liu.seSearch for publications in DiVA
Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • oxford
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Production planning in process industries
Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
2012 (English)Report (Other academic)
Abstract [en]

Purpose of this paper

The purpose is to map the production planning process in process industries and analyze how it is related to their specific planning conditions and relevant current literature. Further on the research aims at detecting similarities and differences in production planning at tactical level.

Design/methodology/approach

The research methodology has a holistic multi-case design with focus on planning processes involving several entities within the companies. Information sources are documentation and interviews.

Findings

Process industries with different structures and conditions plan production differently. For instance a difference has been found between how material dominated companies plan compared to capacity dominated ones.

Research limitations/implications

Focus in this research has been on production planning at tactical level and therefore the strategic and operational level has mainly been left out of the study.

What is original/value of paper

The research gives insights in production planning processes for process industries and presents ideas on why the different production planning processes are designed as they are according some specific conditions.

Place, publisher, year, edition, pages
2012. , 19 p.
Series
LIU-IEI-WP, 2012:2
Keyword [en]
Process Industries, Production Planning, Tactical Planning, Supply Chain Planning, Multiple Case Study
National Category
Engineering and Technology Business Administration Transport Systems and Logistics
Identifiers
URN: urn:nbn:se:liu:diva-84980OAI: oai:DiVA.org:liu-84980DiVA: diva2:563350
Note

An earlier version of this paper was presented at NOFOMA 2011, 9-10 June, Harstad, Norway.

Available from: 2012-10-29 Created: 2012-10-29 Last updated: 2014-03-25Bibliographically approved
In thesis
1. Energy and Production Planning for Process Industry Supply Chains
Open this publication in new window or tab >>Energy and Production Planning for Process Industry Supply Chains
2012 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis addresses industrial energy issues from a production economic perspective. During the past decade, the energy issue has become more important, partly due to rising energy prices in general, but also from a political pressure on environmental awareness concerning the problems with climate change. As a large user of energy the industry sector is most likely responsible for a lot of these problems. Things need to change and are most likely to do so considering current and assumed future governmental regulations. Thus, the energy intensive process industries studied and focused on in this thesis exemplify the importance of introducing a strategic perspective on energy, an appropriate approach for planning, as well as the possibilities of including energy issues in a production and supply chain planning model.

The thesis aims to provide models, methods and decision support tools for energy related production and supply chain planning issues of relevance for process industries as well as for other energy intensive industries. The overall objectives are to analyze the strategic importance of energy management, production and supply chain planning, and the opportunities provided when energy is included in a production and supply chain planning model. Three different studies are carried out, analyzed, and presented as in this thesis.

The first study is a case study at a specialty chemicals company and resulted in the first paper. Since the energy issue is not only a cost issue driven by supply and demand, but also a political issue due to its environmental aspects, it is likely to believe that political influence and especially continuity will have escalating effect on the energy intensive process industry sector. Thus, the strategic dimension of energy is highly relevant in this thesis. The importance of organizational integration, having a main responsible person, locating core business, and political continuity are addressed as prerequisites for including energy into the corporate strategy. Regarding long term profitability, the importance of correctly utilizing the energy system by appropriate energy planning and with respect to energy efficiency and effectiveness in both flexibility and investment issues are addressed. Further on, the quest of finding alternative revenue while striving for a proper exergy usage is addressed.

The second study is a multiple case study with four different case companies involved; pulp, specialty chemicals, specialty oils, as well as a pulp and paper company. The need for improved production and supply chain planning is also addressed where for instance the lack of planning support for process industries is still an area of improvement. The production and supply chain planning in process industries is found to be rather poor compared to regular manufacturing companies. The planning methods found are often tailor made and adapted to the individual characteristics that are typical for many process industries. It has further on been difficult to distinguish similarities and differences among process industries regarding these planning issues and thus hard to generalize.

The third study focuses on mathematical modelling and programming developing a combined supply chain and energy optimization model for a pulp company. Taking the first papers together there are reasons to believe that a planning and optimization model that take energy aspects in consideration, as a previously missing link, will contribute to improve the operations in process industries. A clear impact of involving energy issues into the supply chain planning is shown. The results show that a different production schedule is optimal when the energy issues are applied, and depend on, for instance, variations in energy prices such as the one for electricity. This is shown by using a model for a supply chain where the energy flow, and especially the utilization of by-products, also is involved.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2012. 45 p.
Series
Linköping Studies in Science and Technology. Thesis, ISSN 0280-7971 ; 1555
Series
LiU-TEK-Lic, 2012:40
Keyword
Process industry, energy-intensive production systems, production planning, energy planning, Supply chain planning and optimization, energy management
National Category
Engineering and Technology
Identifiers
urn:nbn:se:liu:diva-84990 (URN)LiU-TEK-LIC 2012:40 (Local ID)978-91-7519-762-3 (ISBN)LiU-TEK-LIC 2012:40 (Archive number)LiU-TEK-LIC 2012:40 (OAI)
Presentation
2012-11-16, ACAS (Hus A), Campus Valla, Linköping University, Linköping, 10:15 (English)
Opponent
Supervisors
Available from: 2012-11-22 Created: 2012-10-30 Last updated: 2012-11-22Bibliographically approved
2. Towards successful integration of maintenance and production
Open this publication in new window or tab >>Towards successful integration of maintenance and production
2012 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis focuses on the integration of maintenance and production in process industries. Earlier research shows that coordinating maintenance plans with production plans is more important in flow manufacturing. The overall aim of this thesis is to identify important factors when integrating maintenance with production, as well as to develop and improve the Crespo Márquez (2007) maintenance management framework.

