AN OVERVIEW OF THE ADVANCED PLANNING AND SCHEDULING SYSTEMS
Thales Botelho de Sousa
Engineering School of São Carlos, University of São
Paulo, Brazil
E-mail: thalesbotelho@sc.usp.br
Carlos Eduardo Soares Camparotti
Engineering School of São Carlos, University of São
Paulo, Brazil
E-mail: carloscamparotti@sc.usp.br
Fábio Müller Guerrini
Engineering School of São Carlos, University of São
Paulo, Brazil
E-mail: guerrini@sc.usp.br
Adauto Lucas da Silva
Engineering School of São Carlos, University of São
Paulo, Brazil
E-mail: adauto_ls@sc.usp.br
Walther Azzolini Júnior
Engineering School of São Carlos, University of São
Paulo, Brazil
E-mail: wazzolini@sc.usp.br
Submission: 10/06/2014
Accept: 24/06/2014
ABSTRACT
Currently, the
activities of the planning and control of companies are becoming increasingly
complex and the managers of this area are constantly pressured to reduce
operating costs, maintain inventories at adequate levels, to meet fully the
demand of customers, and to respond effectively to the changes that occur. The
planning and scheduling task is important for most companies, so according to
some authors, there is a need for further analysis of the practical use of
production planning and control systems. Within the context of production
planning and control systems developments, in the 1990s were launched the APS
systems, which represent an innovation when compared to their predecessors.
This paper intended to provide through a literature review, the concepts,
structure, capabilities, implementation process and benefits of using APS
systems in the company’s production planning and control. The main contribution
of this research is to show a strong conceptual understanding regarding APS
systems, which can be used as a solid theoretical reference for future
researches.
Keywords: Advanced Planning and Scheduling, Production
Planning and Control, Literature Review.
1.
INTRODUCTION
According to Porter et al. (1996),
Production Planning and Control (PPC) is generally used to describe collective
processes of capacity planning, material requirements planning, shop floor
control, works order release and control. The PPC seeks to align the supply of
a manufacturing company with the demand for its products, while maximizing its
performance within the framework of the company competitive stance in terms of
quality, cost and delivery (MUKHOPADHYAY; DWIVEDY; KUMAR, 1998). PPC plays an
important role in competitive environments, responding immediately to achieve
higher service level of performance, better resource utilization, and less
material losses (AL-TAHAT; BATAINEH, 2012).
Production Planning and Control
systems (PPCs) are the central corporate control mechanisms that relate the
production and logistic performance of a company with customer demands. Its
main task is to plan, initiate and monitor manufacturing company products
delivery, and, in cases of unforeseen deviations, to adjust the progress of
orders or production plans (WIENDAHL; VON CIEMINSKI; WIENDAHL, 2005). PPCs have
an important role in the continuous search for improvement in production
resources use (RODRIGUEZ; COSTA; DO CARMO, 2013) and aim to plan and control
production so the company achieves the production requirements with the highest
possible efficiency (FERNANDES et al., 2007).
PPCs are models used for planning
and controlling physical transformation processes in production systems
(HELBER, 1995). The use of these softwares has enormously increased in
industrial environments since the 1980s (LUCZAK; NICOLAI; KEES, 1998). They
represent a competitive advantage source for companies that search competence
in PPC area (MUKHOPADHYAY; DWIVEDY; KUMAR, 1998).
According to Steger-Jensen et al.
(2011), the computerized PPCs were gradually developed in the last 30 years,
since the systems Material Requirements Planning (MRP), Manufacturing Resources
Planning (MRP II), Enterprise Resources Planning (ERP) and Advanced Planning
and Scheduling (APS). These continuous developments provided substantial
improvements in PPC area of companies (NYHUIS; WIENDAHL, 2004).
In the 1990s, a new breed of
concepts called APS systems emerged (ÖZTÜRK; ORNEK, 2014). APS systems are a
set of applications used for managing three domains of supply chain operations:
planning, programming and execution (SETIA; SAMBAMURTHY; CLOSS, 2008). APS
systems are considered as an effective approach for generating an optimized
production plan considering a wide range of constraints, including raw
materials availability, machines and operators’ capability, service level,
secure stock level, costs, sales and demand (CHEN; HUANG; LAI, 2009). According
to Brun et al. (2006), APS systems represent the most relevant innovation in
the world of manufacturing since the introduction of MRP systems in the 1970s.
