Software for order planning

Andrea Gillhuber,

Order backlog mathematically optimized

83,000 vehicles were used by MAN Truck & Bus in 2016. The full-range provider took the high demand as an opportunity to put its order planning process and order optimization to the test. The aim was to remain competitive, meet the high demand and further improve the order backlog.
The full-range supplier MAN wanted a future-proof solution for its order planning that would meet the specific requirements of the commercial vehicle industry. © MAN / X-Integrate

MAN's previous heuristic system for scheduling individual and large orders had reached its functional and technical limits some time ago. It was to be replaced by a future-proof solution that would meet the specific requirements of the commercial vehicle industry. The company wanted to guarantee a wide range of variants with short response and delivery times and also increase customer satisfaction by improving delivery reliability.

With the help of X-Integrate, an IBM Premium Partner specializing in business integration software, the manufacturer first reviewed its order planning and order backlog optimization. Based on a solution module developed in-house for production optimization, the IBM partner implemented MAN's individual requirements in a new solution. This is based on linear optimization, has a modular structure and can map an existing production network completely and in multiple stages. Individual orders are prioritized using the software. A graphical interface, the production cockpit, allows planning scenarios and simulations to be carried out intuitively.

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The basis for implementing the solution is the IBM Decision Optimization Center (DOC), which includes components for connecting to other IT systems and a graphical user interface for the specialist departments. The CPLEX solver, market leader in the field of linear optimization, is the computing core underneath.

The production cockpit: Planning scenarios and simulations can be carried out via the graphical user interface. © X-Integrate

Distribute order backlog according to capacities and order situation

Due to the module-based approach, a step-by-step implementation was possible. In the first phase, the focus was placed on the technical requirements, while the user interface of the existing system could continue to be used. In this way, employees benefit from the improved order backlog without having to change the way they work. Subsequently, the DOC interface was further established; dashboards with individual analysis functions were integrated. These allow users to view, analyze and edit results directly in the system.

With the new system, a wide variety of combinations of orders are now possible in order to better utilize existing capacities. This allows MAN to distribute its order backlog evenly depending on capacity and the order situation.

The individual plant locations are assigned their individual parameters. This makes it possible to see directly where which series can be produced. Available capacities, restrictions, individual timelines and the costs associated with production and transportation are all taken into account, and the system automatically compares millions of possibilities resulting from the previously defined technical conditions. Based on the freely selectable weighting factors, an order backlog is created that optimally utilizes the capacities and corporate goals in accordance with the corporate strategy. The plants themselves as well as suppliers, customers and the various transport routes between the locations can be taken into account and considered in total.

Prioritization of individual orders

MAN Truck & Bus sold 83,000 vehicles in 2016, with total sales amounting to €9.3 billion. © MAN Truck & Bus

Based on the multi-level network in the supply chain, not only the capacities required at the site are considered when scheduling orders, but also the upstream suppliers - for example in the case of required aggregates and assemblies. The results are displayed in dashboards and diagrams in the production cockpit. The order backlog per line, KPIs or metrics can be analyzed in detail there.

The assembly control system now has specific daily schedules that evenly utilize critical capacities and thus harmonize production. The current order situation is now clearer and the current status can be seen at a glance. The order backlog is also smoothed for specific factors to ensure that the production lines are utilized as evenly as possible. An individually controllable plant relocation can also automatically select the best possible production location. Axel Ebert, Team Leader Order Processing Truck Heavy Series CBU (PCLOAS) at MAN Truck & Bus: "The product created on the basis of the DOC enables the order processing process at MTB to meet the challenges of the future."

Frank Zscheile for X-Integrate / ag

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