Web user interface architecture for advanced planning and scheduling systems Case: Nokia Demand / Supply Planning Applications

In modem hitec industry Advanced Planning and Scheduling (APS) systems provide the basis for e-business solutions towards the suppliers and the customers. One objective of this thesis was to clarify the modem supply chain management with the APS systems and especially concentrate on the area of Collaborative Planning. In order Advanced Planning and Scheduling systems to be complete and usable, user interfaces are needed. Current Visual Basic user interfaces have faced many complaints and arguments from the users as well as from the development team. This thesis is trying to analyze the reasons and causes for the encountered problems and also provide ways to overcome them. The decision has been made to build the new user interfaces to be Web-enabled. Therefore another objective of this thesis was to research and find suitable technologies for building the Web-based user interfaces for Advanced Planning and Scheduling Systems in Nokia Demand/Supply Planning business area. Comparison between the most suitable technologies is made. Usability issues of Web-enabled user interfaces are also covered. The empirical part of the thesis includes design and implementation of a Web-based user interface with the chosen technology for a particular APS module that enables Collaborative Planning with suppliers.

Collaborative Relationships in Supply Chain

Nykyään asiakkaat odottavat lyhyempiä toimitusaikoja, joustavia toimituksia, parempaa laatua ja alhaisempaa hintatasoa. Toimittajan ja ostajan välinen yhteistyösuhde on yksi tärkeimmistä toiminnoista, joka mahdollistaa menestyksekkään liiketoiminnan nopeasti kasvavassa telekommunikaatioympäristössä.Tämä tutkimus käsittelee ydinasioita toimittajien ja ostajien välisen yhteistyön kehittymisen ympärillä. Tämä tarkoittaa hankintojen suunnittelua yhteistyössä toimittajien kanssa, selvittää mitä asioita voidaan ja pitäisi parantaa toimittaja/ostaja-suhteisiin ostotoiminnassa, ja mitä asioita pitää ottaa huomioon suunniteltaessa yhteistyösuhteita toimittajien kanssa. Tämä tutkimus myös lisää yleistä tietämystä strategisesta hankintatoiminnasta ja erilaisista olosuhteista toimittaja/ostaja-suhteissa, jotta menestyksellisiä suhteita toimittajien ja ostajien välillä voidaan saavuttaa, ylläpitää ja perustaa. Empiirinen osa analysoi kuinka tehokkaammat ja integroidummat suhteet saavutetaan hankintaketjussa telekommunikaationyrityksen valittujen toimittajien kanssa. Lisäksi paino-pistealueena on esittää ja selittää kuinka toimittajat ja ostajat käsittävät yhteistyösuhteensa. Empiirisen osan tulokset antavat ostajille parempaa ymmärrystä avaintoimittajiensa tilasta ja työkalut suorittaa menestyksekkäämpää liiketoimintaa yhteistyösuhteiden avulla.

Defining Sales and Operations Planning Process in an Environmental Management Company

Sales and operations research publications have increased significantly in the last decades. The concept of sales and operations planning (S&OP) has gained increased recognition and has been put forward as the area within Supply Chain Management (SCM). Development of S&OP is based on the need for determining future actions, both for sales and operations, since off-shoring, outsourcing, complex supply chains and extended lead times make challenges for responding to changes in the marketplace when they occur. Order intake of the case company has grown rapidly during the last years. Along with the growth, new challenges considering data management and information flow have arisen due to increasing customer orders. To manage these challenges, case company has implemented S&OP process, though initial process is in early stage and due to this, the process is not managing the increased customer orders adequately. Thesis objective is to explore extensively the S&OP process content of the case company and give further recommendations. Objectives are categorized into six different groups, to clarify the purpose of this thesis. Qualitative research methods used are active participant observation, qualitative interviews, enquiry, education, and a workshop. It is notable that demand planning was felt as cumbersome, so it is typically the biggest challenge in S&OP process. More proactive the sales forecasting can be, more expanded the time horizon of operational planning will turn out. S&OP process is 60 percent change management, 30 percent process development and 10 percent technology. The change management and continuous improvement can sometimes be arduous and set as secondary. It is important that different people are required to improve the process and the process is constantly evaluated. As well as, process governance is substantially in a central role and it has to be managed consciously. Generally, S&OP process was seen important and all the stakeholders were committed to the process. Particular sections were experienced more important than others, depending on the stakeholders’ point of views. Recommendations to objective groups are evaluated by the achievable benefit and resource requirement. The urgent and easily implemented improvement recommendations should be executed firstly. Next steps are to develop more coherent process structure and refine cost awareness. Afterwards demand planning, supply planning, and reporting should be developed more profoundly. For last, information technology system should be implemented to support the process phases.

