6About Oberto Brands Brand names include Lowrey’sPacific GoldSmokecraftOffer a complete portfolio of meat snack (jerky, sausage sticks etc.), refrigerated sausage and deli productsFamily owned business in operation for over 90 yearsHeadquartered in Kent, WANational distribution in all classes of tradeDistribution by distributors and direct shipment to customerGrowing international business
7Why Finite Capacity Scheduling? Large and diverse product baseOver 400 productsComplex manufacturing processesFreshness is a concernPotential for efficiency gains with adequate scheduling modelQAD ERP did not offer constrained planning useable in Oberto’s repetitive environment5 year experience with QAD concluded Oberto’s needs exceeded software capability
8Why Preactor?P400 APS offered superior value proposition to alternatives in QAD spaceRichest feature setLeast costlyTrue finite capacity schedulingSuperior flexibilityCould evolve the scheduling model as needs changeNo change in Preactor codeTailor the data usedLarge install base, specifically in food processingBest schedule visualizationIn-depth technical support throughout the Preactor reseller networkSignificant reduction in outside consulting costs
9Integration to QADManufacturing orders and product attributes (e.g. allergens) imported from QADOberto staff developed their own integration to QAD due to heavily customized installInternally deployed most Preactor functionalityMaintain product and resource definitions in PreactorResident QAD data does not support the scheduling goals within Preactor
10Results In operation for over two years Preceded by a 6 month pilot programSchedulers elevated from busy work and data management to “real” production scheduling40% reduced work-in-processLargely due to the bucketless scheduling in PreactorNot present in the alternative productsUpgraded to P500 APSUse the PBX (Preactor BoM Exploder)
11Future Plans for Preactor at Oberto Implement RCCP model to support S&OP processDrive Preator models even further into product routings and billsImplement real-time shop floor feedback and rescheduling
13Case study – Boots Contract Manufacturing (CPG) High Street Pharmacy making their own products as well as suppliers to other companies.Cosmetics and Medicines.QAD ERP and Preactor implemented at 10 sites.Key BenefitsSchedules production taking into account equipment and labor.Reduced changeover time.Increased Efficiency.Cosmetics & MedicinesBoots Contract Manufacturing (BCM), the manufacturing arm of High Street chemists chain, has now implemented Preactor PC-based electronic finite scheduling tools at three of its factory sites - with plans to expand to two additional sites. The BCM operation is a very complex production challenge. BCM is responsible for the production of literally thousands of cosmetics and over-the-counter medicines for Boots the Chemists and other retailers.“There are thousands of staff involved in what is a very diverse and complicated manufacturing process,” comments Nicky Cox, Advanced Systems Developer at Information Systems (BCM). “At the Airdrie factory alone, for example, we have some 100 manufacturing vessels – all of which need to be scheduled efficiently to achieve maximum productivity. Preactor is proving a great help in achieving exactly this - contributing to better customer service and improved profitability.”Preactor has been successfully integrated so as to interface with BCM’s existing systems (Hoskyns MAS/MCS/MRP system and Mfg Pro). Work orders are downloaded on to Preactor from MRP system on a daily basis, with planners using a range of criteria such as order due dates, works order numbers and machines. This provides total flexibility as to the range of orders which can be planned in Preactor. Once the orders have been loaded, Preactor can then sequence the orders according to due date, either backwards or forwards, by using standard stock holding or Just-In-Time methodology. As part of this process, an ‘earliest start date’ can be used to ensure that stock is not made too early, thereby avoiding unnecessary overheads.“One of Preactor’s several strengths is the way it takes account of plant availability,” continues Nicky Cox. “ If a line or machine breaks down or if we want to do some planned maintenance, we can put it into the schedule. This gives us an accurate view of capacity, enabling our planners to do rapid re-scheduling to ensure orders are completed on time.”In addition to plant availability, Preactor also takes account of labour availability – allowing labour requirements to be calculated according to workload requirements. This means that casual labour and overtime shift working can be accurately planned without the worry of having ‘spare bodies’ or not enough staff.Finally, Preactor is able to sequence orders according to their ‘physical attributes’. Nicky Cox explains, “For example, if a product has a cardboard outer and a blue fill and another order has a cardboard outer and white fill, it is much more efficient to do the white fill product first. This is because it is much faster to go from the white to the blue than from the blue to the white (when you would have to wash out the vessel between the two processes). With this in mind, we have set up matrices in Preactor which enable planners to minimise changeover time – and increase productivity.”
