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44 SMT007 MAGAZINE I AUGUST 2018 simply not possible, which is clearly at odds with the concept of Industry 4.0. Adaptive Planning We need to look at the Excel solutions, with some well-earned respect for the people who have created those solutions and use them every day. There is no long-term plan- ning here, they know it is pointless, as in an Industry 4.0 factory, customer demand fluc- tuates day by day. The effect of fluctuation and product mix will, however, only become more extreme going forward. Looking at how Excel and factory planning are now working separately, there is a clear difference between capacity planning and planning live and near- term production, which will need to continue as separate entities. The capacity plan is a high- level calculation, that provides an assurance that the factory capability can meet customer requirements in the medium and long term, without looking into details of processes. With confidence in the capacity plan, the focus of live planning can be placed on the imme- diate future only, making sure that current demands are met in the most efficient way. As the degree of flexibility expected for the factory grows more extreme, the capability of Excel becomes less effective, prompting the use of a next-generation digital live planning solution that expands upon the fundamentals of Excel, Adaptive Planning. Adaptive Planning brings automation to the dynamic decision-making process of alloca- tion of work-orders to production configura- tions. This is where the importance of Digitally Remastered engineering best practices plays a critical part. Now with the required infor- mation, it is possible to shift production from the 1,000 per day capable line in the previ- ous example, to the 900 per day capable line, which then runs at 100% efficiency to meet actual customer demand, without dependence on bloated finished goods stock, in a process that also frees up the extra capacity of the faster line to meet other targets. In fact, Adaptive Planning will consider the rate of completion of every product on every possible line config- uration to find the best possible combination for the period for which demand is accurately predicted. This is too much for the Excel tools to handle. Adaptive Planning works effectively as it has continuous, live data about the prog- ress and performance of the shop-floor oper- ations available, as well as the availability of materials and key resources such as feeders. With all this information, the Adaptive Plan- ning algorithms provide the critical assistance in the decision-making process, allocate prod- ucts to create demand-based product groups, and allocate product and groups to lines with the best fit. The Adaptive Planning tool there- fore does not need to plan far ahead, manag- ing short-term schedules with surgical preci- sion. The reliance on excess levels of stock in the warehouse to enable the factory to appear responsive to demand changes, are a thing of the past. The factory, now made up of Lean processes, can "turn on a dime" to provide whatever delivery is required. Inherent losses built into long-term schedule planning are avoided, as the best available configuration for the job is continuously selected. For Industry 4.0 operations, Adaptive Planning has the capability of replacing both legacy APS tools, simulations, and even Excel solutions. As time goes on, with increases in the scope, quality and reliability of live data coming from the shop-floor, using for example the Connected Factory Exchange standard (CFX), it is expected that Adaptive Planning solutions will become progressively smarter, offering greater guidance while managing constraints as well as optimization. One major constraint, material availability, especially in these times of material shortages in the market, is a major challenge, and is the next area for our consideration where legacy factory practices need to change. This will be the subject of part three of our "Advanced Digitalization Makes Best Practice" series. SMT007 Michael Ford is the European marketing director for Aegis Software. To read past columns or to contact Ford, click here.