Enterprise Planning and Control. Planning for Siemens Manufacturing
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Transcript of Enterprise Planning and Control. Planning for Siemens Manufacturing
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Hillary Raya, Ramon Rodriguez, Julius Malone & Nikhil Chandankhede
Winter 2016CSU East Bay
Planning for Siemens Manufacturing:Working Through the MRP Process
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PRODUCTSiemens Digital Factory• S7-400 CPUs Product Family of Central Processing Units Part of automation systems• Applications Power generation Water treatment plants Traffic flow automation Airport automation
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FORECASTINGAssumptions1.Yearly forecasts do not follow
seasonal pattern2.Monthly forecasts do follow
seasonal pattern3.For 10-year period forecast is
not cyclic
ResultsLinear regression! Lowest MAD.Forecast of 902,600 units.
Methods Used1.Linear Regression2.Exponential Regression3.Moving 3-Year Average4.Moving 4-Year Average
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NU
MBE
R O
F U
NIT
S IN
THO
USA
NDS
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FORECASTINGActual data 2005-2014 to predict demand in 2016
22,801 orders87,129 orders
Q1
Added seasonality for actual orders per quarter
= 0.26 234,676 units
20,754 orders87,129 orders
Q2 = 0.24 216,624 units
19,858 orders87,129 orders
Q3 = 0.23 207,598 units
23,716 orders87,129 orders
Q4 = 0.27 243,702 units July - September
April - June
January - March
October - December
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Recall: Aggregate operations planning main purpose is to specify optimal combination of production rate, workforce level and inventory on hand• Strategies used & why:
-Siemens mainly uses Level Strategy-Subcontracting considered
• Main assumptions: Maintenance cost at 15% of all expenses, % of resources allocated to production line, fixed number of machines, beginning inventory @ 25% of demand forecast• Given more time & access: more specific numbers, capacities effect
on aggregate planning, better understand how ERP software integrates with aggregate planning
AGGREGATE PLANNING
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COST & NUMBERS MATRIX
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AGGREGATE PLANNING SUMARY
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MDS
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MRP
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ERP
What is Enterprise Resource Planning?
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Uses of ERP software●Eliminates duplication of data●Information across departments●Productivity●Inventory management●Material cost●Human resource management●Boosting profit●Customer interaction●Customer service
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Different ERP Vendors
●SAP●Oracle●Microsoft
Dynamics
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SAP vs Oracle● Average Implementation duration
20 months● Average delays 2 months● Average implementation Cost of
$16.8 Million or 18.6% of the Revenue.
● ERP solution Benefit factor of 72.2%.
● Focuses more on research and design
● Focuses more on Customization as compared to quick development of application.
● Average Implementation duration 18.6 months
● Average delays 4 months● Average Implementation Cost of
$12.6 Million or 10.6% of the Revenue.
● ERP solution benefit factor of 58.0%.
● Focuses more on flexibility and ease to use
● Focuses more on Quick development of application and not on customization.
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SUMMARYConsiderations• Lack of information more assumptions• No Capacity Requirements Planning (CRP)
OptimizeTime Speed Quality FlexibilityCost Efficiency