Faculty of Economics
Transfer of Decision Concepts to Enterprise
Resource Planning
Prof. Dr. Dr. h. c. Günter Fandel
October 10th, 2013
University of Hagen,
Center for Production Economics and Decision Support
Faculty of Economics
Agenda
1.
2.
3.
4.
5.
6.
7.
8.
9.
Structure of PPS-Systems
Implementing OR-Research in Practice
Implemented Forecasting Methods
Consumption Based Material Planning
Bill of Materials Break-up Methods
Single Step Lot-Size Methods
Implemented Methods of Net Plan Techniques
Capacity Planning Methods
Simple Priority Rules
Slide 2
Oct. 10th, 2013
Prof. Dr. Dr. h. c. Günter Fandel
University of Hagen,
Center for Production Economics and Decision Support
Faculty of Economics
1. Structure of PPS-Systems
Program Planning
Materials Requirement Planning
Data Processing System
Process Times Planning
•
Hardware
Capacity Planning
•
Software
Delivery of Jobs
•
•
•
Database
Model Base
Method Base
Scheduling
no
Results Satisfactory?
yes
Process Data Control
Slide 3
Oct. 10th, 2013
Prof. Dr. Dr. h. c. Günter Fandel
University of Hagen,
Center for Production Economics and Decision Support
Faculty of Economics
1. Structure of PPS-Systems
Program Planning
Data Inputs
•
•
•
•
Customer Order
End Product Quantities of
the Last Periods
Marginal Rate of Profit
Maximum Sales Quantity
Data Processing
•
•
Forecasting
Optimization
Data Outputs
•
Slide 4
Quantities
• End Products
• Components
Oct. 10th, 2013
Prof. Dr. Dr. h. c. Günter Fandel
University of Hagen,
Center for Production Economics and Decision Support
Faculty of Economics
1. Structure of PPS-Systems
Materials Requirement Planning
Data Inputs
•
•
•
•
•
End Product Quantities
Stocks
Bill of Materials
Set-up Costs
Inventory Costs
Data Processing
•
•
Data Outputs
•
•
Slide 5
Materials Requirement
Planning
Economic Order Quantities
Planning
Economic Order Quantities
Jobs
Oct. 10th, 2013
Prof. Dr. Dr. h. c. Günter Fandel
University of Hagen,
Center for Production Economics and Decision Support
Faculty of Economics
1. Structure of PPS-Systems
Process Times Planning
Data Inputs
•
•
•
•
Jobs
Delivery Dates
Processing Steps
Processing Times
Data Processing
•
•
Net Plan Technique
Reducing Processing
Times
Data Outputs
•
•
•
Slide 6
Jobs Feasible with
Respect to Delivery Date
Earliest Start of Production
Latest End of Production
Oct. 10th, 2013
Prof. Dr. Dr. h. c. Günter Fandel
University of Hagen,
Center for Production Economics and Decision Support
Faculty of Economics
1. Structure of PPS-Systems
Capacity Planning
Data Inputs
• 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 Processing
•
•
Adaption of Capacities
Adaption of Usage
Data Outputs
• Jobs Feasible with Respect to
Delivery Dates and Capacities
Slide 7
Oct. 10th, 2013
Prof. Dr. Dr. h. c. Günter Fandel
University of Hagen,
Center for Production Economics and Decision Support
Faculty of Economics
1. Structure of PPS-Systems
Delivery of Jobs
Data Inputs
•
•
•
•
•
Jobs
Projected Lead Times
Capacities
Availability of Materials
Availability of Personnel
Data Processing
•
•
Controlling of Availability
Heuristics
Data Outputs
•
•
Slide 8
Accepted Jobs
Postponed jobs
Oct. 10th, 2013
Prof. Dr. Dr. h. c. Günter Fandel
University of Hagen,
Center for Production Economics and Decision Support
Faculty of Economics
1. Structure of PPS-Systems
Scheduling
Data Inputs
•
•
•
Accepted Jobs
Job Information
Capacity Restrictions
Data Processing
•
•
•
Analytical Methods
Priority Rules
Expert Systems
Data Outputs
•
•
Slide 9
Capacity Usage
Working Sheets
Oct. 10th, 2013
