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EFFECTIVE PLANNING AND SCHEDULING FOR THE FOOD INDUSTRY WITH SIMATIC IT PREACTOR SOLUTIONS MICHAL PRĘTCZYŃSKI PROJECT MANAGER FOR SIMATIC IT PREACTOR APS IMPLEMENTATIONS AT PRĘTCZYŃSKI LTD. 07/05/2022

Efektiivne planeerimine ja operatiivjuhtimine toiduainetööstuses

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Page 1: Efektiivne planeerimine ja operatiivjuhtimine toiduainetööstuses

05/03/2023

EFFECTIVE PLANNING AND SCHEDULING FOR THE FOOD INDUSTRY WITH SIMATIC IT PREACTOR SOLUTIONSMICHAL PRĘTCZYŃSKI

PROJECT MANAGER FOR SIMATIC IT PREACTOR APS IMPLEMENTATIONS AT PRĘTCZYŃSKI LTD.

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AGENDA

1. Understanding the problem by specifying key challenges in planning and scheduling for food manufacturers.

2. Introduction to SIMATIC IT Preactor solutions for planning and scheduling with key functionality.

3. Live demonstration of SIMATIC IT Preactor AP and AS using an example from food industry.

4. Discussion on potential benefits.5. Q&A

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1. UNDERSTANDING THE PROBLEM

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PLANNING AND SCHEDULING

• What to make• When to make it• How much to make• Where to make it• Materials Required• Resources Required

Planning

Scheduling • How best to make it • Execute against plan• Sequencing• Synchronization• Priorities, constraints

and conflicts• Monitoring execution• Managing change

LowDetail

HighDetail

Years Months Weeks Days Hours Minutes

Scheduling

Planning

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CHALLENGES IN PRODUCTION PLANNING

Manufacturing companies in the Food Industry require tools to perform long term strategic and medium term tactical planning that would take into account:

• Working in forecast driven environment when creating weekly/monthly master production schedule.

• Considering product's shelf life.

• Responding to variation in raw materials and demand including promotions.

• Planning on factory level within multi-site environment.

• Planning materials availability.

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CHALLENGES IN PRODUCTION SCHEDULING

When preparing a detailed production plan - a sequence of orders on production machines/lines - Planning Department must take into account:

• Scheduling a multiple levels of production process, including mixing resources, ovens, tanks and packing resources.

• Complex product to product relations that impact changeover and cleaning times on production lines.

• Maintenance schedules for production lines/machines that can impact short term planning.

• Additional constraints based on key ingredients when sequencing orders on parallel lines.

• Monitoring availability of operators, including temporary labor.

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CHALLENGES IN PRODUCTION SCHEDULING

• Planning using Excel / Decision on shop floor. All in the mind and hands of Planner / Planners. Little support from ERP system with its standard functionality.

• No central planning using global priorities. The necessity of arrangements between different departments.

• No representation of actual capacity. No interactivity and no automation in sequencing. A need to optimize sequence to reduce cost.

• Short planning horizon. Unknown impact of changes (new priorities, machine breakdown) in a longer term.

• Problems with due date performance and the answer to the question "When we can deliver this order?" The pressure on Planning Department.

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2. FINDING THE SOLUTIONwith SIMATIC IT Preactor APS

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INTRODUCING SIMATIC IT PREACTOR APS

Siemens SIMATIC IT Preactor is a range of advanced planning and scheduling (APS) software for the manufacturing industry.

Quick facts: SIMATIC IT Preactor AP considers forecast and long term

orders to decide feasibility and set general direction of production; Dynamically sets target stock levels to meet future demand; Load balance across multiple resources considering eg constraints, materials shelf life.

SIMATIC IT Preactor AS is a scheduling tool primarily for manufacturers who need to schedule machines, production lines and resources, but Preactor is also used in services and logistics.

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SIMATIC IT PREACTOR AP AND AS

Examples of ERP integrations available: Microsoft Dynamics AX and NAV.

