Use of Advanced Planning and Scheduling (APS) systems to support manufacturing planning and ...

111 Pages·2012·1.19 MB·English

by  Linea Ivert

THESIS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY

Use of Advanced Planning and Scheduling
(APS) systems to support manufacturing
planning and control processes

LINEA KJELLSDOTTER IVERT

Department of Technology Management and Economics
Division of Logistics and Transportation
CHALMERS UNIVERSITY OF TECHNOLOGY
Göteborg, Sweden, 2012
Use of Advanced Planning and Scheduling (APS) systems to support
manufacturing planning and control processes
LINEA KJELLSDOTTER IVERT
ISBN 978-91-7385-729-1

© Linea Kjellsdotter Ivert

Doktorsavhandlingar vid Chalmers tekniska högskola
Ny serie nr 3410
ISSN 0346-718X

Division of Logistics and Transportation
Department of Technology Management and Economics
Chalmers University of Technology
SE-412 96 Göteborg
Sweden

Printed by Chalmers Reproservice
Göteborg, 2012
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Abstract
An Advanced Planning and Scheduling (APS) system is defined as any
computer program that uses advanced mathematical algorithms or logic to
perform optimization and/or simulation on finite capacity scheduling, sourcing,
capacity planning, resource planning, forecasting, demand planning and others.
Relative the massive interest, both from academia and industry in the subject
area of manufacturing planning and control, there has not been much written
about the use of APS systems in practice. For academia, this means a lost
opportunity of understanding benefits and problems of implementing and using
advanced planning and scheduling approaches. Seeing the many algorithms
developed by academia during the years that never have been put into practice
this should be valuable knowledge. For practitioners, the many failed
implementations should make it important to understand what could be expected
when implementing an APS system and what is required to effectively use it.
This thesis studies how APS systems can support manufacturing planning and
control (MPC) processes in adding value to the company by focusing on the
consequences of using APS system and the variables influencing the
consequences of using APS systems. It is different from previous studies
concerned with APS systems as special focus is given to the use, i.e. when the
APS system is operated in the MPC process instead of the implementation, the
phase between the software selection and going live. Four case studies and one
survey have been conducted to aid in fulfilling the overall aim.

The thesis found that the use of an APS system can support MPC processes by
improving the decision support, simplifying planning activities, and reducing
planning time and by generating feasible plans and schedules that are possible to
follow. Still, the use of an APS system might make the planning activities more
difficult to conduct and result in plans and schedules that are difficult to retrace
or which are incorrect. It was identified that not only the use or non use of APS
functionalities, but also the way the functionalities are used and the extent to
which the functionalities are used influences the MPC process. The planning
environment complexity, identified as the number of/and dependencies between
entities and uncertainties in demand, supply and the production system of a
manufacturing company, was found to influence how the APS system ‘should’
be used. Variables connected to the implementation of the APS system and to
the MPC process, on the other hand, influence how the APS system is actually
used. This thesis should be of interest to the subject area manufacturing planning
and control. Researchers may benefit from definitions and conceptualisations of
a number of constructs. For managerial usage, a number of benefits from using
APS system in different MPC processes have been identified. Those may be
used as a tool to assess whether the potential benefits of APS systems support
the overall business objectives. Alternatively, it can be employed as an
evaluation mechanism to access whether anticipated benefits were realized. A
number of variables of importance in order to use an APS system in such a way
so that benefits could be achieved have been identified. Those should be
important when considering an APS system implementation. The thesis also
contributes with a number of case descriptions in how APS systems are used in
different companies and the users perceptions of using APS systems. This could
be interesting knowledge for consultants and system vendors.

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List of publication

This thesis is based on the research presented in six appended papers. Table 1
describes the author’s different roles in the papers.

Paper I
Jonsson, P., Kjellsdotter, L., and Rudberg, M. (2007). “Applying advanced
planning systems for supply chain planning: Three case studies”. International
Journal of Physical Distribution and Logistics Management, Vol. 37. No. 10,
pp. 816-834.

Paper II
Ivert Kjellsdotter, L. and Jonsson, P. (2010). “The potential benefits of APS
systems in the sales and operations planning process”. Industrial Management &
Data Systems, Vol. 110. No. 5, pp. 659-681.

Paper III
Ivert Kjellsdotter, L. and Jonsson, P. (2011). “When to use APS systems in sales
and operations planning processes”.

(Submitted to International Journal of Operations and Production
Management)

Paper IV
Ivert Kjellsdotter, L. (2012). “Shop floor characteristics influencing the use of
advanced planning and scheduling systems”. Production Planning & Control,
Vol. 23, No. 6, pp. 452-467.

