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Production Planning and Control

Intelligent Planning and
Scheduling System
A conceptual solution for combating scheduling and planning problems in Industry.
Submitted by:
Junaid Ali Khan
ID: I201221!!
PhD "anagement Science and #ngineering
Super$i%or: Dr& Deng Sheming
#mail: 'unaidali1()*+gmail&com
Table of Contents
1. Preface........................................................................................................................3
2. The Evolution of Planning and Scheduling...............................................................3
2.1 Planning and Scheduling: The Basic Concept.....................................................3
2.2 Why is Planning and Scheduling so !portant"..................................................#
2.3 Planning and Scheduling in $eneral % & 'istoric (vervie)...............................*
2.3.1 +aterial ,e-uire!ent Planning .+,P/........................................................*
2.3.2 +anufacturing ,esource Planning .+,P /................................................0
2.3.3 &dvanced Planning and Scheduling .&PS/...................................................0
2.3.1 2etailed Production Scheduling .2PS/.......................................................13
3. ntelligent Planning and Scheduling Syste! .PSS/................................................11
3.1 PSS % ntelligent Scheduling............................................................................11
3.2 ntelligent Scheduling % 'o) PSS Will Wor4s................................................11
3.2.1 Scenario description....................................................................................12
3.2.2 Conventional Solutions...............................................................................12
3.2.3 E5a!ple: Changing 6actory ,estrictions....................................................13
3.2.1 PSS % ntelligent Scheduling.....................................................................13
3.2.# &dvantages over current approaches...........................................................13
1 Su!!ary...................................................................................................................1#
1. Preface
Planning and %cheduling in$ol$e% the ,hole company& Starting -rom a %trategic %ale%
-oreca%t. the production plan% -or indi$idual -actorie% are de$eloped& /he material
-lo, ,ithin each -actory ha% to be controlled and production order% need to be
allocated e--iciently to indi$idual machine% in order to meet the de%ired goal% in
output. capacity utili0ation. cycle time. and e--iciency&
Ine--icient planning and %cheduling i% o-ten the cau%e o- the gap bet,een re1uired and
actual plant per-ormance& Improper %cheduling can cau%e high lead time% due to
%ynchroni0ation problem% or the occurrence o- dynamic bottlenec2%& /he%e can cau%e
delay% on 1uoted deli$ery time%& I- a machine run% out o- material due to bad
%cheduling. then production capacity i% lo%t and deli$ery date% may be mi%%ed&
#--ecti$e planning and %cheduling can be a di--icult ta%2& Standard planning and
%cheduling %olution% o-ten ha$e problem% in utili0ing the -ull capacity o- a plant& /hey
u%e heuri%tic% 3rule%4ba%ed5 %y%tem% that do not con%ider all rele$ant con%traint% and
cannot react 1uic2ly to une6pected e$ent%& In many ca%e% they are merely enhanced
monitoring tool% or they emulate the 'ob o- a manual planner& #$en i- they are -a%ter
than a human planner. their heuri%tic approache% do not reach the plant7% -ull
potential& 8-ten. they can only handle %imple optimi0ation criteria. %uch a% due date or
9e propo%e a uni1ue real4time. e$ent4ba%ed -actory %cheduler %olution& 8ur intelligent
%olution doe% not rely on heuri%tic% and ,ill calculate% a true optimum in real time
allo,ing -actory %ta-- to react 1uic2ly to une6pected e$ent%&
