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University of Hagen, Center for Production Economics and Decision Support Faculty of Economics Transfer of Decision Concepts to Enterprise Resource Planning Prof. Dr. Dr. h. c. Günter Fandel October 10th, 2013

Transfer of Decision Concepts to Enterprise Resource Planning

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Transfer of Decision Concepts to Enterprise Resource Planning. Prof. Dr. Dr. h. c. Günter Fandel October 10th, 2013. Agenda. Structure of PPS-Systems Implementing OR-Research in Practice Implemented Forecasting Methods Consumption Based Material Planning - PowerPoint PPT Presentation

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Page 1: Transfer  of Decision Concepts to  Enterprise  Resource Planning

University of Hagen, Center for Production Economics and Decision Support

Faculty of Economics

Transfer of Decision Concepts to Enterprise Resource Planning

Prof. Dr. Dr. h. c. Günter FandelOctober 10th, 2013

Page 2: Transfer  of Decision Concepts to  Enterprise  Resource Planning

Faculty of Economics

Prof. Dr. Dr. h. c. Günter Fandel

Oct. 10th, 2013

University of Hagen, Center for Production Economics and Decision Support

Slide 2

Agenda

1. Structure of PPS-Systems2. Implementing OR-Research in Practice3. Implemented Forecasting Methods4. Consumption Based Material Planning5. Bill of Materials Break-up Methods6. Single Step Lot-Size Methods7. Implemented Methods of Net Plan Techniques8. Capacity Planning Methods9. Simple Priority Rules

Page 3: Transfer  of Decision Concepts to  Enterprise  Resource Planning

Faculty of Economics

Prof. Dr. Dr. h. c. Günter Fandel

University of Hagen, Center for Production Economics and Decision Support

Slide 3

1. Structure of PPS-Systems

Oct. 10th, 2013

Data Processing System

• Hardware

• Software• Database• Model Base• Method Base

Program Planning

Materials Requirement Planning

Process Times Planning

Capacity Planning

Delivery of Jobs

Scheduling

Process Data Control

Results Satisfactory?

yes

no

Page 4: Transfer  of Decision Concepts to  Enterprise  Resource Planning

Faculty of Economics

Prof. Dr. Dr. h. c. Günter Fandel

University of Hagen, Center for Production Economics and Decision Support

Slide 4

1. Structure of PPS-Systems

Oct. 10th, 2013

Program Planning

• Customer Order• End Product Quantities

of the Last Periods• Marginal Rate of Profit• Maximum Sales

Quantity

Data Inputs

• Quantities• End Products• Components

Data Outputs

• Forecasting• Optimization

Data Processing

Page 5: Transfer  of Decision Concepts to  Enterprise  Resource Planning

Faculty of Economics

Prof. Dr. Dr. h. c. Günter Fandel

University of Hagen, Center for Production Economics and Decision Support

Slide 5

1. Structure of PPS-Systems

Oct. 10th, 2013

Materials Requirement Planning

• End Product Quantities• Stocks• Bill of Materials• Set-up Costs• Inventory Costs

Data Inputs

• Economic Order Quantities

• Jobs

Data Outputs

• Materials Requirement Planning

• Economic Order Quantities Planning

Data Processing

Page 6: Transfer  of Decision Concepts to  Enterprise  Resource Planning

Faculty of Economics

Prof. Dr. Dr. h. c. Günter Fandel

University of Hagen, Center for Production Economics and Decision Support

Slide 6

1. Structure of PPS-Systems

Oct. 10th, 2013

Process Times Planning

• Jobs• Delivery Dates• Processing Steps• Processing Times

Data Inputs

• Jobs Feasible with Respect to Delivery Date

• Earliest Start of Production

• Latest End of Production

Data Outputs

• Net Plan Technique• Reducing Processing

Times

Data Processing

Page 7: Transfer  of Decision Concepts to  Enterprise  Resource Planning

Faculty of Economics

Prof. Dr. Dr. h. c. Günter Fandel

University of Hagen, Center for Production Economics and Decision Support

Slide 7

1. Structure of PPS-Systems

Oct. 10th, 2013

Capacity Planning

• Jobs Feasible with Respect to Delivery Date

• Earliest Start of Production• Latest End of Production• Processing Steps• Available Machineries• Capacity Restrictions• Set up Times• Occupancy Time of

Machines

Data Inputs

• Jobs Feasible with Respect to Delivery Dates and Capacities

Data Outputs

• Adaption of Capacities• Adaption of Usage

Data Processing

Page 8: Transfer  of Decision Concepts to  Enterprise  Resource Planning

Faculty of Economics

Prof. Dr. Dr. h. c. Günter Fandel

University of Hagen, Center for Production Economics and Decision Support

Slide 8

1. Structure of PPS-Systems

Oct. 10th, 2013

Delivery of Jobs

• Jobs• Projected Lead Times• Capacities• Availability of Materials• Availability of Personnel