Paper V
Ivert Kjellsdotter, L. and Jonsson, P. (2011).”Problems in the onward and
upward phase of APS system implementation: Why do they occur?”.
International Journal of Physical Distribution and Logistics Management, Vol.
41, No. 4, pp. 343-363.

Paper VI
Ivert Kjellsdotter, L. and Jonsson, P. (2012). “Linking planning methods for
capacity balancing to master production scheduling performance”.

(Submitted to International Journal of Production Economics)

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Table 1: Authors’ responsibility for the appended papers
Paper First author Second author Responsibilities
I Patrik Jonsson Linea The first authors stood for the largest part of the
and Martin Kjellsdotter data collection, analysis and writing. The
Rudberg Ivert second author participated in data collection at
one case company and participated in the paper
planning and some of the writing
II Linea Patrik Jonsson The paper’s planning and analysis were equally
Kjellsdotter shared among the authors while the data
Ivert collection and writing have been the first
author´s responsibility
III Linea Patrik Jonsson The paper´s planning and analysis were equally
Kjellsdotter shared among the authors. The first author took
Ivert the largest part in the data collection and
writing
IV Linea Sole author
Kjellsdotter
Ivert
V Linea Patrik Jonsson The first author stood for the largest part in the
Kjellsdotter paper planning, data collection and writing.
Ivert The second author participated at one case
company and some of the writing. The analysis
was equally shared among the authors.
VI Linea Patrik Jonsson The first author stood for the largest part in the
Kjellsdotter paper planning, data collection and writing.
Ivert The second author stood for the data analysis.

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Acknowledgement
A thesis does not write itself. First, you need a subject to write about. In my
case, the topic area “APS systems” was indicated from the start – but I needed
substantial help on the learning curve from the initial string of three letters, to a
better knowledge of the subject. Second, a thesis must be of interest to people,
preferably the people active within its subject area. To find an interesting angle,
I needed help to get access to interesting case studies, and support as I learned
how to collect the relevant data. Third, in order to sit down and write you need
inspiration, motivation and discipline – none of which are automatic. A wise
man once told me that a well-balanced person needs three legs: his or her
personal life, family, and work. During my time as a PhD student one of those
supports suffered a serious blow, and I have needed a great deal of help and
encouragement to be able to walk again.

I would like to start by expressing my heartfelt gratitude to my supervisor Patrik
Jonsson: Thank you for encouraging and supporting me throughout my research
process. Your excellent knowledge in the field of manufacturing planning and
control, and your exceptional research skills, have helped me to develop deeper
understanding and insight in my own specific area. Your sensible advice and
enormous patience have made it possible to turn difficulties into challenges.
Most of all, thank you for making me feel prioritized, and for believing in me!

Secondly, I would like to express my gratitude to my assistant supervisor, Stig-
Arne Mattsson: Your thorough knowledge and experience of information
systems in manufacturing planning and control has been invaluable to my own
understanding of the subject. All of your excellent ideas, and your flair for
research, have enhanced my work and made my task very inspiring. I am
grateful for our discussions, and for your special ability to see the speck of gold
in everything!

I am grateful to my colleagues Martin Rudberg and Ola Cederborg, on the
research project “Integrating the supply chain through advanced planning and
scheduling systems” (ISCAPS). Together we have clarified many little-
understood aspects of our research area. I am thankful for our valuable
discussions on research in general, and research into advanced planning and
scheduling systems in particular.

I would like to thank all my colleagues in the Logistics, Transportation and
Industrial Marketing departments at Chalmers University of Technology. Thank
you for sharing the fun times and the difficult moments, the triumphs and
challenges both big and small. You have all contributed to the creation of a
stimulating intellectual environment.

A special thanks to the Swedish Governmental Agency for Innovation Systems
(VINNOVA) for financing this work. I am also thankful to the staff at Optilon,
Lawson, and Bearingpoint (the companies involved in the ISCAPS project), and
the companies where I carried out my case studies. Without your support, time,
and enthusiasm this thesis would not exist.

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My deepest thanks go to my parents, my brother, my sister, my godmother, my
parents-in-law, with families. Thank you for giving me the strength and hope to
continue. Thank you for never letting go, and for showing me that love wins. I
hope you all know how much you mean to me. To my friends, who have made
me understand the meaning of true friendship: I am so grateful to have you in
my life.

Hampus, my wonderful husband! Your pragmatic approach to forward planning,
your optimistic belief in the future and your great humility bring light to my life
even in the darkest moments. Thank you for everything you are, and everything
you help me to be when I am with you. You are my inspiration, and my love for
you is endless.

Isak and Oliver, my beautiful sons. There were times when I thought I had lost
you, Isak. Times when I thought you would never come back to us. Now I know
that I can never lose you: you live in my heart forever. Oliver, my ray of
sunshine. Everyday with you is a day in heaven. Thank you for helping me to
learn the most difficult lesson in the world – how to be here, right now. I love
you both with all my heart.

