Advanced Planning & Scheduling

Advanced Planning & Scheduling

Supply Chain

Management

07.12.2011

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Agenda

1. Introduction

2. Advanced Planning & Scheduling Systems (APS)

3. APS in the Pharmaceutical Industry

4. Conclusion

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Agenda

1. Introduction

2. Advanced Planning & Scheduling Systems (APS)

3. APS in the Pharmaceutical Industry

4. Conclusion

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Planning & IT-Systems

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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Development of SCM IT-Systems

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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Development of APS

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

Weaknesses of the old systems:

Aims of APS:

Resolve problems with ERP-Systems Improve MRP processes Apply more advanced technologies Better integrated Supply Chain Management

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Agenda

1. Introduction

2. Advanced Planning & Scheduling Systems (APS)

3. APS in the Pharmaceutical Industry

4. Conclusion

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What is 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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How does APS work?

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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Structure of APS/ SCP-Matrix

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Comparison to former planning systems

Traditional PPS-Systems (APS)

Planning based on:

Strong based on fixed given primary demand for finished products exclusive Top-Down coordination

Implicating resource availability and production capacity of SC stages

Decision interval

Operative decisionsRather mid- and long-therm decisions

SCM-Software

Supply Chain Execution (SCE) systems

Supply Chain Planning (SCP) systems

Operational range

internal whole supply chain

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APS-Systems on the market

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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Agenda

1. Introduction

2. Advanced Planning & Scheduling Systems (APS)

3. APS in the Pharmaceutical Industry

4. Conclusion

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APS-Systems: Pharmaceutical Industry

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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Pharmaceutical Supply Chain

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APS-Systems: Pharmaceutical Industry

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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APS-Systems: Pharmaceutical Industry

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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Agenda

1. Introduction

2. Advanced Planning & Scheduling Systems (APS)

3. APS in the Pharmaceutical Industry

4. Conclusion

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Benefits of 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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Disadvantages of 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

Traditional Systems APS-Systems

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Conclusion

• Unit cost oriented

• Capacity oriented

• Inflexible work time (no short-

term capacity increase)

• Uniliteral qualified employees

• Functional work style

• No fluent material flow

• Total cost oriented

• Work load & market oriented

• Flexible work time

• Polyvalent employees

• Cross-functional &

process oriented

• Continious material flow

Thank you for your attention!

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Group Discussion

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