Understanding a Superplant Conceptually

7/5/22 8:44 AM

This continues a weekly series on the concept of a Superplant. Every Monday will be a new entry in this ongoing series. This is week two. To read our week one entry, please click here

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Executives at manufacturing companies are finding themselves pulled in different directions. It’s important to reduce costs for outsourced manufacturing, but it’s equally critical to reducing their inventory. The Superplant methodology helps executives balance these demands.

The supply and production planning environment is complex. Reasons for this ongoing shift in the manufacturing industry include:

  1. Outsourced Manufacturing: Low-cost facilities located in overseas countries come with long lead times and difficulties in management.
  2. Complex Company Relationships: With the rise of subcontracting, and contract manufacturing more companies are working together to produce goods. Business relationships are difficult to manage and navigate.
  3. Acquisition Growth: The Superplant method asks companies to combine what were previously separate companies. Independent companies lead to communication problems if mismanaged.

There are absolutely more issues contributing to the current difficulties in the manufacturing industry. Supply chain departments tend to respond to initiatives driven by marketing, sales, and finance. So how can the Superplant method help?

The Superplant methodology is a departure from the standard product design cycle. Superplants are separated from standard production by several critical determining factors:

  1. The Bill Of Material (BOM) is in multiple sites.
  2. Production is in various locations.
  3. Continuous material flow is synchronized. Therefore, stock transport may change depending upon plant proximity.
  4. Each factory is a work center, and the flow of materials are considered a “routing.”
  5. Prioritization of internal over external demand. 
  6. Ability to perform subcontracting and compare internal production against subcontracting production.
  7. Contains a routing, regardless of how many plants it passes through.
  8. Evaluates the best location to source a product automatically. 
  9. Flexibly alters its source of supply based upon the setup of as many sources of supply.

The Superplant methodology considers output as a factor dependent upon the particular circumstance. These circumstances change all along the planning horizon meaning that different alternatives are the best to select at that point in time.

Come back next Monday for another entry in this ongoing series. 

Topics: Factory Scheduling, Lean Manufacturing, superplant, multi-plant, Smart Factory 4.0, manufacturing technology, manufacturing execution system, manufacturing scheduling and planning software, manufacturing trends, Factory Digital Twin

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