2. The Evolution of Planning and Scheduling
2.1 Planning and Scheduling: The Basic Concept
Planning and %cheduling in general i% a company4,ide ta%2& It %tart% ,ith a %ale%
-oreca%t and goe% do,n to each %ingle machine on the -actory -loor& Due to it%
comple6ity. planning and %cheduling ha% to be %upported by %o-t,are mainly #RP and
/he graph belo, %ho,% the planning and %cheduling pyramid ,ithin a company&
Planning and %cheduling i% an integrated ta%2& #ach layer in the %cheduling pyramid
depend% on e$ery other layer&
In the planning and %cheduling proce%%. the upper layer% 3demand -oreca%t. %upply
chain management and -actory re%ource planning5 determine ,hen and ,here a
certain 1uantity o- a particular product i% needed& #RP module% can per-orm thi% ta%2&
/he -actory -loor need% to en%ure that the -actory output i% in line ,ith the%e -oreca%t%&
/hi%: ho,e$er. i% not typically an #RP ta%2& #RP %y%tem% %imply do not ha$e acce%%
to all rele$ant -actory data& ;or e6ample. #RP %y%tem% do not 2no, the current %tate
o- machine% 3operational. maintenance %tatu%. o--4line. etc&5 on the -actory -loor or
many o- the con%traint% 3machine capacitie%. %ta--ing re1uirement%. maintenance
%chedule%. recipe management. etc&5 ,hich go$ern the production proce%%& /hi% data i%
a$ailable in "#S %y%tem%& Ideally. the #RP %y%tem deli$er% the production target% and
recei$e% re%ulting production plan% meeting the%e target% -rom the "#S layer&
So ,hat happen% on the %hop -loor and ,hy i% #RP4ba%ed %cheduling in%u--icient<
/he -actory -loor deal% ,ith production order%& A production order i% the ba%ic line
item o- a production plan& Initially 3prior to production planning5 it con%i%t% o- a
product ,ith an amount. due date. and li%t o- machine% ,hich can proce%% it&
#$entually 3a-ter production planning i% complete5 it contain% a %cheduled %tart and
end date and a %elected machine on ,hich it i% to be proce%%ed&
/he production planning proce%% mu%t ta2e into account all rele$ant con%traint%
including the current %tate o- the -actory -loor 3,hat i% produced ,here5 and meet all
other proce%% re1uirement%& 8-ten. the number o- con%traint% and their dynamic nature
ma2e% %cheduling di--icult& #6i%ting %olution% o-ten u%e rule%4ba%ed heuri%tic% and the
parameteri0ed 2no,ledge o- -actory %ta-- to per-orm the %cheduling ta%2& /he%e
%olution% imitate a human planner& Re%ult% -rom %uch %y%tem% may produce
e6ecutable production %chedule%& =ut they rarely utili0e the -ull potential o- a -actory&
Planning and %cheduling %hould not merely 2eep a -actory running& It mu%t be a tool
-or reaching operational e6cellence& It mu%t -ind production capacitie% hidden by the
con%traint% ,ithin the proce%% and help in reducing %etup time%. meeting deli$ery
target%. optimi0ing energy and %ta-- u%e. le$eraging e6i%ting re%ource%. and much
2.2 Why is Planning and Scheduling so Important?
Planning and %cheduling utili0e% e--iciency le$er% li2e energy %a$ing% or %etup time
reduction& An e--icient planning and %cheduling tool directly contribute% to the
company>% -inancial per-ormance&
At the company le$el. ca%h -lo, and pro-itability are e%%ential& Planning and
%cheduling can addre%% the appropriate le$er% at the plant le$el to in-luence the
company7% o$erall per-ormance&
/he diagram belo, %ho,% %ome o- the e--iciency le$er% o- planning and %cheduling
and ho, they in-luence the company>% per-ormance&
/he impact o- %cheduling on plant per-ormance and utili0ation can ha$e a great e--ect
on operational e6cellence&
In the -ollo,ing -igure ,e %ho, ho, -actory %ucce%% mea%ure% can be in-luenced by
the optimi0ation le$er% ,hich planning and %cheduling control%& /hi% %hould gi$e an
idea o- the important role ,hich %cheduling can play in utili0ing and controlling the%e
In$entory Reduction
?ot all re%ource% in a -actory ,or2 at the %ame rate& Some machine% are ne,er