14Case study – Vector LLC (Electronics) Amplifiers and optical nodes for cable and radio networks, telemetry devices as well as a wide range of services like design, implementation, training and maintenance of systems.400 people.QAD ERP.Telecoms EquipmentVector LLC is a European company which provides solutions for the rapidly developing telecommunications industry by offering advanced systems used in stationary and mobile telephony networks. The company specialises in the production and integration of solutions that enable operators to provide multimedia services, such as digital television, the Internet and telephony. Vector LLC was founded in Currently it employs nearly 400 people working in its plant in Gdynia, Poland. The company offers various products, including amplifiers and optical nodes for cable and radio networks, telemetry devices as well as a wide range of services like design, implementation, training and maintenance of systems.To make sure that these goals have been attained Vector LLC used the Preactor 400 APS version and its SMC feature that connects dependent orders together generated by MFG/PRO. A schedule for the whole production process is generated by Preactor for two time frames; short-term and mid-term. The first takes into account customer priorities and enables fast and on-time completion of orders. The second aims at estimating the demand for stock components.The most difficult problem to solve in the implementation stage was to build an accurate model of the production process and technology as well as recreate the model of the stock and information flow in the company. However, due to close cooperation between Vector’s planners and IT specialists and Preactor provider’s consultants, this task was efficiently and successfully accomplished.The result of the project was obtaining software closely cooperating with the MFG/PRO system. Preactor enables to import statistical data (materials) and dynamic data (orders, registered production, stock levels) from the MFG/PRO system and export data about the current production schedule to ERP.Thanks to implementation of Preactor it has become possible to generate real and feasible production schedules, as well as a substantial time reduction in its preparation.Implementing Preactor has also enabled a reduction in process of about 50% and increased on-time deliveries from 40% to 80%, which helped improve Vector LLC’s competitiveness and strengthened its position in the telecommunications services market. “The numbers speak for themselves. I cannot imagine getting such results without having implemented Preactor,” says Leszek Kleinert, the Planning Manager at Vector LLC. “The reliability of delivery dates given by Vector is highly valued by our Customers. We have improved it significantly thanks to using Preactor.”Key BenefitsCan now generate real and feasible schedules.Reduced lead times by 50%.On-time delivery performance up from 40% to 80%.
15Case study – Hall & Woodhouse (Beverage) Bottling, canning and contract packing.Flavoured waters, spirits, spirit mixers, soft drinks, alcopops, beers, and ciders.Key issues were Changeover Times between pack size, and Cleaning regimes required for vessels.QAD ERP.BeveragesAn independent family brewery founded in 1777 has joined the 21st century with a vengeance by integrating a PREACTOR PC-based graphical finite scheduling tool into its bottling and canning operation. The result has been improved efficiencies, with cleaning and product turnaround times being scheduled with increased accuracy. Hall & Woodhouse is located in Blandford Forum, Dorset, where it brews beer and manufactures soft drinks. (These latter include its own branded Panda range). “We also offer a contract packing service,” explains Jim Inkster, the Master Planner at Hall & Woodhouse, “and it is in this area that the Preactor is helping to schedule and control the operation.” Preactor is, in essence, an interactive electronic planning board designed to give companies greater control of their manufacturing operations. It achieves this by helping optimise the balance between demand and capacity. In the case of Hall & Woodhouse, the Preactor has been integrated into the Small Pack operation, which comprises one bottling line and three canning lines. These lines bottle and can a diverse selection of drinks, including flavoured waters, spirits, spirit mixers, soft drinks, alcopops, beers and ciders.“The Preactor replaced a manual system which was slow to react to changing priorities,” says Jim Inkster. “The old system relied heavily upon the memories of one or two people and frankly, was no longer really equal to the complexities of an operation which has developed into a major part of our business.”Several factors make it a very complex operation indeed. “One such factor is the highly complicated matrices of the cleaning regimes, which Preactor now helps schedule,” continues Jim Inkster. “For example, switching a vessel from soft drinks to water takes all of 8 hours, whereas the reverse process – from water to soft drinks – takes just half an hour. Scheduling the cleaning regime the wrong way could cost us hours and hours of production time. But Preactor now handles this – giving us visibility and avoiding production hold-ups.”Another complexity, which Preactor now helps manage, concerns the shelf life of products. “When a job is planned for Week 2,” says Jim Inkster, “in our business it’s essential that it actually happens in Week 2 and not in Week 1 – even if there is the available capacity to get the job done early. This is because the products have a limited shelf life and have to be made and delivered accordingly.” Preactor is also used to schedule the ‘mechanical’ changeover of pack size and type. Packing sizes range from 15cl to 56.8cl (which is a pint). And finally, Preactor helps Hall & Woodhouse operate its JIT system. “A warehouse full of empty cans waiting to be filled is no use to anybody,” adds Jim Inkster.He concludes: “We’re not yet using the full power of Preactor, but we’re going to implement some additional functions soon. One of these is parallel scheduling, which will allow cleaning to take place simultaneously with line changes – rather than doing one, then the other. We’ll also be using Preactor to help us schedule like products, which will lead to yet more new production efficiencies.”Key BenefitsNo longer dependent on manual system.Sequence dependent production hold-ups highlighted.Deals with shelf-life issues.
