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What is a Digital Planning Twin?

A Digital Planning Twin is a model that replicates a business's value chain, outlining its capabilities and constraints. This tool helps businesses devise optimal production strategies to maximize efficiency and align operational capacities with business objectives. It plays a crucial role in strategic decision-making for operational enhancements.

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By Building Management · · Aaron BergDigital Planning TwinManufacturing SolutionsRealtalks
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Key takeaways

01

Digital Planning Twin simulates a business's entire value chain.

02

It helps in optimizing production strategies for better profit margins.

03

Strategic planning aligns business capabilities with operational objectives.

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According to Aaron Berg, River Logic's VP of Strategy, a Digital Planning Twin is essentially a comprehensive model that encapsulates the entire value chain of a business. Within this model, intricate details about the capabilities and constraints of the business are defined, spanning from manufacturing options to operational capacities.

A Digital Planning Twin is essentially a comprehensive model that encapsulates the entire value chain of a business.

The core essence of this model lies in its ability to answer critical questions about optimal production strategies. For instance, it can suggest the most efficient way to manufacture products to maximize profits or minimize costs based on the provided data.

The ultimate goal is to craft a well-informed plan that aligns with the capabilities of the business while meeting predefined objectives.

Video TranscriptExpand ↓

Many times to explain in a bit more detail what we mean by digital planning twin, River Logic. So for us, digital Planning plan is a model of your entire value chain. I mean, we're talking about end end value chain. But really, what's going on inside that model is you have told this digital planning to end what your business is capable of. For example, if you're a manufacturer, you will tell the digital planning to when I manufacture these products at this plant. I manufacture these products at this point. But beyond that, you tell them what you can do So I could manufacture those products at either plant. If I did, here's how they would run. This will be their throughput and cost. Here's the labor that will be required, etcetera. Once you tell your digital planning twin, what your capabilities are, you can then ask a question. So you can say things like if I need to manufacture these kinds of products. Since I can do them in any which way, what would be the best way to do it? So the final piece of that digital planning plan is not just the capabilities and constraints on what you can do within your business, but some sort of goal that you can tell the digital planning twin to try to achieve. So here's an example. I build a digital planning twin that encompasses maybe a couple of manufacturing operations, raw material sourcing, inbound logistics, outbound logistics, distribution, and my market. I've told the digital planning to and what all my capabilities are. And I've even told that those capabilities at a highly detailed level, for example, I have a particular production line at this factory. The here are the raw materials that it's gonna consume, here are the different products it can make. Each product has its own throughput, It could have a labor cost associated with it. It could have a production cost associated with it. Any other constraints that I wanna put in there to tell the model what's possible. And then I say, okay. If I have a particular set of demand or a particular, market that I could potentially, go into, What would be the best way to do that with regard to, let's say, making the most money, profitability? Or what would be the best way to achieve a certain volume at the lowest cost. So you're asking the digital twin, you're using this digital planning twin. To not only build a plan, but build a plan within your capabilities that meets your, goals. And that's really in a nutshell what the digital planning script is.

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About the Expert

BM
Building Management

VP of Strategy at River Logic

Aaron Berg is the Vice President of Strategy at River Logic. He specializes in developing comprehensive digital planning solutions to optimize value chains. Aaron is focused on leveraging technology to enhance business operations and efficiencies.

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