and -a%ter. %ome can handle e6otic product% ,hich may ma2e them %lo,er in
certain ca%e%& In addition the %peed o- machine% i% in-luenced by a ,ide $ariety
o- -actor%. e&g& product $ariant% or e$ent% li2e late deli$ery o- ra, material%&
/he%e a%pect% cau%e di--erent type% o- bottlenec2% ,hich impact the
manu-acturing proce%%&
Static bottlenec2% include machine capacitie% and are 2no,n up-ront& /hey do
not mo$e acro%% the manu-acturing proce%% or the %hop -loor&
/hey do not need to be predicted and e$en %imple production planning
%olution% ta2e the%e bottlenec2% into account&
Dynamic bottlenec2% only appear at certain time% depending on the %peci-ic
product $ariant% ,hich are currently produced& /hey may mo$e acro%% the
proce%% and %hop -loor and are di--icult to predict& ;e, production planning
%y%tem% ta2e the%e bottlenec2% into account&
#$ent dri$en bottlenec2% appear ,hen an une6pected e$ent occur%& /hi% can
be the brea2 do,n o- a machine or the lo%% o- product% due to 1uality i%%ue% or
an une6pected high4priority cu%tomer order& /he%e bottlenec2% are inherently
unpredictable and re1uire 1uic2 reaction on the -actory -loor& Production
planning %y%tem% mu%t ha$e a real4time capability in order to %upport -actory
%ta-- reacting to une6pected e$ent%& 8nly 1uic2 and appropriate action can
minimi0e the impact o- an e$ent4dri$en bottlenec2 on the production proce%%&
/he %tandard approach to dealing ,ith bottlenec2% o- any 2ind i% the
maintenance o- in$entory 3%a-ety %toc25 -or all @ or at lea%t -or the mo%t critical
@ material% a% ,ell a% the u%e o- longer4than4nece%%ary %et up time% to bu--er
une6pected delay%& #--icient production planning. i&e&. planning ,hich can
e--ecti$ely and more detailed %et4up matrice% deal ,ith e$ery type o-
bottlenec2 manage% production ,ith %igni-icantly le%% in$entory than a
%tandard approach&
Increa%e o- /hroughput
Poor production planning can re%ult in unnece%%ary idle time% -or re%ource%
and @ ,or%e @ unnece%%ary %etup time%& Another rea%on -or idling machine% i%
the u%e o- bu--er time% in order bridge %mall de$iation% -rom the %chedule&
/hi% i% intended to en%ure that material and re%ource% are a$ailable ,hen
needed& Allo,ing -or the%e bu--er time% al%o %impli-ie% the manual calculation
o- a production %chedule by human -actory %ta--& 8ne ad$antage i% a certain
degree o- predictability o- 1uoted deli$ery date%& =ut thi% ad$antage doe% not
come ,ithout co%t& /he %ame %a-ety margin% ,hich guarantee deli$ery date%
al%o pu%h the%e deli$ery date% bac2& /he diagram belo, highlight% thi%
A %ophi%ticated planning and %cheduling %olution can reduce idle time% by
optimi0ing %etup% and reducing %a-ety bu--er% ,hile maintaining the %ame
degree o- predictability& Sale% %ta-- can commit to earlier deli$ery date% and
%till e6pect them to be met ,ith a high degree o- reliability&
#liminating idle time% al%o re%ult% in cycle time reduction and impro$e%
-actory throughput&
Reduction in 8perating Co%t
/he reduction o- idle time% -ree% capacity hidden in the production proce%%&
"ore can be done ,ith le%%& Planning and %cheduling help% to reduce
in$entorie% by producing material% 'u%t4in4time& 8ptimi0ed re%ource allocation
help% to %a$e energy ,hich ,ill become an increa%ingly important -actory a%
energy co%t are e6pected to go up in the -uture&
Another le$er i% the reduction o- ,a%te& In %ome -actorie% the production
proce%% cannot be %topped arbitrarily& "achine% mu%t produce %omething or
they mu%t be %hut do,n -or e6tended period% o- time. -or e6ample. at the end
o- the year& I- production i% poorly planned a -actory may be -orced to produce
,a%te 'u%t to 2eep machine% running& An e--icient %cheduler can re%hu--le
,a%te production to the planned. end4o-4year %hutdo,n%. thu% a$oiding their
production entirely&
2.3 Planning and Scheduling in eneral ! " #istoric $%er%ie&
Scheduling %olution% o- the pa%t 0 year% ,ere unable or only partly able to a%%i%t
