Advanced Planning & Scheduling
- 1. Advanced Planning & Scheduling Supply Chain Management 07.12.2011
- 2. Agenda APS 1. Introduction 2. Advanced Planning & Scheduling Systems (APS) 3. APS in the Pharmaceutical Industry 4. Conclusion 2
- 3. Agenda APS 1. Introduction 2. Advanced Planning & Scheduling Systems (APS) 3. APS in the Pharmaceutical Industry 4. Conclusion 3
- 4. Planning & IT-Systems APS Supply Chain planning directs the demand for quantities and timing for every stage of the supply chain Aim is to achieve the target service level with minimal costs Planning consists of data administration and calculation Usually high usage of IT-Systems Problems of Planning: Problem 1: Demand fluctuates Problem 2: Inventory Management Problem 3: Actuality of data 4
- 5. Development of SCM IT-Systems APS Material Requirements Planning (MRP) Developed in the 1970s as inventory control and production planning systems Manufacturing Resources Planning (MRPII) Is used to combine the material planning and the shop floor with the business functions such as accounting and purchasing Enterprise Resource Planning (ERP) Developed in the 1990s Combined even more functions Should provide the same database for the whole company 5
- 6. Development of APS APS Weaknesses of the old systems: Can’t consider capacities of extern partners and suppliers Limited opportunities to create, optimize, analyze different scenarios ERP-Systems offer only low support in decision-making of the future demand Aims of APS: Resolve problems with ERP-Systems Improve MRP processes Apply more advanced technologies Better integrated Supply Chain Management 6
- 7. Agenda APS 1. Introduction 2. Advanced Planning & Scheduling Systems (APS) 3. APS in the Pharmaceutical Industry 4. Conclusion 7
- 8. What is APS APS An upgrade for MRP, MRP II and PPS-Systems Planning including the information of all members in a SC mitigation of Bullwhip-effect, lower inventories, enabling CPFR Best applicable for: Make-To-Order manufacturing Production with competing products Products with high complexity Manufacturing with frequent schedule changes by steady changing market environment Definition: „APS is a process manufacturers use to effectively meet customer demand. The process involves producing customer demand forecasts and using them to set optimal material and production levels” 8
- 9. How does APS work? APS Suits as an tool-kit to the current ERP-Systems or as complete SW package ERP+APS available APS does not replace but complements the ERP-Systems! Creates the optimal production plans under restriction of resource availability and production capacity constraints of each SC stage Analyses and estimates different scenarios to identify and to prevent possible bottlenecks on time Linear programming with advanced mathematical formulas (f.i. branch-and-cut) Comprises several modules (functional groups) according to the SCP-Matrix 9
- 10. Structure of APS/ SCP-Matrix APS 10
- 11. Comparison to former planning systems APS Traditional PPS-Systems (APS) Strong based on fixed given Implicating resource Planning primary demand for finished availability and based on: products exclusive Top- production capacity Down coordination of SC stages Decision Rather mid- and Operative decisions interval long-therm decisions Supply Chain SCM- Supply Chain Execution (SCE) Planning (SCP) Software systems systems Operational internal whole supply chain range 11
- 12. APS-Systems on the market APS Selected vendors of APS-Systems with full range of APS-modules: SAP advanced planner & optimizer Wassermann DynaSys MAPICS APS for SyteLine Agilsys APS 12
- 13. Agenda APS 1. Introduction 2. Advanced Planning & Scheduling Systems (APS) 3. APS in the Pharmaceutical Industry 4. Conclusion 13
- 14. APS-Systems: Pharmaceutical Industry APS Overview: Three main levels of the supply chain: Suppliers: chemical plants, production ingredients Producers: manufacturing plants Customers: marketing affiliates, wholesalers, e.g Distribution Centers located closely to the production sites Direct shipment of the finished goods from the Distribution Centers to the customers Relative insignificance of the distribution system 14
- 15. Pharmaceutical Supply Chain APS 15
- 16. APS-Systems: Pharmaceutical Industry APS Initial Situation: Local organisations instead of integrated company Separate local ERP-Systems Low data integration / information sharing No central supply chain network planning Massive manual production planning Sub-optimal capacity utilisation No central statistical forecasting system Absence of common Key Performance Indicators No clear vision of the complete demand and supply 16
- 17. APS-Systems: Pharmaceutical Industry APS Introduction of APS Collaborative capacity scheduling and master planning improved resource utilisation, reduced inventories, better investment planning Collaborative demand planning and usage of common data proactive demand stabilisation Consolidation of IT-Systems and standardization reduced IT costs Faster information flow within the supply chain improved decision-making Reduced administrative workload Integrated company 17
- 18. Agenda APS 1. Introduction 2. Advanced Planning & Scheduling Systems (APS) 3. APS in the Pharmaceutical Industry 4. Conclusion 18
- 19. Benefits of APS APS Fast reaction to market changes (almost in real-time) Simultaneous planning activities can be processed concurrently Improved throughput and delivery times Optimum inventory level Improved customer service level Cost reduction 19
- 20. Disadvantages of APS APS It doesn t replace other systems (just additional) Implicates a higher dependency in the supply chain Transparency of the cost calculation increases Supply Chain can t be improved just with implementation Employees must be well-trained to ensure data quality and fluent process of APS 20
- 21. Conclusion APS Traditional Systems APS-Systems • Unit cost oriented • Total cost oriented • Capacity oriented • Work load & market oriented • Inflexible work time (no short- • Flexible work time term capacity increase) • Polyvalent employees • Uniliteral qualified employees • Cross-functional & • Functional work style process oriented • No fluent material flow • Continious material flow 21
- 22. Thank you for your attention!
- 23. Group Discussion APS Automotive Oil industry Make-To-Order manufacturing Production with competing products Products with high complexity Manufacturing with frequent schedule changes by steady changing market enviroment 23