The demand forecast can be generated using statistical forecasting
techniques.
Carry out material planning
The planner can do the material planning to generate the receipts
to meet the demand. The system will generate order proposals to
meet the demand after executing the netting off logics. The
results of this activity are planned orders, purchase requisitions
or transport orders.
Firm plan and release to production
In this step the production planner releases the desired production
schedule for execution. The planned orders are converted to process
orders and are then released for execution. The released production
order is a firm intention to produce the product and serves
as intimation to the manufacturing department.
Receive shop floor papers
The released production orders are received by the manufacturing
execution department in the form of shop floor papers. The shop
papers have the required details for the manufacturing of the
product. The dates, the equipments to be used and the components
required.
Carry out production execution
The required raw materials are shifted to the shop floor to the
designated area to be used in manufacturing process. The
manufacturing steps that have been carried out as per the details
in the shop floor papers are also confirmed back into the system.
The details about the actual resource consumption and the
components used are entered into the system for refining of the
remaining plan and for planned actual comparisons and reporting.
Provide material for quality approval
In this step the finished product that has been manufactured is
offered to the quality controller for final testing and release for
final despatch. Any abnormalities in quality are first corrected
and then the product is cleared for despatch to the customer.
Interface with Process Control System
In this activity the process details and controls are passed on as
messages to the PCS. The process monitoring happens accordingly and
the process parameters are conveyed back to the system from PCS.
In this step the inbuilt quality checks and controls during the
manufacturing process are carried out. The quality parameters that
are critical to the final product quality are kept under check and
monitored.
Manufactured goods cleared by quality
In this step the quality controller checks the final quality of the
product and clears it for despatch to the customer. Any inadequacy
in quality is first removed via a rework process or the goods are
rejected.
Material delivered to warehouse or distribution center
In this step the distributor delivers the available finished goods
on hand to the warehouse or to the Distribution center that
services the end customer.
This Business Scenario Map shows how enterprises can carry out activities in a make to stock business scenario for process industries. The map illustrates the benefits of manufacturing against a forecast. By manufacturing to forecast the enterprise reduces the order fulfilment time and is able to service the sales orders with existing stocks. This enables the manufacturer to plan much efficiently and utilize resources to the maximum.
Show Document Flow
Business Benefits
Increased accuracy of forecast
Reduced Inventories
Effective resource utilization
Effective resource utilization
Planner
Manufacturer
Quality Controller / Distributor
Generate Forecast (Demand)
Carry out material planning
Firm plan and release to production
Receive shop floor papers
Carry out production execution
Provide material for quality approval
Interface with Process Control System
Manufactured goods cleared by quality
Material delivered to warehouse or distribution center
.
Business Benefits
Reduced quality rejections
Reduced order fulfillment times
Manufacturing Execution
One of the main factors
that are generating a need to manufacturing based on forecast is
the reducing lead times acceptable to the customers. Since the
customers are not willing to wait for their requirements the
manufacturers are driven to anticipate the demand and manufacture
based on that. The manufacturer wants to be ready with the stock
when a customer demands it in order. This will lead to reduced lost
orders.
The manufacturer tries
to preempt the requirements of the customer and then manufactures
the goods based on this forecasted demand. He would keep the
material in stock either in the manufacturing plant or to his
distribution centers in the supply chain. The manufacturers
approach would be to keep the goods closest to the place at which
he is sure about the demand and also reduce the time to deliver to
customer.
The primary benefit of
this process is in a situation when the customer has various
options of getting the product. Incase a customer sees that there
is a delay in getting material from one supplier he immediately
goes to another supplier. With this process the manufacturer will
keep the material ready and satisfy the customer demand
immediately. This would lead to reduced lost orders and order lead
times.