To follow the volatile nature of the global market of today, much from total manufacturers eliminated the traditional chain of provisioning vertical. The chains of provisioning horizontal and virtual are the most recent tendencies in the management of chain of provisioning (SCM), because these systems are more flexible and more sensitive to the changes which inevitably occur to make deals of them today. But with this greater flexibility a price comes: the manufacturers have now less visibility in and less control of their processes of chain of provisioning. For basic on tendencies in SCM, to please see the part one of this series, which could be opposed to more quickly, of the chains of more significant provisioning?
To know of which tools the manufacturers have need to regain the control of their chains of provisioning, it can help to look at the applications and the systems which they currently employ.
Revaluation of the existing tools and the practices
The companies must re-examine and reorganize their processes of chain of provisioning and support it tools to adapt to a more significant collaboration within a multi-company, context of multi-level. The majority of the current systems of the planning of entrepreneurial resource (ERP) in service (as technical backbones) suffer not only from the mentality of vertical integration (C. - with-D., they have an internal orientation of simple-company or manufacture), they also suffer from the envisage-drive rather than centered on the needs (see centered on the needs against the traditional material requirements planning) and to treat the prolonged brackets of time (C. - with-D., weeks, months, or cycles quarterly). However, these systems record simply the compromise history, and they require of many processes complementary to address operations. In other words, the systems of ERP must start too much (often additional external transactions of handbook) so that an establishment of the more granular program occurs.
To illustrate, sometimes the users must carry out manual stages on the data of ERP to do it adapted for the use. Such stages can include to create forwardings and programmes of production for the production lines, which are often presented in an assessment post-treaty instead of coming directly from the system of ERP in a useful format. Moreover, the systems of ERP typically cannot carry out what follows: various articles of chart to the products; identify the most suitable rules of order-establishment of the program; cut the days in shifts; and present the entry, such as adding the end products which the filling has need for the programmer for production for a way of outside-of-the-box.
As which is necessary while moving towards an make-with-order (MTO) to the order-promising environment, the systems of ERP can typically show the inventory available. But which manufacturers of MTO must know is the exact capacity of the product (the center of work) for a particular operation of advance by seeing the next open slit in real-time of a simple sight. These companies must also know the availability of raw material to make sure that the capacity can be employed.
Can a system of execution of manufacture (MY) help to solve these problems with one degree-to see what are systems of execution of manufacture? However, in addition to the well-known questions to integrate two systems which live in various worlds and think in various terms� (see the challenges of the systems of integration of planning of entrepreneurial resource and of execution of manufacture), the question remains way in which a large step ahead one MY is to answer the events not planned against making more same thing (C. - with-D., history of recording, though in more granular, factory of level).
Moreover, advanced planning and establishment of the program (of the aps) - see to remember aps? - and the planning systems of chain of provisioning (SCP) came like improvements with the ERP towards end of the year 90, but only in terms of strategic optimization and tactic-level (and still, mainly in the kingdom of the planning of length-with-semi-range), with hardly any help in terms of operational council in real-time to provide a solution or an action in the notch of time.
The aps employs the linear programming, which imposes limitations on the way in which it arrives at the optimal solutions, since the linear programming does not treat uncertainty well. The system of aps supposes that the parameters of entry are fixed and sure, that the reports/ratios are defined, and that a simple action has like consequence a simple result. However, in a chain of provisioning sophisticated, the actions can have nonlinear results that these systems cannot envisage. In other words, the planning-directed applications do not take rather fast account of an answer when changes of the request, the inventory or the provisioning, the capacity, the mixture of product, or the orders occur. At best, these systems will offer another exercise of replanning, and the analysts then must study thoroughly more mountains of the nonrelevant data to find the cause of a problem.
While this does not mean that calculations of aps are useless and cannot be made confidence, it means that calculations should be compared with truths results, and some processes can have to be modelled or simulated separately. A possible solution for directors suspectant that some of the entries of the aps are strongly variable would be to run a simulation of Monte Carlo, which employs random variations to simulate the chance. However, even if such solutions available in the trade exist (similar to the products of ERP and aps), those too would be typically confined with a limited number of qualified users and would not lend themselves well for the environment in real-time of collaboration.
Some organizations will turn then to the analytical business intelligence (BI) and solutions, since if the systems of ERP and aps have the weak analytics, they will arrive probably simply at feasible rather than the optimal solutions. However, whereas the investment in the assistance systems with the decision of management (DSSs) should become a priority in terms of time and to spend the systems once compromise are complete, points of BI DSSs mainly and magnifier history. They cannot bring an answer useful for now what? situation of a customer countermanding an important order (or increasing a quantity of order) or a department of technology presenting a product. The predictive analysis of the request and the behavior of customer can help in such situations (see the predictive future of Analytics-Tea of the business intelligence), but to our knowledge, such solutions available in the trade for manufacture and the processes of distribution currently do not exist.