management in utili0ing plant capacitie%& In the -ollo,ing paragraph ,e ,ill di%cu%%
the mo%t important %cheduling approache% ,ith their %trength% and ,ea2ne%%e%&
2.3.1 Material e!uirement Planning "MP#
"aterial Re1uirement% Planning 3"RP5 i% a production planning and in$entory
control %y%tem u%ed to manage manu-acturing proce%%e%& It create% a production plan
by decompo%ing the bill% o- material% into %ub4product% and u%e% a$eraged production
time% -or each proce%% %tep& Combined ,ith an in-inite capacity %cheduler "RP can
deli$er duty ro%ter% -or %peci-ic machine%&
Ao,e$er. "RP ha% %ome ma'or dra,bac2%:
A$erage production time: /he %y%tem u%e% a$erage production time% -or
each production %tep& Impro$ement% on the %hop -loor are not generally
con%idered in "RP %cheduling& /hey only lead to longer lead time%. becau%e
each %tep mu%t ta2e the %ame a$erage production time. e$en i- it i% in -act
per-ormed -a%ter& I- on the other hand a %ingle %tep ta2e% too long. then the
entire %chedule may become ob%olete&
Bnlimited capacity: "RP calculation% are ba%ed on the a%%umption that each
re%ource ha% unlimited capacity& /hi% i% an unreali%tic a%%umption& A
production plan created ba%ed on thi% a%%umption doe% not -it the realitie% on
the %hop -loor&
"i%%ing -eedbac2: /here i% no clo%ed4loop -eedbac2 bet,een the participating
module% o- "RP. ma2ing it hard to react to internal and e6ternal e$ent% ,hich
may be di%rupting the production proce%%&
?o %hop -loor connecti$ity: "RP ha% no interaction ,ith the %hop -loor:
there-ore. it cannot react to e$ent%& "RP i% located at the #RP layer ,hich
u%e% a di--erent data architecture than %hop -loor %y%tem%. ,hich con%olidate
their data at the "#S layer&
Rule%4ba%ed 3heuri%tic5 approach: "RP u%e% rule% in order to calculate a
production %chedule& /hi% i% nece%%ary due to e--iciency i%%ue%& =ut the%e rule%
can become in$alid ,hen e$ent% occur or the -actory i% changed in any ,ay&
2.3.2 Manufacturing esource Planning "MP II#
"RPII %y%tem% con%i%t o- -inite capacity %cheduling 3;CS5. capacity re1uirement%
planning 3CRP5. di%tribution re%ource planning 3DRP5 and other module%& "RPII
-acilitate% the de$elopment o- a detailed production %chedule that account% -or
machine and labor capacity& An "RPII output i% a -inal labor and machine %chedule&
Data about the co%t o- production including machine and labor time. material% a% ,ell
a% -inal production number% i% pro$ided -rom the "RPII %y%tem to accounting and
-inance& "RP II ta2e% into account the real production capacity and thu% o$ercome%
one o- the mo%t critical %hortcoming% o- "RP& It al%o ha% integrated clo%ed4loop
Critical dra,bac2% remain:
?o integrated %olution: #$en though "RP II ha% integrated clo%ed4loop
-eedbac2. the $ariou% module% and layer% ma2e calculation% and
communication 1uite ine--icient& /he large number o- module% generate% a
tremendou% communication o$erhead&
?o %hop -loor connecti$ity: Ju%t li2e "RP the "RP II approach i% an #RP
layer application and unable to e6change rele$ant data in real time ,ith %hop
-loor in-ormation %y%tem%&
Rule%4ba%ed 3heuri%tic5 approach: "RP II u%e% rule%4ba%ed algorithm% -or
planning and. there-ore. produce% the ine--icient %chedule% 'u%t li2e "RP&
2.3.3 $dvanced Planning and Scheduling "$PS#
A% %een be-ore. traditional "RP and "RP II %y%tem% utili0e a %tep4by4%tep procedure
to allocate material and production capacity and plan% them %eparately& "any "RP
%y%tem% do not con%ider limited material a$ailability or capacity con%traint%& Such
approache% o-ten re%ult in un-ea%ible %chedule% ,hich cannot be e6ecuted on the %hop
Bnli2e pre$iou% %y%tem%. APS %imultaneou%ly plan% and %chedule% production in an
integrated approach ,hich i% ba%ed on a$ailable material%. labor and plant capacity&
APS %olution% appeared to be a tool -or the -actory director to achie$e optimal plant
