Collaborative Capacity Management
Capacity management was an important production topic even when card systems were managing machine usage. Advances in technologies, richer application of analytics, and broader acceptance of eSRM and ePDM solutions and practices have made market-driven capacity management between companies and external suppliers possible for even low-volume made-to-order highly specified parts. Collaborative capacity management enables continuous communication and collaboration among suppliers, procurement, and logistics. Four elements are essential:
Internet-based solutions enabling communication of demand and capacities
Assurance of critical capacities and simulation of production program scenarios
Integration of the supplier into the program-planning process
Embedded make-or-buy analytics
Procurement breaks down planned demand for a given period (usually six months) into smaller segments (usually several weeks) and loads this data onto the solution, updating the planning forecast routinely as better insight becomes available. Internal and external suppliers also upload their capacities into the solution by capability (by line, machine, location, and time) and economics. The application then optimizes the best make-or-buy award allocations, which allows the combined network capacity to be applied in the most efficient manner. Procurement then reviews the suggested scenarios with operations and executes as agreed.
The early and rapid detection of potential bottlenecks or underutilized capacities improves both cost management and supplier utilization.