A customer orders 100,000 pieces of apparel. Manufacturer promises to deliver 2 months from the date of order. Due to challenges in the line, the request was not delivered on-time. The customer lost a week’s worth of profit and so does the manufacturer.
One of the most common problems in the manufacturing industry is the lack of ability to quickly calculate and provide an accurate Available-To-Promise (ATP) quantity and delivery dates. ATP is the ability to project quantity and commit delivery dates based on availability of resources. It is essential for a manufacturing company to know its available resources first before committing quantities and dates to the customer.
A manufacturer needs to know how much inventory it has to be able to commit on ordered quantity. It is critical that the company has an accurate record of inventory as any shortages may lead to delay in due dates.
When a customer places an order, the manufacturing company checks available inventory plus incoming supply and projects when to deliver the order. This information is vital as this is what the customer holds the manufacturing company accountable for. A few delays on the promised date can affect the company’s credibility and may lead to customer disappointment.
These problems are inevitable—some within the company’s control, while others are caused by external and uncontrollable factors. Any changes in orders due to material shortages, machine breakdown, and labor absenteeism can impact order availability. The key in addressing these problems is to plan within these limits also known as constrained production scheduling. Planning with all constraints considered guides the company in giving a more realistic production schedule.
One major way to deal with this is through Asprova, Japan’s No.1 production scheduling software which has been around for more than 20 years and is deployed in almost 2,000 factories worldwide. The system helps manufacturers achieve a bird’s eye view of their detailed production schedule wherein any changes can be easily taken into account. The system will aid the company in planning the right schedule at the right resource, at the right quantity and at the right time, thus driving business growth and increasing customer satisfaction.
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