The right time for production

Study and implementation of a Pull Supply Chain Management model integrated with a highly energy- and environmentally-efficient production system, thanks to IoT technologies.

FUNDING

Ministry of Economic Development – Sustainable Growth Fund (Ministerial Decree of July 24, 2015)

PROJECT CODE

F/150010/00/X40

DURATION

February 2018 – July 2021

THE CONTEXT

A challenge of operational efficiency

At the start of the project, the Italian ceramic industry was a global benchmark for quality, innovation, and production capacity, with a strong focus on exports and a high-end positioning on international markets. However, this competitive advantage, built on manufacturing excellence, was confronted with growing operational challenges.

The management of heavy and large-format products entailed significant logistics costs, while traditional make-to-stock production models generated high inventories and a heavy absorption of capital. The growing complexity of the product range, with thousands of item codes, also made forecasts based solely on historical data increasingly unreliable, causing both stock shortages and overstocking.

Added to this was the high energy intensity of the atomization and firing processes, which were exposed to fluctuations in demand and grid balancing costs. In this scenario, the traditional management model was no longer adequate.

The project was therefore born out of the need to introduce an innovative approach, capable of integrating advanced technologies, greater operational efficiency, and energy sustainability, differentiating management logic throughout the entire production process.

Make-to-stock prevalent throughout the entire production process

Thousands of item codes with unpredictable demand

4 months of production tied up in inventory on average

High dependence on the power grid

THE PROJECT

Three integrated dimensions

KAIROS was created to address these challenges with a systemic approach that overcomes the dichotomy between production for stock and production to order. The goal was to design, implement, and validate a hybrid push/pull Supply Chain Management model in an industrial environment, based on an IoT platform integrated with company management systems.

The project started from a fundamental observation: in a ceramic process, not all stages can respond with the same flexibility to volatility in demand. The mixture preparation department, upstream of the process, produces an undifferentiated semi-finished product (the atomized material) that feeds all production lines and requires continuity in the supply of raw materials and energy. The downstream stages, from pressing to shipping, define the item code and must adapt quickly to market orders.

The project combined three fundamental dimensions.

01

Operational efficiency

Each stage of the production cycle was analyzed to identify the most appropriate management model, calibrating the push or pull approach according to the specific characteristics of the process.

02

Energy efficiency

The self-production electricity system has been upgraded and integrated with the heating systems to optimize consumption and reduce dependence on the grid.

03

Digitization

The implementation of IoT technologies, MES systems, and planning platforms has enabled the creation of a connected, traceable supply chain capable of supporting informed decisions in real time.

The approach adopted was holistic: rather than intervening on isolated individual aspects, KAIROS built an integrated model in which plant improvements, process innovations, and new management strategies reinforce each other, generating an impact greater than the sum of the individual parts.

THE PROCESS

Three years of research and experimentation

The project was developed over a three-year period divided into complementary phases, each building on the results of the previous ones and aimed at generating knowledge, tools, and concrete solutions.

PHASE 1
Analysis

Mapping and design

The work began with an in-depth mapping of the ceramic production process to identify the critical stages in supply chain management. Using the IDEF (Integration Definition for Function Modeling) model, priority activities were selected: from the delivery of raw materials to the selection and packaging of the finished product.

For each critical phase, the relevant data to be collected and the corresponding performance indicators (KPIs) were defined. The architecture of the IoT platform was designed, defining the type of sensors and connection infrastructure required. The company's Industrial Ethernet was upgraded to support the volume of data required for real-time monitoring.

At the same time, an analysis of the software solutions available for production planning and scheduling was conducted, defining the technical requirements and integration specifications with the company's ERP.

PHASE 2
Efficiency

Improving the efficiency of the make-to-stock system

The second phase focused on the dough preparation department, the heart of the make-to-stock system. An in-depth energy audit analyzed the thermal and electrical requirements of the grinding and atomization plant, identifying opportunities for improvement.

Based on the results, a new gas turbine-based cogeneration plant was installed, sized to cover almost the entire electrical requirements of the plant. The atomizer burners were replaced with new-generation “flue-fire” systems, designed to make maximum use of the hot turbine exhaust gases.

The interconnection between the cogenerator and the mixture preparation plants created an integrated system monitored through the IoT network. Comparative LCA analyses verified the environmental impact of the different plant configurations, guiding the choices towards the optimal solution.

PHASE 3
Digitization

Implementation of the make-to-order system

The third phase saw the translation of the design specifications into operational solutions for the downstream stages of the process. Finite capacity planning and scheduling software was implemented, integrated with the company's ERP system for real-time sharing of personal data, orders, and stock levels.

Development followed a structured path: from defining the implementation protocol with key users, to the alpha version for internal testing, to the beta version customized for the specific production needs of each plant. Performance tests verified the system's ability to handle high transaction volumes, while training sessions prepared staff to use the new tools.

