Production
planning in sync
Anyone who has ever tried to keep a production line stable in the face of fluctuating demand knows that this is easier said than done. The reality in many manufacturing companies is that planners have to juggle efficiency and flexibility on a daily basis. Long production runs help to reduce setup costs – but they lead to overstocked warehouses. Short cycles enable quick responses to the market, but cause frequent changeovers and chaos in the process.
This is precisely where an approach comes in that OPTANO has developed in recent years together with customers: Rhythm Wheel-based production planning. The aim is to bring production into a recurring rhythm – and thus bring calm, structure, and efficiency to a system that is otherwise often characterized by ad hoc decisions.
The reality of production planning
In many companies—especially in the consumer goods industry—production planning is still heavily controlled by reorder points. The principle is simple: when the inventory of a product falls below a certain threshold, it is replenished. What sounds sensible in theory often leads to problems in practice:
- Excess inventory: Safety and cycle stocks are built up as a precautionary measure, which ties up capital and increases storage costs.
- Unstable production plans: Frequent changes in the production program cause stress for planners and executors.
- High setup costs: Every product change involves effort – whether in terms of staff time, material loss, or machine downtime.
- Reserve capacity: To cope with short-term fluctuations in demand, many companies plan for additional shifts that may or may not be needed in a given week.
With increasing product diversity and growing complexity, these challenges are becoming more acute. Traditional planning is reaching its limits—and not just during peak periods.
What does rhythm wheel-based production planning mean?
The basic idea is simple: instead of deciding what to produce on a daily basis, a repetitive production pattern is defined – a so-called “rhythm wheel.” This determines which product is produced in which sequence in which week. The volume is determined in the actual production week based on current inventory levels and the latest demand forecast. Typically, a cycle lasts 8 to 20 weeks and is tailored to the specific requirements of the company.
This may sound rigid at first, but in practice it is surprisingly flexible. The planner can still schedule additional products each week if the next scheduled production date is too far in the future. These should cause as little disruption to processes as possible. For example, the product should be scheduled after another product with the same components or packaging material. This is because the rhythm is based on a digital twin of production, in which various scenarios are calculated. This allows inventory levels, production rates, setup times, and capacities to be optimized simultaneously.
When is Rhythm Wheel-based production planning worthwhile?
This approach is particularly suitable for companies with make-to-stock strategies, i.e., when products are produced for stock and demand can be planned to a certain extent. It is particularly effective when:
- More than eight products are manufactured on one production line.
- The production environment is characterized by frequent and varied changeovers.
- Demand is volatile but not completely unpredictable.
- Production planning is regularly disrupted by manual interventions.
- The organization has very high inventory levels in order to meet service level targets.
In such cases, a cyclical production approach can help reduce complexity, stabilize processes, and increase operational efficiency—without completely sacrificing flexibility.
What are the concrete benefits? A look at how it works in practice
A leading consumer goods company in Europe was facing the challenge of unstable production times, rising inventory levels, and inefficient processes. Planning had previously been based on traditional reorder points, which ensured delivery capability but led to high safety stocks and irregular production times.
In a pilot project, five representative production lines in three countries were converted to a rhythm-based planning approach. An optimized rhythm wheel was defined that took into account demand forecasts and service level targets as well as changeover costs and inventory costs.
The results at a glance:
- 10–15% reduction in inventory levels: Optimized cycle lengths enabled significant reductions in safety and cycle stock levels.
- 1–2 shifts saved per line: The stable production strategy enabled better capacity utilization and reduced the need for additional shifts.
- 5–10% reduction in operating costs: Fewer unplanned changes, more stable processes, and more efficient personnel deployment led to noticeable savings in warehousing, changeovers, and personnel.
These improvements were achieved without additional resources in day-to-day business. The results of the pilot program formed the basis for a company-wide rollout, which was successfully implemented in several plants.
What makes the difference?
What we see time and time again in practice is that there is a strong desire for stability. Not because flexibility is undesirable, but because it must be used in a targeted and controlled manner. A clear rhythm in production achieves precisely that: it provides orientation, reduces ad hoc decisions, and makes it possible to plan exceptions consciously.
Another point is transparency. By simulating various scenarios in the digital twin, planners can better assess the impact of a change in the product mix or a new demand forecast. This allows the resulting operational costs to be made directly transparent to sales and management.
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What if instead of what now?
A major advantage of the rhythm-based approach is the ability to make strategic decisions. Instead of merely responding to current needs, companies can run through scenarios: What happens when a new product is introduced? How does a change in service level affect production costs? What are the implications of investing in additional capacity?
These questions are often difficult to answer holistically with traditional planning systems. The digital twin can directly quantify the implications of the plan optimized under the new circumstances.
Integration into existing systems
A common argument against new planning approaches is the concern about complex integration. Here, we can give the all-clear: The rhythm-based approach can be implemented as an intelligent decision-making layer on top of existing ERP, APS, or MES systems. The existing IT infrastructure remains intact, and users continue to work in their familiar environment. If the company is currently in the process of introducing such a system, the rhythm-based approach can support this with immediate cash effects. Integration takes place via standardized interfaces, and initial prototypes are often ready for use after just a few days. The user interface is also intuitively designed – planners can set and compare scenarios directly via dashboards.
Rhythm brings calm to production
Rhythm Wheel-based production planning is more than just a new planning approach—it is a strategic lever for improving efficiency, resilience, and transparency in manufacturing. Companies that rely on cyclical scheduling benefit from more stable processes, lower costs, and better synchronization between production and the supply chain.
In an age where flexibility and efficiency are equally in demand, this approach offers a proven way to reconcile the two. Results from real-world projects show that double-digit percentage savings in inventory and operating costs are not the exception, but the rule.
Please contact us!
We are always available to answer your questions! Feel free to contact Denis Spiers directly. He can be reached by phone, email, or on LinkedIn. We look forward to hearing from you!
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