This document discusses Advanced Planning & Scheduling (APS) systems. It begins with an introduction to supply chain planning and the problems traditional systems encounter with demand fluctuations and inventory management. It then outlines the development of earlier SCM IT systems like MRP, MRPII, and ERP. APS systems aim to resolve issues with these prior systems by improving integration across the entire supply chain and enabling optimization of production planning. The document provides examples of APS vendors and modules. It also focuses on how APS benefits the pharmaceutical industry through collaborative planning, improved capacity utilization, and data consolidation across manufacturing sites. Overall, APS allows for more flexible and responsive planning in complex supply chain environments.

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
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3. Agenda
APS
1. Introduction
2. Advanced Planning & Scheduling Systems (APS)
3. APS in the Pharmaceutical Industry
4. Conclusion
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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
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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
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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
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7. Agenda
APS
1. Introduction
2. Advanced Planning & Scheduling Systems (APS)
3. APS in the Pharmaceutical Industry
4. Conclusion
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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”
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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
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10. Structure of APS/ SCP-Matrix
APS
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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
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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
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13. Agenda
APS
1. Introduction
2. Advanced Planning & Scheduling Systems (APS)
3. APS in the Pharmaceutical Industry
4. Conclusion
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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
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15. Pharmaceutical Supply Chain
APS
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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
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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
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18. Agenda
APS
1. Introduction
2. Advanced Planning & Scheduling Systems (APS)
3. APS in the Pharmaceutical Industry
4. Conclusion
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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
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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
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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
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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
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