Simulation based validation of supply chain effects through ICT enabled real-time-capability in ETO production planning

According to Industry 4.0, real-time information in production planning and control, shows a high potential for optimizing the whole supply chain. The paper considers the plant building industry, especially the off-site fabrication and on-site installation. Traditionally, production planning is centralized following a Master Schedule that rarely is up to date, ignoring deviations on-site. As a result, components are delivered in advance or too late, which create non-value adding activities and high inventory levels. The paper proposes an ICT-supported nearly real-time capable production planning approach, which by means of a simulation, shows a drastically reduction of the inventory level on-site.