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Capacity & Production Decision Process

Planning long-term production and plant capacity efficiently and utilizing your capacity to the fullest allows you to accept more orders, decreasing operational costs. To optimize your capacity and production decision processes, you need to determine your long-term production requirements over a planning horizon based on current production environment status.

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Measurable Benefits

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Overall Equipment Effectiveness (OEE) Improvement

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Reduction in Operational Costs

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Reduction in Backorders

Measurable Benefits

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Net Profit Improvement

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Increase in OTIF performance

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Reduction in Inventory Costs

In a customer-centric approach, companies can see and manage bottlenecks and utilization of resources. It enables a company to see instantly the effects of capacity decisions on customer orders and forecasts and manage risks accordingly.

Gain Visibility Over Goods

Instantly see the order and forecast shortages and tardiness with respect to production decisions and take actions accordingly.

Analyse semi-finished & finished goods production decisions related to resource usage & order satisfaction for each period.

Improve OTIF Performance
Improve OTIF Performance

Achieve Resource Planning Excellence

Plan and manage all types of resources in your supply chain.

Plan various types of your resources;

  • Renewable resources, whose capacities only consumed while a task is performed
    • machines
    • employees/employee skills
    • physical/logical locations
    • transportation resources
  • Consumable resources, whose capacity is permanently consumed with the operation
    • materials
    • financial resources
    • energy
  • Complex resources, whose capacity and consumption pattern can be defined algorithmically or mathematically.
    • resource groups
    • dynamic pairs (e.g. press & mold)
    • employee teams with skill requirements
    • variable-capacity consumption resources
    • multi operation resources (e.g. clean room)

Optimize Long-term Production Plans

Manage your capacity plan through shifts and overtime decisions with various objectives such minimizing stocks, maximizing order, forecasting satisfactions and maximizing capacity usage.

Prioritize your objectives and make optimized plans accordingly.

  • Aggregate capacity optimization considering resource & BOM alternatives
  • Plan both in-house & outsource production
Improve OTIF Performance
Improve OTIF Performance

Increase Utilization

Gain visibility over your capacity utilization and availabilities to balance utilization and prevent overloading.

  • Maximized and distributed resource usage for each period
  • Gain visibility of resources

Manage Capacity Risks & Opportunities

Handle disruptions with real life constraints, have visibility over risks and opportunities.

  • Observe production opportunities to turn into extra sales.
  • Be aware of your availabilities and increase utilization by accepting new orders.
  • Analyse and minimize long-term production costs by optimized plans.
Improve OTIF Performance

Customer Cases

Electronics
10% Improvement in Overall Equipment Effectiveness (OEE)
Electronics

The challenge:

A company producing electronic appliances was frequently facing disruptions in their production flow. Because of the disruptions, they often had backorders, resulting in worsened customer experience.

The outcome:

After ICRON CCP, the company improved its overall equipment effectiveness (OEE) 10% by making feasible plans according to the due dates generated by ICRON CCP.

Plastics
20% Reduction in Backorders
Plastics

The challenge:

A company producing plastic pipelines was always accepting orders more than their regular capacity to overcome order cancellation and resulting in backorders.

The outcome:

Their backorders decreased 20% with ICRON CCP. They became able to allocate their inventory and capacity, by prioritizing backorders

Customer Cases
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