Supply chain disruptions have become more unpredictable and frequent. And with traditional scheduling capabilities companies struggle to cope with this increased complexity and uncertainty. The mitigation actions are often too slow, resulting in operational inefficiencies and negative business impacts. But next generation (Next Gen) scheduling that leverages today’s evolving technologies (e.g., digital twin, real-time data), offers a solution, increasing the responsiveness to disruption and optimising production. In this article we show what the concept is, the key underlying capabilities and how to go about setting up Next Gen production scheduling to take your supply chain to the next level.
Supply chain disruptions are persisting and are likely to become more complex and frequent. A failure to respond to this ‘new normal’ leaves an organisation in a strategically disadvantaged position in the market.
Introduction
Supply chain challenges are becoming more complex and volatile. The lingering impact of Covid and geopolitical uncertainties have exacerbated supply challenges. Labour shortages and transportation delays are persistent and lead times unpredictable.
According to a Deloitte study in 2022, 80% of 200 US-based manufacturing executives have experienced the impact of at least one serious disruption to their supply chain in the past 12-18 months. Ninety per cent of them agreed that the frequency of disruptive events has greatly increased in the last 10 years, suggesting that companies need to adapt to the new normal.
In response there has been a flurry of investments by companies to future proof their supply chains. Next Gen production scheduling has been identified as one of the key capabilities to improve the responsiveness to these unpredictable disruptions.
Scheduling challenges
The key challenge for companies is that these disruptions are becoming increasingly difficult or even impossible to predict. The challenge has been exacerbated by the sheer number of disruptions and the pace at which they occur, on a daily basis. In other words, it has become ‘humanly’ impossible to identify and make the best production scheduling decisions. With the traditional production scheduling capability companies have used manual efforts to identify disruptions, longer lead times to collate data from disparate systems and analysing associated impacts/scenarios, in order to rapidly determine the best production schedule. Often these actions are performed too late and miss the opportunity to execute the optimal production schedule. This has led to a deterioration in customer service levels and/or increase in cost to maintain the same service level.
According to a recent Deloitte article in 2022 (The case for supply chain agility), one of the main options to improve supply chain responsiveness (as a proxy for agility) is by implementing the Next Gen production scheduling system, making it dynamic and intelligent.
Next Gen production scheduling leverages the exchange of information seamlessly between execution and planning and allows your organisation to make rapid decisions.
To enable Next Gen Scheduling you should assess if the right capabilities are in place by answering the following questions: are planners using outdated or irrelevant data?; does the system implemented provide the required functionalities?; is your company relying on outdated manual techniques to determine the optimal plans?
To leverage techniques such as plant visualisation, advanced analytics and simulation, together with dynamic master data maintenance, companies need to follow specific steps and guiding principles.
Key takeaways for your Next Gen journey