The use of APS systems as support
tools for decision making in the production planning and control of companies
is growing at the global level. Based on these affirmations and its increasing
relevance, the aim of this paper is to present a literature review on APS
systems, in order to provide to the reader an understanding of the concepts,
structure, integration with other production planning and control systems, implementation process and benefits
that their use provide to the companies.
2.
METHODOLOGICAL PROCEDURES USED FOR
DEVELOPING THE RESEARCH
The methodology used for the
development of this paper aims to get results capable of supporting the
construction of a better knowledge on APS systems.
Published papers in scientific
journals indexed in databases SCIELO, SCOPUS and Web of Science were analyzed.
For this research, were revised mainly papers published in scientific journals,
because they have more careful selection and assessment than papers of
conferences and symposiums (CARNEVALLI; MIGUEL, 2008), and are considered
researches of highest level, both for gathering information, and for
dissemination of new results and discoveries (NGAI et al., 2008). Some
information from papers published in conferences were obtained, because
although they have less relevance, certainly can have important issues
(BORTOLLOSSI; SAMPAIO, 2012).
For selecting the publications of
interest, they were searched by title, abstract, keywords, irrespective of the
period of publication, the following terms: Advanced Planning and Scheduling,
and Advanced Planning System*. Subsequently proceeded to the reading and
analysis of abstract and introduction of the papers found, by selecting those
with relevance to the research objectives.
With respect to nature, this work is
classified as a basic research, considering that according to Turrioni and
Mello (2012), seeks to add new ideas favorable to the advancement of knowledge,
involving truths and universal interests, without the worry of use them in
practice. Based on its goals, this work is classified as an exploratory
research. According to Forza (2002), the purpose of exploratory research is to
build an initial idea about a topic, providing the basis for more detailed
studies, in order to improve the techniques currently available. Regarding the
technical procedures used to carry out this paper, it was conceived through
bibliographical research. The bibliographical research allows the
identification of the state of the art and possible gaps that may exist, and
identify opportunities for new contributions to the topic under study (VILLAS;
SOARES; RUSSO, 2008).
3.
ADVANCED PLANNING AND SCHEDULING: AN
OVERVIEW
3.1.
General
characterization
According to Stadtler (2005), APS
systems are based on the principles of hierarchical planning and make extensive
use of solution approaches known as mathematical programming and
meta-heuristics. The main APS systems ability consists in finding the optimal
resource selection for operations, operations sequences, allocation of variable
transfer batches, and schedules considering flexible flows, resources status,
capacities of plants, precedence constraints, and workload balance (GEN; LIN;
ZHANG, 2009). Unlike other systems, APS does not assume that capacities are
infinite, that all customers, products and materials are of equal importance,
and that certain parameters, such as lead times, can be fixed (DAVID; PIERREVAL;
CAUX, 2006).
APS systems provide analyzes for
guiding the provision of supply, manufacturing and logistics operations and
determine the impact of the unique business rules and capacity constraints in
programming (SETIA; SAMBAMURTHY;
CLOSS, 2008). APS systems have improved the integration of materials and
capacity planning, bridge the gap between the supply chain complexity and the
daily operative decisions (HVOLBY; STEGER-JENSEN, 2010). APS systems are
considered as an effective approach for generating an optimized production plan
considering a wide range of constraints, including raw materials availability,
machines and operators capability, service level, secure stock level, costs,
sales and demand (CHEN; HUANG; LAI, 2009).
According to Günther and Meyr
(2009), APS systems represent successful applications of supply chain
management, and are related to support activities and decision making at the
strategic, tactical and operational levels. By APS systems companies can
optimize their supply chains, reducing costs and inventory levels, improving
product margins, and increasing industrial yields (LEE; JEONG; MOON, 2002).
They simulate different planning scenarios before launching a plan (HVOLBY;
STEGER-JENSEN, 2010). Furthermore, APS systems can be configured for giving
alerts to the appropriate organizational units when something out of the
ordinary happens (WEZEL; DONK; GAALMAN, 2006).
3.2.
APS
systems structure
According to Neumann, Schwindt and
Trautmann (2002), APS systems offer support at all planning levels along the
supply chain while observing resources limitation. The APS system input data
include size of order, order due date, available capacity, product type,
process routine, process time, cycle time, setup time, yield, tact time,
preventive maintenance, mean time to repair, mean time between failure, and Work
In Process (WIP); whereas outputs include equipment loading, fab utilization,
line utilization, order release time, and order start/finish time (CHEN et al.,
2013).