Research is based on three multiple case studies at Swedish process industries. These cases provide a foundation for identifying the factors influencing integration of maintenance and production. The first multiple case study analysed whether process industries perform holistic maintenance management. It also shows what elements of maintenance management the process industries focus on. The second multiple case study presents production planning at tactical level in process industries. The final multiple case study presents the levels of production planner consideration of maintenance in their planning processes.

This research shows that only one out of three of the process industries analysed used a holistic view of their maintenance management. The maintenance management frameworks used by the companies are either too detailed or complicated to use, or too loosely formulated. This research also shows that these process industries are fairly flexible in their production planning.

The factors which influenced the integration of maintenance and production most were summarised as a list of the five most important. The first integrating factor is top managements interest in maintenance management, followed by transparency within departments. The third factor is the importance of understanding other departments' needs in order to perform well and using Computerised Maintenance Management Systems (CMMS) properly. The final integrating factor is working with the production assets in systems rather than as components and using cross‐functional knowledge in teamwork. The further development of the maintenance management framework also indicated the importance of leadership and organisational issues, as well as the application of CMMS and work with Safety, Health and Environment (SHE) which the Crespo Márquez (2007) maintenance management framework did not include, even though this is vital to success.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2012. 66 p.
Series
Linköping Studies in Science and Technology. Thesis, ISSN 0280-7971 ; 1567
National Category
Economics and Business
Identifiers
urn:nbn:se:liu:diva-86185 (URN)LiU-TEK-UC 2012:51 (Local ID)9789175197180 (ISBN)LiU-TEK-UC 2012:51 (Archive number)LiU-TEK-UC 2012:51 (OAI)
Presentation
2012-12-20, ACAS, A-huset, Campus Valla, Linköpings universitet, Linköping, 10:15 (Swedish)
Opponent
Supervisors
Available from: 2012-12-10 Created: 2012-12-10 Last updated: 2017-12-08Bibliographically approved
3. Supply chain coordination using optimal transfer pricing to balance co- and byproduct demand within a process industry
Open this publication in new window or tab >>Supply chain coordination using optimal transfer pricing to balance co- and byproduct demand within a process industry
2014 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

Process industries has for long been important for the development of Swedish industry and society. All industries face different conditions that affect how to best run their operations. This thesis aims to describe some of the conditions that characterize process industries compared to other industries. Further one of these characteristics has been studied more closely.

One of the traits of process industries is that they are positioned at the start of the transformation process close to the raw material mixing, separating or forming it into products often used for further transformation. Process industries hence become dependent on the properties of these materials. One of the most prominent characteristics inherent from the raw material properties is the divergent bill of material. The divergent bill of material originates from the fact that a given raw material is made up of different components that will yield several products with different characteristics when processed. When splitting the raw material into the desired products the yielded products from a certain raw material usually have different value to the producer, some more desired than others. These multiple products generated poses a challenge from a planning perspective raising questions like “How should we balance the supply and demand of all the products produced?”, “What shall we do with the excess products produced?”.

The first paper in this thesis describe the production planning in four Swedish process industries with the ultimate aim to connect their planning to the supply chain characteristics they face as process industries. The study concludes that the industry specific conditions mainly affect planning at short time ranges when planning becomes more detailed. In general the use of planning or decision support systems is low, stemming from a, warranted or not, belief that general decision support systems do not fit process industries. Another finding is that the case companies mainly operate in niche markets. This study also highlighted that the planning complexity arising from characteristic of co- and by-product generation in combination with the lack of decision support systems requires further studies.

The subsequent two papers focus on supply chain planning and coordination with a divergent bill of material. They present a mathematical model over the supply chain planning in a real case company in the specialty oils industry. The second paper investigates transfer pricing as a coordination tool by comparing decentralised supply chain planning with centralized planning in an integrated model. Transfer pricing is found to have a potential positive effect on supply chain planning while simultaneously creating problems in terms of uneven  distribution of the contribution margin among supply chain partners.