per-ormance& =ut %oon it became ob$iou% that APS could not deli$er on it% promi%e&
8-ten. %chedule% turned out to be un-ea%ible on the %hop -loor becau%e APS plan% at
an aggregated le$el u%ing $ariou% a%%umption% regarding data and e--iciency -actor%&
?o %hop -loor connecti$ity: Although APS i% an integrated planning %y%tem. it
i% located at the #RP layer li2e "RP and "RP II& /here-ore. it ha% no acce%%
to %hop -loor data& #RP re1uire% di--erent data than the %hop -loor. ,hich
-orce% APS to u%e %impli-ication% and to plan at an aggregated le$el 3re%ource
cla%%e% in%tead o- %ingle re%ource%5& ;urthermore. a %hop -loor planning and
%cheduling tool need% to react in real time to di%rupti$e e$ent%& /hi% ,ould
re1uire the #RP %y%tem to be updated in real time ,ith a huge amount o- data
and con%traint%& /he #RP %y%tem% ,ere neither made -or %uch real time
update% nor ,ere they made to handle %hop -loor %peci-ic data&
Rule4ba%ed 3heuri%tic5 approach: li2e the "RP approache%. APS u%e% rule%4
ba%ed in%tead o- analytical algorithm%& /hi% ma2e% the approach -a%t. but the
re%ult% are %till ine--icient %chedule%&
APS pro$ed to be a good %olution -or material -lo, planning abo$e the -actory le$el.
but ,a% not %u--icient -or detailed production %cheduling on the %hop -loor&
2.3.% &etailed Production Scheduling "&PS#
/o gi$e planning and %cheduling %o-t,are acce%% to %hop -loor data. the gap bet,een
#RP and %hop -loor le$el needed to be clo%ed& Detailed Production Scheduling 3DPS5
i% ba%ed at the "#S le$el& #6ecutable production %chedule% -or the %hop -loor can be
deri$ed -rom #RP production target% originating -rom the bu%ine%% le$el& 9herea%
APS and "RP %chedule% tell ,hen a certain 1uantity o- product% need to be -ini%hed.
"#S le$el %cheduling detail% ho, to %plit the%e into production order% and indi$idual
re%ource duty ro%ter%& /he re%ulting production plan% can be e6ecuted on the %hop
Detailed production %cheduling ma2e% it po%%ible to model each part o- a -actory and
the production proce%% in%tead o- planning at an aggregate le$el& ;urthermore. "#S
rele$ant data and con%traint% en%ure that the plan% are e6ecutable on the %hop -loor&
;or the -ir%t time. it became po%%ible to replace manual %cheduling by the -actory
planner% on %ingle re%ource le$el&
#$en i- mo%t o- the dra,bac2% o- the #RP planning and %cheduling tool% ,ere
o$ercome. DPS 2ept one ma'or problem o- the%e tool%:
Rule4ba%ed 3heuri%tic5 approach: /o deli$er -a%t re%ult%. e%pecially ,hen
reacting to real time e$ent%. DPS %olution% u%e rule% -or %cheduling
calculation%& /hey ,or2 in a limited %olution %pace and act li2e a manual
planner ,ould do& #$en i- DPS i% -a%t. it only can e6plore local optima ,ithin
the %olution %pace o- it% rule%. thu% ignoring $a%t area% o- the %olution% %pace
not co$ered by it% rule%& ;urthermore. rule%4ba%ed approache% are not robu%t
under change% in -actory layout. proce%% change%. or ne, product $ariant%&
8-ten DPS %y%tem% are limited to a re%tricted number o- con%traint% in order to
2eep comple6ity lo, and to increa%e calculation %peed&
9hile "#S4ba%ed DPS are capable o- %ome o- the nece%%ary planning and
%cheduling ta%2%: it -all% %hort in allo,ing plant% to reach their -ull
per-ormance potential& 9hat -actorie% no, need i% a planning and %cheduling
%olution ,hich enable% them to utili0e the ad$antage% o- the %cheduling
optimi0ation le$er% in order to gain competiti$e ad$antage% and operational
3. Intelligent Planning and Scheduling System "IPSS#
3.1 IPSS ! Intelligent Scheduling
Detailed production %cheduling clo%ed the gap bet,een #RP and the %hop -loor. but it
,a% unable to utili0e the %cheduling optimi0ation le$er%& /he re%ult% ,ere not
%u--icient to %ol$e e--iciency and %peed i%%ue% nece%%ary to reach de%ired plant
/he rea%on i% the rule%4ba%ed approach o- the DPS %olution% ,hich i% the ma'or
problem o- all di%cu%%ed %cheduling approache%& /hey are not robu%t under change%.
