. This company experienced these ordeals before they met Asprova.

After implementing Asprova, positive changes become apparent. According to case study 12 of Asprova, overall equipment effectiveness (OEE) in the company increased by 80% after using the scheduling tool for a while.

There were other benefits like the late delivery which was reduced by 50% and WIP (work-in-progress) which was cut by 66%, but more importantly, the company was able to utilize their assets better, all thanks to Asprova.