The main constituent modules of the
APS systems in the three levels of supply chains are shown in Figure 1 (MEYR;
WAGNER; ROHDE, 2005).
Figure 1: APS systems structure
The strategic planning of the supply
network determines the structure of the supply chain in the planning horizon,
including locations of factories and distribution centers and considers a long
term planning horizon of ten years (GIACON; MESQUITA, 2011). The demand
management balances customer requirements with the capabilities of the supply
chain (CROXTON et al., 2002).
Production and sales planning aims
at efficient use of company capabilities and the realization of the foreseen
demands in the medium-term planning horizon, by planning simultaneously the
functions of production, purchasing and distribution (STADLER, 2005). Master
Production Scheduling (MPS) defines the end items quantity to be completed in
each week of the short-term planning horizon, periodically updating the plans
after collecting and recognizing the most recent information (OMAR; BENNELL, 2009).
The MRP carries out the material requirements explosion through
information from MPS, generating orders of assembly, manufacturing and
purchasing, in order to meet the final products demand (OMAR; BENNELL, 2009).
Detailed
production scheduling is generated taking into account the availability of
capacity and materials, according to the guidelines of MPS (GIACON;
MESQUITA, 2011). Distribution planning represents one of the most important
activities in supply chain management and considers the availability of stocks
and transports for generating the scheduling of deliveries (SAFAEI et al.,
2010). Transport scheduling considers short-term factors, such as routing or vehicles
availability (GIACON; MESQUITA, 2011). Available-To-Promise (ATP) aims to
provide the customer specific requests in promised delivery date considering
the demanded products availability (JUNG, 2012).
3.3.
APS
systems integration with other production planning and control systems
The production planning and control
procedures used in the industry have always been subject to several changes.
Many companies have recognized that the systems commonly used, represented by
MRP II and ERP, do not support the planning in order to properly consider the
capabilities of resources during the planning process (KRISTIANTO; AJMAL; HELO,
2011).
While APS systems themselves are an
advance when compared to its predecessors, companies use a combination of
systems for guiding the supply chain collaboration and planning (SETIA;
SAMBAMURTHY; CLOSS, 2008). APS systems were developed under the combination of
MRP with the Capacity Requirement Planning (CRP) for allowing the creation of
suitable production plans and planning activities for the supply chain as a
whole, providing procedures and methodologies that are able to react quickly to
exceptions and variability (CHERN; YANG, 2011; KUNG; CHERN, 2009).
Traditional MRP systems do not
sufficiently support the planner in settling production planning and control
issues, and may create many problems on the shop floor for later production
(CHEN; JI, 2007), such as often excess inventories, poor customer service, and
insufficient capacity utilization (KANNEGIESSER; GÜNTHER, 2011). According to Peng,
Lu and Chen (2014), MRP systems generally make plans according to finite
material requirements and infinite capacity requirements, meanwhile the
production lead time which is actually depending on production planning is
predetermined, whereas in APS systems plans are optimized within the boundaries
of material and capacity constraints.
Using sales and inventory data from
an MRPII system, it can produce a production plan in seconds or, at worst, a
few minutes. APS systems can validate the plans generated by the MRP II system
or can carry out planning, eliminating the need for such modules, being the use
of MRP II directed toward the acquisition of product information, order and
inventory (CHAMBERS, 1996).
APS does not substitute but it supplements
existing ERP systems (STEGER-JENSEN et al., 2011). It is widely known that the
strength of ERP systems is not in the area of planning. Thus, APS systems have
been developed to fill this gap (STADTLER, 2005). According to Ou-Yang and Hon
(2008), APS systems develop an appropriate production scheduling for supporting
potential orders, while ERP systems are used for integrating the execution of
orders related to business processes, and handling the basic activities and
transactions, such as customer orders, accounting, finances, human resources,
etc. (STEGER-JENSEN
et al., 2011).
An APS system extracts information
from the ERP database through input user interface, makes its calculations and
sends the resulting plans back for distribution and execution. The APS sends to
the ERP manufactured parts needs, purchase parts needs and projected orders
completions, by using optimization techniques for modeling and determining the
quantities. The ERP sends to the APS demands (customers’ orders, forecasts,
MPS, safety stock orders, transformer orders), item information, information of
Bill Of Materials (BOM), operation information, resource information, resource
group information, WIP status, finished and released jobs, scheduled jobs, run
parameters, calendar, shifts and holidays. The schedule and utilization results
can be saved in the database through the output interface (CHEN et al., 2013; GÜNTHER;
MEYR, 2009; MUSSELMAN; O’REILLY; DUKET, 2002; RUDBERG; CEDERBORG, 2011).