Göteborg, August, 2012.
Linea Kjellsdotter Ivert

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1 Table of Contents
1 Introduction ............................................................................................ 11
1.1 Background ................................................................................................ 11
1.2 Problem area ............................................................................................. 13
1.3 Overall aim and research questions ........................................................ 16
1.4 Scope ........................................................................................................... 18
1.5 Thesis outline ............................................................................................. 21
2 Frame of references ............................................................................... 23
2.1 The manufacturing planning and control processes .............................. 23
2.1.1 Sales and operations planning .............................................................. 23
2.1.2 Master production scheduling .............................................................. 25
2.1.3 Production activity control ................................................................... 27
2.2 Advanced planning and scheduling (APS) systems ............................... 28
2.2.1 APS system characteristics .................................................................. 28
2.2.2 APS system definition .......................................................................... 33
2.3 The use of APS systems in MPC processes ............................................. 35
2.3.1 The use of APS systems in S&OP processes ....................................... 35
2.3.2 The use of APS systems in MPS processes ......................................... 36
2.3.3 The use of APS systems in PAC processes .......................................... 37
2.4 Consequences of using APS system ......................................................... 38
2.4.1 Positive consequences .......................................................................... 38
2.4.2 Negative consequences ........................................................................ 42
2.5 Variables influencing the consequences of using APS systems ............. 44
2.5.1 Variables according to previous literature ........................................... 44
2.5.2 Categorization of variables .................................................................. 47
2.6 The conceptual framework ...................................................................... 49
3 Methodology ........................................................................................... 51
3.1 Research process ....................................................................................... 51
3.2 Research strategy ...................................................................................... 53
3.2.1 Case study 1 ......................................................................................... 53
3.2.2 Case study 2 ......................................................................................... 54
3.2.3 Case study 3 ......................................................................................... 57
3.2.4 Case study 4 ......................................................................................... 57
3.2.5 Survey .................................................................................................. 58
3.3 Case companies ......................................................................................... 58
3.4 Research quality ........................................................................................ 60
3.4.1 Case study ............................................................................................ 60
3.4.2 Survey .................................................................................................. 65
4 Summary of appended papers .............................................................. 67
4.1 Paper I- Applying advanced planning systems for supply chain
planning: three case studies .................................................................................... 67
4.1.1 Research questions ............................................................................... 67
4.1.2 Results and contribution ....................................................................... 67
4.2 Paper II-The potential benefits of advanced planning and scheduling
systems in the sales and operations process .......................................................... 68
4.2.1 Research question ................................................................................. 68
4.2.2 Results and contributions ..................................................................... 68
4.3 Paper III-When to use APS systems in sales and operations planning 69
4.3.1 Research questions ............................................................................... 69
4.3.2 Results and contribution ....................................................................... 70
4.4 Paper IV-Shop floor characteristics influencing the use of Advanced
Planning and Scheduling (APS) systems ............................................................... 71
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4.4.1 Research question ................................................................................ 71
4.4.2 Results and contribution ...................................................................... 71
4.5 Paper V-Problems in the onward and upward phase of APS system
implementation: why do they occur? .................................................................... 72
4.5.1 Research questions ............................................................................... 72
4.5.2 Results and contribution ...................................................................... 72
4.6 Paper VI-Linking planning methods for capacity balancing to master
production scheduling performance ...................................................................... 74
4.6.1 Research question ................................................................................ 74
4.6.2 Results and contribution ...................................................................... 74
5 Results ..................................................................................................... 77
5.1 Consequences of using APS systems in MPC processes ........................ 77
5.1.1 Consequences of using APS systems in S&OP processes ................... 77
5.1.2 Consequences of using APS systems in MPS processes ..................... 79
5.1.3 Consequences of using APS systems in PAC processes ..................... 80
5.1.4 Summary consequences of using APS systems in MPC processes ..... 81
5.2 Variables influencing the consequences of using APS system .............. 82
5.2.1 Planning environment related variables ............................................... 82
5.2.2 MPC process related variables ............................................................. 84
5.2.3 Implementation related variables ......................................................... 84
5.2.4 Summary of variables influencing consequences ................................ 85
6 Discussion ............................................................................................... 87
6.1 The consequences of using APS systems ................................................. 87
6.2 The variables influencing the consequences of using APS system ....... 89
6.3 Relationships between variables and consequences .............................. 91
7 Conclusion and further research ......................................................... 95
7.1 Conclusion ................................................................................................. 95
7.2 Managerial implications ........................................................................... 96
7.3 Contribution .............................................................................................. 98
7.4 Further research ....................................................................................... 99
8 References ............................................................................................. 101

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