In a nutshell: Pearl necklace concept

Pearl necklace
© by WerbeFabrik / pixabay

The bead chain concept is a form of production planning in which the order sequence is determined (“frozen”) before the start of production and maintained throughout production. The bead chain principle is typically used on assembly lines in the automotive industry. However, it is generally suitable for line production or for products with few production stages. A key advantage of the pearl necklace concept is the

better adherence to production deadlines. However, this advantage only comes into play in very stable production processes without disruptions. Another advantage is the simpler planning of material requirements, whereby the supply material can (but does not have to) be delivered just in sequence. A third major advantage is the ability to compensate for fluctuations in demand.

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The bead chain principle is generally regarded as a process for customer order production. However, it can also help to reduce complexity and inventories above the logistical decoupling point in customer order-neutral production.

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Prof. Dr. Andreas Kemmner
Prof Dr Kemmner is Co-CEO of the Abels & Kemmner Group and has carried out well over 200 national and international projects in 30 years of consulting work in supply chain management and restructuring and was the only publicly appointed expert for the profitability assessment of industrial companies in Germany for over 10 years. In 2012, he was appointed Honorary Professor of Logistics and Supply Chain Management by the WHZ. The results of his projects have already received several awards.
Picture of Prof. Dr. Andreas Kemmner

Prof. Dr. Andreas Kemmner

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