BOAP 0 Introduction

TUM School of Management Technische Universität München
Basics of Advanced Planning and Supply

Chain Management
Introduction
Prof. Dr. Martin Grunow

Mirko Beißner
Today’s program
• Who are we?
• Who are you?
• Overview of the course
• Overview of Production Planning and Control

Prof. Dr. Martin Grunow

Background:
• From 2010: Professor in Production and Supply Chain

Management at TUM School of Management
• Earlier positions at Technical University of Denmark, Technical

University of Berlin and at Degussa AG in Hanau
Research:
• Supply Chain Management
• Operations Management
• Production Planning and Control
Mirko Beißner
Background:
Since 09/2017 Ph.D. student
Technische Universität München (TUM)
02/2014 – 06/2017 Strategy consultant in Operations & Healthcare
PwC Strategy&, Germany
10/2010 – 12/2013 Master of Industrial Biotechnology
TUM & University of Illinois
10/2007 – 09/2010 B.Sc. in Molecular Biotechnology
TUM
Research:
• Supply chain design & planning
• Mathematical modelling & optimization
• Pharmaceutical & biotechnology industry
Who are you?

Who should attend?
• Interest in practical problems of
production planning, scheduling and logistics
• Interest in industrial application of advanced planning systems
• Quantitative modeling of business problems
What do we expect?
• Familiarity with basic OR techniques
• Knowledge on basic production management
• Basic command of computer programming, incl. mathematical
modeling (e.g. CPLEX)
Bachelor courses at our chair
Produktionsmanagement
Basics of Advanced Modeling, Optimization Sales and Operations Cases in Lean Production
Planning and Supply and Simulation Planning in the
Chain Management Automotive Industry
Projektstudium BSc thesis

(requires one other
course from OSCM)
Master / PhD courses at our chair

Advanced Planning in Designing and Scheduling
Supply Chains - Lean Manufacturing
Illustrating the Concepts Systems
Using an SAP APO Case
Seminars in Production Automotive production Electronics manufacturing Process industries

and Supply Chain
Management
Advanced Topics in Supply Chain Risk Quality Management Retail Operations

Operations and Supply Management
Chain Management
PhD Seminars in Supply Chain Planning in

Production and Supply the Process Industries
Chain Management
Core data and assessment
Class schedule: Winter semester 2018/19

Class: Thursday, 9:45-13:00
Period: 18.10.2018 – 07.02.2019
Written exam: 07.02.2019, 10:15-11:45, Room 2370
Evaluation: Written examination at the end of semester (75%)
and (group) case work (25%)
3 students per group
Lecture room: 0534
Literature
Main content:
– Lecture notes
Background reading:
– Journal articles
– Books, a.o.:
• Chopra, S., Meindl, P. (2016). Supply chain management: Strategy,
planning, and operation. 6th ed., Upper Saddle River, N.J., Pearson
Prentice Hall.
• Stadtler, H., Kilger, C. (eds.) (2015). Supply chain management and
advanced planning. 5th ed., Berlin: Springer.
Production Management
Globalization
Operations
Research
Supply Chain Management
IT-Support for Production

Logi- Production Computer Management and Logistics
stics Management Science
– ERP-Systems (e.g. SAP R/3)
– Tools for Simulation
and Optimization
Engineering
Advanced Planning Systems (e.g.
SAP APO)
This is what it is all about…

Overview of the content of advanced planning systems, but also represents all decisions
Procurement Production Distribution Sales
long-term Strategic Network Design
Demand
mid-term Planning
Supply Network Planning
Production Transportation
External Planning / Planning /
short-term Order
Procurement Detailed Vehicle Fulfilment
Scheduling Scheduling and
ATP / CTP
Source: Stadtler and Kilger (2008)

Preliminary Schedule (1/2)

Date Topic Notes Lecturer
Introduction / Production planning and control
18.10.2018 Martin Grunow
systems (Data Mgmt., Master Prod. Scheduling)
Handout of
25.10.2018 Material Requirements Planning Martin Grunow
assignment 1
01.11.2018 All Saint’s Day – No lecture
Scheduling / Order Release / Production Activity

Control
Introduction to APS Submission of
15.11.2018 Mirko Beißner
Strategic Network Design / Planning assignment 1
Discussion of
22.11.2018 Strategic Network Design / Planning Martin Grunow
assignment 1
Handout of
29.11.2018 Demand Planning Mirko Beißner
assignment 2
06.12.2018 Dies academicus – No lecture

Preliminary Schedule (2/2)

Date Topic Notes Lecturer
Supply Network Planning (SNP) Submission of
13.12.2018 Mirko Beißner
Production Planning and Detailed Scheduling (PPDS) assignment 2
Discussion of
assignment 2 &
20.12.2018 Production Planning and Detailed Scheduling (PPDS) Mirko Beißner
Handout of
assignment 3
Reinhard Hübner
10.01.2019 Industry guest lecture
(Guest lecture)
17.01.2019 Production Planning and Detailed Scheduling (PPDS) Mirko Beißner
Available to Promise and Deployment / Submission of

Transportation Planning assignment 3
Discussion of
31.01.2019 Vehicle Scheduling (+ Teaching Evaluation) TBD
assignment 3
10:15-11:45
07.02.2019 Exam
Room: 2370
Lecture numbers divided into planning areas
Procurement Production Distribution Sales
long-term Strategic Network