16Case study – Sklostroj Turnov (Discrete Manufacturing) Make to specification of container glass moulding machines, moulds, packaging lines, bench-top hydraulic presses, stirrers for molten glass, annealing ovens, cold-end handling and inspection systems, and mould pre-heat chamber ovens.Complex manufacturing and assembly across multiple shops or departments.QAD Enterprise Applications ERP system.Glass Container Process EquipmentSklostroj Turnov CZ is an industrial equipment company specializing in the delivery of glasswork solutions, production lines, machinery and moulds for the container glass manufacturing industry. Established in 1950, the company has a long-standing tradition in the industry. The dedicated work of its 300 employees is evident in the company’s complex yet reliable products. The creativity of the 40 designers ensures the outstanding technical design and fine features of all the products. In addition to the manufacture and sales of machinery for the production of container glass, Sklostroj also provides a comprehensive range of services connected with building and upgrading container glass factories, including all key and auxiliary equipment, staff training, maintenance, technical assistance and the complete construction of new plants.Sklostroj mainly makes machinery to customer specifications. The product range includes container glass moulding machines, moulds, packaging lines, bench-top hydraulic presses, stirrers for molten glass, annealing ovens, cold-end handling and inspection systems, mould pre-heat chamber ovens, and others. Custom material is ordered on the basis of customer demands, and purchase requests are generated by the MRP calculation in the QAD Enterprise Applications (QAD EA) ERP system. Final assembly requests and those concerning, to a certain extent, semi-finished products are generated by the “Custom Manufacturing” module, with the work orders bearing the identification of the job order for which they have been generated. Other requests, mainly lower-level ones, are generated by the MRP calculation in QAD EA. Detailed production planning is performed in APS Preactor, which, among other functionalities, alerts the user to the demand for critical material such as cast parts. This query is forwarded to the Purchasing Department to allow manufacturing to start on time. Material is supplied to production on the basis of a work order in the QAD EA system. Final shipping is carried out after full assembly and operational testing of the machine. The make-to-order manufacturing strategy is used with regard to the industry in question. The limited resource capacity is often resolved using external co-operation. In the past, there were problems with the deliveries of critical components, mainly cast parts. The complex manufacturing (dozens of subassemblies per final product) and technology make the order planning and capacity distribution processes and the completion date estimate a serious challenge.“The greatest benefit of the implementation of the Preactor advanced planning system in our company is mainly the time savings achieved in the planning process. As this planning can take as little as twenty minutes, we are able to have an up-to-date plan every day, including all the changes that the company faces in its everyday operations,” confirmed Vild, adding: “It is now very quick to change the priority between orders or include newly received manufacturing orders in the plan. Before we confirm the work order completion date and include it in the plan, we can put it in a model to determine what impact it will have on the capacity and workload.”The capacity planning implemented in Sklostroj accommodates the company’s enterprise processes. The company has obtained a clearer idea of the estimated completion date of the entire order as well as the individual subassemblies. The planner can identify bottlenecks in time and respond by adjusting the plan for the necessary parameters. The system generates critical material queries, which are crucial for the entire manufacturing process. Operation queries are supplied by an external co-operating party. The applied “Loan” module enables part of an order in progress to be loaned to another order that has received a higher priority status. The module also enables a timely evaluation of the effect of such a loan and a simulation of its impact on the completion dates of the orders involved. It is also easier for staff to understand work orders and workers have a better overview of where materials are going and what is covered. There has been a pronounced optimization of the work queue on the manufacturing resources. “Preactor has provided us a tool to work quickly with the capacities of individual resources and also enables us to detect deficiencies in the input data, mainly in the technological procedures and design bills of material,” said Vild to summarize the benefits.BenefitsPlanning time cut from days to minutes.Can see the scheduled completion time of assemblies and entire order.
