Agenda n n n OverviewFeatures of SCM Supply

Agenda n n n Overview/Features of SCM Supply Chain Network Design Advanced Planning and Scheduling Shop Floor Control MES/MCS www. cnshu. cn 中国最大的资料库下载 2

Overview of SCM - Issues n Enterprise functional silos with conflicting goals Purchasing Low purchase price Multiple vendors SOURCE Manufacturing Few changeovers Stable schedules Long run lengths MAKE Distribution Low inventories Low transportation DELIVER www. cnshu. cn 中国最大的资料库下载 Customer Service/ Sales High inventories High service levels Regional stocks SELL 3

Overview and targets of SCM n Definition of Supply Chain Management: Supply Chain Management describes all kind of activities across multiple companies or locations to optimize the manufacturing of products. Hereby concerning all interfaces on operational and strategic level for involved associates. n Main focus n By n Minimzing costs for inventories and deliveries n Long term relationships (customer / supplier binding) n Customer satisfaction n Development of heterogeneous global production networks n Increased integration of advanced technologies www. cnshu. cn 中国最大的资料库下载 ERP - Basis SCM - Tools Internet 4

Overview and targets of SCM Multi Enterprise Supply Chains Buys Ingredients and Components Moves it to a Distribution Center Stores it at Distribution Centers Makes a Product Moves it to Stores it in the Stores it in a Warehouse Sells it to Consumers Source: I 2 -Technologies www. cnshu. cn 中国最大的资料库下载 5

Overview and targets of SCM n Integration of suppliers in planning in consideration of. . . n Suppliers inventories n Suppliers manufacturing capacities n Transport times and capacities Reduction of own inventories www. cnshu. cn 中国最大的资料库下载 6

Overview and targets of SCM n Integrated planning of supply chains leads to n Reduction of inventories n Cost savings n Capability to meet promised delivery dates Increased customer satisfaction Intensified customer binding Perspective to extend the sales market www. cnshu. cn 中国最大的资料库下载 7

Prerequisites for success n No management method guarantees itself for success n Type of product leads to special type of supply chain Primarily functional products Primarily innovative products n Don’t change much over time n Enables higher profit margins n Long life cycles n Short life cycle (typically few month) n Predictable demand n Volatile demand n Stability invites competition n Newness makes demand unpredictable n Leads often to low profit margins n Importance of early sales www. cnshu. cn 中国最大的资料库下载 8

Prerequisites for success Primarily functional products Primarily innovative products n Supply at lowest costs to predictable demand n Respond quickly to unpredictable demand n High utilization rate of capacity n Minimize inventories n Deploy excess buffer capacity n Deploy significant buffer stocks n Short lead time as it doesn’t increase costs n Invest aggressively to reduce lead time n Select suppliers primarily for costs and quality n Select suppliers primarily for speed, flexibility and quality Physical efficiency Responsiveness to market Minimize costs by n Physical efficiency n Highest responsiveness to market n Minimize risk of shortages or excess supply www. cnshu. cn 中国最大的资料库下载 9

Prerequisites for success Functional Efficient Responsive match mismatch Innovative mismatch Use of SCM software tools like APO www. cnshu. cn 中国最大的资料库下载 10

Prerequisites for success n Share information with your suppliers n Keep longer relationships with your suppliers n Trust as foundation of relationships with suppliers Fundamentals of supply chain planning www. cnshu. cn 中国最大的资料库下载 11

SCM Business Processes n Technology helps enable a variety of SCM business processes Push to pull n Process orientation n Optimization n Postponement n More frequent planning n Collaboration n www. cnshu. cn 中国最大的资料库下载 12

Features of SCM n Move from push to pull manufacturing Suppliers Manufacturers Distributors/ Wholesalers Retailers Consumers • Make what we will sell, not sell what we will make!! www. cnshu. cn 中国最大的资料库下载 13

Features of SCM n Move from functional silos to process-oriented business processes (e. g. , order -to-cash, cash-to-cash) Purchasing Manufacturing Distribution Customer Service /Sales Available-to-Promise (ATP) Capable-to-Promise (CTP) Integrated Sales and Operations Planning (S&OP) SOURCE MAKE DELIVER www. cnshu. cn 中国最大的资料库下载 SELL 14

