Three Link
Solutions
service
Overview of the Neo PortfolioHow do we do
Solutions
Production Control (OEE/MES)Production Planning (MPS)Advanced Programming (APS)Integrated Planning (S&P)Inventory PlanningDistribution Planning (DRP)Logistics Control Tower (MCN)
Evocon
Integrated Planning (S&P)
Distribution Planning (DRP)
Production Planning (MPS)
Advanced Programming (APS)
Technologies
nPlanOpcenter APSPlanneraAX4Evocon
Industries
Food and Beverages
Ceramic and glass
Packaging
Pharmaceutical and Cosmetics
Metal-mechanics
Furniture
Textile and confection
All industries
Cases
See Cases
Content
BlogEbooksPodcastsDrops from Neo
Login Login Sign Up Users Test Contauding User
Events
Neo Summit Neo Events
ABOUT US
Who we are Team Work with us
Members
Sign UP Members
Contact
Content
Blog
5 common PPCP errors: find out how to avoid them and increase their efficiency
PPCP
Suggestion of cyborgs

5 common PPCP errors: find out how to avoid them and increase their efficiency

Posted in:
Octber 20, 2023
Posted by:
Share:
5 common PPCP errors: find out how to avoid them and increase their efficiency

Production planning, programming and control (PPCP) is a cornerstone in the effective management of the operations of any manufacturing company. It is an intricate process that encompasses a series of vital activities, from demand for real -time production monitoring. However, even with the growing sophistication of available tools and technologies, common PPCP errors still persist and can significantly impair operational efficiency, customer satisfaction and financial results. In this article, we will explore some of the most frequently made mistakes in PPCP and examine practical strategies to avoid them.
‍

PPCP only sees the inventory present in each sector that will program each sector just see what it has "in its stock" to program
‍

When the programming of each sector is only concentrated on what is available in its immediate stock, unless you have a stock in the huge sector (which by itself), there will surely be a lack of synchronization between the smaller sectors use of manufacturing resources. This is because it is not possible to see all the future availability that the sector will have of materials, which could generate insights for schedules that add similar items or reduce waiting times as they synchronize the sectors from a more holistic and integrated view. This means that production can be interrupted or delayed because an industry cannot see the need for another sector and therefore does not make the necessary requests or schedules. Thus, by setting only on the stock available at the moment, lead Times (crossing time waiting) for item production can be significantly higher than necessary, so more in process (WIP) is generated. After all, this problem can result in delays in product delivery to customers.  
‍

Calculate Days On Hand Based on the average historical demand instead of looking at how many days covers in future demand
‍

Calculate the Days on Hand, which refers to the number of days that current stock can cover the demand, calculated based on the average historical demand, rather than considering future demand, can lead to some negatively significant implications. By based only on the average of historical demand, one can risk maintaining inventory levels that do not meet the real needs of the company. This is because demands can float over time due to seasonality, market trends, changes in customer buying standards and other factors that are not reflected in the historical average. In this case, we see companies calculating the days that are covered based on an average, but without considering the existing portfolio or a projection of trend or seasonality. If we have all the evidence that demand will have a certain behavior, or more, we already have a firm request for requests, there is no reason to consider this information by calculating its inventory coverage to have a correct view of the scenario. Consider a clothing store that sells winter and summer clothes. The purchasing manager decides to calculate the Days on Hand for winter coats based on the average historical demand in recent years. This average indicates that the demand for winter coats is usually lower during summer. However, that year, an unexpected cold wave hits the region during the summer, and the demand for winter coats fires. As a result, the store does not have enough stock to meet the unexpected demand. Not taking into account future demand can take to scenarios where inventory is insufficient to meet sudden peaks of demand, resulting in the lack of products in the market and loss of sales.
‍

Open intermediate product order with the date of the finished
‍

In many manufacturing processes, a final product is mounted from various intermediate products that, in turn, can be composed of other by -products. APS or MRP needs to coordinate the production of these different levels, ensuring that intermediate products are ready on the date required to assemble the final product. That is, it is necessary to establish partial deliveries for some semi -finals, and we still see companies without this distinction, which makes all semi -finished and finished have their productions demanded for the same period. The main objective is to ensure that the final product is completed on the date required by the customer. This requires synchronization of all production steps, from component manufacturing to final assembly to avoid delays in delivery.

Look capacity in kg, meters or unit and not hours
‍

When you measure capacity only in physical units such as kg or meters, you do not take into account the product mix that a factory needs to produce. Some products may be more complex, time consuming and demand more resources than others. Ignoring this variability can lead to problems with resource allocation and compliance with delivery times. In addition, production management should seek to optimize the efficiency of the process, and this often involves effective use of time. Ignoring the temporal dimension can lead to situations in which a machine or labor remains inactive for long periods due to an inadequate allocation of tasks. A broader approach that takes into account both physical capacity and temporal dimension is often necessary for effective production management, balancing efficiency, costs and delivery deadlines. This is often achieved through business resource planning systems (ERP) and proper production programming strategies.
‍

Charging production per volume produced, operator chooses what is easier to do instead of the most important 
‍

Charging production based exclusively on the volume produced, without considering other criteria of quality or importance, can lead to a set of problems known as "dilution effect" or "dilution of metrics". This happens when operators are encouraged to choose easier tasks to accomplish to the most important, because it allows them to achieve production goals with less effort. Thus, operators can neglect the quality of work, as their main objective is to increase production. This can result in low quality products or services that do not meet established standards. The five mistakes discussed reveal common traps that organizations may face, from lack of synchronization between sectors to inadequate capacity measurement and exclusive emphasis on the volume produced. Avoiding these errors and adopting more comprehensive and oriented strategies is essential to maintaining efficient production that meets market demands and achieving operational excellence. Did you like the content? Then you will also be interested in our ebook about 6 key elements in production planning .
‍

Share:
<Back
newsletter

We love supply chain and we hated excess emails. Join our community!

newsletter

We love supply chain and we hated excess emails. Join our community!

By clicking signing, you will be confirming that you agree with our terms and conditions .
Thanks for signing our newsletter!
Oops! Something went wrong. Please try again.
Service
Overview of the Neo PortfolioHow do we do
Technology
nPlanOpcenter APSPlanneraAX4Evocon
Solutions
Production Planning (MPS)Advanced Programming (APS)Integrated Planning (SEOP)Production Control (Mes)Distribution Planning (DRP)Inventory Planning
Industries
Food and Beverages
Ceramic and glass
Packaging
Pharmaceutical and Cosmetics
Metal-mechanics
Furniture
Textile and confection
All industries
Institutional
Who we areTeamWork with us
CASES
See Cases
Events
NEO ConnectNEO Summit
Content
ContentBlogEbooksPodcastsDrops from Neo
Contacts
Porto Alegre
Jaime Telles Street, 205 Petrópolis
Porto Alegre/RS
Brasil
São Paulo
Rua Fidêncio Ramos,
101 - 24 Vila Olímpia
São Paulo/SP
Brazil
Victory
Rua Fortunato Ramos, 30 - 315
Santa Lucia,
Vitória - ES, Brazil
Lisbon
Av. Capitão Salgueiro Maia 14, store 6
1885-091, Moscavide Lisboa, Portugal
© 2023 Neo Production Engineering. All rights reserved.
Privacy Policy
Cookies Settings
Terms and conditions