Prof. Dr. Dr. h. c. Günter Fandel
University of Hagen,
Center for Production Economics and Decision Support
Faculty of Economics
1. Structure of PPS-Systems
Process Data Control
Data Inputs
•
•
Target Data
Actual Data
Data Processing
•
•
•
Target-Actual Comparison
Deviation Analysis
Activities of Improvement
Data Outputs
•
•
Slide 10
Control Data
Improving of Processing
Oct. 10th, 2013
Prof. Dr. Dr. h. c. Günter Fandel
University of Hagen,
Center for Production Economics and Decision Support
Faculty of Economics
2. Implementing OR-Research in Practice
ERP
CIMS
PPS
BA
DBS
Slide 11
Oct. 10th, 2013
Prof. Dr. Dr. h. c. Günter Fandel
OR
INF
University of Hagen,
Center for Production Economics and Decision Support
Faculty of Economics
3. Implemented Forecasting Methods
200
150
100
50
120
111
103
54
31
8
32
50
simple
average
moving
average
exponential
smoothing
1. order
exponential
smoothing
2. order
linear
regression
model of
Winters
others
not
implemented
0
Slide 12
Oct. 10th, 2013
Prof. Dr. Dr. h. c. Günter Fandel
University of Hagen,
Center for Production Economics and Decision Support
Faculty of Economics
4. Consumption Based Material Planning
200
150
100
50
128
190
126
91
122
38
1
12
0
forecasting
method
Slide 13
point of order order rythym
method
method
Oct. 10th, 2013
all methods point of order point of order order rythym
not
and order
method only method only implemented
rythym
method
Prof. Dr. Dr. h. c. Günter Fandel
University of Hagen,
Center for Production Economics and Decision Support
Faculty of Economics
5. Bill of Materials Break-up Methods
200
150
100
50
22
11
153
178
18
14
10
renetting
method
others
not
implemented
0
gozinto method matrix method fabrication step disposition step
method
method
Slide 14
Oct. 10th, 2013
Prof. Dr. Dr. h. c. Günter Fandel
University of Hagen,
Center for Production Economics and Decision Support
Faculty of Economics
6. Single Step Lot-Size Methods
200
150
100
50
58
7
58
19
0
2
68
Harris-Andler
method
Wagner-Whitin
method
unit-cost
method
balancing-cost
method
Silver-Meal
method
Groff
method
specific
range
0
Slide 15
Oct. 10th, 2013
Prof. Dr. Dr. h. c. Günter Fandel
University of Hagen,
Center for Production Economics and Decision Support
Faculty of Economics
7. Implemented Methods of Net Plan Techniques
200
150
100
50
183
189
109
105
forward scheduling
backwards scheduling
calculation of buffering times
focal point scheduling
0
Slide 16
Oct. 10th, 2013
Prof. Dr. Dr. h. c. Günter Fandel
University of Hagen,
Center for Production Economics and Decision Support
Faculty of Economics
8. Capacity Planning Methods
200
150
100
50
199
111
28
141
22
34
19
48
simulation
capacity
planning
heuristic
usage of
costing
information
others
not
implemented
0
through user
Slide 17
usage of
linear
buffering time optimization
Oct. 10th, 2013
Prof. Dr. Dr. h. c. Günter Fandel
University of Hagen,
Center for Production Economics and Decision Support
Faculty of Economics
9. Simple Priority Rules
200
150
100
50
133
49
42
32
23
15
124
16
0
First in
first out
(FIFO)
Slide 18
First come
shortest
longest
residual
number of earlierst date
first served operation time operation time operation time
residual
of completion
(FCFS)
operationes
Oct. 10th, 2013
Prof. Dr. Dr. h. c. Günter Fandel
SLACK
University of Hagen,
Center for Production Economics and Decision Support
Faculty of Economics
Thank you for your attention!
Slide 19
Oct. 10th, 2013
Prof. Dr. Dr. h. c. Günter Fandel
University of Hagen,
Center for Production Economics and Decision Support