Features of SCM n Optimization of all supply chain activities Independent, Sequential Planning Procurement Planning Manufacturing Planning Distribution Planning Forecasting Synchronized, Concurrent Planning Supply Chain Optimization Procurement Planning Manufacturing Planning Distribution Planning www. cnshu. cn 中国最大的资料库下载 Demand Planning 15

Features of SCM Customer Relationship Management Advanced Planning Scheduling Warehouse Management International Trade Logistics Human Resources Postponement n E A I Accounting n Materials Management Move to MTO, ATO and CTO from MTS Front-end APS suites support n n Manufacturing n ATP/CTP Product configuration Back-end integration to transaction systems Logistics www. cnshu. cn 中国最大的资料库下载 16

Features of SCM n More frequent planning means responsive to changing customer needs while decreasing inventories Average Supply Planning Cycle Time Planning Time Cycle www. cnshu. cn 中国最大的资料库下载 17

Features of SCM n e-Business will enable supply chain collaboration among trading partners Retailers Suppliers Synchronized Production Scheduling Manufacturer Collaborative Demand Planning Collaborative Product Development Distributors/ Wholesalers Collaborative Logistics Planning • Transportation services • Distribution center services Logistics Providers www. cnshu. cn 中国最大的资料库下载 18

Components of E-Supply Chain n n n Supply-chain replenishment E-procurement Collaborative planning Collaborative product development E-logistics Supply webs www. cnshu. cn 中国最大的资料库下载 19

Evolution of IT EDI E-Commerce EIS BI CRM Distribution planning APS/SCM Scheduling MRPII Payroll HR GL AP AR E-Business ERP FMIS www. cnshu. cn 中国最大的资料库下载 20

Agenda n n n Overview/Features of SCM Supply Chain Network Design Advanced Planning and Scheduling Shop Floor Control MES/MCS www. cnshu. cn 中国最大的资料库下载 21

Supply Chain Network Design Suppliers Wholesale Distributors Retailers Manufacturers Supplier Exchanges Contract Manufacturers Customers Logistics Exchanges Customer Exchanges Virtual Manufacturers Logistics Providers n Information Flows Goods Flow n n www. cnshu. cn 中国最大的资料库下载 Location decision Capacity decision Assignment decision 22

Strategic Planning Problems n n n Which products shall be produced at which locations? How are customers assigned to distribution centers? Where shall new locations be opened? Which locations shall be closed? What are capacity requirements for plants/distribution centers? What is the cost situation within the supply chain? www. cnshu. cn 中国最大的资料库下载 23

Planning Method n n n Planning of location assignment and transportation lanes Location assignment based on geographical distance Cost optimal location assignment Structural Network Changes Placement of a given number of locations based on geographical distance and costs Cost optimal selection of locations www. cnshu. cn 中国最大的资料库下载 24

Planning Parameters n Cost n n n Transportation costs Production costs Storage costs Handling costs Procurement costs Location costs / Location proceeds n n Fix maintenance costs Costs for opening and closure of locations Public subsidies Penalty costs for delayed or non-fulfilled demand www. cnshu. cn 中国最大的资料库下载 25

Planning Parameters n Capacities n n n Handling capacities for plants and distribution centers Production capacities of plants Demand n n Calculation of demand via Demand Planning Supported by forecast methods Simulation of demand scenarios Variation of demand www. cnshu. cn 中国最大的资料库下载 26

Planning Results n Supply Chain Network n Assignment of locations n n Transportation lanes Allocation of products to locations New locations with geographic position Selected / not selected locations n Proposal for opening or closure of locations www. cnshu. cn 中国最大的资料库下载 27

Planning Results n Quantities n n Costs n n Production, transport, handling, storage and procurement Location costs Opening costs, maintenance costs, subsidies, etc. Capacity Requirements n Production, transport, handling und storage www. cnshu. cn 中国最大的资料库下载 28

Outlook n n Profit-oriented planning Consideration of piece-wise linear costs for transport and production Consideration of storage capacities Integration of GIS applications n n automatic calculation of transportation duration and transportation costs expanded geographic display www. cnshu. cn 中国最大的资料库下载 29

Agenda n n n Overview/Features of SCM Supply Chain Network Design Advanced Planning and Scheduling Shop Floor Control MES/MCS www. cnshu. cn 中国最大的资料库下载 30

Production Logistics Planning Forecast Planning/scheduling Customer order administration Primary requirements planning Requirements planning Initiation of implementation functions Purchasing Capacity scheduling Reservation Capacity adjustment Detailed scheduling Order release Sequencing Execution Factory data entry Shop floor control www. cnshu. cn 中国最大的资料库下载 31