Finally the third paper more closely investigates different ways to set transfer prices and comparing them to the optimal transfer prices. Setting optimal transfer prices with a divergent bill of material has proven to be less straightforward than the case with no dependencies between products. Some optimal transfer prices could even be set lower than the marginal cost for producing them due to the dependency between the products in the divergent bill of material. This indicates that there is an opportunity cost for a product that is dependent on the demand of other products.

Abstract [sv]

Processindustrier har länge varit viktiga för utvecklingen av svensk industri och det svenska samhället. Alla branscher möter olika förutsättningar som påverkar hur verksamheten bäst skall drivas. Avhandlingen syftar till att beskriva några av de villkor som kännetecknar processindustrin jämfört med andra branscher. Slutligen har en av dessa kännetecknande egenskaper studerats närmare.

En av de egenskaper som utmärker processindustrier är att de är positionerade vid början av omvandlingsprocessen nära råvaran och blandar, separerar eller formar den till produkter som ofta används för ytterligare förädling. Processindustrin blir därmed beroende av egenskaperna hos råmaterialet som används. En av de mest framträdande egenskaperna härrörande från dessa råmaterialegenskaper är det divergenta materialflödet. Det divergerande materialflödet har sitt ursprung i att ett visst råmaterial består av olika komponenter som ger flera produkter med olika egenskaper. När råmaterialet separeras i sina komponenter erhålls flera produkter som kan ha väldigt olika värde för producenten. Efterfrågan på de produkter som erhålls ur separeringen kan vara vitt skild från vad som erhålls ur produktionsprocessen. Denna obalans mellan efterfrågan och försörjning är en utmaning ur ett planeringsperspektiv och väcker frågor som " Hur ska efterfrågan och försörjning av de produkter som produceras balanseras?", "Hur skall överskottet på vissa produkter hanteras? ".

Den första artikeln i denna avhandling beskriver produktionsplaneringen i fyra svenska processindustriföretag inom områdena pappersmassa, specialkemi, specialoljor samt papper och pappersmassa. Målet med studien var att jämföra planeringen av försörjningskedjan med de förutsättningar som processindustrin ställs inför. I studien dras slutsatsen att de branschspecifika förhållandena främst påverkar den kortsiktiga planeringen med mer detaljer. I allmänhet verkar användningen av planerings- eller beslutsstödsystem vara låg, som härrör från en, befogat eller inte, tro att generella beslutsstödssystem inte passar processindustri. Fallföretagen förefaller också huvudsakligen vara verksamma på nischmarknader. Denna studie betonar också vikten av djupare studier av energiplanering samt den planeringskomplexitet som uppkommer till följd av divergerande materialflöden.

De två efterföljande artiklarna fokuserar på planering och koordinering av försörjningskedjan vid ett divergerande materialflöde. De presenterar en matematisk modell över försörjningskedjan i ett fallföretag som tillverkar specialoljor. Den andra artikeln undersöker effekter av att använda internprissättning som verktyg för koordinering av försörjningskedjor genom att jämföra decentraliserad försörjningskedjeplanering med en fullt integrerad centraliserad planering. Internprissättning visar sig ha potentiellt positiva effekter på planeringen av försörjningskedjan men skapar samtidigt problem i form av att täckningsbidraget kan fördelas väldigt ojämnt mellan partner i försörjningskedjan.

Slutligen behandlar den tredje artikeln olika sätt att bestämma internpriser och utvärderar deras koordineringseffekter på försörjningskedjan genom att jämföra med optimal satta internpriser. Att bestämma optimala internpriser med ett divergerande materialflöde har visat sig bli komplicerat i och med det beroende som finns mellan produkterna som kommer från samma råmaterial. Optimala internpriser har visat sig kunna vara både avsevärt högre och avsevärt lägre än marginalkostanden för att producera dem. Detta indikerar att alternativkostnaden för en produkt kan påverkas starkt av efterfrågan på andra produkter den har en koppling till via råmaterialet de båda produceras från.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2014. 39 p.
Series
Linköping Studies in Science and Technology. Thesis, ISSN 0280-7971 ; 1654
National Category
Economics and Business
Identifiers
urn:nbn:se:liu:diva-105483 (URN)10.3384/lic.diva-105483 (DOI)978-91-7519-358-8 (ISBN)
Presentation
2014-04-15, ACAS, A-huset, Campus Valla, Linköpings universitet, Linköping, 13:15 (Swedish)
Opponent
Supervisors
Available from: 2014-03-25 Created: 2014-03-25 Last updated: 2015-01-29Bibliographically approved

Open Access in DiVA

No full text

Authority records BETA

Johansson, JohanKylinger, MartinWaldemarsson, Martin

Search in DiVA

By author/editor
Johansson, JohanKylinger, MartinWaldemarsson, Martin
By organisation
Production EconomicsThe Institute of Technology
Engineering and TechnologyBusiness AdministrationTransport Systems and Logistics

Search outside of DiVA

GoogleGoogle Scholar

urn-nbn

Altmetric score

urn-nbn
Total: 314 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • oxford
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf