Advanced Planning Systems

Transcription

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2 Advanced Planning Systems A compass guide Stephan Wouters Bram Bongaerts

3 Why a compass for Advanced Planning Systems? No APS deployed and not considered planning to project right now APS deployed.and unhappy happy ready for optimization 3

4 Why a compass for Advanced Planning Systems? 4

5 Why a compass for Advanced Planning Systems? 5

6 APS definition Advanced Planning & Scheduling (APS) involves the analysis and planning of manufacturing and logistics in the short, mid, and long terms APS describes any program that uses advanced mathematical algorithms or logic to perform optimization or simulation on finite capacity scheduling, sourcing, capital planning, resource planning, forecasting, demand management, and others 6 Source:

7 ERP is not a planning system 7

8 ERP system vs. APS system Planning approach Planning goal ERP Material requirements and capacity planned in sequence Materials planning with basic capacity check APS Material requirements and capacity planned simultaneously Feasible, optimized plan Scope Company Supply chain Functional focus Supported processes Wide: Purchasing, Manufacturing, HR, Distribution, Finance, Marketing Operational planning and operational execution Narrow: Planning processes Strategic, tactical and operational planning Optimization No Yes What-if simulation Limited High Planning speed Low High 8

9 APS Implementation Phases with different attention points 9

10 From idea to scope and process design 10

11 What is a Target Operating Model Target operating model (TOM) is a description of the desired state of the operating model of an organization. When working on the operating model, it is normal to define the "as is" model and the "to be" model. The Target Operating Model is the "to be" model. It is possible to produce a Target Operating Model for a business or a function within a business People Process TOM Technology 12

12 Change flow Tech nology Process Leader ship Vision & Strategy People Analysis Changes Projected Benefits Change Strategy Target Operating Model Business Case TOM Blueprints Performance Benchmarking Implementation Roadmap M Bus./Tech. Architecture Governance & Control Build M M Business Deployment Testing & Training Implementation Project M Hand Over Focus on: Translate visionary ideas into an Operating Model (Future State of Business) Transformation program to deploy vision into operating principles, processes, accountability and clear deliverables The framework provides change management practices on multiple dimensions to guide the transformation program 13

13 Stadtler as a tool to precisely define scope Integration between the different planning layers / processes Requirement can t be mapped to a clear function? Specify more explicitly 14

14 Positioning Stadtler within other approaches like SCOR or Data Model Source: supply chain council Source: Stadtler & Kilger, 2005 Linear, process level Functions in relation to each other 15

15 User Requirements 16

16 Specific Requirements: need instead of want Business Requirements Stakeholder Requirements Solution Requirements Functional Non-functional Transition Requirements Objectives and goals Stakeholder expectations Characteristics to meet business & stakeholder requirements Behaviour & information of the solution Qualities the system (performance, usability, ) Capabilities required to move from as-is to to-be Business Analysis Body of Knowledge (BABOK Guide) 17

17 Specific Requirements: need instead of want Requirement Type Business Requirements Stakeholder Requirements Solution Requirements Functional Non-functional Transition Requirements Requirement Scope Higher level statements of the goals, objectives, or needs of the enterprise Statements of the needs of a particular stakeholder or class of stakeholders. They describe the needs that a given stakeholder has and how that stakeholder will interact with a solution Characteristics of a solution that meet business requirements and stakeholder requirements Behaviour and information that the solution will manage Describe environmental conditions under which the solution must remain effective or qualities that the systems must have Describe capabilities that the solution must have in order to facilitate transition from the current state of the enterprise to a desired future state Business Analysis Body of Knowledge (BABOK Guide) 18

18 Everyone talks their own language Define Terms that seem common Planned order Inventory Watch out for Specific Terms Cubic hours Yield curve 19

19 Challenge yourself to make Specific Requirements when I create a plan it needs to take into account maximum capacity Take into account Create a plan Maximum capacity the system needs to extrapolate the forecast by product groups Extrapolate: how, when Product groups Disaggregate? 20

20 Key to integrated requirements: cycle thinking 21

21 10 Step Selection Process for Planning Tools 1. Make (high level) process design 2. Define functional requirements Create business case (benefits) Milestone: main activities of to-be process Create business case (costs) Milestone: required functionality must have and nice to have 3. Create short list/ Send out Request for Information (RFI) 4. Send out Request for Proposal (RFP) 5. RFP discussion meeting 6. Review suppliers Milestone: short list of potential suppliers Milestone: send out RFP Milestone: get to know supplier and review critical requirements Milestone: decide on suppliers to consider in next phase 7. Prepare scripts for demo sessions 8. Demo sessions with suppliers 9. Final selection 10. Negotiation Milestone: define demo script to make final selection Milestone: determine differentiators in req. between suppliers Milestone: 1 st preferred supplier 2 nd best supplier Milestone: agree on contract with supplier