The system now allows the main production plan to be drawn up based on market demand, automatically generating material procurement plans and production line schedules.

PHASE 4
Integration

Industrial validation of the model

The final phase vertically integrated all the components developed into a coherent operating system. A data sharing environment was created between ERP and planning software, linking information on products, orders, and sales history.

A quality management system based on the life cycle approach was developed, associating availability, productivity, and quality indicators with each stage of the process. A Business Intelligence dashboard allows real-time visualization of operational and environmental performance.

Final testing verified the functioning of the integrated system on significant batches of ceramic tiles, monitoring the entire flow from planning to delivery to the warehouse and confirming the validity of the hybrid operating model.

THE RESULTS

Concrete and measurable innovation

KAIROS has generated an integrated set of results that form the operational basis for the evolution of supply chain management in the ceramic sector, combining innovative organizational models, process digitization, and energy and environmental efficiency.

Hybrid

validated push/pull supply chain model

95%

of electricity needs covered by self-production

–24%

environmental damage caused by the production process

Reduced

capital tied up in inventories

Operating model and supply chain planning

A hybrid push/pull model has been developed and validated that differentiates management logic according to the stages of the process.

Dough preparation operates on a push basis, ensuring production continuity, while the finished product manufacturing stages follow a pull logic, aligned with actual market demand.

This approach makes it possible to decouple factors that cannot be directly controlled (energy and raw materials) from those that can be geared towards orders, reducing inventories, financial immobilizations, and planning errors.

Production and energy efficiency

The introduction of an integrated cogeneration system has increased self-production capacity by 17%, covering approximately 95% of the plant's energy needs.

Flue-fire burners have improved atomizer productivity by 3÷5%, reducing specific methane consumption.

The interconnection between thermal and electrical systems, managed in real time, optimizes energy balance and reduces grid withdrawal costs.

Digitization and IoT platform

Production sites have been equipped with an integrated IoT platform that connects sensors, MES systems, planning software, and ERP.

Process data (energy consumption, production, inventory) flows in real time, supporting operational and strategic decisions based on reliable and shared information.

Vertical integration eliminates fragmentation between departments, accompanying the physical flow of materials with a continuous flow of information throughout the entire supply chain.

Quality, traceability, and performance monitoring

An integrated quality management system has been developed based on a framework of indicators that combines the availability of production factors, the productivity of the process stages, and the quality of the final result.

The approach, inspired by OEE but extended to the entire life cycle, allows the production history of each batch to be traced and provides a complete and consistent overview of operational performance.

Environmental sustainability and transparency

The LCA analysis quantified the environmental benefits of the new operating system:

-24% environmental damage considering only process;
-3.4% over the entire life cycle of the tiles.

A dedicated calculation code allows continuous monitoring of environmental performance based on production data, supporting transparent and verifiable communication with stakeholders, customers, and the market.

COLLABORATIONS

Collaboration for innovation

KAIROS has brought together industrial and academic expertise in an impact-oriented collaboration model, integrating manufacturing experience and methodological rigor in research.

Gruppo Ceramiche Gresmalt

A ceramics company with over fifty years of experience in the production of ceramic tiles for floors and walls.

It has made its facilities, production lines, and technological expertise available for the industrial validation of the innovations developed. Direct experience in ceramic processes has made it possible to test solutions in real operating conditions, verifying their compatibility with the constraints and requirements of industrial production.

University of Modena and Reggio Emilia

Contributed methodological expertise in life cycle assessment (LCA) and environmental impact assessment. The collaboration made it possible to quantify the environmental benefits of the new operating system, comparing alternative production scenarios and developing calculation tools for continuous monitoring of sustainability performance.

THE IMPACT

Rethinking ceramics between efficiency and sustainability

KAIROS has demonstrated that the transition to more efficient and sustainable supply chain management is not only possible, but economically advantageous and technically feasible with the skills and technologies available today.

The hybrid push/pull operating model developed offers a concrete response to the challenges facing the sector: it reduces inventories without compromising service levels, improves energy efficiency, generates information for more informed decisions, and lays the foundations for transparent communication of the environmental value of products.

The results of the project are not confined to the partner involved. The methodological tools, technological platforms, and knowledge generated are designed to be shared and adapted, contributing to the transformation of the entire Italian ceramic supply chain and offering a replicable model for other companies in the sector.

In a context where sustainability is increasingly a market requirement and operational efficiency a condition for competitive survival, KAIROS charts a viable path for combining manufacturing excellence, environmental responsibility, and economic results. It is a concrete contribution to the construction of a ceramic industry capable of generating lasting value for businesses, communities, and the environment.

Page updated

Google Sites

Report abuse