Uuden täydennysyhteistyömallin toteuttaminen: vaikutukset toimittajayritykseen

Pärjätäkseen nykypäivän kiristyvässä kilpailussa yritysten on kuuluttava kilpailukykyiseen toimitusketjuun ja toimittava yhteistyössä muiden yritysten kanssa. Yksi tunnetuimmista yhteistyömenetelmistä on täydennysyhteistyö, jossa toimittaja vastaa toimitusten suunnittelusta ilman perinteistä tilaus-toimitus-prosessia. Täydennysyhteistyöstä käytetään eri nimityksiä toimialasta ja toimitusketjun portaasta riippuen, mutta yleisellä tasolla on kyse samoista periaatteista: toimittajalla on vastuu varaston täydentämisestä ja sillä on käytössään täydennyspäätöksiin tarvittavaa tietoa. Työssä tarkastellaan tapausta, jossa toimittaja on ottanut käyttöön uuden täydennysyhteistyöhön liittyvän toimintatavan ja täydennystoimitusten laskentaan käytettävän työkalun. Tavoitteena on selvittää uuden täydennysyhteistyömallin käyttöönoton vaikutukset toimittajan näkökulmasta. Kirjallisuuskatsauksen avulla kartoitetaan täydennystoimitusten suunnitteluun vaikuttavat tekijät. Työssä kuvataan vanha ja uusi täydennysyhteistyömalli ja niitä vertaillaan keskenään. Uuden tyädennysyhteistyömallin vaikutuksia tutkitaan kolmella tasolla: yhteistyön mahdollistajat, suunnittelu ja prosessit sekä suorituskyky. Tutkimuksen perusteella uuden täydennysyhteistyömallin etuja ovat muun muassa tiedon käsittelyn nopeus ja helppous. Puutteeksi koetaan toimitussuunnitelman muuttamisen hankaluus työkalussa. Vaikka lähes kaikkien tutkimusotoksen tuotteiden keskimääräiset varastotasot olivat alentuneet uuden täydennysyhteistyömallin käyttöönoton jälkeen, varastotavoitteiden saavuttaminen ei ollut parantunut. Tuloksiin vaikuttavat useattekijät, joista tärkeimpiä ovat kysynnän vaihtelu ja volyymi sekä varastotavoite. Lisäksi ennustetarkkuus vaikuttaa toimitusten suunnitteluun ja siten varastonsuorituskykyyn.

Elintarvikkeiden saatavuuden varmistamisen keinot ja ostotilausprosessin kehittäminen tukkuliikkeessä

Työn tavoitteena oli selvittää, miten elintarviketukun suurtaloustuotteiden saatavuus voitaisiin varmistaa. Nykyisellään suurtalouselintarvikkeiden kysynnän vaihtelut ovat vaikeasti hallittavia, mikä nostaa niiden varastotasoja aiheuttaen ongelmia kohdeyrityksen ahtaaksi käyneessä varastossa. Lisäksi tuotteiden tilaaminen työllistää neljä henkilöä ja mahdollinen tilausmäärien kasvu lisäisi henkilöstötarvetta entisestään. Työn tuloksena yrityksen tuotteet sekä toimittajat jaettiin neljään eri ryhmään: paras a-ryhmä, haasteryhmä, testiryhmä ja poistoryhmä. Näiden ryhmien varastojen ja tilausten hallitsemiseksi esitettiin puolestaan kolme eri tapaa: Automaattiset ostotilaukset sopivat kaikille tasaisen kysynnän tuotteille. Suuren kysynnän vaihtelun tuotteille voidaan käyttää nykyistä tilaustapaa sekä hyödyntää mahdollisuuksien mukaan asiakkailta saatavia menekkiennusteita tilaamisen tukena. Ongelmallisten suuren kysynnän vaihtelun ja pienen menekin tuotteiden kohdalla tuot-teet voidaan joko poistaa kokonaan yrityksen valikoimasta tai niiden tilaaminen voidaan muuttaa varasto-ohjauksen sijaan tilausohjautuvaksi.