Typical Planning Process Supply/Demand Meeting Change Production Plan n n MRP/ERP Receiving/Receipt Manual Adjustment Release PO Can not deliver on time Long promise time Dead items & shortage Customer unsatisfied www. cnshu. cn 中国最大的资料库下载 32

MRP II Planning Process Master Planning RCCP MRP CRP SFC n n Top-down process Iterative process www. cnshu. cn 中国最大的资料库下载 33

Drawbacks in Traditional Production Planning n n n n Sequential planning Problem in scheduling logic Independent demand supply planning Lack of integration Batch process Single point planning Lack of simulation capability www. cnshu. cn 中国最大的资料库下载 36

SCM Information System www. cnshu. cn 中国最大的资料库下载 37

Definition of APS n n …there’s no precise definition of APS systems, but it is quite intuitive to say that the APS systems resolve the shortcomings of the ERP systems as a planning tool…. APS systems consider material requirements and plant capacity to generate new plans, and some of them create a detailed production schedule that sequences the production optimally, to achieve the organization goals as well as customer’s due date. (AMR, 1998) …APS systems apply profound advanced technologies to achieve improved plans that take into account most of the factors and constraints that limit the ability to deliver on time. (Forrest Research, 1996) www. cnshu. cn 中国最大的资料库下载 38

Features of APS n n n Synchronized concurrent planning Constraint-based planning Optimized planning Real-time planning Decision support capability n n n What-if simulation Pegging between demand supply Speed and performance www. cnshu. cn 中国最大的资料库下载 39

Synchronized Planning www. cnshu. cn 中国最大的资料库下载 40

Constraint-based Planning Capacity: Time: Resource load Routing Purchase LT Mfg. LT Trasf. LT Due Date APS Output Forecast Sales Order Alternate Parts ECN Parts Sourcing Rule Constraint Demand: Material: Optimal Plan Supply Data: On-hand WIP Purchasing Order www. cnshu. cn 中国最大的资料库下载 41

Optimized Technologies in APS n Demand Planning n n Production Planning & Scheduling n n n Exponential Smoothing System Dynamics Multiple Linear Regression Linear Programming/Mixed Integer LP Genetic Algorithms Simulation Annealing Heuristic Methods Distribution Planning & Deployment n n Flow Algorithms www. cnshu. cn 中国最大的资料库下载 Branch-and-Bound Algorithm 42

Scope of APS n n n n n Supply chain strategic planning Supply chain network planning Demand planning and forecasting Inventory planning Supply chain planning Supply planning Distribution planning Transportation planning Shop floor operation scheduling Shipment scheduling www. cnshu. cn 中国最大的资料库下载 43

Functions of APS www. cnshu. cn 中国最大的资料库下载 44

APS and ERP n APS是使用現存Transaction系統(ERP)的資訊， 以提供快速規劃及排程的智慧型決策支援系統。 Supply Chain Planner Input Data • Demand • Capacity • Materials Current Situation ERP Purchasing Order Entry Output Final Plan Manufacturing www. cnshu. cn 中国最大的资料库下载 • Production Plan • Shipping Plan • Promise Plan Logistics/Shipping 45

Multi-Site Planning n n Complex multi-site manufacturing refers to the environment where there are multiple sites that are dependent upon each other for material and assemblies. Supply Planning for a complex multi-site manufacturing environment involves the consolidation of data from the individual sites into a corporate consolidation database. www. cnshu. cn 中国最大的资料库下载 46

Multi-Site Planning APS pp ly Su Global APS Engine Order Promising Engine lan P ly Master Plan APS Supply Plan Engine Ma pp Su Pl a te as M Demand Planning Engine De ma nd Pla n n r. P la n Engine st Su pp ly er Pl an APS Engine www. cnshu. cn 中国最大的资料库下载 47

Performance Results Late Order 25 -50% Improvement Order Lead Time 10 -40% Improvement Planning Cycle 95% Improvement Production Lead Time 10 -50% Improvement Inventory 10 -60% Improvement Operating Expense 10 -50% Improvement Throughput 2 -5% Improvement *Source: AMR, 1996 www. cnshu. cn 中国最大的资料库下载 48

Agenda n n n Overview/Features of SCM Supply Chain Network Design Advanced Planning and Scheduling Shop Floor Control MES/MCS www. cnshu. cn 中国最大的资料库下载 49

