![Pearl necklace](https://ak-online.de//wp-content/uploads/2016/10/jewellery-1639035_1920_CbyWerbeFabrik@pixabay-300x225.jpg)
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.
OUR TIP:
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.