1. Advanced Planning & Scheduling
Supply Chain
Management
07.12.2011

2. Agenda
APS
1. Introduction
2. Advanced Planning & Scheduling Systems (APS)
3. APS in the Pharmaceutical Industry
4. Conclusion
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3. Agenda
APS
1. Introduction
2. Advanced Planning & Scheduling Systems (APS)
3. APS in the Pharmaceutical Industry
4. Conclusion
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4. Planning & IT-Systems
APS
 Supply Chain planning directs the demand for quantities and
timing for every stage of the supply chain
 Aim is to achieve the target service level with minimal costs
 Planning consists of data administration and calculation
 Usually high usage of IT-Systems
Problems of Planning:
Problem 1: Demand fluctuates
Problem 2: Inventory Management
Problem 3: Actuality of data
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5. Development of SCM IT-Systems
APS
Material Requirements Planning (MRP)
 Developed in the 1970s as inventory control and production
planning systems
Manufacturing Resources Planning (MRPII)
 Is used to combine the material planning and the shop floor
with the business functions such as accounting and
purchasing
Enterprise Resource Planning (ERP)
 Developed in the 1990s
 Combined even more functions
 Should provide the same database for the whole company
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6. Development of APS
APS
Weaknesses of the old systems:
 Can’t consider capacities of extern partners and suppliers
 Limited opportunities to create, optimize, analyze
different scenarios
 ERP-Systems offer only low support in decision-making of
the future demand
Aims of APS:
 Resolve problems with ERP-Systems
 Improve MRP processes
 Apply more advanced technologies
 Better integrated Supply Chain Management
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7. Agenda
APS
1. Introduction
2. Advanced Planning & Scheduling Systems (APS)
3. APS in the Pharmaceutical Industry
4. Conclusion
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8. What is APS
APS
 An upgrade for MRP, MRP II and PPS-Systems
 Planning including the information of all members in a SC 
mitigation of Bullwhip-effect, lower inventories, enabling CPFR
 Best applicable for:
Make-To-Order manufacturing
Production with competing products
Products with high complexity
Manufacturing with frequent schedule changes by steady
changing market environment
Definition: „APS is a process manufacturers use to effectively meet
customer demand. The process involves producing customer
demand forecasts and using them to set optimal material and
production levels”
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9. How does APS work?
APS
 Suits as an tool-kit to the current ERP-Systems or as complete
SW package ERP+APS available
APS does not replace but complements the ERP-Systems!
 Creates the optimal production plans under restriction of resource
availability and production capacity constraints of each SC stage
 Analyses and estimates different scenarios to identify and to
prevent possible bottlenecks on time
 Linear programming with advanced mathematical formulas
(f.i. branch-and-cut)
 Comprises several modules (functional groups) according to the
SCP-Matrix
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10. Structure of APS/ SCP-Matrix
APS
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11. Comparison to former planning systems
APS
Traditional PPS-Systems (APS)
Strong based on fixed given Implicating resource
Planning primary demand for finished availability and
based on: products  exclusive Top- production capacity
Down coordination of SC stages
Decision Rather mid- and
Operative decisions
interval long-therm decisions
Supply Chain
SCM- Supply Chain Execution (SCE)
Planning (SCP)
Software systems
systems
Operational
internal whole supply chain
range
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12. APS-Systems on the market
APS
Selected vendors of APS-Systems with full range of
APS-modules:
SAP advanced planner & optimizer
Wassermann
DynaSys
MAPICS APS for SyteLine
Agilsys APS
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13. Agenda
APS
1. Introduction
2. Advanced Planning & Scheduling Systems (APS)
3. APS in the Pharmaceutical Industry
4. Conclusion
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14. APS-Systems: Pharmaceutical Industry
APS
Overview:
 Three main levels of the supply chain:
Suppliers: chemical plants, production ingredients
Producers: manufacturing plants
Customers: marketing affiliates, wholesalers, e.g
 Distribution Centers located closely to the production sites
 Direct shipment of the finished goods from the Distribution
Centers to the customers
 Relative insignificance of the distribution system
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15. Pharmaceutical Supply Chain
APS
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16. APS-Systems: Pharmaceutical Industry
APS
Initial Situation:
 Local organisations instead of integrated company
 Separate local ERP-Systems
 Low data integration / information sharing
 No central supply chain network planning
 Massive manual production planning
 Sub-optimal capacity utilisation
 No central statistical forecasting system
 Absence of common Key Performance Indicators
 No clear vision of the complete demand and supply
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17. APS-Systems: Pharmaceutical Industry
APS
Introduction of APS
 Collaborative capacity scheduling and master planning
improved resource utilisation, reduced inventories,
better investment planning
 Collaborative demand planning and usage of common data
proactive demand stabilisation
 Consolidation of IT-Systems and standardization
reduced IT costs
 Faster information flow within the supply chain
improved decision-making
 Reduced administrative workload
 Integrated company
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18. Agenda
APS
1. Introduction
2. Advanced Planning & Scheduling Systems (APS)
3. APS in the Pharmaceutical Industry
4. Conclusion
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19. Benefits of APS
APS
 Fast reaction to market changes (almost in real-time)
 Simultaneous planning
activities can be processed concurrently
 Improved throughput and delivery times
 Optimum inventory level
 Improved customer service level
 Cost reduction
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20. Disadvantages of APS
APS
 It doesn t replace other systems (just additional)
 Implicates a higher dependency in the supply chain
 Transparency of the cost calculation increases
 Supply Chain can t be improved just with implementation
Employees must be well-trained to ensure data quality
and fluent process of APS
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21. Conclusion
APS
Traditional Systems APS-Systems
• Unit cost oriented • Total cost oriented
• Capacity oriented • Work load & market oriented
• Inflexible work time (no short- • Flexible work time
term capacity increase) • Polyvalent employees
• Uniliteral qualified employees • Cross-functional &
• Functional work style process oriented
• No fluent material flow • Continious material flow
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22. Thank you for your attention!

23. Group Discussion
APS
Automotive Oil industry
Make-To-Order
manufacturing
Production with competing
products
Products with high
complexity
Manufacturing with frequent
schedule changes by steady
changing market enviroment
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