The sales and the planning of operations (S&OP) also comes to mind like tool from assistance. The dictionary of APICS defines S&OP As
a process to develop the tactical plans which provide management the capacity strategically to direct its companies continuously to carry out the competitive advantage by integrating customer-focused plans of sale for the new ones and existing products with the management of the chain of provisioning. The process gathers all the plans for the businesses (sales, sale, development, manufacture, approvisonnement, and financier) concerned integrated plans.
Always, whereas S&OP is an enormous stage towards establishing and to inculcate effective and decisive collaboration-a by which all the parts can explore options, fight with differences, and develop a shared arrangement and a mutual obligation with a problem of resolution it is in S&OP concentrating mainly within the simple company and on the tactical outline level (against the operational ones).
The dictionary of APICS continues to define the process as being
carried out at least once a month and reviewed by management on a total level (of family of product). The process must reconcile to it all the offer, requires, and plans of new-product to the total detail and levels and the tie in the action plan. It is the final report/ratio of the plans of the company for the close relation with in the medium term, covering a horizon sufficiently to envisage for resources and to support the annual process of action plan. Carried out correctly, bonds of process of S&OP strategic plannings for the businesses with its measurements of execution and execution of reviews for the continuous improvement.
In short, of the traditional applications were conceived for the longer-term planning which takes place with a simple company. Consequently, their approach and architecture are based on a sequential-treating group (feedback of execution C. - with-D., plan and measurement), and with durations of cycle taking of the weeks. The mass of the complex analytics needs several hours to regenerate, thus updates of ERP are often run during the night or from the weekends. Such with delay of time is not acceptable any more or is adapted, because the participants of chain of provisioning seek the information and of the immediate answers.
The recourse to the assessments will not help the answer of chain of provisioning either
Consequently, in spite of the fact that many manufacturers invested in systems of ERP and aps, the majority continue to use inappropriate reports/ratios in batches and miserable assessments supervise the implementation of their operations. These tools proved to be methods of support ineffective and prone to the errors decision making, having for result confidence in the conjecture educated rather than about the precise and dynamic analysis to align operational decisions with strategic objectives. Thus, in spite of the use of the assessments and other tools of office (see the suppliers to arm Excel (and the office) to gain the Low-end of the market of business intelligence), this reality-space, process of resolution of the problems always most of the time manual and feeling-is based, and in oneself, hardly always quickly or effective.
To add salt to the wound, the traditional applications do not hold account easily division of information between the associates of company, because they have an exchange of information electronic of industrial property (EDI) or a dish file-transfers the installation as well as possible, that the means they cannot dynamically create and remove bonds of association. The weak points of such solutions are only magnifis when it comes to the provisioning outside; they offer very little in terms of visibility through the sites of associated and the multiple systems of data.
The comprehension of the total context of businesses is impossible with so many disparate systems and disconnected, because no application can reach all the data. For example, when a management system of transport (TMS) is closely dependent with a management system of warehouse (WMS), the TMS could alert the director of transport of a problem of forwarding, for example, and the WMS would inform in their turn the director of warehouse. The director would ensure himself whereas the remainder of the order is still provided to the customer (the customer being advised late order). Reciprocally, in the case of a disconnection, if the director of transport found and embarked a replacement, neither the director of warehouse nor the customer would know this, and from the customer would probably receive double forwardings (though who knows when).
In addition to minimal automation and insufficient speed and optimization, probably the problem of the most tedious reality-space is multiple versions the situation of truth. With several people working on the same problem (within the company and through the chain of provisioning), of the different points of emission of data will be found among the various assessments of each person. Even if each part has the same point of emission of data in the theory, each one probably gathers the data at a different time and, like the data inevitably change with time, these participants still have different data, which bring back alternatively various versions of the truth. Consequently, the different people will probably arrive at various optimal solutions.
In is the intense pressures of time of the space of reality, a slow and manual decision-making process still complicated by that the version believe you? problem. These factors are added only to complexity and the delay. With knowing, when the exits emerge (a material change in the request, a rush order, ruptures of provisioning, and so on) - as they there always is not any hour to await reports/ratios of ERP, to dig for data among multiple sources, or to carry out the ad hoc analysis using of the assessments. Thus, to coordinate answers through the virtual company, the owners of mark often must arrive the answer of request through their networks of realization by the brute force, and count on the assessments always changing to inevitably face leads to the goods misallocated and the useless partial orders.