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Applying advanced planning systems for supply chain planning: three case studies

Purpose – The purpose of this paper is to explore how standardized advanced planning systems (APS) can be used for solving planning problems at tactical and strategic levels, and to identify the perceived effects of using APS. Design/methodology/approach – Multiple case studies involving three cases using APS software for strategic network planning and master production scheduling are conducted. Comparative analysis explores how the planning situation, the model design and use of the APS impact the perceived planning effects. Findings – Findings show how APS support cost-optimized strategic network design in one case and how efficiency, capacity utilization and delivery service problems were decreased in two cases using APS in global master planning processes. The cases show how APS supports cross-functional integration and supply chain commitment to a common plan. Research directions are suggested about the feasibility of APS in situations with various planning complexities, how design of the optimization model creates complexity and affects the planning process, data gathering requirements when using APS, the role and design of the planning organization, and how to achieve positive planning effects, such as finding global optimum and single plan commitment. Research limitations/implications – The approach is descriptive and explorative. Only three cases are studied. Practical implications – The findings present experiences of APS usage and identify issues to consider when using APS and potential benefits to gain from usage. Originality/value – The practical use of APS is low and the knowledge about how it impacts supply chain planning and performance is unexplored. The findings of this paper fill some of these gaps.

The potential benefits of advanced planning and scheduling systems in sales and operations planning

– The purpose of this paper is to explore what potential benefits may be achieved by using advanced planning and scheduling (APS) systems in the sales and operations planning (SO literature review, Delphi study, and a case study at a company in the chemical industry which uses APS system support in the SO benefits concerning decision support, planning efficiency and learning effects. The most common type was decision support benefits according to APS users and APS experts. The results from the case company showed that the benefits perceived in the different S&OP activities differed. In the activities concerning the preparation and generation of delivery plans, the perceived benefits mainly concerned learning effects. In the activities concerning the generation of a production plan, the benefits were foremost found in planning efficiency. In the S&OP meeting decision support benefits were highest valued. The reason for the different results can be explained by the aim of the activity, how APS was used in the activity, the user characteristics and the design of the model and access and quality of planning data., – The focus of this paper is on potential benefits of APS systems in the S&OP process only, not the costs. It has established a typology of potential benefits. No validation in form of statistical analysis has been done. The empirical analysis is mainly based on findings from a single case study., – The findings about the types of APS potential will assist companies in understanding the benefits they can expect from its use in the S&OP process. The case study analysis gives further insight into how APS can be employed and what benefits different APS user categories can expect when it is used in an appropriate way., – The knowledge about which benefits that can be achieved when using APS in the S&OP process is quite unexplored. This paper fills some of these gaps.

Problems in the onward and upward phase of APS system implementation: Why do they occur?

Studies conducted on advanced planning and scheduling (APS) systems have found problems in the marginal or negative returns from APS systems when they are implemented in manufacturing planning and control processes. The purpose of this study is to examine what problems exist in the onward and upward phase of the APS system implementation and how the individual, technical and organizational (ITO) dimensions in the implementation phases influence the problems in the onward and upward phase. Three different manufacturing companies using a supply chain planning module to support their tactical manufacturing planning processes were chosen and their APS system implementation phases were studied. Interviews with the project members and the end-users, and on-site visits, were conducted. Internal company data and presentations were collected and analyzed according to four implementation phases and the ITO dimensions. Three types of problems were identified in the onward and upward phase: process-related problems concerning difficulties to move forward; dependency on a consultancy firm; and too much time spent in the system. System-related problems include the usage of parallel systems and inadequate usage of the appropriate potential of the APS system. Plan-related problems regard an incorrect production plan. Different relationships between the ITO dimensions in the implementation process and the problem type were proposed. The relationships identified in this paper are of important knowledge for companies who are implementing, or are in the process of implementing, APS systems. There has been little written about the implementation issues of APS systems. The practical use of APS systems in the tactical planning is also relatively low. It is not known what problems to expect and how the ITO dimensions influence the problems during implementation. The findings this paper discusses fill some of these gaps.