Shop Floor Control System www. cnshu. cn 中国最大的资料库下载 51

Functions of Shop Floor Control n n n Order review/release Detailed shop floor operations scheduling Data collection/monitoring Control/feedback Order disposition www. cnshu. cn 中国最大的资料库下载 52

Focus of OR/R n n n n n Availability of materials Required capacity Required machines and toolings Real-time production status Verify MRP plans Confirm/modify BOM structure Confirm/modify routing Evaluate production loads in shop floor Criteria of performance evaluation www. cnshu. cn 中国最大的资料库下载 54

Operations Scheduling n n n Work center oriented scheduling Work order oriented scheduling Backward scheduling Forward scheduling Finite scheduling Dispatching www. cnshu. cn 中国最大的资料库下载 55

Data Collection and Monitor n n n n Barcode Optical character recognition Magnetic stripe Voice recognition Radio frequency identification Machine vision system Blue tooth www. cnshu. cn 中国最大的资料库下载 56

Control and Feedback n n Order problems vs. Resources problems Is it solvable? What is the solution? Adjust and improve Information feedback www. cnshu. cn 中国最大的资料库下载 57

Order Disposition n Order completion n n n AS planned Order cancellation Materials shortage Release previously assigned resources Evaluate production performance Define and explain specific unexpected conditions/solutions www. cnshu. cn 中国最大的资料库下载 58

Shop Floor Control System-Another view www. cnshu. cn 中国最大的资料库下载 59

Agenda n n n Overview/Features of SCM Supply Chain Network Design Advanced Planning and Scheduling Shop Floor Control MES/MCS www. cnshu. cn 中国最大的资料库下载 60

Relationships of ERP/APS/MES/MCS ERP APS MES MCS www. cnshu. cn 中国最大的资料库下载 61

Interactions Between ERP/APS and MES www. cnshu. cn 中国最大的资料库下载 62

Functions of MES www. cnshu. cn 中国最大的资料库下载 64

Order & Operations Management n n n Select order Assign routing Dispatching Trace WIP Order progress www. cnshu. cn 中国最大的资料库下载 65

Material & Resource Management n n n n Monitor materials supply Deploy resources Manage operators Toolings(e. g. Fixtures, Jigs…) control Equipments maintenance Trace equipment status Control scrapes www. cnshu. cn 中国最大的资料库下载 66

Quality Management n n n Internal vs. External QC Performance analysis QC for raw materials and finished goods SPC SQC Engineering data analysis www. cnshu. cn 中国最大的资料库下载 67

Reporting & Documents Management n n n n Work instructions QC reports SOP Machining code Work order record Lot documents Engineering change notices ISO documents www. cnshu. cn 中国最大的资料库下载 68

Manufacturing Control System n n Man machine interface(MMI) Supervisory control and data acquisition(SCADA) Distributed control system(DCS) Manual process control www. cnshu. cn 中国最大的资料库下载 69

Typical Quantified Benefits from Integrated the Supply Chain Delivery Performance 16%-28% Improvement Inventory Reduction 25%-60% Improvement Fulfillment Cycle Time 30%-50% Improvement Forecast Accuracy 25%-80% Improvement Overall Productivity 10%-16% Improvement Lower Supply-Chain Costs 25%-50% Improvement Fill Rates 20%-30% Improvement Improved Capacity Realization 10%-20% Improvement *Source: PRTM Integrated Supply Chain Benchmarking Study, 1997 www. cnshu. cn 中国最大的资料库下载 70

Conclusions n n n APS can enhance ERP Match of Business Needs and APS Software Integration with ERP and MES Accurate data SCM is more like a philosophy Enabler - IT www. cnshu. cn 中国最大的资料库下载 71

References n n n Scheer, A. -W. (1994), Business Process Engineering: Reference Models for Industrial Enterprises, 2 nd Edition, Springer-Verlag. 王立志(1999)，系統化運籌與供應鏈管理，滄 海書局。 Norris, G. et. al. (2000), E-Business and ERP: Transforming the Enterprise, John Wiley. 華夏科技(2001)，訂單管理與運籌管理整合方 案研討會。 http: //www. my. SAP. com www. cnshu. cn 中国最大的资料库下载 72

Questions and Comments E-MAIL: cstsou@cc. shu. edu. tw www. cnshu. cn 中国最大的资料库下载 73