A production schedule is a plan that specifies what, when, and how much to produce in a given period. It is a crucial tool for managing the resources, costs, and quality of a plant operation. But how can you tell if your production schedule is effective and efficient? Here are some key indicators that you can use to measure the success of a production schedule.
One of the most important measures of a production schedule is how well it meets the customer demand and expectations. On-time delivery (OTD) is the percentage of orders that are delivered within the agreed time frame. A high OTD indicates that your production schedule is realistic, flexible, and responsive to changes in demand. A low OTD may suggest that your production schedule is too optimistic, rigid, or inaccurate. To improve your OTD, you need to monitor your production capacity, inventory levels, lead times, and customer feedback.
1. On-time delivery (OTD) 2. Utilization rate 3. Cycle time 4. Inventory turnover 5. Customer satisfaction 6. Yield rate 7. Cost.
Don't just stick to On Time, it can be fudged. On Time, In Full, OTIF is the right measure to use. Did you have all the order available on the right date? If you have a low OTIF you need to investigate whether it is the production schedule that is correct or too difficult to achieve. Often firms fall into the trap of assuming the schedule is correct and can't be improved. It could also be that the performance of the plant is not good enough. Both of which require different solutions.
Another measure of a production schedule is how well it uses the available resources and capacity of the plant. Utilization rate (UR) is the ratio of the actual output to the potential output of a resource or a process. A high UR indicates that your production schedule is maximizing the productivity and efficiency of your plant. A low UR may imply that your production schedule is wasting or underutilizing your resources or capacity. To increase your UR, you need to optimize your production layout, workflow, and sequencing.
Measuring the success of a production schedule through utilization rate involves assessing the efficiency of resources employed in production relative to their capacity. Utilization rate is calculated by dividing the actual production output by the maximum potential output. A higher utilization rate indicates that resources are being effectively utilized, minimizing idle time and maximizing productivity. By monitoring utilization rate over time, businesses can gauge the effectiveness of their production scheduling efforts and identify areas for improvement, such as optimizing production processes, reallocating resources, or addressing bottlenecks, ultimately leading to increased operational efficiency and output.
A third measure of a production schedule is how fast it completes the production process from start to finish. Cycle time (CT) is the average time it takes to produce one unit of output. A low CT indicates that your production schedule is minimizing the delays and bottlenecks in your production process. A high CT may indicate that your production schedule is causing or experiencing long wait times, rework, or quality issues. To reduce your CT, you need to streamline your production process, eliminate waste, and improve quality.
This concept of production schedule is itself flawed. Here one assumes a schedule exists that the production will follow. No one can anticipate what will happen in the future. Meaning creating a schedule is a futile exercise. What is needed is to decide production NOW (at a micro level who or which machine does what) and then create a schedule anticipating the current decisions taken now in the future. Obviously this exercise must be repeated over and over again whenever any current activity is reported as completed. Doing so is humanly impossible. However, if one can do it the first five benefits are just natural outcomes.
Além disso temos que levar em considera??o o TKT do cliente (Takt time = Tempo Efetivo Disponível / Demanda de Produtos.) onde TC deve ser menor em pelo menos 5% para proteger a linha de qualquer desvio no processo sem prejudicar seu cliente.
Measuring production schedule success with cycle time involves evaluating the efficiency of the entire production process. Cycle time reflects the duration to complete one unit of production, indicating productivity levels and workflow smoothness. Shorter cycle times signify higher efficiency, while longer times may reveal inefficiencies or bottlenecks. Analyzing cycle time data helps identify areas for improvement, optimize resource allocation, and enhance overall production efficiency to meet customer demand effectively.
A fourth measure of a production schedule is how often it replenishes the inventory of raw materials, work-in-progress, and finished goods. Inventory turnover (IT) is the number of times the inventory is sold or used in a given period. A high IT indicates that your production schedule is aligning with the market demand and reducing the inventory carrying costs. A low IT may indicate that your production schedule is overproducing or underproducing, resulting in excess or shortage of inventory. To increase your IT, you need to implement lean production principles, such as pull system, just-in-time, and kanban.
E também realizar as reuni?es de demanda (PDP, MPS, etc) para nivelamento da produ??o. dessa forma ter?o uma vis?o de consumo e melhorar a performance de entrega que resultará no melhor controle do estoque, incluindo também o inventário rotativo.
Measuring production schedule success with inventory turnover involves evaluating inventory management efficiency. The inventory turnover ratio reflects how often inventory is sold or used within a period. A higher turnover indicates optimal inventory levels, reduced holding costs, and better alignment with market demand. Monitoring this ratio helps assess production schedule effectiveness, minimize excess stock, and improve profitability and operational performance.
A fifth measure of a production schedule is how well it satisfies the customer needs and preferences. Customer satisfaction (CS) is the degree to which the customer perceives that the product or service meets or exceeds their expectations. A high CS indicates that your production schedule is delivering high-quality products or services that meet the customer specifications and requirements. A low CS may indicate that your production schedule is compromising the quality or reliability of your products or services. To improve your CS, you need to communicate with your customers, understand their needs, and solicit their feedback.
From my experience Customer satisfaction is the measure that defines best the success of a production schedule. It assumes it's well executed, so deliveries can meet or exceed Customer expectations. A good production schedule can also be measured by a good compromise of two other measures while the focus stays on Customer satisfaction: Inventory turnover and manufacturing productivity.
The success of a production schedule can be measured by customer satisfaction metrics such as customer complaints, returns, and repeat business. A production schedule that consistently delivers high-quality products on time is likely to result in satisfied customers. By tracking and analyzing these metrics, businesses can assess the effectiveness of their production schedules and make adjustments to optimize performance and achieve strategic objectives.
Does the schedule enable us to quote the shortest, achievable lead times for new orders? Does it find optimal material release times for controlling lead times? Does it help with material procurement planning? Does it reveal formation of bottlenecks over time? Does it give good guidance to workers on shop floor? Does it help in improving skill matrix? Does it provide all people with a common view of expected work progress? Does it lead to effective what-if analysis of production and proactive capacity planning? Does it help in dealing with order priority changes and rush orders? Does it help in dealing with the impact of unexpected interruptions in resource availability? Does it help salespersons in negotiating due dates?
The definition of "success" is industry specific, to put it in a more generalized way the success can be measured in "3Ms and ES" (M) Man - How best the crew or other resources are getting allocated (M) Machine - How best the machines are getting utilized (M) - What is the yield achieved from the production process (E) - How best the energy is utilized (S) - How close the SOPs are followed. Apart from that "success" of production schedule can also be measured by other criteria such as - 1. How well the orders are fulfilled - Ontime and In full 2. How quickly disruptions in production line can be accommodated ( read dynamic scheduling ) 3. How well the production schedules integrates within the VS- upstream & downstream process 2.