Advanced Planning in Supply Chains - Illustrating the Concepts Using an SAP APO Case Study. 6 Production Planning and Detailed Scheduling

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1 Advanced Planning in Supply Chains - Illustrating the Concepts Using an SAP APO Case Study 6 Production Planning and Detailed Scheduling

2 Introduction Planning Tasks and Data Flows in the Frutado Case Figure.14 Advanced Planning in Supply Chains 2

3 6..1 Planning Tasks Input & Output for PP/DS Detailed Forecast End of Week Position Overtime Capacity Sourcing Decisions Production Planning/ Detailed Scheduling Production Schedule Production Orders Product Machine/ Line Date & Time Quantity A A A B A A A Advanced Planning in Supply Chains

4 Contents 6 Production Planning and Detailed Scheduling (PP/DS) 6.2 Detailed Scheduling Solution Algorithms Overview An Example 6.2. Solution by a Priority Rule Solution by a Genetic Algorithm 6. Planning Tasks and Data of the Frutado Company 6..1 Planning Tasks 6..2 Data 6.4 Modeling the Frutado Planning Tasks Basic Frutado Model Extensions Advanced Planning in Supply Chains 4

5 6..1 Planning Tasks PP/DS Figure 1.1: SC with distribution centers (DC), plants, and filling lines (FL) Advanced Planning in Supply Chains 5

6 6..1 Planning Tasks Frutado s Production Process Bottleneck stage Filling Line 5 Filling Line 6 Figure 6.9 Advanced Planning in Supply Chains 6

7 6..1 Planning Tasks Planning concept: Plants can be scheduled independently from each other (except for plant, even filling lines can be scheduled independently from each other) Planning relevant resources: filling lines Planning horizon: 4 weeks Objectives: Minimization of setup time Minimization of Mode Costs (Production Cost) Minimization of due date violations Relevant planning constraints: Capacity Working/non-working times Shelf-life Order validity Setup characteristics Order due dates (soft) Advanced Planning in Supply Chains 7

8 Contents 6 Production Planning and Detailed Scheduling (PP/DS) 6.2 Detailed Scheduling Solution Algorithms Overview An Example 6.2. Solution by a Priority Rule Solution by a Genetic Algorithm 6. Planning Tasks and Data of the Frutado Company 6..1 Planning Tasks 6..2 Data 6.4 Modeling the Frutado Planning Tasks Basic Frutado Model Extensions Advanced Planning in Supply Chains 8

9 6..2 Data Master Data: Does not change frequently Related to filling lines, products and production process Transactional Data: Demand forecast Master Planning result Safety stock requirements Configuration Data: Planning horizon, frozen zone Configuration of optimization engine Advanced Planning in Supply Chains 9

10 Contents 6 Production Planning and Detailed Scheduling (PP/DS) 6.2 Detailed Scheduling Solution Algorithms Overview An Example 6.2. Solution by a Priority Rule Solution by a Genetic Algorithm 6. Planning Tasks and Data of the Frutado Company 6..1 Planning Tasks 6..2 Data 6.4 Modeling the Frutado Planning Tasks Basic Frutado Model Extensions Advanced Planning in Supply Chains 10

11 6.4.1 Basic Frutado Model Planning objectives: Minimization of setup time Minimization of due date violations Selection of filling line weighing Exact continuous timing Consideration of overtime (Saturday shifts) Advanced Planning in Supply Chains 11

12 Contents 6 Production Planning and Detailed Scheduling (PP/DS) 6.5 Implementation and Results 6.6 PP/DS Learning Units Overview Basic Stream 6.6. In-Depth Stream Advanced Planning in Supply Chains 12

13 6.5 Implementation and Results SNP PP/DS Integration Unpegged demand (eg. to built up stock) is due at the end of the planning horizon Figure 6.10 Advanced Planning in Supply Chains 1

14 6.5 Implementation and Results Planning logic: Create safety stock requirements for PP/DS planning Replace weekly DP forecast by daily DP forecast Convert weekly SNP stock transport orders into weekly PP/DS transport orders Fix pegging relationships between weekly PP/DS transport orders and daily DP forecast Split PP/DS transport orders according to pegging relationship Create PP/DS production orders Optimize PP/DS production orders Advanced Planning in Supply Chains 14

15 6.6.1 Overview PP/DS Planning Cycle Figure 6.11 Advanced Planning in Supply Chains 15

