Appliance and automotive manufacturing is characterized by its complexity. A multinational company in this space faced significant hurdles in managing its highly diverse product portfolio, which included over 2,000 unique products. On any given day, this company processed around 1,500 work orders, ranging from small batches of 10 units to large-scale orders of millions. Handling such a wide range of products through manual scheduling became increasingly problematic, then Qlector stepped in.
Manual scheduling can lead to long and unpredictable lead times, inefficient resource allocation, and elevated levels of intermediate inventory.
Key challenges and pressures
One major challenge was the rising minimum wage for assembly workers, which placed significant pressure on operating costs. With a manual approach to scheduling, ensuring the optimal deployment of workers across various assembly cells became difficult. This inefficiency not only strained financial resources but also led to extended production times, making it hard to meet tight deadlines.
Furthermore, the manual scheduling process lacked the precision needed to balance worker availability with fluctuating production demands. As a result, the company struggled with bottlenecks, missed deadlines, and costly delays.
The power of integrated solutions
To address these challenges, the company implemented an advanced planning and scheduling solution that seamlessly integrated with their existing MS Dynamics and proprietary MES. This integration enabled real-time prediction of lead times based on actual production data. With this visibility, the company could make more informed and timely decisions, minimizing delays and ensuring smooth operations.
The solution optimized the scheduling of workers, significantly reducing production times and minimizing the opportunity cost associated with excess inventory. By aligning resources more effectively, the company achieved streamlined operations while maintaining the flexibility required to manage orders of all sizes.
The broader impact
The shift toward data-driven, advanced planning and scheduling brought multiple benefits. The company’s ability to scale production according to demand—whether for a few dozen units or millions—improved significantly. Additionally, by visualizing opportunity costs related to intermediate inventory, the company was able to identify and eliminate inefficiencies that were previously hidden in manual processes. This approach allowed the company to not only reduce waste but also improve overall profitability.
To wrap up
This case highlights the critical importance of integrating intelligent solutions in complex manufacturing environments. By adopting advanced planning and scheduling tools, this business was able to navigate the growing pressures of rising labor costs, diverse product demands, and unpredictable lead times. The result was a more resilient and agile operation, capable of adapting to market changes while maintaining profitability and high-quality standards. As manufacturing becomes increasingly complex, the ability to leverage real-time data and automated scheduling solutions will be key to staying competitive in the industry.