nPlan - Supply Chain Planning Platform

Where to Start?

Over more than 20 years working with APS (Advanced Planning and Scheduling) software implementations, a constant question arises: where should the Supply Chain digitalization journey begin? Many wonder whether the first step should be Planning – the strategic definition of the integrated sales and operations plan – or Scheduling – the detailed factory programming.

Why Start with Planning?

Starting with Planning means investing in a more strategic and forward-looking vision for the business. This approach allows:

Strategic Decisions

Planning involves medium and long-term decisions, enabling the simulation of multiple scenarios and the definition of inventory policies and resource allocation more broadly, before committing to generating production and purchase orders.

Less Dependency on Ultra-Detailed Data

Unlike Scheduling, planning does not require an extreme level of detail and real-time integration with the factory floor.

Decision Making

By working with scenarios and establishing a well-structured master plan, companies can be more proactive to market and demand changes.

Solving More Latent Problems

If there are still many problems and opportunities for process improvements, Planning can capture the main improvements more quickly and effectively, leaving Scheduling to refine later in a second wave.

When to Start with Scheduling?

Choosing Scheduling is the path for those who need to solve more immediate problems in daily production execution. This approach is recommended when:

Focus on Operational Execution

If production and purchase orders are already defined, but detailed scheduling needs adjustments to handle complex constraints such as mold conflicts, sequence-dependent setups, and to avoid bottlenecks and delays.

Quick Responses to Variations

When the production routine frequently varies and it is essential to have an agile response to changes, ensuring deadline compliance.

Shop Floor Integration

Scheduling requires a closer connection to the operational environment, usually integrated with MES (Manufacturing Execution System) systems.

Attention: ETO Environments

In ETO (Engineer to Order) environments, where item engineering is defined practically with each new order, Planning can be quite challenging as it depends on demand forecast data and routing and BOM records that are highly varied. In this case, Scheduling is generally more recommended.

Quiz: Where to Start?

Quiz - Planning or Scheduling?

Which alternative is more relevant to your business? Select your answers:

📈Demand

A) The demand forecast is unreliable and suffers major changes.

B) Production scheduling changes frequently due to demand variations.

⚙️Capacity

A) Resources could be planned more efficiently in terms of shift calendars and workforce allocation.

B) Productivity is greatly affected by unnecessary setups and daily production volume variations.

📦Inventory

A) There are frequently many items in excess stock while others are out of stock.

B) It is very important to synchronize a WIP buffer to avoid stopping production.

🔩Raw Material

A) It is more important to plan purchases respecting inventory policies synchronized with the integrated plan.

B) It is more important to respond quickly to material delivery delays.

🤔Decision

A) The planning team could add more value to the long-term strategic plan process, bringing suggestions and scenario responses.

B) The planning team needs to respond more quickly to last-minute changes in demand and supply conditions.

💬Communication

A) It is more important to improve integrated plan communication between PPC, Sales, Production, Purchasing, and Finance.

B) It is more important to improve scheduling communication between PPC, Maintenance, and Production.

📊Indicators

A) It is more important to improve inventory health, service level, and resource utilization.

B) It is more important to improve productivity, lead time, and delivery time.

Conclusion

Ultimately, the digitalization journey should start where the pain is most latent. Analyzing your business needs, whether in strategic planning or operational execution, is fundamental to defining the best route.