Production planning in time
Why a rhythm-based approach to production planning can be the answer to volatile demand, high changeover costs and unstable processes.
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 between efficiency and flexibility on a daily basis. Long production runs help to reduce set-up costs - but they lead to overfilled warehouses. Short cycles enable quick reactions to the market, but cause frequent changeovers and chaos in the process.
This is precisely where an approach that OPTANO has developed together with customers in recent years comes in: 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: if the stock of a product falls below a certain threshold value, it is re-produced. What sounds sensible in theory often leads to problems in practice:
- OverstocksSafety and cycle stocks are built up as a precaution, which ties up capital and increases storage costs.
- Unstable production plansFrequent changes in the production program lead to stress for planners and contractors.
- High set-up costsEvery product change means expense - be it through personnel time, material loss or machine downtime.
- Reserve capacityTo 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 intensifying. Traditional planning is reaching its limits - and not just at peak times.
What does Rhythm Wheel-based production planning mean?
The basic idea is simple: instead of deciding what to produce every day, 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 the current stock level and the latest demand forecast. Typically, a cycle comprises 8 to 20 weeks and is tailored to the company's specific requirements.
This sounds rigid at first - but in practice it is surprisingly flexible. The planner can still schedule additional products in any week if the next planned production date is too far in the future. This should lead to as little disruption to the processes as possible. For example, the product should be scheduled after another product with the same components or packaging material. Because the rhythm is based on a digital twin of production, in which various scenarios are calculated. This allows stock levels, production rates, set-up times and capacities to be optimized simultaneously.
When is Rhythm Wheel-based production planning worthwhile?
The approach is particularly suitable for companies with make-to-stock strategies, i.e. when products are produced in stock and demand can be planned to a certain extent. It is particularly effective when:
- More than eight products can be manufactured on one production line.
- The production environment through Frequent and different conversions is characterized.
- The Demand volatile, but not completely unpredictable is.
- Regular production planning through manual interventions is disturbed.
- The organization very High stock levels to meet service level targets.
In such cases, a cyclical production approach can help to reduce complexity, stabilize processes and increase operational efficiency at the same time - without completely sacrificing flexibility.
What are the concrete benefits? A look at the practice
A leading consumer goods company in Europe was faced with the challenge of unstable production times, rising stock levels and inefficient processes. Previously, planning was carried out using 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 inventoriesThe optimized cycle length has significantly reduced safety and cycle inventories.
- 1-2 shifts saved per lineThe stable production strategy enabled better capacity utilization and reduced the need for additional shifts.
- 5-10 % Reduction in operating costsLess unplanned changeovers, more stable processes and more efficient use of personnel led to noticeable savings in warehousing, retooling and personnel.
These improvements were achieved without additional resources in day-to-day business. The results of the pilot formed the basis for a company-wide roll-out, which was successfully implemented in several plants.
What makes the difference?
This is something that becomes apparent time and again in practice: There is a great desire for stability. Not because flexibility is undesirable - but because it needs to be used in a targeted and controlled manner. A clear rhythm in production creates exactly that: it provides orientation, reduces ad hoc decisions and makes it possible to consciously plan exceptions.
Another point is transparency. By simulating different scenarios in the digital twin planners can better estimate the impact of a change in the product mix or a new demand forecast. This means that the resulting operating costs can 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 just reacting to current demand, companies can run through scenarios: What happens when a new product is launched? How will a change in service level affect production costs? What impact will an investment in additional capacity have?
These questions are often difficult to answer holistically using traditional planning systems. The digital twin can directly quantify the implications of the plan optimized under the new circumstances.
Integration into existing systems
A frequent argument against new planning approaches is the concern about costly integration. The all-clear can be given here: The rhythm-based approach can be set up as an intelligent decision-making layer on existing ERP, APS or MES systems. The existing IT infrastructure is retained and users work in their familiar environment. If the company is in the process of introducing such a system, the rhythm-based approach can support this with an immediate cash impact.e integration takes place via standardized interfaces, and initial prototypes are often ready for use after just a few days. The user interface is also intuitive - 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.
At a time when flexibility and efficiency are equally in demand, this approach offers a tried and tested way of reconciling the two. The results from real projects show that double-digit percentage savings in stock levels and operating costs are not the exception, but the rule.