3.4.
APS
systems capabilities
The set of APS systems applications
usually has the following capabilities: modeling capability, flow modeling,
scheduling and optimization, planning capacities, constraints management and
analysis, execution control (SETIA; SAMBAMURTHY; CLOSS, 2008).
The modeling capability defines the
exact resources amount and constraints. Flow modeling creates routines based in
product by product, configures workstations and alternative flows. Scheduling
and optimization configure various jobs and process performance criteria based
on operators available and resources constraints. Planning capacities plan
resources and facilities for the long term through what-if analyzes.
Constraints management and analysis identifies constraints in case of change in
demand priorities. Execution control manages operations through intelligent
ways of detailing reports.
In the shop floor the APS systems
are responsible by following activities: order release, sequencing, dispatching
and reporting (IVERT, 2012). The order release is related to the order release
control, material availability check and generation of the shop packet.
Sequencing is responsible by decisions that have to be made about which order
will be processed next. Dispatching considerations are what information the
dispatch list includes, how the shop floor gets information about any changes
in the planned requirements, and what freedom the personnel have for setting
priorities and to choosing the sequence. Information pertaining to the progress
of orders on the shop floor and identification of possible problems are
functions pertinent to the reporting.
3.5.
APS
systems implementation
From an APS system implementation
perspective, the knowledge of APS and planning, experiences of the processes
under investigation and implementation projects, and commitment to the project
should be important individual factors (IVERT; JONSSON, 2011).
For Pacheco and Santoro (2001), the
main deficiencies that may arise in the evaluation process of an APS system are
poor assessment of the opportunities for improving the current system,
deficient investigation of alternatives, and poor analysis of the relationship
between adherence and quality of the solution. For overcoming these
deficiencies, Pacheco and Cândido (2002) proposed the following actions:
assessing opportunities for improvement and preliminary selection of
alternatives, detailed analysis of adherence and quality of models solution,
weighting of results obtained between models, analysis of commercial criteria
and implementation strategy.
According to Pedroso and Côrrea
(1996), for implementing programming systems with finite capacity (such as APS
systems), are needed investments in software, hardware, training, implementation,
system maintenance and organizational changes. Investments in software are
related to the acquisition of the application itself, possible needs for this
adaptation and its integration with other information systems of the company.
In hardware, the equipment necessary for system management. In training, is
related to the training of human resources for the management of new
technology. In implementation, encompasses modeling and the availability of
other necessary information. In system maintenance the values associated with
the management of the system and the maintenance and upgrading of software and
hardware. In organizational changes, necessary improvements for effective
management of the system in the organization.
APS systems implementations comprise
the following phases (IVERT; JONSSON, 2011):
1) The chartering phase: comprises decisions leading to
funding an APS system. Typical activities comprise current state analysis,
ideas of adopting the system, definition of key performance indicators,
conducting business case for investment development, identifying project
manager, approving a budget and schedule, and the selection of a software
package.
2) The project phase: phase where activities are
comprised in order to get the system up and running. Typical activities include
model building, setup of internal data structures and databases,
validation/testing, training, and go-live.
3) The shakedown phase: phase where organizations are
coming to grips with the information system. Typical activities include
cleaning up data and parameters, providing additional training to users,
particularly on business processes, and working with vendors and consultants for
resolving bugs in the software.
4) The onward and upward phase: phase that continues from
normal operation until the system has been replaced with an upgrade or a
different system. Typical activities comprise post-implementation audit,
continuous business improvement, technical upgrading, additional end-user skill
building.
3.6. Benefits of the APS systems use
Table 1 lists the major benefits
that can be obtained with the APS systems use, based on the results of the
literature review.