Data Inputs

• Accepted Jobs• Postponed jobs

Data Outputs

• Controlling of Availability

• Heuristics

Data Processing

Page 9: Transfer  of Decision Concepts to  Enterprise  Resource Planning

Faculty of Economics

Prof. Dr. Dr. h. c. Günter Fandel

University of Hagen, Center for Production Economics and Decision Support

Slide 9

1. Structure of PPS-Systems

Oct. 10th, 2013

Scheduling

• Accepted Jobs• Job Information• Capacity Restrictions

Data Inputs

• Capacity Usage• Working Sheets

Data Outputs

• Analytical Methods• Priority Rules• Expert Systems

Data Processing

Page 10: Transfer  of Decision Concepts to  Enterprise  Resource Planning

Faculty of Economics

Prof. Dr. Dr. h. c. Günter Fandel

University of Hagen, Center for Production Economics and Decision Support

Slide 10

1. Structure of PPS-Systems

Oct. 10th, 2013

Process Data Control

• Target Data• Actual Data

Data Inputs

• Control Data• Improving of Processing

Data Outputs

• Target-Actual Comparison

• Deviation Analysis• Activities of

Improvement

Data Processing

Page 11: Transfer  of Decision Concepts to  Enterprise  Resource Planning

Faculty of Economics

Prof. Dr. Dr. h. c. Günter Fandel

University of Hagen, Center for Production Economics and Decision Support

Slide 11

2. Implementing OR-Research in Practice

Oct. 10th, 2013

ERP

DBS

CIMS

PPS

BA OR

INF

Page 12: Transfer  of Decision Concepts to  Enterprise  Resource Planning

Faculty of Economics

Prof. Dr. Dr. h. c. Günter Fandel

University of Hagen, Center for Production Economics and Decision Support

Slide 12 Oct. 10th, 2013

simple average

moving average

exponential smoothing1. order

exponential smoothing2. order

linear regres-

sion

model of Winters

others not im-ple-

mented

0

50

100

150

200

120 111 103 54 31 8 32 50

3. Implemented Forecasting Methods

Page 13: Transfer  of Decision Concepts to  Enterprise  Resource Planning

Faculty of Economics

Prof. Dr. Dr. h. c. Günter Fandel

forecasting method

point of or-der method

order ry-thym

method

all methods point of order and order ry-

thym method

point of or-der method

only

order ry-thym

method only

not im-ple-

mented

0

50

100

150

200

128 190 126 91 122 38 1 12

University of Hagen, Center for Production Economics and Decision Support

Slide 13

4. Consumption Based Material Planning

Oct. 10th, 2013

Page 14: Transfer  of Decision Concepts to  Enterprise  Resource Planning

Faculty of Economics

Prof. Dr. Dr. h. c. Günter Fandel

gozinto method

matrix method

fabrication step method

disposition step method

renetting method

others not im-ple-

mented

0

50

100

150

200

22 11 153 178 18 14 10

University of Hagen, Center for Production Economics and Decision Support

Slide 14

5. Bill of Materials Break-up Methods

Oct. 10th, 2013

Page 15: Transfer  of Decision Concepts to  Enterprise  Resource Planning

Faculty of Economics

Prof. Dr. Dr. h. c. Günter Fandel

Harris-Andlermethod

Wagner-Whitin

method

unit-costmethod

balancing-cost

method

Silver-Mealmethod

Groffmethod

specificrange

0

50

100

150

200

58 7 58 19 0 2 68

University of Hagen, Center for Production Economics and Decision Support

Slide 15

6. Single Step Lot-Size Methods

Oct. 10th, 2013

Page 16: Transfer  of Decision Concepts to  Enterprise  Resource Planning

Faculty of Economics

Prof. Dr. Dr. h. c. Günter Fandel

forward scheduling backwards scheduling calculation of buffering times

focal point scheduling0

50

100

150

200

183 189 109 105

University of Hagen, Center for Production Economics and Decision Support

Slide 16

7. Implemented Methods of Net Plan Techniques

Oct. 10th, 2013

Page 17: Transfer  of Decision Concepts to  Enterprise  Resource Planning

Faculty of Economics

Prof. Dr. Dr. h. c. Günter Fandel

through user

usage of buffering

time

linear op-timization

simulation capacity planning heuristic

usage of costing in-formation

others not im-ple-

mented

0

50

100

150

200

199 111 28 141 22 34 19 48

University of Hagen, Center for Production Economics and Decision Support

Slide 17

8. Capacity Planning Methods

Oct. 10th, 2013

Page 18: Transfer  of Decision Concepts to  Enterprise  Resource Planning

Faculty of Economics

Prof. Dr. Dr. h. c. Günter Fandel

First in first out(FIFO)

First comefirst served

(FCFS)

shortest operation

time

longest operation

time

residual operation

time

number of residual

operationes

earlierst date of

completion

SLACK0

50

100

150

200

133 49 42 32 23 15 124 16

University of Hagen, Center for Production Economics and Decision Support

Slide 18

9. Simple Priority Rules

Oct. 10th, 2013

Page 19: Transfer  of Decision Concepts to  Enterprise  Resource Planning

Faculty of Economics

Prof. Dr. Dr. h. c. Günter Fandel

University of Hagen, Center for Production Economics and Decision Support

Slide 19

Thank you for your attention!

Oct. 10th, 2013