Enabling Brazilian sweets manufacturer to cut production planning and scheduling time by over 80 percent

Establishing a presence

Peccin manufactures 4,000 tons of confections and chocolates each month, making it one of the six largest companies in the industry in Brazil. Renowned for its innovative candy and chocolate formats and flavors, Peccin was established in 1956 by the Peccin brothers. They employ about 1,300 people and offer over 200 products. The company began as a modest artisanal factory specializing in the candy industry. In 1984, they transitioned to a second generation, and in 2011, chocolate production was incorporated into its portfolio.

Peccin manufactures chewable candies, lollipops, chewing gum and chocolate wafers, with notable brands including Tribala, Blong and Trento. Peccin undertook significant investments, swift development and ongoing product research to ensure its continued success.

Gradually, Peccin established a presence on the national stage, broadening its product lines and enhancing its reach within the Brazilian market. Eighty-four percent of its offerings are targeted at the domestic market, comprising 124 stock keeping units (SKUs) of sweets and 56 of chocolates, while also exporting to over 60 countries across five continents, including the United States, Canada, Middle Eastern nations and all of Latin America.

Enhancing production scheduling

Following its foray into the chocolate sector and the significant expansion of its product portfolio, Peccin recognized an opportunity to enhance its production efficiency and deliver exceptional service to its customers. However, it was not until 2018 that the company began to explore potential solutions.

In 2022, Peccin resolved to enhance its production scheduling by implementing Opcenter™ Advanced Planning and Scheduling (APS) software, which is part of the Siemens Xcelerator business platform of software, hardware and services, and selecting NEO as its implementation partner. Peccin chose NEO because it successfully implemented Opcenter APS for other companies in the food sector, thereby reinforcing Peccin’s industry familiarity and expertise.

“NEO’s support has enabled Opcenter APS to function according to our specific requirements, establishing rules that simplify daily operations without disrupting existing processes,” says Jades Romano Costa, planning and scheduling specialist, Peccin. “The collaboration between NEO and Peccin is crucial for the tool’s ongoing support. We benefit from prompt and efficient responses.”

The Peccin and NEO teams commenced the task of implementing Opcenter APS in both production facilities, which were characterized by outdated records, insufficient production scheduling and only a partially implemented enterprise resource planning (ERP) system.

Due to the extensive array of SKUs and the manually generated production scheduling in a spreadsheet, it became essential to allocate lines and resources to specific product groups, complicating the balance of units and the fulfillment of delivery deadlines. Furthermore, production orders for the upcoming two weeks were manually
created in their ERP, resulting in a sluggish and inefficient process.

Limited visibility into the schedule hindered the sequencing of sales orders, which were positioned between make-to-stock (MTS) production orders, which only considered the delivery date.

Addressing gaps

Following a thorough analysis of existing records and information regarding production specifics, the team resolved to initiate implementing Opcenter APS at the chocolate production facility. In collaboration with the factory employees, all characteristics and constraints of the resources available in the unit were cataloged, and all incomplete records were examined to enable the Peccin team to promptly address any gaps.

The integration with the ERP system was efficient and seamless, facilitated by Peccin’s internal information technology (IT) team, which possessed comprehensive knowledge of the existing tables and potential extractions. All transactional data, including resources, products and bill-of-materials (BOMs), were imported into Opcenter APS. The production plan for finished products over the next six months was also imported, allowing Opcenter to automatically generate production orders for both the products and their components.

Based on generating orders, a specific sequencing protocol was established for chocolates, wherein production lines are programmed to prioritize setup times among flavors, brands, weights and delivery dates, while adhering to labor and tool constraints. Following the sequencing of the lines as a pull process, additional resources were scheduled in accordance with the defined order. This new approach to generating and sequencing orders has enhanced visibility and responsiveness, enabling a more rapid and precise alignment with sales orders.

The functionalities established by the NEO team include exporting firm orders organized into production batches to the ERP system, as well as generating reports detailing raw material requirements for the purchasing department. Consequently, once the sequencer orders were approved, a report was produced for export that consolidated the orders created in Opcenter APS with the ERP, thereby contributing to a follow-up report that outlined the materials to be consumed. This process enabled the firm to know when to expect delays or stock shortages.

After four months, implementing Opcenter APS at the chocolate plant was finalized, and it is used for production, while the NEO team collaborated with the Peccin team to extend the solution to the candy unit.

The initial adaptation proved to be complex due to the required modifications to the processes. However, as the tool was validated and implemented, user analyses became more comprehensive, leading to a significant increase in both the use and precision of the sequencer.

“The ability to use Opcenter APS to create scenarios, along with the agility and visibility of production, has rendered decision-making support significantly more dynamic than in the past,” says Bruno Bortolatto, project manager, NEO. “Due to the introduction of Opcenter APS, the Peccin planning and scheduling team has undoubtedly evolved to be more analytical than operational.

“Implementing Opcenter APS at Peccin marks a significant milestone in the company’s digitalization journey.”

Reducing programming time by 80 percent

By implementing Opcenter APS in both Peccin production facilities, scheduling time has decreased from three days to a four-hour shift. This represents a reduction of over 80 percent in the duration of this process.

During the sequencing phase, it was also feasible to create various scenarios, enabling planning and scheduling employees to adopt a more strategic role in determining the optimal scenario based on reports and indicators. Generating orders in accordance with the production plan facilitated the rescheduling of orders over a six-month period, enhancing the factory‘ s responsiveness to unforeseen and diverse situations.

The reports facilitated the integration between departments such as planning and scheduling, production, purchasing, commercial and research and development (R&D). This created an improved response for the commercial sector and subsequent growth in service level due to comprehensive visibility into setup durations and delivery timelines.

Furthermore, the reports facilitate a comprehensive analysis of resource use, stock projections with notifications for delays and shortages as well as opportunities to renegotiate purchase and sales deadlines, which are critical concerns for production support sectors such as purchasing and sales.