Economic benefits of implementing a continuously up-to-date factory planning basis

Abstract This paper proposes a method for evaluating the economic benefits of implementing a continuously updated factory planning basis in shorter-cycled factory planning. The method integrates holistic digital factory models with governance and workflows for geometric and alphanumeric updates within a digital factory twin and a common data environment. It assesses enhanced planning efficiency, accelerated start of production through improved reaction time, and operational benefits. It also accounts for transfer, updating, and maintenance costs. Determining return on investment and net present value serves as a fundamental guide for decision making. Parameterization integrates literature-based inputs and empirically collected data from a business simulation. Validation in a battery cell manufacturing facility, supported by scenario analysis and Monte Carlo simulations, has been shown to yield economic benefits across various scenarios. The benefits of a continuously up-to-date FPB increase with the factory’s adaptation frequency, while the associated costs increase with the FPB update frequency. Managerial implications suggest keeping the update pace as low as operationally feasible and implementing strict cost governance. Limitations in the validation design and model assumptions necessitate longitudinal industrial studies and cross-sector examination to confirm external validity and refine decision thresholds.