17Case study – Whatman International Manufacture various grades of science grade papers and slit to customers requirements.Existing planning software could not provide the detail required to manage the plant and staff requirements in the short and long term.QAD ERP.Paper MakingWhatman International is a global leader in separations technology. It is recognized throughout the scientific community for providing innovative products and solutions, many paper-based. Indeed, for over 250 years the Whatman name has been synonymous with the finest quality paper. With a growth in production demand coupled with an ever greater diversity of product lines, Whatman International’s production scheduling requirements had become increasingly exacting and complex. To ensure an effective and reliable production scheduling IT infrastructure was put in place, the company contacted Preactor International.Before officially retiring in late 2005, Production Planning Manager John Mayger had been Whatman International’s longest serving member of staff. “We had relied on a very basic planning software tool from the mid ’90s up to The system’s functionality was rather limited, so we had to feed it our works order information manually. It was little better than writing everything on cards, a method we had used previously. As you can imagine, this became highly frustrating when we were particularly busy juggling various jobs around between paper machines. We would often find ourselves trying to schedule two jobs on the same machine around the same time. Also, if we altered a schedule we would have to remember to change the production slot for just about every other job. This was largely a mental process, with a lack of active support from our planning software.” Ian Pestell, Whatman’s Manufacturing Support Manager explained. “We had MFG/Pro from QAD however we knew that we still needed a Finite Capacity Scheduling (FCS) software solution to manage demand and capacity in our paper mill.” The implementation process began in In total this lasted around six months. “When the Preactor 300 systems were linked to MFG Pro we finally had a seamless production software system in place, ready to help us with our production routine from materials requirements planning to production capacity scheduling. We now use Preactor to determine the optimal scheduling route for a number of jobs within a certain timeframe before passing a print out of the information to our manufacturing and slitting mills. All concerned have found the coloured Gantt chart format of the Preactor graphical interface very easy to follow.”As soon as the Preactor systems went live the benefits were immediately apparent, according to Mayger: “For example, Preactor helped us to schedule production of grades of paper in the most time-efficient manner. It had always been our wish to be able to schedule the purer grades for production first wherever possible within the lead times promised to the customer. This allows us to ensure the paper making machines are as spotless as possible for the purer grades before moving on to other grades. Doing the process the other way round naturally entails extra time spent cleaning the machines. Now, with Preactor, we can plan the order of production more efficiently.” Pestell spoke of Preactor’s flexibility in terms of allowing Whatman International to plan production much further ahead: “Previously we had suffered many problems in getting production sequencing as time and cost-efficient as possible with our original planning software module.However, with Preactor we can plan production two or three months in the future – or even longer if necessary.” Pestell added that Preactor also helps ensure the company can schedule production around its 12/2 shift pattern. “This is so our staff can stop work every other weekend,” he pointed out. And as Whatman International has more paper making machines than operators, Preactor has helped the company to manage plant resources and appropriate staffing levels for each job more efficiently.BenefitsImproved customer service.More efficient production.Can now plan months ahead.
