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How pkChemicals dramatically increased their KPI for on-time delivery

Transparency, gained by Visual Production Scheduler, improves interdepartmental planning and coordination of processes and helps to deliver on time.

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pK Chemicals A/S is global leader for Dextran, Dextran derivate, and Fine Chemicals producing for the pharmaceutical, medical, and cosmetic industry. To be accepted as supplier they have to produce to GMP (Good Manufacturing  Practice), a set of rules for quality assurance in this  industry. 

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Controlling implements intensive interdepartmental planning 

pK Chemicals A/S applies two steps for controlling  the adherence to standards. A laboratory testing the quality (QC = Quality Control) releases further processing. In addition, a final inspection (QA = Quality Assurance) at the end of the production controls, that  every product that leaves the company correspond to the defined quality standard. Naturally, these controls will increase the interdepartmental planning and coordination effort needed between production, laboratory, final inspection and sales. The staff members in the different departments have to know which product is to be produced for which customer, when it will be handed over to quality control and when final inspection releases the delivery. Only then can sales inform  the customer about delivery. 

 

Planning with Excel and verbal agreements don‘t work 

For a long time, pK Chemicals A/S used Excel for their planning. In addition, the employees verbally kept each other informed about orders pending and those waiting to be processed. To Henrik Størling, CFO at pK  Chemicals A/S, it was crystal clear that based on this  kind of planning reliable delivery promises couldn’t be made:

“We could not inform our customers about the  exact delivery dates, and we used way too much time internally to inform each other. Too often we missed to inform each other, which often resulted in problems with keeping the delivery date.”

Visual overview for more transparency 

When the company established Microsoft Dynamics NAV, Henrik Størling wanted production data to become more transparent for gaining a better coordination process. He was looking for a way of visualizing  the data of the pending orders and their processing steps in a large overview. He wanted every department to see when each individual product will be  handed over to them for processing. Since Microsoft  Dynamics NAV doesn’t offer data visualization, Henrik came across NETRONIC‘s Gantt chart add-ins. The Visual Production Scheduler easily made the wish for overview come true. 

Transparency for a better coordination process of orders enhance commitment of delivery time in NAV production

Visualization exposes risk factors

The planning table not only brought about the desired transparency for the departments. Henrik realized that 

“the production was much more complex than believed. When making routings for all products we discovered, that this knowledge was on a few employees, which is a risk factor for our company."

Consequent data maintenance becomes a challenge 

Only if each staff member keeps updating the current data in NAV reliably, the desired transparency between the departments can really be gained and the VPS will reflect the current production status. This re-thinking process was way more difficult than Henrik had expected:

“It has been quite a big job to make everybody make sure that the production plan is updated in NAV. It has taken almost half a year to training employees internally and to let them understand, that they MUST update every day.”

But the effort has been worthwhile. Now coordination between the departments runs smoothly and Henrik stated happily:

“Our KPI  for on-time delivery to customers has increased  dramatically.” 

Visual Production Scheduler used in production planning 

pk Chemicals A/S does not only use the VPS for interaction between the departments Production, QC, QA and Sale, but also for production planning. Two criteria make the planning challenging: the production line comprises several  machines, all depending on each other. Before a new production can start, all machines have to  be cleaned.

Visual planning board in NAV avoid double booking of machines

“We use routings in NAV to handle this, but the VPS for the visual overview”, says  Henrik.

Here the main function of the VPS is to avoid double booking the machines. 

Discover how NETRONIC can help you run your shop better with visual production scheduling

 

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Learn more about the product that brought scheduling success to pkChemicals

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Summary: tangible visual production scheduling benefits

Dramatically increased KPI for on-time delivery

Disclosure of risk factors

More transparency for a better coordination process

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