Supply chain integration: studies on linking customer responsiveness and operational efficiency in logistics policy planning

Abstract The research problem in the thesis deals with improving the responsiveness and efficiency of logistics service processes between a supplier and its customers. The improvement can be sought by customizing the services and increasing the coordination of activities between the different parties in the supply chain. It is argued that to achieve coordination the parties have to have connections on several levels. In the framework employed in this research, three contexts are conceptualized at which the linkages can be planned: 1) the service policy context, 2) the process coordination context, and 3) the relationship management context. The service policy context consists of the planning methods by which a supplier analyzes its customers' logistics requirements and matches them with its own operational environment and efficiency requirements. The main conclusion related to the service policy context is that it is important to have a balanced selection of both customer-related and supplier-related factors in the analysis. This way, while the operational efficiency is planned a sufficient level of service for the most important customers is assured. This kind of policy planning involves taking multiple variables into the analysis, and there is a need to develop better tools for this purpose. Some new approaches to deal with this are presented in the thesis.The process coordination context and the relationship management context deal with the issues of how the implementation of the planned service policies can be facilitated in an inter-organizational environment. Process coordination includes typically such mechanisms as control rules, standard procedures and programs, but inhighly demanding circumstances more integrative coordination mechanisms may be necessary. In the thesis the coordination problems in third-party logistics relationship are used as an example of such an environment. Relationship management deals with issues of how separate companies organize their relationships to improve the coordination of their common processes. The main implication related to logistics planning is that by integrating further at the relationship level, companies can facilitate the use of the most efficient coordination mechanisms and thereby improve the implementation of the selected logistics service policies. In the thesis, a case of a logistics outsourcing relationship is used to demonstrate the need to address the relationship issues between the service provider andthe service buyer before the outsourcing can be done.The dissertation consists of eight research articles and a summarizing report. The principal emphasis in the articles is on the service policy planning context, which is the main theme of six articles. Coordination and relationship issues are specifically addressed in two of the papers.

Developing Service Promise Concept Based on Supply Chain

Diplomityön tavoitteena on analysoida ja kehittää palvelulupauskonseptia toimitusketjuun perustuen Halton Oy:ssä. Työ toteutettiin, koska asiakaslähtöinen liiketoimintatapa on voimakkaasti valtaamassa alaa tuote- ja tuotantopainotteiselta toimintatavalta. Tuotteiden erinomaisuus koetaan markkinoilla yhä useammin itsestään selvyytenä. Prosessien tehokas hallitseminen ja asiakkaan kokeman lisäarvon muodostaminen ovat muodostuneet ratkaisevimmaksi kilpailuedun luojaksi. Toimitusketjun hallinnalla ja sähköisellä kaupankäynnillä on tärkeä rooli tämän kilpailuedun muodostumisessa.Diplomityö käsittelee uuden palvelulupauskonseptin tarjoamia etuja Halton Oy:lle. Työssä pureudutaan toimitusketjun ja sähköisen kaupankäynnin integraatiomahdollisuuksiin. Tarkoituksena on selvittää parhaat mahdolliset kriteerit Haltonin palvelulupauskonseptilleja luoda menetelmät yrityksen materiaalivirtojen sekä uuden konseptin analysoinnille ja kehittämiselle jatkossa.

