Four Steps to Implementing AI in Production Planning and Scheduling

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How quickly you can introduce artificial intelligence (AI) into production planning depends on the company’s digital maturity and data culture. In our experience, the entire process involves four main steps: an organized factory calendar, a correct plan, accurate simulations, and finally, the holy grail of any manufacturing company – automated production planning and scheduling.

Based on our rich experience in CEE and the DACH region with the implementation of operational AI and digital twins, we should emphasize that their introduction is not a piece of cake. It requires a certain level of digital maturity and a corresponding data culture in the company, as well as changes in organizational processes if they are not designed to ensure optimal workflow.

The last 10% remains for people

To provide guidance and assistance in this process, we have compiled a list of all the necessary steps that will lead you to automated production planning. Practice shows that even when implementing AI solutions, the last 10% will probably always be left to humans. They know the dynamics of the company’s current needs and decisions and bring a business context to planning that is not captured and visible in IT systems.

Small victories for motivation

The implementation process is designed to gradually build users’ digital competencies, increase trust in AI, and motivate users with small victories in the process. This is in contrast to the traditional implementation process, which focuses on the small tasks without the big picture in mind.

Step #1 – Factory calendar

The factory calendar represents the basic framework of a factory on which we build a digital twin and is the foundation for predictions based on data from MES and ERP systems. So the first necessary step is to have an orderly factory calendar in the ERP system that includes all shifts, machines, and people capacities. If for some reason the company does not have this, it can start managing the factory calendar in the Qlector LEAP solution.

Step #2 – Correct plan

The second step refers to the correct plan, which includes all planned work orders and stock. The work orders must be organized to reflect the actual situation on the shop floor. Similar to the factory calendar, companies can use the Qlector LEAP solution instead of ERP for this step. With our manual planning board feature, planners can simply edit the plan by dragging & drop work and planned orders and write changes back to ERP. A prepared plan is automatically passed to a shift leader to organize people and dispatch shifts on the shop floor.

Step #3 – Accurate simulation

Once the plan is prepared, we can begin production simulations and predictions. It is important that the predictions are realistic and that we can verify them together with the users – whether what we predicted actually happened. We guide users through the process of building trust in AI and predictions. We empower them with a systematic comparison of predictions and realization.

Automatic maintenance of master data by digital twin

In this step, the AI is already building a digital twin of the entire factory. If we compare the old way with the new way, we can see that a lot of time and energy is now saved because AI takes care of the master data. Namely, the digital twin learns what is the realistic time for tool change/cleaning, the real-time work order start, and end, what the real downtime or scrap is, etc.

Before the implementation of AI, master data maintenance was a repetitive and manual task that took a lot of resources and was not done often enough. At the same time, all production processes depend on them, so their quality and availability are important success factors.

Step #4 – Automatic planning

Now that we made sure that production times are correct, we have actually validated the digital twin of the factory. And so we came to the final step, automatic planning. Our experience shows that the winning combination is made of 90% artificial intelligence and the last 10% is still in the hands of humans, who can take into account current business needs and decisions and simply drag & drop a specific work order.

OEE that is at least 5% higher!

If we follow the described steps of digital maturity and the gradual introduction of AI into production planning and scheduling, we can ultimately reduce the number of planners by half, achieve an OEE that is at least 5% higher, and significantly reduce stock levels.

From end product to raw material

In doing so, we follow the “pull” principle – from end product to raw material. For any manufacturing company, it is crucial to achieving a delivery accuracy of at least 95%. So the end product we have to deliver to the customer is the best starting point.

Are you interested in what kind of value an operational use of AI can bring to your company?
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Elevate Your SAP with QLECTOR LEAP

Why do 50% of projects for the implementation of APS solutions fail?

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With QLECTOR LEAP, we have digitally mapped every process within our company, revolutionizing our operations. This allows us to swiftly and efficiently formulate our production plan, complete with auxiliary workstations. The true game-changer lies in the plan's automatic updates. Simultaneously, all subsidiary processes remain informed of any modifications

By bidding farewell to a multitude of Excel files once essential for production planning, we not only declutter but also reclaim valuable time. The era of manual updates is now behind us.
I wholeheartedly recommend Qlector Leap to those who have yet to establish a systematic production planning system and still rely on Microsoft programs. The tediousness of handling such files and their susceptibility to errors can now become a thing of the past

Domen Škrbina

Head of Production Logistics at Kovis

Kovis is an internationally innovative company for the development and production of high-quality components for the railway industry and various parts for other industrial sectors. The company has established itself internationally with the production of brake discs for all types of railway vehicles: from locomotives, trams, and metro lines to high-speed trains. In addition to the brake discs, Kovis is also the largest manufacturer of axle boxes for freight wagons in Europe.
Kovis turns good ideas into a safe and sustainable future.

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QLECTOR LEAP has enabled significant progress in production plan optimization, as it learns from historical data, optimizes the plan, and provides more optimal suggestions for planners and production.

The most useful functionalities include real-time inventory overview, scheduling of workers and tool changes, and a user-friendly experience for planners, who receive a Gantt chart and a real-time overview of weekly realization. Any changes made to the plan in SAP by the planner are immediately visible in LEAP, allowing us to see when we will have reconfigurations and reduces tool change time.
The condition for using QLECTOR LEAP is well-organized data. With this condition met, LEAP operates with great precision, which is why I would recommend it to other manufacturing companies.

Marija Golja

Production Planner at Kolektor

Kolektor is a global supplier that boasts a tradition of highly specialized industrial production. In almost 60 years of experience, the company became a global provider of mobility components and systems and has added programs outside the automotive industry in the process of diversification and globalization and has spread to other continents.
Kolektor is a synonym for credibility, trust, quality, and innovative products and services. The programs are managed in three strategic groups: Kolektor Mobility, Kolektor Technologies, and Kolektor Construction.

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Qlector's software optimizes production planning in a simple, intuitive way and opens up new optimization options in a simple form thanks to the AI algorithms and various evaluations and reports. A must for modern production

Ingo Hild

Plant Manager at ams OSRAM Group

ams OSRAM is a global leader in innovative light and sensor solutions, building on over a century of experience. Combining engineering expertise with global manufacturing, the company delivers groundbreaking applications that make the world safer, smarter, and more sustainable. Specializing in high-quality semiconductor-based light emitters, sensors, and software, ams OSRAM continues to push the boundaries in illumination, visualization, and sensing across diverse industries.

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QLECTOR LEAP has enabled the automation of planners' work, faster response to changes in production planning, and management of a larger number of machines.

The results are currently evident in shorter inventory lead times for binding unfinished production and semi-finished goods, where we observe a 10% improvement. I would also highlight the expertise and agility of the Qlector team in terms of understanding and adapting to our production planning peculiarities. Domel follows modern trends in digitization, which is why QLECTOR LEAP seamlessly integrates into the ERP and MES system and is certainly one of the AI integrated APS solutions worth exploring.

Matjaž Roblek

Supply Chain Director at Domel

Domel is a global development supplier of electric motors, vacuum motors, blowers, and components. The company was founded in 1964 and has production facilities in Slovenia, Serbia and China. Their motors power over 300 million appliances in premium and consumer markets worldwide. Domel’s business processes employ high levels of technology, automation and robotisation, which form a basis for building competitiveness and excellence.