Basic implementation method

Before starting an implementation, you should identify the scope of scheduling. Scheduling is not a transaction with one correct result. Scheduling handles several orders, resources or materials. Scheduling is complex and can be performed in many ways.

Implementation projects often have a limited time scope therefore requires a corresponding functional scope. Factory throughput is determined by one or a few critical bottlenecks. Implementation must focus on these critical bottlenecks. Avoid focusing on details that are time consuming. Focus only on the critical bottlenecks before going live and wait for the details. The details can be added after the go live.

When implementing M3 SWB, it is important to understand that production scheduling is linked to many other business processes in the company. Start by identifying the company's planning concept and organization interaction. These are some topics to consider:
  • Type of products produced.
  • Critical bottlenecks determinate factory throughput.
  • Make-to-Order or Make-to-Stock or Assembly-to-Order or Mix production.
  • Fixed or Dynamic horizon where new customer orders can be received. Interaction between scheduling and sales.
  • Business process for procurement of materials. Interaction between scheduling and purchasing.
  • Scheduling plans everything into details and adjusts plan based on job-reporting or there might be self-governing groups handling execution on the short horizon. Interaction between scheduling and execution.
  • Copy of previous scheduling solution, such as screenshot, Excel sheet or similar, which identifies critical bottlenecks and minimum scope expectations.

Setting all resources with infinite capacity enables a validation of lead-time, where only the opening hours and production time is considered, without finite capacity complicating the plan. When the lead-time has been validated, then the most critical bottleneck resource can be changed to finite capacity. The capacity level and throughput can now be validated considering the most critical bottleneck resource.

M3 SWB is an advanced tool which considers everything. It is possible to set all resources to finite capacity. The issue is that when M3 SWB considers everything then the planner often does not understand the plan and does not know which capacity definition or other reason affects the plan. If there are many elements in a schedule which are not correct, then it is difficult to determine if it is the actual bottleneck or another unimportant resource which causes the issues. This is the reason why it is better to start all resources with infinite capacity and then the planner understands the plan. The planner quickly identifies that the plan does not respect the critical bottleneck and then this is added as finite capacity. There should be finite capacity on as few resources as acceptable and as a maximum to have finite capacity on the same resources as in the old plan. Focus on reports in M3 SWB covering the same resources as in the old plan. The goal is that the planner can accept the M3 SWB plan to be as equally good as the old plan.

Resources are defined with finite or infinite capacity in M3 BE. A simple method to change between finite and infinite capacity is to use capacity levels. Set capacity level = 9 on critical bottleneck resource and lower capacity level values on none bottleneck resources. Run simulation with 'Finite capacity level' = 10 and all resources have infinite capacity. When lead-time has been verified, then run simulation with 'Finite capacity level' = 9 and only critical bottleneck resource have finite capacity.

M3 SWB considers both capacity and materials. Implementation must likewise focus on critical materials.

There are 3 main methods on item/warehouse level for handling of materials in M3 SWB:
  • Material Synchronization

    If there is a material shortage caused by a late supply, then M3 SWB respects the supply time and automatically delays the order that demands the material.

  • Shortage checked
    M3 SWB identifies material shortages, but does not automatically delay the order that demands the material. The planner could decide to:
    • Ignore the material shortage.
    • Contact purchasing to expedite the purchase order.
    • Change quantity on demanding orders to remove material shortage.
    • Investigate competing demands from different orders to decide which customer order to delay.
    • Other manual decision.
  • Information

    If the material demand is a label or an instruction, then the planner might want to ignore material shortages on this item number.

In a multi-level production, where manufacturing orders delivers components to other manufacturing orders, the orders link between manufacturing orders should be respected. Material synchronization is recommended for these component item numbers.

Purchased component should initially be shortage checked to validate if the material balance and purchase lead-time are correct. Critical purchased components must be considered if automatic delays based on FIFO logic is acceptable. If this is the case, then these critical purchase components can be changed from shortage checked to material synchronization.

A go live is possible when the planner has an acceptable plan. The planner becomes familiar with M3 SWB by frequent use. This results to the planner wanting to refine the plan but now based on the existing and live M3 SWB solution. Some of the elements added in a second phase would have been the same as a 'Big bang' approach but there are also many unimportant elements which are not added in a second phase. In an M3 SWB schedule, it is not the magnitude of details which gives value rather the importance of the details and that the planner knows the solution and why details and thereby complexity has been added to the solution.