22 Structured Approach & Considerations (APS) RFP Prep Issue RFP Initial response Invite vendors Demo Negotiation Close deal URS traceability matrix Second line of review of response Vendor quote assessment Different attendees focus on different aspects APS specific scenarios for demo Second line review of scoring Different attendees focus on different aspects Vendor team and resourcing Pricing structures (cloud versus premise)

23 Short listing Some overlooked shortlisting reasons Integration technology Technical and functional breadth of solution Some overemphasized reasons Gartner One vendor ERP vs APS mantra 24

24 Scenario: Planning co-products Situation Base material is produced in Asia This base material is used in Spain to produce: Item A Item B - being a co-product with low margin Purpose Show the effect of a sudden increase in the demand plan on a supply chain covering 2 sites located in different continents. Review how the tool is able to quickly show the time-phased impact on this increase Issue Next to forecast for product A of 90 MT, additional 450 MT needs to be delivered three months from now Item B can be sold to an outlet against lower than average margin Available capacity in site Spain is 100 MT per week Expected Demo outcome Show to consequence of the required consumption through the whole supply chain Review alert messages that are generated as a result of a capacity constraint 25

25 Key takeaways Short list based on existing tool knowledge, not only analyst lists Requirement based, organize second line of review Dig deeper on delivery technology (cloud, on premise, SaaS,..) 26

26 Design 27

27 APS ERP 28

28 Managing design tracks: best practices Master Data Design Core Integration Principles Functional Design Integration Design Overall Design Planned order, process / production order, sales, purchasing cycles Master data integration Cross systems integration 29

29 Integration starts with cycle thinking 30

30 Optimization? If Excel is the starting point. Scheduling Level of Detail Master Planning Level of Detail DSP Daily Schedule DSP Batch Schedule by Hour Network Requirements File Allocation File USP Daily Schedule Packing Schedule Not Connected First and second stage plan NPI Planning 31 31

31 Optimization? Let s start with visualization 32

32 Representing Capacities in Master Planning and Scheduling 33

33 Representing Capacities in Master Planning and Scheduling.and consequences for integration 34

34 Mapping of critical resources Scheduling relevant resource MPS relevant resource S&OP relevant (group of) resource(s) > Carefully map your production processes and determine critical resource to plan in scheduling, MPS and S&OP Capacity planning on storage tanks is difficult! Options: Model occupation time in a storage time, however often this cannot be modelled easily Agree on a maximum amount of different grades to plan in a certain time bucket Extend scheduling horizon 35

35 Design takeaways Translate requirements to tangible concepts like cycles, actions, interfaces Integrally consider functional, master data, integration and performance aspects Master data design and location standardization can be sacrificed, if specific business process requirements are key and integration does not suffer If supply aspects are in scope: expect (re-)consideration of master data design 36

36 Go Live Readiness 37

37 Go Live 38

38 Working for the purpose of documenting..or the other way around? Testing Testing: cover requirements But: prevent too narrow and functional focus Formal Documentation as a necessity SOP, work instructions Master data management Functional and technical design Reference Documentation as enabler 39 Quick reference cards Process vision Championed behaviours Vision Booklet

39 Cheat sheets 40

40 Go Live Business Process Organize for Quick Analytics Forecast results, # orders interfaced, total inventories Try and find side effects (orders missing, status changing, etc) Key User Key Engineer 41

41 APS Metro Map 42

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43 Stephan Wouters stephan.wouters@eyeon.nl Bram Bongaerts bram.bongaerts@eyeon.nl EyeOn bv Croylaan PC Aarle-Rixtel The Netherlands T mail@eyeon.nl eyeon.nl EyeOn Amsterdam Herengracht BT Amsterdam The Netherlands T mail@eyeon.nl eyeon.nl EyeOn Belgium BVBA De Keyserlei B19 B-2018 Antwerp Belgium T +32 (0) mail@eyeon.eu eyeon.eu EyeOn Solutions Croylaan PC Aarle-Rixtel The Netherlands T mail@eyeon.nl solutions.eyeon.nl EyeOn Forecast Services Croylaan PC Aarle-Rixtel The Netherlands T mail@forcastservices.nl forecastservices.com EyeOn Switzerland Aeschenvorstadt 71 CH-4051 Basel Switzerland T mail@eyeon.eu eyeon.eu

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