Value added logistics in supply and demand chains. Smile. Part 1. eBusiness between global company and itslocal sme supplier network

VALOSADE (Value Added Logistics in Supply and Demand Chains) is the research project of Anita Lukka's VALORE (Value Added Logistics Research) research team inLappeenranta University of Technology. VALOSADE is included in ELO (Ebusiness logistics) technology program of Tekes (Finnish Technology Agency). SMILE (SME-sector, Internet applications and Logistical Efficiency) is one of four subprojects of VALOSADE. SMILE research focuses on case network that is composed of small and medium sized mechanical maintenance service providers and global wood processing customers. Basic principle of SMILE study is communication and ebusiness insupply and demand network. This first phase of research concentrates on creating backgrounds for SMILE study and for ebusiness solutions of maintenance case network. The focus is on general trends of ebusiness in supply chains and networksof different industries; total ebusiness system architecture of company networks; ebusiness strategy of company network; information value chain; different factors, which influence on ebusiness solution of company network; and the correlation between ebusiness and competitive advantage. Literature, interviews and benchmarking were used as research methods in this qualitative case study. Networks and end-to-end supply chains are the organizational structures, which can add value for end customer. Information is one of the key factors in these decentralized structures. Because of decentralization of business, information is produced and used in different companies and in different information systems. Information refinement services are needed to manage information flows in company networksbetween different systems. Furthermore, some new solutions like network information systems are utilised in optimising network performance and in standardizingnetwork common processes. Some cases have however indicated, that utilization of ebusiness in decentralized business model is not always a necessity, but value-add of ICT must be defined case-specifically. In the theory part of report, different ebusiness and architecture models are introduced. These models are compared to empirical case data in research results. The biggest difference between theory and empirical data is that models are mainly developed for large-scale companies - not for SMEs. This is due to that implemented network ebusiness solutions are mainly large company centered. Genuine SME network centred ebusiness models are quite rare, and the study in that area has been few in number. Business relationships between customer and their SME suppliers are nowadays concentrated more on collaborative tactical and strategic initiatives besides transaction based operational initiatives. However, ebusiness systems are further mainly based on exchange of operational transactional data. Collaborative ebusiness solutions are in planning or pilot phase in most case companies. Furthermore, many ebusiness solutions are nowadays between two participants, but network and end-to-end supply chain transparency and information systems are quite rare. Transaction volumes, data formats, the types of exchanged information, information criticality,type and duration of business relationship, internal information systems of partners, processes and operation models (e.g. different ordering models) differ among network companies, and furthermore companies are at different stages on networking and ebusiness readiness. Because of former factors, different customer-supplier combinations in network must utilise totally different ebusiness architectures, technologies, systems and standards.

Offering Analysis in New Product Launch and Sales Planning

This Master's Thesis has been written for Stora Enso Flexible Packaging Papers business unit. In the North-American mills, the business unit has developed a range of new flexible packaging paper grades. The Master's Thesis researches opportunities for sales of these new flexible packaging papers in selected Western-European markets. This study consists of theoretical and empirical part. Theoretical part presents supply chain of flexible packaging, discovering of customer requirements, concept of an offering, general market analysis, customer analysis and basis for sales planning. Empirical part includes preliminary market analysis based on secondary sources, results of lead user interviews and conclusions and recommendations. Potential customers' technical and commercial requirements were found and these were compared to current Stora Enso Flexible Packaging Papers offering. Also a list of potential new customers was made and sales action suggestions were presented in order to gain new accounts.

Supply Risk Management in Pharmaceutical

Fast development in the operating environment and fierce competition have driven companies to pursue efficiency and success through lean and global supply chains. At the same time overall uncertainty has increased in the business environment and supply chains have become a priority in risk management since their vulnerability may endanger business continuity. Although risk management should start at procurement strategy development phase, proactive contingency planning is also essential because it enables correct reaction and fast changes in process execution in the case of risk realization. This thesis is a case study conducted in the pharmaceutical industry where purchasing and materials management organizations face a number of challenges and limitations that have to be considered in supply risk management. The goal of the study was to discuss the operating environment, and identify and analyze supply risks and potential risk management practices. The study was concluded with suggestions for purchasing strategy development that take risk management considerations into account. This copy is the public version of the thesis.

