How do you leverage technology and automation to reduce lead time in production planning?

1 Define production planning

Production planning is the process of determining the optimal way to allocate resources, schedule tasks, and coordinate activities to meet customer demand and quality standards. Production planning involves forecasting demand, planning capacity, managing inventory, scheduling production, and monitoring performance.

2 Identify lead time drivers

Lead time drivers are the factors that can influence the duration and variability of the production process. For example, demand uncertainty, process complexity, supplier reliability, and communication barriers can all affect lead time. Unpredictable customer orders and preferences can cause fluctuations in demand, while complex processes with multiple steps, machines, and materials can increase the lead time and risk of errors. The availability and quality of raw materials and components from suppliers can also be a factor. Finally, inadequate communication between different departments, functions, and stakeholders can lead to confusion, duplication, and waste in the production process.

3 Implement technology solutions

Technology solutions can be used to reduce lead time and enhance the visibility, accuracy, and flexibility of the production planning process. Enterprise resource planning (ERP) systems integrate and automate the data and processes of various business functions, like accounting and procurement, providing real-time information to improve coordination and optimize resource utilization. Artificial intelligence (AI) and machine learning (ML) tools can analyze large amounts of data to generate insights, make predictions, and provide recommendations. Internet of things (IoT) devices are sensors, actuators, and other devices that connect and communicate with each other via the internet. IoT devices can collect and transmit data, enable remote monitoring and control, and facilitate preventive maintenance.

4 Adopt automation techniques

Automation techniques can help reduce lead time by replacing or augmenting human labor with machines or software. This can increase productivity, quality, and consistency. Robotic process automation (RPA) is an example of automation techniques, which involves using software robots or bots to perform repetitive and rule-based tasks. This can help reduce lead time by eliminating human errors, reducing manual work, and improving compliance. Industrial robotics is another example, which involves using mechanical robots or cobots to perform physical tasks like welding, assembling, and packaging. This can help reduce lead time by enhancing speed, precision, and flexibility. Additive manufacturing or 3D printing is also a form of automation that involves creating objects by depositing layers of material on top of each other. This can help reduce lead time by enabling rapid prototyping, customization, and on-demand production.

5 Monitor and improve performance

Monitoring and improving performance is the process of measuring, analyzing, and enhancing the outcomes and impacts of the production planning process. This can help reduce lead time by identifying gaps, opportunities, and best practices. To do this, you should consider key performance indicators (KPIs) to track progress, evaluate results, and benchmark performance. Additionally, Lean manufacturing and continuous improvement are both useful approaches to reducing lead time by streamlining workflows, reducing inventory, enhancing quality, encouraging feedback, experimentation, and learning.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?