Some elements help the firm for the smooth flow of production. This article discloses one of those elements.
That is advanced planning and scheduling (APS). The article tells how APS helps to enhance your business, essential components of APS, 5Ms of APS, and software systems of APS.
What is Advanced Planning and Scheduling?
Advanced Planning and Scheduling (APS) is a system that helps track a manufacturing unit’s resources for smooth production.
It helps in optimally allocating raw materials and production capacity to meet the demand.
It considers all the major production factors, including people, machines, inventory, and costs.
APS ensures an appropriate balance between raw materials and the production processes of the business. Therefore, it is an essential division of supply chain management.
How does Advanced Planning and Scheduling enhance your business?
- It generates realistic reports to help analyze the unit’s production capacity and plan the next course of action accordingly.
- Helps in understanding the production and listing out the required raw materials to ensure a smooth working production of the system.
- It helps in streamlining the inventory system of the business and makes it more efficient.
- It assists in improving the time management system by analyzing and interpreting the time consumed for each process.
- It designs a real-time data system that captures the time and the resources required. Thus, it improves the delivery time and delights the customers with prompt services.
- It helps to identify the exact resources that are required for production.
- It helps the manufacturer determine what to make, how much to make, when and where to make it.
Advanced planning and scheduling help to supervise some of the aspects of the production process. Those are
- Enhancement of advance schedule
- Controlling of advanced materials
- Make to order planning
- Make to stock planning
- Visualization of assemble process
- Advanced constrain modeling
- Planning of Bill of Materials (BOM) level
- Master production schedule creation
- Visualization of interactive schedule
Important components of Advanced Planning and Scheduling
Planning of demand
Demand planning helps to generate an accurate forecast by considering the previous sales data and importing consumer forecasts.
Demand planning allows you to manufacture the exact quantity of products with reduced inventory cost and waste.
Planning of production
Production planning is a process. This process gives a clear picture of available raw materials, general labor, tools to make products of the specified quantity.
The production plan allows an organization to carry out various production activities without any interruption.
Scheduling of production
The production schedule is also a process that helps to handle, arrange and optimize the work in the production process. It helps to reduce inventory and load on laborers.
Planning of distribution
This process allows workers to set inventory parameters like on-hand inventory at the beginning and the safety stock requirements for a while to reach order fulfillment.
Planning of transportation
This process helps identify the goals, future policies, investments required to transport people and goods to destinations.
Five Ms of APS
Mathematical applications used in advanced planning and scheduling
- Linear programming
- Constraint-based programming
- Heuristics and algorithms
APS can offer solutions to various issues that a company might face with time and boost the customer service system.
With the help of APS, a company can formulate accurate strategies by clearly defining the market demand and how the production can gear up to capture a more significant share of the market with adequate supplies.
It will help the business make crucial decisions about business expansion by analyzing its production capacity and sales forecasting.
It can help the company study all aspects of the business, from manufacturing to distribution, and then schedule the production accordingly.
The advanced planning and scheduling software systems
There are various APS software systems available both in the commercial and open-source variations.
One of the open-source APS software systems available for the Supply chain is Frepple.
Most modern cloud ERP solutions are either available with APS functionalities or integrated with external advanced planning and scheduling systems.
Uses of advanced planning and scheduling software
APS will easily merge with the ERP system. The software helps the people in the planning team save their time during the updation of production schedules, inventory plans, and priorities.
- It generates enhanced scheduling that balances delivery performance and efficiency of production.
- It helps to take the maximum usage of resources to improve the revenue of the company.
- Accompany the demand and supply to decrease the inventories.
- It allows you to visualize the capacity available throughout the organization.
- Validate the scenario-based data for decision-making.
- It helps to upgrade the production process to the next level with increased efficiency.