Sales and operations planning in process industries based on types of object, mode and driver: An implementation guide
(English)Manuscript (preprint) (Other academic)
This paper aims to integrate the concepts of object type, mode type and driver type in the context of sales and operations planning (S&OP) with specific focus on process industries (PIs). The object type is related to the discretization point (DiPo) which divides the products in a production process into continuous objects and discrete objects and directly affects the resources’ properties. The mode type looks at the flow of material from the time perspective and can be continuous or intermittent in the PIs. The driver type initiates the flow of material and is related to the customer order decoupling point (CODP), which divides the production process into forecast-driven and customer-order-driven. These three concepts underline the hybridity inherent in the production process from a general perspective. Nevertheless, the planning process of such hybrid systems is a complex task due to the varying managerial decisions and actions required at each side of DiPo and CODP. DiPo is a relatively new concept and its application in the planning process of PIs has not yet been fully realized. CODP, on the other hand, has mostly been dealt with on the strategic rather than tactical level/ S&OP. This paper intends to gather these concepts in an integrated framework with eight building blocks and distinguish the differentiating characteristics of each building block that can influence the design/implementation of S&OP in the PIs. The result is a foundation for a differentiated S&OP process for PIs with emphasis on the competitive priorities of these industries.
Sales and operations planning, Process industries, Discretization point, Decoupling point
Engineering and Technology
IdentifiersURN: urn:nbn:se:liu:diva-106707OAI: oai:DiVA.org:liu-106707DiVA: diva2:717987