Digitalization for flexible and resilient production planning and scheduling in customer-driven manufacturing

Licentiate thesis, 2024

In the contemporary landscape of advanced manufacturing, Engineer-to-Order (ETO) companies face unprecedented challenges in production planning and scheduling. The unique nature of ETO manufacturing, characterized by highly customized products and fluctuating demands, requires efficient production planning and scheduling.  This thesis delves into these critical challenges and explores how digitalization can revolutionize production planning and scheduling, making it more flexible and resilient for ETO manufacturers.

Employing a robust Design Research Methodology, this thesis integrates both theoretical and empirical studies to comprehensively address its aims. The findings reveal that ETO manufacturing organizations are persistently grappling with the intricacies of production planning and scheduling. Through meticulous identification and categorization, the thesis underscores that replanning or rescheduling is an inevitable reality for ETO companies due to their bespoke product requirements and unpredictable demand patterns. This study emphasizes the importance of a highly collaborative integrated planning system for effective replanning and rescheduling in ETO manufacturing, a conclusion drawn from extensive literature reviews and multiple case studies.
Diving deeper into technical solutions and strategic approaches, the thesis examines how ETO manufacturers can overcome these challenges. It posits that achieving a collaborative planning system necessitates both vertical and horizontal integration—aligning organizational structures and ensuring technological compatibility of planning tools and systems. The research illustrates that digitalization, particularly the use of digital tools like simulation and data analytics, plays a crucial role in enhancing production planning and scheduling processes. These digital tools not only facilitate faster and more efficient replanning and rescheduling but also promote seamless information sharing and improved collaboration among different organizational functions.

This thesis makes a significant theoretical contribution by advancing our understanding of production planning and scheduling within the ETO manufacturing sector, especially in the context of digital transformation. Practitioners in the industry can leverage the insights provided on digital tools and integrated planning systems to develop robust strategies, enhancing their capability to manage the complexities of ETO production. The findings offer compelling evidence that digital tools can significantly improve the flexibility and efficiency of production planning and scheduling, thereby boosting the overall resilience of ETO manufacturing operations.

Attendees of this seminar will gain valuable insights into technological advancements that can transform ETO manufacturing. By understanding the critical role of digitalization, participants will be equipped with knowledge to drive innovation and resilience in their own organizations. Join us to explore how digital tools can revolutionize production planning and scheduling in ETO manufacturing.