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Advanced Planning & Scheduling

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Advanced Planning & Scheduling

  1. 1. Advanced Planning & SchedulingSupply ChainManagement07.12.2011
  2. 2. Agenda APS 1. Introduction 2. Advanced Planning & Scheduling Systems (APS) 3. APS in the Pharmaceutical Industry 4. Conclusion 2
  3. 3. Agenda APS 1. Introduction 2. Advanced Planning & Scheduling Systems (APS) 3. APS in the Pharmaceutical Industry 4. Conclusion 3
  4. 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. 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. 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. 7. Agenda APS 1. Introduction 2. Advanced Planning & Scheduling Systems (APS) 3. APS in the Pharmaceutical Industry 4. Conclusion 7
  8. 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 environmentDefinition: „APS is a process manufacturers use to effectively meetcustomer demand. The process involves producing customerdemand forecasts and using them to set optimal material andproduction levels” 8
  9. 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. 10. Structure of APS/ SCP-Matrix APS 10
  11. 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. 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. 13. Agenda APS 1. Introduction 2. Advanced Planning & Scheduling Systems (APS) 3. APS in the Pharmaceutical Industry 4. Conclusion 13
  14. 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. 15. Pharmaceutical Supply Chain APS 15
  16. 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. 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. 18. Agenda APS 1. Introduction 2. Advanced Planning & Scheduling Systems (APS) 3. APS in the Pharmaceutical Industry 4. Conclusion 18
  19. 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. 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. 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. 22. Thank you for your attention!
  23. 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

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