18Preactor and QAD Relationship Preactor for QADPreactor and QAD Relationship
19Preactor International and QAD Preactor has been used by QAD ERP users for many years.More than 100 companies around the world.Preactor is a QAD Solution Partner.
20Copyright Preactor International 2005-2009 QAD Planning and Scheduling OptionsQAD has two options planning and scheduling -Traditional MRPQPSPreactor for QAD is used for more complex scheduling applications -Complex constraints.Sequence dependent changeover times.Optimization rules.Links together dependent orders based on Bill of Materials.Copyright Preactor International
22Supplier ChallengesGlobal competition is forcing companies to re-assess their position in the market.There is pressure to compete on agility, quick turn round and on-time delivery.But also to reduce costs and lower inventory levels.These pressures lead to smaller batch sizes - ‘sequencing’ becomes increasingly important.And then to synchronize variable demand with materials flow and capacity.
23Demand Driven Manufacturing Recommended by many experts and analysts in the manufacturing sector as the way forward for many companies -Move away from large batch (Economic Batch Quantity, EBQ) make to stock.Move towards small batch make to order.The goals are to -increase On-Time Delivery (OTD),reduce stock, (Finished Goods Inventory, FGI)reduce throughput time (Lead Time).Recent world-wide survey done by Aberdeen Group analysed how well companies are performing in each of these goals.
24Mean Class Performance Defining Best-in-Class PerformanceDefinition of ClassMean Class PerformanceBest-in-Class: Top 20% of aggregate performance score97% On Time Delivery (OTD)4 Days Finished Goods Inventory (FGI)9 Days Lead TimeIndustry Average: Middle 50% of aggregate performance scorer87% On Time Delivery (OTD)14 Days Finished Goods Inventory (FGI)33 Days Lead TimeLaggard: Bottom 30% of aggregate performance score75% On Time Delivery (OTD)32 Days Finished Goods Inventory (FGI)75 Days Lead TimeSource: Aberdeen GroupCopyright Preactor International
25Best in Class Manufacturers Combine IT Packages Industry AverageLaggard100%95%95%75%60%57%50%50%25%25%0%ERP & APSMES &APSSource: Aberdeen GroupCopyright Preactor International
26What is Finite Scheduling? What is APS?Techniques that deal with analysis and planning of logistics and manufacturing during short, intermediate, and long-term periods. Characterized by:Software using advanced mathematics or logicOptimization or simulationConsider a range of constraints and business rules to provide real-time planning and scheduling, decision support, ATP and CTPGenerate and evaluate multiple scenariosExcerpted from APICS Dictionary 12th Edition(2008)What is Finite Scheduling?APS/FCSFinite Capacity Scheduling (FCS) is a process whereby a plan consisting of a sequence of operations to fulfil orders is generated based on the real capacity of resources. Resources can be machines, labour, tooling or anything which is a constraint on the production processes.The output from a scheduling tool is a Gantt chart that displays the sequence and load across resources and a work-to list for each resource. Most importantly it provides the planner with visibility of the impact of events such as new orders arriving, the effect of changing priorities and the knock on effects of breakdowns or change of capacity on delivery promises.Copyright Preactor International
27How Much or How Best? Planning Scheduling How best to make it What to makeWhen to make itHow much to makeWhere to make itMaterials RequiredResources RequiredSchedulingHow best to make itExecute against planSequencingSynchronizationPriorities, constraints and conflictsMonitoring executionManaging changeCopyright Preactor International
28Copyright Preactor International 2005-2009 How do you recognize the difference?Planning systems are ‘bucketed’ (monthly, weekly, daily) and cannot preserve operational sequences within the time bucket.True scheduling systems are bucketless, preserving sequencing and capable of producing work-to or dispatch lists for each resource.Copyright Preactor International
29Copyright Preactor International 2005-2009 Why should I worry?Planning systems do not provide the ability to model complex constraints of a real system.Planning systems do not give you real time control over individual resources and individual orders.True scheduling systems do provide real-time control at shop floor level with models that reflect the real operating constraints.Copyright Preactor International