5. Strategic NetworkDesign
Design
6.
Demand
mid-term Supply Network
Demand
Planning
7. Supply NetworkPlanning
Planning
Planning
Production 10.
Transportation
External Planning
1, 2, 3 / Transportation
Planning /
short-term
Procurement Detailed planning
Vehicleand 9.Order
Order
and 8 Fulfilment
Scheduling vehicle
Scheduling fulfilment
and
scheduling & ATP
ATP / CTP
Source: Stadtler and Kilger (2008)

Fundamentals of Production Planning and Control

Functional Building Blocks of PPC Systems

e.g. material requirements planning and lot sizing
e.g. bottleneck scheduling
560
380
Master
production 140 160
Rüsten und Lagern
schedule
1 2 3 4
100 100 100 100
T+1
10 10 30 15
Bills of MRP Inventory 220
Rüsten
material explosion status 340
Time-phased
Time-phased
requirements for 1 2 3 4 5 Pre-bottleneck
requirements
sub-assemblies, for
sub-assemblies,
components and 1 2 3 4 5 Bottleneck
components
raw materialsand
raw materials 1 2 3 4 5 Post-bottleneck
Time
Advanced Planning Systems
strategic tactical operative
Advanced Planning System PPC System
Production
Produktionsplanung
Planning Order
Detailed
Feinplanung
Scheduling Processing:
Ordering
Network Retrieval
Strategische
Strategic
Planning Transport Planning Production
Planung
Planning
Distribution
Distributionsplanung
Planning Distribution
Storage
Sales and Demand Planning GlobaleGlobal Availability Check
Verfügbarbeitsprüfung
hour
day
week
month
year
Planning Periods

Strategic Planning
Demand Planning
Supply Network Planning
70.0
Exp.Sm. (0,5)
Berlin
Brüssel
60.0
Demand
Budapest
50.0
Genua
Exp.Sm. (0,2)
Barcelona
40.0
30.0
1 2 3 4 5 6 7 8 9 10 11 12
Distribution Center Transportation Lane
Plant Preferred Transportation Lane


Production Planning and Detailed Scheduling
Available to Promise and Deployment
30 100 Customer Order

/End Item Rule 2
Transport
Order 30 100 Rule 1
20 Surplus
30 50 30
50 50 50 (+20)
PPM Explosion
Production
Order 50 50 50
50 30 20 50
80 80 (+10)
Purchasing
Alternative
Order
Locations
Alternative Products

Transportation Planning
Tour Scheduling
Warehouse
Warehouse
Plant
i j i j
Warehouse
Warehouse
Warehouse
0 0
Plant
Planning levels
Decision Level
Lego coordinate product efforts toward

Christmas sales
BMW decides which sites should produce the
BMW 3 -series
Finding a new 3PL for handling outbound
logistics
Sequencing production orders on a bottleneck
machine
An automobile producer establishes a sourcing
contract with a supplier
A VMI contract is closed with a key customer
Planning levels
Decision Level
Siemens decides to produce mobile phones to

be sold on the German market in their plants in
China
UPS plans their daily delivery of parcels
“How many parts to make at once?”
Another supplier is added for reducing supply risk
Procter & Gamble changes from forecast driven

production orders to a “produce-on-demand”
policy in one of its German plants.
Contact
E-Mail: mirko.beissner@tum.de
Webpage: www.scm.wi.tum.de

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TUM School of Management Technische Universität München

Basics of Advanced Planning and Supply

Prof. Dr. Martin Grunow

• Who are we?

• Who are you?

• Overview of the course

• Overview of Production Planning and Control

Prof. Dr. Martin Grunow

• From 2010: Professor in Production and Supply Chain

• Earlier positions at Technical University of Denmark, Technical

Who are you?

Bachelor courses at our chair

Projektstudium BSc thesis

Master / PhD courses at our chair

Seminars in Production Automotive production Electronics manufacturing Process industries

Advanced Topics in Supply Chain Risk Quality Management Retail Operations

PhD Seminars in Supply Chain Planning in

Core data and assessment

Class schedule: Winter semester 2018/19

IT-Support for Production

This is what it is all about…

Procurement Production Distribution Sales

long-term Strategic Network Design

Source: Stadtler and Kilger (2008)

Preliminary Schedule (1/2)

01.11.2018 All Saint’s Day – No lecture

Scheduling / Order Release / Production Activity

06.12.2018 Dies academicus – No lecture

Preliminary Schedule (2/2)

17.01.2019 Production Planning and Detailed Scheduling (PPDS) Mirko Beißner

Available to Promise and Deployment / Submission of

Lecture numbers divided into planning areas

Procurement Production Distribution Sales

long-term Strategic Network

Source: Stadtler and Kilger (2008)

Fundamentals of Production Planning and Control

Functional Building Blocks of PPC Systems

Advanced Planning Systems

strategic tactical operative

Advanced Planning System PPC System

Advanced Planning Systems

Distribution Center Transportation Lane

Plant Preferred Transportation Lane

Advanced Planning Systems

30 100 Customer Order

Advanced Planning Systems

Lego coordinate product efforts toward

Siemens decides to produce mobile phones to

UPS plans their daily delivery of parcels

“How many parts to make at once?”

Another supplier is added for reducing supply risk

Procter & Gamble changes from forecast driven

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