Advanced Planning &
Scheduling (APS)
Presentation to Semtech
By David Malmberg
Topics for Discussion
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Advanced Planning & Scheduling (APS) – a
Definition
Evolution of APS Technology
APS Capabilities “Umbrella”
Planning vs. Execution Systems
Issues to Consider before Selecting and
Implementing an APS
Leading APS Solution Providers
June 6, 2002
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APS – a Definition
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Software which assists in managing the match
between customer demand and product supply
APS features/functions vary greatly among software
solution suppliers
APS is typically “bolted-on” to ERP and/or other legacy
systems
Benefits include:
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Faster cycle times
Reduced inventory
Improved delivery performance
Increased profitability
Typical APS Benefits
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Faster cycle/throughput times (e.g., 25-50%)
Reduced inventory (e.g., 25-50% WIP
reduction)
Improved delivery performance (e.g., “perfect
order” delivery improvements as high as 90%)
Increased profitability (e.g., significant volume
and margin gains)
Specific Examples of Benefits
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Gullistan Carpet cuts its inventory by more than 30%
A magazine publisher reduced its returns (unsold magazines by
40%) while reducing its out-of-stocks by 30%
Rexam Packaging cuts its average manufacturing cycle time by
50%
Avex Electronics reduced WIP by 50% and doubled its total
inventory turns
CNT realized 59,000 man-hours of productivity improvement which
represented a $2.9 million savings during the first 12 months after
implementation
SalesLink experienced a “significant reduction in inventory while
virtually eliminating material shortages”
Titlest reduced its manufacturing throughput time from 12 days to
less than 5 enabling it to offer 2-day guaranteed service to its
customers
Manufacturing Planning Activities
Procurement
Production
Distribution
Long
-term
Materials programs
Supplier selection
Vendor Management
Plant location
Production system
Physical Distribution
Structure
Mid
-term
Materials Planning
Contracts
Master Production
Scheduling
Capacity Planning
Short
-term
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Ordering Materials
Machine Scheduling
Lot-Sizing
Shop Floor Control
Distribution
Planning
Warehouse
Replenishment
Transportation
Planning
Sales
Product Program
Strategic Sales
Planning
Mid-term
Forecasting &
Sales Planning
Short-term
Forecasting &
Sales Planning
Manufacturing Software Modules
Procurement
Long
-term
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Distribution
Sales
Strategic Network Planning
Mid
-term
Short
-term
Production
Master Planning
Material
Requirements
Planning
(MRP or ERP)
Production
Planning
Scheduling
Distribution
Planning
Transportation
Planning
Forecasting
&
Demand
Planning
Demand
Fulfillment
&
ATP
Manufacturing Software Modules
Procurement
Long
-term
Distribution
Master Planning
Material
Requirements
Planning
(MRP or ERP)
Production
Planning
Scheduling
Distribution
Planning
Transportation
Planning
Typical APS Modules/Functions
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Sales
Strategic Network Planning
Mid
-term
Short
-term
Production
Forecasting
&
Demand
Planning
Demand
Fulfillment
&
ATP
Key Differences between ERP and APS
ERP
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Little planning or decision
support capability
Planning cycle is typically
weekly or longer
No capacity constraints
Fixed lead-times are input to
process
No modeling
Generates “feasible” production
schedule
Focuses on forecasts
Normally - make-to-stock
No easy way to determine ATP,
CTP and/or PTP
APS
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Rich in planning and decision
support capability
Planning cycle is typically
minutes
Capacity constraints
Variable lead-times are output
from process
Modeling/simulation
Generates “optimal” production
schedule
Focuses on actual demand
Normally - make-to-order
ATP, CTP and PTP
Evolution of APS Technology
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What do I need?
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Can I make it?
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Consider material and/or manufacturing constraints
(i.e., more accurate plans)
Concurrent materials and resource planning and
scheduling
Can I make and distribute it?
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Forecasting and MRP
Consider distribution constraints (replaces DRP)
Concurrent manufacturing and distribution
planning/scheduling
Evolution of APS Technology
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What should I make?
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What should the whole supply chain make and
sell?
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Full planning/scheduling suites (including webbased)
Synchronized plans (across functions)
Availability, Capability and Profitability-to-Promise
Alerts and exception management
Joint planning among trading partners
Full instantaneous supply chain information sharing
Synchronized inter-enterprise operations
APS Capabilities “Umbrella”
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Supply Chain network design
Demand planning/forecasting
Sales and operational planning
Inventory planning
Ability-to-promise (Should we take the order?)
Distribution and transportation planning
Production scheduling
Shipment scheduling
Constrained simulation and/or optimization
Alerts and exception management
Inter-company collaboration and CPFR
Planning vs. Execution Systems
Planning
Level
Supply Chain Visibility
Order Management
Warehouse Management
Operational
Supply Chain
Execution
Transportation Mgmt
Intl Trade Logistics
Supply Chain
Planning
Inventory Management
Production Scheduling
Manufacturing Planning
Distribution Planning
Tactical
Supply Planning
Supply Chain Collaboration
Demand Forecasting & Planning
Supply Chain Network Design
Strategic
Seconds/
Minutes
Hours/
Days
Weeks/
Months
Quarters
Years
Time Horizon
Source: AMR Research
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Issues to Consider before Selecting and
Implementing an APS
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What specific problems are you trying to solve?
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Which APS solution supplier is best for you?
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Is an ASP the best solution?
What APS capabilities under the “umbrella” are most important?
How important are these issues/problems to your customers?
Are you willing to commit the resources required for a successful
implementation?
Best fit with your and your customers’ needs
Features and functionality appropriate for your company and
your industry
Compatibility with legacy systems and future system plans
Track record of implementation success and on-going support
Leading APS Solution Providers
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Adexa
Aroon
Blinco
CAPS
Catalyst
Demand Management
Dementa
GLog
i2
IMI
Intentia
JDA
J. D. Edwards
Logility
Manugistics
MARC
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Source: Gartner Group and CGR, 2002
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McHugh
Mercia
Peoplesoft
Planalytics
Prescient
QAD
QRS
SAP
SCT
Smart/Ops
Swisslog
Syncra
Synquest
Tecsys
Veratile
Vertical Net