30Copyright Preactor International 2005-2009 How will APS Help?Operations are planned only when resources are available.Materials are ordered for delivery when operations can start.Provides visibility - deliveries can be predicted with more confidence.Typical BenefitsUsing finite capacity scheduling, operations are only planned when resources are available. Consequently, materials are ordered only when they are needed for the operation to be carried out. Inventory levels fall and bottleneck resources are not overloaded. Work in progress is minimized, lead times are more predictable and delivery dates more reliable. In this way production management spends less time progress chasing and can concentrate on the every day job of balancing, often variable demand, with the capacity available.LESS FIRE-FIGHTING !!Copyright Preactor International
32What is Finite Scheduling? Preactor for QAD is APSProven decision support tool for detailed sequencing.Takes the orders with associated operation steps that require one or more (finite) resources to be carried out.Resources defined such as machines, process lines, operators, tools, tanks, etc.Sequences the operations to produce a ‘good’, achievable schedule and generates work-to lists for each resource.Provides a ‘what if?’ environment for the planner to ‘see’ the impact of the options before decisions are made.What is Finite Scheduling?APS/FCSFinite Capacity Scheduling (FCS) is a process whereby a plan consisting of a sequence of operations to fulfil orders is generated based on the real capacity of resources. Resources can be machines, labour, tooling or anything which is a constraint on the production processes.The output from a scheduling tool is a Gantt chart that displays the sequence and load across resources and a work-to list for each resource. Most importantly it provides the planner with visibility of the impact of events such as new orders arriving, the effect of changing priorities and the knock on effects of breakdowns or change of capacity on delivery promises.Copyright Preactor International
33Preactor for QAD - Overview This provides the planner with a complete picture of -Demand.Capacity.Resource usage.Operation sequence.Expected completion time for each operation in a Gantt chart.The planner can drag and drop operations, change priorities and manipulate the schedule in whichever way needed to meet business objectives.Then see the impact on all orders before committing changes back to QAD.3333
34Preactor for QAD - Overview Forward, Backward or Bi-directional loading of operations onto resources.Additional Optimization rules to introduce preferred sequencing, minimizing changeovers, campaigning etcMultiple constraints for each operational step such as machines, staff, tools, tanks, processing lines etcRule based pegging of dependent orders which can be purchase orders, sales orders and manufacturing orders3434
35Preactor for QAD - Overview Drag and Drop interaction with the schedule through the interactive Gantt ChartAd-hoc capable to promiseShift Pattern templates, breakdowns, overtime etcSchedule Analysis tools to compare alternative schedules3535
36Preactor for QAD - Overview Provides QAD’s materials planning system (MRP) and customer service available to promise with an accurate and obtainable production schedule.Procurement is then tasked with supporting the production plan by committing to the existing purchase orders found in QAD and considered by the Preactor planning system and generating any new purchase required by the updated production plan.Customer Service is also given the ability to sell product based on a realistic and obtainable production plan visible through standard QAD master schedule reports.3636
37Preactor for QAD Solution IncludesPreactor 400 APS Master Scheduling System.Integration piece for connection to QAD Enterprise Applications® Standard Edition (SE) and Enterprise Edition (EE).Integration will also work with eB, eB2, eB2.1 and for earlier versions of MFG/PRO® as well.
38International Support Preactor for QAD is available worldwide through accredited system implementers.Available to provide customization, training and go live support services.Local language.
40Copyright Preactor International 2005-2009 Opportunities with Preactor for QADInteractive decision support tool for companies to become leaner and more agile.Quantitative benefits – based on more than 150 documented case studies:-Reduce raw material inventory by 50%Increase productivity by 25%Reduce work-in-process by 50%Improve delivery performance by 80%Reduce scheduling overhead by 80%Works well in discrete, process, hybrid and repetitive environments.Copyright Preactor International
41Key Differentiators of Preactor for QAD Best-in-Breed solution – more than 2,500 companies use Preactor located in 65 countries.Proven in almost every sector of manufacturing.Built-in integration to QAD EA providing two way data flow for close synchronization.Can cope with even the most complex of planning and scheduling application.Local resellers available worldwide for implementation and support.
42For More Information North America EMEA Elsewhere Greg Quinn EMEAValerie GoulevitchElsewhereMike Novels4242