limited in their optimi0ation capabilitie% and ha$e problem% ,ith $ariation% in the
production proce%%& ;actorie% are under continuou% change and rule%4ba%ed %olution%
tend to lag behind& It ta2e% time until %u--icient 2no,ledge ha% been de$eloped and
integrated into the rule %et& During that time-rame per-ormance i% poor&
/he IPSS algorithm ,ill u%e an analytical %olution in%tead o- rule%& #ach time a ne,
production %chedule i% calculated. the ,hole -actory ,ith all it% parameter% and
con%traint% i% calculated again& /here-ore. IPSS calculate% a true optimum ,ithin the
%olution& In addition. IPSS ,ill deal% ,ith change% and e$ent% in real time ,ithout
need -or recon-iguration or reprogramming& /hi% i% po%%ible due to the highly e--icient
calculation %cheme o- the algorithm. ma2ing planning and %cheduling no longer
dependent on rule%& IPSS doe% not aggregate or reduce the po%%ible %olution %pace&
IPSS i% robu%t and can operate in rapidly changing en$ironment% 3,hich mo%t
-actorie% are5 and deli$er% real4time re%ult%& /hi% al%o i% important -or 1uic2 reaction
to di%ruption% o- the production proce%%. li2e machine brea2do,n% or delay% in
material deli$ery&
3.2 Intelligent Scheduling ! #o& IPSS Will Wor's
/he -ollo,ing e6ample %ho,% the bene-it o- IPSS compared to traditional. rule%4
ba%ed approache%& Rule%4ba%ed %olution% u%e a %et o- heuri%tic% ,hich co$er the mo%t
common %cheduling %cenario% -or the gi$en production proce%%&
Rule%4ba%ed approache% per-orm poorly ,hen change% occur in the production
proce%%& I- a machine i% changedCadded or ne, product $ariant% are included. rule%4
ba%ed %olution% ha$e t,o po%%ibilitie%. 15 B%ing the old heuri%tic% -or the ne, %ituation
,hich decrea%e% output 1uality or 25 adapting the rule%& /he latter option re%ult% in a
cu%tomi0ation e--ort -or the %olution and ta2e% time to de$elop. mean,hile the
production proce%% may yet change again& Al%o. the heuri%tic% are de$eloped -rom the
e6perience% o- -actory %ta--& /he%e e6perience% al%o ta2e time to de$elop and program
into the %et o- rule%&
IPSS on the other hand doe% not u%e heuri%tic%& It ,ill create% a mathematical model o-
the production proce%% and %ol$e% thi% problem in an analytical -a%hion& It con%ider%
many po%%ible %chedule% ,ithin thi% model and choo%e% the be%t one ba%ed on
optimi0ation criteria& /hi% -eature ma2e% IPSS robu%t under change% in the -actory
layout or the production proce%%& /he%e change% re%ult in a %lightly di--erent model
,hich can be calculated in the %ame ,ay& /here i% no need to update any rule%&
/he -ollo,ing %cenario% ,ill -urther e6plain the %cheduling capabilitie% o- IPSS
3.2.1 Scenario descri'tion
Scenario 1: Suppo%e the demand en$ironment -or a particular product re1uire%
three red product% and three green product% to be manu-actured during the ne6t
production cycle& /he product% are produced on the %ame production line& /he
color i% applied by a coloring de$ice. ,hich mu%t be cleaned -or 0 minute%
be-ore a ne, color can be applied& It i% mo%t optimal to produce all o- the
item% o- one color -ir%t 3%ay red% -ir%t5. do the change4o$er -or the coloring
de$ice. and then produce the product% o- the %econd color& /hi% production
%e1uence ha% one do,ntime o- 0 minute% to clean the coloring de$ice
Scenario 2: /he Scenario 1 %ituation can be made more complicated& Det7%