Sales and Operations Planning Implementation

The master’s thesis focused on implementing a sales and operations planning process. The main objectives were to create planning methods and tools for the implementation. The ultimate goal of the process, beyond this master’s thesis, is to balance the supply of products with customer demand, with optimized profitability. The theoretical part focused on giving a thorough view on the sales and operations planning process. The basis for a monthly planning cycle was identified. Methods, tools, and metrics for demand forecasting and operations planning were also introduced. Based on the theoretical part, a method for forecasting, a forecast spreadsheet, and a forecast accuracy metric were designed. A spreadsheet tool and methods were also designed for the monthly planning of production volumes, capacity, and inventory. The implementation progress was reviewed for two product families for three months. The sales and operations planning process was able to successfully identify a demand peak for the product families. Suggestions for the future of sales and operations planning were also made.

Production Cycle Optimization: Defining the Market Potential for a New Planning Tool

An optimization tool has been developed to help companies to optimize their production cycles and thus improve their overall supply chain management processes. The application combines the functionality that traditional APS (Advanced Planning System) and ARP (Automatic Replenishment Program) systems provide into one optimization run. A qualitative study was organized to investigate opportunities to expand the product’s market base. Twelve personal interviews were conducted and the results were collected in industry specific production planning analyses. Five process industries were analyzed to identify the product’s suitability to each industry sector and the most important product development areas. Based on the research the paper and the plastic film industries remain the most potential industry sectors at this point. To be successful in other industry sectors some product enhancements would be required, including capabilities to optimize multiple sequential and parallel production cycles, handle sequencing of complex finishing operations and to include master planning capabilities to support overall supply chain optimization. In product sales and marketing processes the key to success is to find and reach the people who are involved directly with the problems that the optimization tool can help to solve.

Supply chain cost saving potential analysis

Target of this study was to examine the current supply chain with focus on external part and identify the cost potential areas which lie there. The goal was to evaluate the cost save potential and give estimate what would be required in order to realise it. Base data related to study was searched and examined with using company’s enterprise resource planning system. In case feasible two types of scenarios were built in order to describe the scale of save potential. First scenario was theoretical and achieving it would require further investments and second scenario was realistic approach where more limitations were taken into account. The results clearly show that there is high save potential in supply chain costs linked to balance between internal and external operations. Realising of it would require at least minor investments as current internal capacity is not on a level to fully absorb the additional volumes which are needed in order to realise the potential. This study can be used as a basis when starting new projects related to investment needs.

Maintaining supply performance during an ERP system implementation phase : case Cloetta Suomi Oy

Implementing an enterprise resource planning (ERP) system often means a major change to an organization and involves significant risks. It is typical that many of the ERP system implementations fail resulting in tremendous damage to the business. Moreover, running normal business operations during an ERP system implementation is far more complicated than normally. This thesis focuses on how an organization should manage the ERP system implementation process in order to maintain supply performance during the implementation phase. The theoretical framework in this thesis focuses on ERP system implementations with a critical success factor approach. Critical success factors can be divided into strategic and tactical level success factors. By considering these critical success factors, ERP system implementation project’s timeline and best practices of an ERP implementation, a critical success factor based ERP system implementation management framework is presented. The framework can be used as a theoretical framework when the goal is to avoid ERP system implementation phase issues that are driven by the ERP system implementation project and that may decrease organization’s supply performance. This thesis is a case study that was written on an assignment to a confectionary company Cloetta Suomi Oy. In order to collect data, interviews of the case company personnel were conducted. In addition, several other data collection methods were used throughout the research process. These data collection methods include examination of presentations and archival records as well as direct observations in case company meetings and in various work duties. The results of this thesis indicate that there are several factors that may decrease organization’s supply performance during the ERP system implementation. These issues are categorized under external and internal issues and further into six risk drivers that are suppliers, customers, products, staff, information systems and other projects. After the description and categorization of each issue, the thesis focuses on finding solutions on how to avoid or mitigate the impact of these issues on the organization’s supply performance. This examination leads to several operational activities that are also practical to business practitioners. It is also stated that a successful ERP system implementation that also causes minimal disturbance to organization’s supply performance during the ERP system implementation, is achieved by considering three levels of actions.