Table
1: Key benefits of APS systems use
Benefits |
Authors |
More efficient management of supply chains |
Boulaksil, Fransoo and Halm (2009);
Brandenburg and Tölle (2009); Dayou, Pu and Ji (2009); Garcia-Sabater, Maheut
and Garcia-Sabater (2012); Jonsson, Kjellsdotter and Rudberg (2007);
Kristianto, Ajmal and Helo (2011); Kung and Chern (2009); Neumann, Schwindt
and Trautmann (2002); Rudberg and Thulin (2009); Setia, Sambamurthy and Closs
(2008); Zoryk-Schalla, Fransoo and De Kok (2004) |
Higher throughput and shorter industrial
lead time |
Chen, Huang and Lai (2009); Dayou, Pu and Ji
(2009); Lee, Jeong and Moon (2002) |
Integration with ERP systems, other planning
modules or process control systems |
Arsovski, Arsovski and Mirovic (2009);
Caputo, Gallo and Guizzi (2009); Chambers (1996); Chen et al. (2013);
Garcia-Sabater, Maheut and Garcia-Sabater (2012); Giacon and Mesquita (2011);
Hvolby and Steger-Jensen (2010); Jonsson, Kjellsdotter and Rudberg (2007);
McKay and Wiers (2003); Ou-Yang and Hon (2008); Öztürk and Ornek (2014);
Setia, Sambamurthy and Closs (2008); Steger-Jensen et al. (2011); Wiers
(2002); Wiers (2009) |
High processing speed |
Chambers (1996); Giacon and Mesquita
(2011) |
Creation of suitable production plans |
Chern and Yang (2011) |
Consideration of capacity constraints and
operating sequences |
Arsovski, Arsovski and Mirovic (2009); Chen
and Ji (2007); Hvolby and Steger-Jensen (2010); Neumann, Schwindt and
Trautmann (2002); Peng, Lu and Chen (2014); Rudberg and Thulin (2009); Setia,
Sambamurthy and Closs (2008); Zhong et al. (2013) |
Increase in operational profits |
Gen, Lin and Zhang (2009); Lee, Jeong and
Moon (2002) |
Reduction in inventory levels |
Chen, Huang and Lai (2009); Lee, Jeong and
Moon (2002); Villegas and Smith (2006) |
Quick reaction to exceptions and
variabilities |
Kung and Chern (2009) |
Increased customer satisfaction |
Steger-Jensen and Svensson (2004) |
Support to the following S&OP process:
forecast future demand, prepare preliminary delivery plan, prepare
preliminary production plan, adjust and settle delivery plan and production
plan. |
Ivert and Jonsson (2010) |
Jobs reprogramming |
Setia, Sambamurthy and Closs (2008) |
Evaluation of the profitability of different
alternatives for meeting the customers' requests |
Quante, Meyr and Fleischmann (2009) |
Possibilities for graphical depiction of the
resulting production schedules and quick access to additional information on
the schedule elements |
Brandenburg and Tölle (2009) |
Manual modification of existing production
schedules, especially for management by exceptions |
Brandenburg and Tölle (2009) |
Realistic and feasible delivery promises |
Chen et al. (2013) |
Facility of preventive maintenance
scheduling |
Chen et al. (2013) |
Better allocation of workload, resulting in
reduced overtime and outsourcing services |
Chen et al. (2013) |
4. CONCLUSIONS
This paper presented through a
literature review key concepts, structure, brief description of its integration
with other production planning and control systems, implementation process and
key benefits of APS systems for companies.
In recent times, with the great
transformations imposed by globalization, companies deal with increasingly
demanding markets in relation to cost, schedule, quality, reliability and
everything else that represents competitiveness. Their managers are constantly
pressured to get progressive gains.
The lack of alignment among the
various companies’ productive resources can cause confusion in production
schedules, which entails, among other problems, low productivity, low level of
service and loss of customers, with negative impacts on your finances.
Many of the traditional production
planning and control systems implemented in companies since the second half of
the twentieth century have failures in the operation, because disregard
capacity limits of production. APS systems represent a breakthrough for the
production planning and control of companies, because consider the various
constraints present in production processes.
It is possible for companies, that
with the use of APS systems, they achieve improvement in treatment to the
delivery deadlines, fines and special freights reduction, raw materials, WIP
and finished goods stocks reduction, production lead times reduction, better
care of customer requests, improvement in productivity and overall efficiency
of productive resources, purchases and hiring of outsourced services
rationalization.
This paper did not intend to exhaust
the issues raised here. His focus was directed to the conceptual analysis of
the theme studied in papers found. In spite of possessing some limitations,
this literature review aims to generate new knowledge and information through
by rescuing of gaps that have already been addressed in previous researches
(MARIANO; GUERRINI; REBELATTO, 2012). More detailed studies can be carried out
and contribute to the development of this theme, because according to Gil
(2008), exploratory researches constitute the first step of a broader
investigation.
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