a%%ume that the product% mu%t be tran%ported to a di--erent -actory in %pecial
tran%portation crate%. ,hich are limited in %upply and depend on the %hape o-
the product& ;urther. a%%ume that t,o product% o- the red $ariety and one o-
the green $ariety are o- %hape A and the remaining product% are o- %hape =&
;urther. a%%ume that all o- the crate% re1uired -or %hipping %hape = product%
are currently in u%e& /he pre$iou% production %chedule -or Scenario 1 3-ir%t
red%. then green%5 i% no longer -ea%ible& /he third red product cannot be placed
into a tran%portation crate becau%e no crate% -or thi% %hape are currently
a$ailable& In thi% %ituation. production %cheduling mu%t ta2e crate a$ailability
3a -actory re%triction5 into account&
3.2.2 Conventional Solutions
/he production planning problem i% commonly %ol$ed by %y%tem% that po%%e%%
2no,ledge about -actory re%triction% in the -orm o- rule%& /he%e rule% repre%ent 2no,4
ho, ,hich -actory employee% ha$e de$eloped o$er time ,hile per-orming -actory
operation%& In Scenario 1. one %uch rule ,ould %tate: Produce %ame color% in
%e1uence& In Scenario 2. the production rule% ,ould %tate: Produce %ame color% a%
long a% tran%portation crate% are a$ailable& /he problem ,ith %uch rule4ba%ed
approache% become% apparent ,hen the -actory re%triction% change&
3.2.3 E(am'le) Changing *actory estrictions
In the t,o Scenario% 'u%t con%idered. the %ituation may no, be changed to upgrade the
coloring e1uipment o- the production line ,ith an additional E%tand4byF coloring
de$ice& /hi% %econd coloring de$ice can be u%ed ,hile the -ir%t de$ice i% being
cleaned& "ore %peci-ically. ,hen a color change occur%. the %econd de$ice can be
rotated into the production line immediately ,hile the -ir%t de$ice mo$e% out o- it to
be cleaned& /he change4o$er time -or color change% i% thu% reduced to 0ero& /he
introduction o- the %econd E%tand4byF coloring de$ice totally change% the optimi0ation
problem& Any rule% intended to optimi0e producti$ity by minimi0ing color change4
o$er time% ha$e become in$alid& /he entire rule4ba%ed optimi0ation %cheme mu%t be
3.2.% IPSS + Intelligent Scheduling
A% demon%trated in the %cenario% abo$e. rule%4ba%ed %y%tem% are -ragile under
change% in -actory re%triction%& ;urthermore. rule4ba%ed optimi0ation %trategie% are
only a% good a% the rule% %y%tem. i&e&. the 2no,ledge o- indi$idual% 3o-ten time% not
e6pert%5 ,ho deri$ed the rule%&
/he IPSS approach to the production planning i% not rule%4ba%ed& It in$ol$e% a
computer4ba%ed %y%tem and method that %imulate% the -actory %hop -loor and create% a
$irtual -actory& /hi% $irtual -actory i% de%igned to pro$ide the ability to %imulate and
a%%e%% any theoretically po%%ible production %e1uence& =y %imulating many di--erent
%e1uence%. an optimal %e1uence can be e%tabli%hed ba%ed on u%er de-ined optimi0ation
criteria& IPSS i% robu%t under change% in the -actory re%triction%& #ach time there are
change%. they are -actored into a ne, $irtual -actory: and the optimi0ation i%
determined to pro$ide %olution% -or production planning&
3.2., $dvantages over current a''roaches
Currently. -actory %ta-- %ol$e% the production4planning problem either EmanuallyF or
,ith the help o- Erule%4ba%edF %o-t,are %y%tem%& /he manual proce%% in$ol$e% a
-actory employee ,ho con%ider% the current demand. the current %tate o- the -actory.
