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S&OP related key performance measures with integration of sustainability: a decoupling point based and modularized view on supply chains
Linköping University, Department of Management and Engineering, Production Economics. Linköping University, Faculty of Science & Engineering.
Linköping University, Department of Management and Engineering, Production Economics. Linköping University, Faculty of Science & Engineering.
2017 (English)In: International manufacturing strategy in a time of great flux / [ed] Louis Brennan, Alessandra Vecchi, Cham: Springer, 2017, 197-233 p.Chapter in book (Refereed)
Abstract [en]

Key performance measures (KPMs) play an important role in the management of supply chains. An important integrator of the supply chain management is Sales and Operations Planning (S&OP) that connects the strategic and operational plans. S&OP usually impacts supply chain performance through the management of resources and customer satisfaction. This paper suggests a new classification for S&OP-related KPMs. The classification follows a typology of decision categories which are based on decoupling points. The typology supports a modularized approach to supply chain design and provides the possibility to select the KPMs according to the decision criteria of each module. The KPMs are further linked to the SCOR performance attributes to provide the link to the companies’ strategic directives and the strategic conflicts which appear in the modules of the typology are discussed. The sustainable KPMs have also been included in order to provide opportunities for improved sustainable performance. The integration of sustainable KPMs helps in creating competitive advantages for companies through development of capabilities which are beneficial but hard to replicate by competitors. The paper ends with an example that illustrates how the classification can be applied to a case company.

Place, publisher, year, edition, pages
Cham: Springer, 2017. 197-233 p.
Series
Measuring Operations Performance, ISSN 2363-9970
Keyword [en]
Key performance measures, Sales and operations planning, Sustainability, SCOR model, Decoupling points
National Category
Business Administration Other Mechanical Engineering Environmental Management Transport Systems and Logistics Social Sciences Interdisciplinary
Identifiers
URN: urn:nbn:se:liu:diva-133242DOI: 10.1007/978-3-319-25351-0_10Libris ID: 19965765ISBN: 9783319253503 (print)ISBN: 9783319253510 (print)OAI: oai:DiVA.org:liu-133242DiVA: diva2:1056822
Available from: 2016-12-15 Created: 2016-12-15 Last updated: 2016-12-22Bibliographically approved
In thesis
1. Sales and operations planning based on a modularized view of supply chains: Supporting process industries and discrete manufacturing industries
Open this publication in new window or tab >>Sales and operations planning based on a modularized view of supply chains: Supporting process industries and discrete manufacturing industries
2017 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

The purpose of this dissertation is to propose a framework for sales and operations planning (S&OP), which is based on a modularized view of supply chains. The framework should support both process industries and discrete manufacturing industries in their quest for performance. S&OP has been highlighted in this framework due to its essential role in integrating different functions within a company and integrating a company with its supply chain partners (referred to as horizontal integration), and linking different planning levels in a company (referred to as vertical integration). As an integrator, S&ÖP influences companies’ performance.

Originally, S&OP was developed as a generic process but still in line with the requirements of discrete manufacturing industries. The specific requirements of process industries have not been emphasized in this process to the same extent. In order to suggest a modularized S&OP framework for both process industries and  discrete manufacturing  industries, a systematic literature review is performed to understand the specific characteristics of S&OP in process industries. As a result, the importance of continuity/discontinuity of materials and its influence on the required production processes are highlighted. This indicates that the production process in process industries is actually a hybrid of continuous production and discrete production, whereas the discrete manufacturing industries often only deploy discrete production. Continuous production has specific characteristics that would be beneficial to include in the S&OP process; nonetheless, this is in contrast to the view in the literature that considers S&OP a generic process. Generic here means that S&OP is independent of the context in terms of, for example, the industry in which it is implemented. This issue is investigated in this dissertation by identifying the requirements, which can be considered in the S&OP of process industries as add-ons to the generic S&OP. In addition to this, two other concepts addressing the properties of the production process are identified as important in planning and control, including S&OP. One addresses the level of repetitivity of the production process in response to the market demand, and the other concerns the trigger of the production flow. The three concepts are related to three different types of decoupling points and are the basis for a typology developed herein that provides a modularized view of supply chains. The application of the typology to S&OP leads to a modularized S&OP framework applicable to both process industries and discrete manufacturing industries. The modularized view of supply chains has been long emphasized as an effective and efficient way to support companies’ performance and their competitive position. The typology and the S&OP framework are developed through conceptual research methods.

To study how the modularized S&ÖP framework is related to companies’ performance measures, different performance measures (including sustainable performance measures) at the S&OP level are extracted from the literature. The performance measures are then classified according to the typology, and linked to strategic performance attributes. Aligning performance measures at S&OP levels and strategic performance attributes would help in enhancing companies’ performance. Sustainable performance measures are included in this classification to provide additional support for companies’ performance. Finally, this approach in classification of  performance measures is studied in four case companies, and the empirical performance measures are linked to the companies’ strategic performance attributes and competitive strategies. The results of this empirical study have, to some extent, verified the results from the classification of performance measures based on the literature.

This dissertation contributes to the development of knowledge in S&OP. First, it identifies three key concepts in planning and control of manufacturing companies. Second, it investigates how S&OP should be tailored to the specific characteristics of companies and their supply chains. The modularized S&OP framework developed in this dissertation is based on the three identified concepts. This framework provides a foundation for fulfilling the supply chains needs by suggesting decision-making processes, planning techniques, and performance measures for different modules. More specifically, this work investigates how S&OP should be designed and implemented in process industries, which has not been extensively studied before. Third, this dissertation shows how S&OP level performance measures can be selected in line with the specific characteristics of supply chains. Finally, by integrating the sustainable performance measures in the S&OP process, this dissertation expands the scope of S&OP and its potential in supporting companies’ performance.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2017. 83 p.
Series
Linköping Studies in Science and Technology. Dissertations, ISSN 0345-7524 ; 1803
Keyword
Sales and operations planning, Decoupling point, Performance measure, Process industry, Discrete manufacturing industry
National Category
Production Engineering, Human Work Science and Ergonomics Environmental Management Business Administration Other Engineering and Technologies not elsewhere specified Other Mechanical Engineering
Identifiers
urn:nbn:se:liu:diva-133243 (URN)10.3384/diss.diva-133243 (DOI)9789176856437 (ISBN)
Public defence
2017-02-03, ACAS, A-huset, Campus Valla, Linköping, 13:15 (English)
Opponent
Supervisors
Available from: 2016-12-15 Created: 2016-12-15 Last updated: 2017-04-11Bibliographically approved

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