Taking
a Balanced Approach to APS
Many companies have dramatically improved
performance by leveraging Advanced Planning Systems (APS). Successful companies
use a balanced approach by focusing on Strategy, Process, and Technology. They
invest in education and training so the users of these sophisticated tools have
a deep understanding on how the three aspects of a balanced approach impact the
successful implementation and utilization of APS.
A Balanced Approach to APS
Achieving
the strong ROI available from investments in APS requires that education and
training covers:
- Strategy: Many companies will
target operational excellence and seek to create a competitive advantage
in terms of Service, Cost, or Flexibility. Highly successful companies
have a clear understanding of their strategy and this is communicated
through-out the organization. In addition, there are often other
synergistic initiatives such as the implementation of Lean Manufacturing,
the conversion to a Make-To-Order business model, or the adoption of
6-sigma improvement techniques. The successful implementation of an APS
will require the thoughtful configuration of the tool to support the
company strategy, business objectives, and complement other improvement
initiatives.
- Process: The business processes for Planning
and Scheduling are often undocumented and not managed with the same level
of intensity as other areas. Achieving world class levels of performance
requires consistent execution leveraging defined and integrated processes
for Detailed Scheduling, Master Scheduling, Demand Forecasting, Inventory
Planning, Order Management, and other critical business processes. While
an APS will typically support the Detailed Scheduling process and provide
the Available-To-Promise, the biggest benefits will derive from
individuals understanding the integrated end-to-end planning and execution
processes.
- Technology: An APS involves very complex
software and requires very large amounts of data. Users of these tools
need to understand how they operate and how to track down and resolve
discrepancies. An implementation based upon the tool becoming a “black
box” that is not understood is doomed to failure. Changing business
conditions and data integrity issues with soon turn the powerful
exception-based action items into millions of false recommendations that
are ignored. The typical company needs to train all users in the operation
and trouble shooting of the tool and also provide intensive education for
one or two super-users.
The balanced approach to the
implementation and utilization of an APS will significantly improve the ROI.
The initial implementation plan should be designed to provide the critical
education sessions at the right time during the installation and configuration
of the tool. This will enhance knowledge transfer to the user community and
speed the progress to achieving the benefits.