and pre$iou% e6perience% gained during the operation o- the -actory to gue%% an
optimal production %e1uence& /he Erule%4ba%edF %o-t,are %y%tem codi-ie% the
e6perience% o- -actory %ta-- into rule% and u%e% the%e rule% to plan production&
/here-ore. a Erule%4ba%edF %y%tem %ol$e% the problem in the %ame ,ay -actory %ta--
,ould %ol$e the problem manually& B%ing Erule%4ba%edF %y%tem% may %peed up the
proce%%& IPSS ha% a number o- ad$antage% o$er the currently u%ed method% -or %ol$ing
the production planning problem&
Attribute% o- intelligent Scheduling and Planning Sy%tem that addre%%e% rele$ant
optimi0ation le$er
Ao, the%e ad$antage% participate in utili0ing the e--iciency o- the %cheduling
optimi0ation le$er% can be %een in the diagram belo,:
1& Speed: IPSS i% $ery -a%t e%pecially ,hen compared to the manual proce%%&
/he problem i% typically %ol$ed in a -e, minute%. ,hile manual %olution% may
ta2e hour%& /he %peed ad$antage depend% on the comple6ity o- the particular
production en$ironment&
2& Robu%tne%%: /he algorithm doe% not depend on rule% deri$ed -rom a
particular %etup o- a gi$en -actory& A% demon%trated by mean% o- e6ample. any
%uch rule% become in$alid i- the -actory %etup change%& IPSS doe% not %u--er
-rom thi% dra,bac2
& Bnbia%ed Solution: /he number o- theoretically po%%ible production
%e1uence% can be e6tremely large becau%e they depend on the number o-
di--erent product% ,hich are to be produced during a gi$en production cycle&
#6i%ting %olution% do not con%ider the entire %pectrum o- po%%ible %olution%.
but are bia%ed by e6perience deri$ed rule%& /he 1uality o- the output 3the
optimal production %e1uence5 depend% on the 1uality o- the rule% and.
ultimately. on the competence o- the -actory %ta-- ,ho de$eloped the rule%&
IPSS con%ider% the entire %pectrum o- po%%ible %olution% and calculate% the
optimal %olution analytically unbia%ed by e6perience deri$ed rule%&
G& ;le6ible 8ptimi0ation: /he optimi0ation criteria are built into rule%4ba%ed
%y%tem%& 8nce a rule%4ba%ed %y%tem i% de-ined to optimi0e according to a
certain criterion @ -or e6ample highe%t producti$ity @ then the optimi0ation
criterion cannot be changed& 9ithin IPSS. the planning and optimi0ation
a%pect% are decoupled& /he optimi0ation criteria are input parameter% -or the
production planning algorithm and can be ea%ily changed or combined&
*& Analytic Solution: IPSS allo,% -or ea%y change% to the EHirtual ;actoryF&
;actory %ta-- can plan change% in the -actory by %imulating the%e change% -ir%t
in the Hirtual ;actory and analy0ing the impact o- the%e change%& /hi% help%
-actory %ta-- in the deci%ion ma2ing proce%%&
% Summary
Planning and %cheduling enable% control o- e--iciency le$er% ,hich directly in-luence
-actory and company per-ormance& Reduction o- in$entorie%. increa%ed throughput
and reduction o- co%t help to reach %u%tainable competiti$e ad$antage%& Planning and
%cheduling i% not a local ta%2: but integrated in a company4,ide planning proce%%
contributing to the company>% o$erall %ucce%%&
/o utili0e the%e gain%. the planning and %cheduling %olution mu%t do more than 'u%t
deli$er an e6ecutable %chedule& It need% to deli$er an optimal %olution ,ith regard to
the de%ired goal% ,hile con%idering all type% o- con%traint% including dynamic and
e$ent dri$en bottlenec2%& Rule%4ba%ed %y%tem% and approache% to production planning
are out o- touch ,ith the e$ery day challenge% on the -actory -loor and %imply cannot
deli$er optimal re%ult%& IPSS i% an e--ecti$e real4time planning tool capable o-
controlling all optimi0ation le$er% and pro$iding %a$ing% by unloc2ing hidden
capacity potential% in the production proce%% pro$iding a 1uic2 return on in$e%tment&
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