Investigation of the Potential to Use Real-Time Data in Production Planning and Control of Make to Order (MTO) Manufacturing Companies

Abstract

AbstractThe integrated planning and control of logistics processes can be seen as one of the basic prerequisites for the successful implementation of smart production systems and smart and lean supply chains, as well. Therefore, modern Industry 4.0 approaches are mainly focusing on (1) the principles of decentralization and (2) the usage of real-time data to improve the overall logistics performance in terms of promised delivery dates, work in progress, capacity utilization, and lead-times. In this context, this chapter systematically evaluates the application of decentralized production planning and control strategies, e.g., KANBAN and CONWIP, in comparison with traditional approaches, like MRP. Moreover, the impact of real-time data usage in production planning and control systems on lead-times and work in progress is investigated using a discrete event simulation based on primary data from a make to order manufacturer. The results of this industrial case study research confirm the significant potential that lies in smart production systems and smart and lean supply chains and, therefore, in the introduction of Industry 4.0 technologies and technological concepts in production and logistics systems.