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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 FandelOctober 10th, 2013
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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