Planning

SIMATIC IT Preactor AP

Forecast Demand Starting Stock Orders

Planning periodStock control parametersCapacity

Scheduling

SIMATIC IT Preactor AS

Shift Patterns Detailed constraintsSequencing Rules

ERP

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INTRODUCING SIMATIC IT PREACTOR APS

Large install base serving the manufacturing sector across the globe. Implementations in Baltic region with Columbus.

Quick facts: Customer base ranges from mid-size to some of the largest

multi-national companies in the world.

Operates across multiple sectors, this shows the flexibility to solve any scheduling requirement.

Global presence of the Siemens Manufacturing Operations Management Team - probably the largest Manufacturing IT organization in the world.

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INTRODUCING SIMATIC IT PREACTOR APS

Key functionality:

• Modelling actual production capacity (machinery / operators / tooling) - operations planned when resources and materials are available.

• Automating planning by generating production plan using scheduling rules. The rules may include customer priorities/due dates or minimization of changeovers.

• Interactive planning board where Planner can change sequence. Analysis of different versions of the schedule before accepting.

• Simulations "When we can deliver this order?" Analysis of due date performance. Early information on potential late orders.

• Including material control calculations to check that all materials required are available

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3. LIVE DEMOof SIMATIC IT Preactor APS

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DATA FOR LIVE DEMONSTRATION

• Make and Pack. Manufacturing process is done in 2 stages: production of semi-finished products on Production Lines and packing of finished goods on Packing Lines.

• Products are made of 2 levels. Finish Good level are packed cookies, Semi-Finished level are cookies that will be produced.

• Products have 3 attributes: flavors (vanilla / strawberry / toffee / chocolate), non gluten free or gluten free attribute, package sizes.

• There are changeover times matrixes for production and packing lines based on 3 attributes assigned to products.

• There are 50 work orders for finish goods corresponding to weekly demand for 3 weeks. There are separate work orders for semi-finished goods level.

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SCENARIOS FOR LIVE DEMONSTRATION

• Prepare an MPS plan using forecast data in SIMATIC IT Preactor AP and analyze capacity utilization.

• Schedule production orders in SIMATIC IT Preactor AS and analyze connections between different stages of production.

• Schedule using scheduling rules to minimize setup times by combining orders based on flavor attributes and sequence dependent changeover time matrices.

• Schedule using scheduling rule to prevent cross contamination based on product's key ingredient.

• Monitor availability of operators and how changes in number of operators will impact the schedule. Calculate how many operators factory would need over the current availability.

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Live demonstration of SIMATIC IT Preactor AP and AS using an example from food industry

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4. POTENTIAL BENEFITS

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EXPECTED IMPROVEMENTS IN...

Customer serviceThe ability to quickly give feedback on the planned delivery date of the order, especially in the case of changes to the plan.Lowering the cost of delays (penalties, additional costs for the logistics, etc.).Some of the users with Case Studies reported up to 80% improvement in delivery performance.

Planning processAutomation of the process, compared to manual system or Excel can allow for extra time that can be used to optimize the process.In the case of centralized schedule less demand for planning resources, for example reducing overtime.One of the users with Case Studies reported 70% reduction time needed for production planning.

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EXPECTED IMPROVEMENTS IN...

Material management and make span reductionExtension of the planning horizon and better synchronization of raw material purchases to the production plan based on the limited manufacturing capacity.Improving synchronization of operations and orders between departments.Some of the users with Case Studies reported 50% reduction in raw material stock.

ProductivityBetter use of resources, for example by minimizing changeover times due to dynamic aggregation of operations on machines, or reduction of overtime.Better use of subcontractors based on real production plan.Some of the users with Case Studies reported up to 25% increase in productivity.

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HOW YOUR MONEY COME BACK?

Source: more than 200 case studies published at preactor.com

25% increase in productivity

50% reduction in raw material stock

50% reduction in work-in-process

80% improvement in delivery performance

Preactor Detailed

Scheduling

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QUESTIONS & ANSWERS

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Contact local Columbus right now:

Estonia [email protected] Latvia [email protected] Lithuania [email protected]

THANK YOU!

Presenter:

Michał PrętczyńskiE-mail: [email protected] www.pretczynski.biz