16 6 Production Planning and Detailed Scheduling - Bibliography Baumann, P.; Trautmann, N. (2010) An MILP approach to short-term scheduling of an industrial make-and-pack production facility with batch splitting and quality release times, in: Industrial Engineering and Engineering Management (IEEM), 2010 IEEE International Conference on, Boysen, N.; Fliedner, M.; Scholl, A. (2009) Production planning of mixedmodel assembly lines: overview and extensions, Production Planning & Control, vol. 20, Dickersbach, J. (2009) Supply Chain Management with APO, Springer, Heidelberg Drexl, A. (1990) Fließbandaustaktung, Maschinenbelegung und Kapazitätsplanung in Netzwerken, ein integrierender Ansatz, Zeitschrift für Betriebswirtschaft, no. 60, 5 70 Advanced Planning in Supply Chains 16

17 6 Production Planning and Detailed Scheduling - Bibliography Drexl, A.; Fleischmann, B.; Günther, H.-O.; Stadtler, H.; Tempelmeier, H. (1994) Konzeptionelle Grundlagen kapazitätsorientierter PPS- Systeme, Zeitschrift für betriebswirtschaftliche Forschung, vol. 46, Hartmann, S.; Kolisch, R. (2000) Experimental evaluation of state-ofthe-art heuristics for the resource-constrained project problem., European Journal of Operational Research, vol. 127, no. 2, Holland, J. H. (1975) Adaptation in natural and artificial intelligence, University of Michigan Press, Ann Arbor, Michigan Klein, R. (2000) Scheduling of resource-constrained projects, Operations research/computer science interfaces series, vol. ORCS 10, Kluwer Acad. Publ., Boston Klein, R. (2008) Genetic algorithms, in: H. Stadtler; C. Kilger (Eds.) Supply Chain Management and Advanced Planning, chap. 0, Springer, Berlin et al., 4th ed., Advanced Planning in Supply Chains 17

18 6 Production Planning and Detailed Scheduling - Bibliography Levner, E.; Kats, V.; de Pablo, D. A. L.; Cheng, T. (2010) Complexity of cyclic scheduling problems: A state-of-the-art survey, Computers & Industrial Engineering, vol. 59, no. 2, Mayr, M. (1996) Hierarchische Produktionsplanung mit zyklischen Auflagemustern: Univ., Diss. Augsburg, 1996., Theorie und Forschung Wirtschaftswissenschaften, vol. 441;41, Roderer, Regensburg Meyr, H. (1999) Simultane Losgrössen- und Reihenfolgeplanung für kontinuierliche Produktionslinien: Modelle und Methoden im Rahmen des Supply Chain Management; Produktion und Logistik, Deutscher Universitäts-Verlag GmbH Neumann, K.; Schwindt, C.; Trautmann, N. (2002) Advanced production scheduling for batch plants in process industries, OR Spectrum, vol. 24, no., Pritsker, A. A. B.; Waiters, L. J.; Wolfe, P. M. (1969) Multiproject scheduling with limited resources: A zero-one programming approach, Management Science, vol. 16, no. 1, Advanced Planning in Supply Chains 18

19 6 Production Planning and Detailed Scheduling - Bibliography Reeves, C. R.; Rowe, J. E. (200) Genetic algorithms: Principles and perspectives: A guide to GA, Kluwer Academic, Boston Sahling, F. (2010) Mehrstufige Losgrößenplanung bei Kapazitätsrestriktionen, Gabler Research, Gabler Verlag / GWV Fachverlage GmbH Wiesbaden, Wiesbaden Scheckenbach, J. B. (2009) Collaborative Planning in Detailed Scheduling, Ph.D. thesis, Universität Hamburg, Von-Melle-Park, Hamburg Scholl, A. (1999) Balancing and sequencing of assembly lines: With 75 tables: Techn. Hochsch., Diss. Darmstadt, 1995., Contributions to management science, Physica-Verl., Heidelberg, 2nd ed. Silver, E. A.; Pyke, D. F.; Peterson, R. (1998) Inventory Management and Production Planning and Scheduling, Wiley, New York, rd ed. Stadtler, H. (2007) How important is it to get the lot size right?, Zeitschrift für Betriebswirtschaft, vol. 77, Advanced Planning in Supply Chains 19

20 6 Production Planning and Detailed Scheduling - Bibliography Stadtler, H. (2008) Purchasing and material requirements planning, in: H. Stadtler; C. Kilger (Eds.) Supply Chain Management and Advanced Planning, Springer, Berlin et al., 4th ed., Suerie, C. (2005) Time Continuity in Discrete Time Models: New Approaches for Production Planning in Process Industries, Springer, Berlin Voss, S.; Martello, S.; Osman, I. H.; Roucairol, C. (1999) Preface, in: S. Voss; S. Martello; I. H. Osman; C. Roucairol (Eds.) Meta-heuristics. Advances and Trends in Local Search Paradigms for optimization, Kluwer Academic, I X Advanced Planning in Supply Chains 20

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