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
A Framework for Sales and Operations Planning in Process Industries
Linköping University, Department of Management and Engineering, Production Economics. Linköping University, The Institute of Technology.
2014 (English)Licentiate thesis, comprehensive summary (Other academic)
Abstract [en]

This thesis studies Sales and Operations Planning (S&OP) in process industries. S&OP is a planning process which has a role of balancing demand and supply at an aggregate level. S&OP has traditionally been considered as a generic process meaning that it is independent from the context of the industry in which it is implemented. Process industries do; however, have specific characteristics which affect their planning and control processes, including S&OP. Therefore, the aim in this thesis is to reconcile these two contradictory stances and furthermore investigate how the specific properties in process industries should be included into an S&OP framework. Such a differentiated framework aims to support process industries to design/implement their S&OP process based on their unique requirements in relation to their markets, products and processes while it also takes into account the specific characteristics regarding the continuous production. Consequently, the process industries would realize the expected benefits from S&OP process to a greater extent.

The study starts with a literature review on S&OP in process industries in order to build the knowledge foundation for subsequent studies. The results show that the underlying difference between process industries and discrete industries is the object continuity which affects the selection of production processes including resources. Thus, process industries are often hybrids in the sense that their production processes include both continuous production, when the transformed object (material) is continuous, and discrete production when the object (material) turns into discrete products after the discretization point. In other words, process industries deploy both continuous production and discrete production while discrete industries use only discrete production. The specific characteristics of process industries are actually related to the continuous production part and influence the planning processes as well. As the result of this study, the continuous production characteristics that can affect the S&OP process are identified.

In the continuation of the thesis and in order to provide a typology for planning and control purposes, the object type (continuous and discrete) is combined with two other dimensions i.e. mode type (onetime, intermittent and continuous) and driver type (customer order driven and forecast driven) into a planning and control typology. The mode type addresses the repetitivity of the flow and the driver type takes into account the trigger of the flow. Each dimension has a transition point – i.e. the discretization point for the object type, mode interface point for the mode type and customer order decoupling point for the driver type – and represents a hybrid situation since different production environments are required before and after each transition point. The typology aims to illustrate how each dimension affects the planning and control issues as well as how the dimensions are interrelated and how this combination influence the managerial decisions. The typology integrates the concepts from both process industries and discrete industries and thus, is applicable for both.

Thereafter the typology is applied to the S&OP process and an integrated framework is suggested based on the three dimensions with specific focus on process industries. In this framework, the effects of hybridities within each dimension and cross-hybridities between the dimensions on the S&OP process are also considered. The importance of hybridities and cross-hybridities lies in the fact that the planning of the hybrid systems is a complex task due to the varying managerial decisions before and after the transition points. Finally, implementation steps for the suggested S&OP framework are outlined for the process industries in order to position themselves in the framework, identify the implementing procedures, and obtain potential benefits based on the differentiated S&OP process.

Place, publisher, year, edition, pages
Linköping: Linköping University Electronic Press, 2014. , 45 p.
Series
Linköping Studies in Science and Technology. Thesis, ISSN 0280-7971 ; 1667
National Category
Engineering and Technology
Identifiers
URN: urn:nbn:se:liu:diva-106709DOI: 10.3384/lic.diva-106709Local ID: LiU-TEK-LIC 2014:100ISBN: 978-91-7519-301-4 (print)OAI: oai:DiVA.org:liu-106709DiVA: diva2:717998
Presentation
2014-06-11, ACAS, A-huset, Campus Valla, Linköpings universitet, Linköping, 13:15 (English)
Opponent
Supervisors
Available from: 2014-05-19 Created: 2014-05-19 Last updated: 2017-04-11Bibliographically approved
List of papers
1. Sales and operations planning in the process industry: A literature review
Open this publication in new window or tab >>Sales and operations planning in the process industry: A literature review
2017 (English)In: International Journal of Production Economics, ISSN 0925-5273, E-ISSN 1873-7579, Vol. 188, 139-155 p.Article in journal (Refereed) Published
Abstract [en]

This paper provides a systematic literature review of Sales and Operations Planning (S&OP) in process industries. The aim is to investigate the present state of S&OP in process industries in comparison to discrete manufacturing industries and to identify the desired future state of the S&OP process based on the specific characteristics of process industries. The findings of this paper show that this issue has not received much attention in the academic world. Hence there is a need for conceptual models with focus on process industries’ specific characteristics. Process industries are actually hybrids of continuous production and discrete production (respectively, upstream and downstream of the discretization point) and the specific characteristics of process industries are related to the continuous production part. Thus, in this paper, the characteristics upstream of the discretization point are investigated and the integration of them in the S&OP process of the process industries is stressed.

Place, publisher, year, edition, pages
Elsevier, 2017
Keyword
Sales and operations planning, Process industry, Discretization point
National Category
Engineering and Technology
Identifiers
urn:nbn:se:liu:diva-106705 (URN)10.1016/j.ijpe.2017.03.006 (DOI)000401381300013 ()
Note

The original title in manuskript fiorm of this article was Sales and operations planning in the process industry.

Funding agencies: Swedish Foundation for Strategic Research (SSF)

Available from: 2014-05-19 Created: 2014-05-19 Last updated: 2017-06-13Bibliographically approved
2. A modularised typology for flow design based on decoupling points - a holistic view on process industries and discrete manufacturing industries
Open this publication in new window or tab >>A modularised typology for flow design based on decoupling points - a holistic view on process industries and discrete manufacturing industries
2016 (English)In: Production planning & control (Print), ISSN 0953-7287, E-ISSN 1366-5871, Vol. 27, no 16, 1344-1355 p.Article in journal (Refereed) Published
Abstract [en]

Management of production activities covers a wide range of decisions. In this paper, a modularised approach is suggested that, through configuration, generates a case-specific flow design. The approach is based on identification of decision categories that are generic and fundamental in the flow design, covering both discrete manufacturing industries and process industries. Each decision category identifies a unique property of the flow which changes at a particular point: this is termed a decoupling point. A three-dimensional modularised typology is developed by combining three different decision categories. Cases from the steel industry and the tooling industry are used to illustrate how the typology can be applied. The modularised approach provides a typology for the application of both qualitative and quantitative methods for flow management, including planning, control and performance management.

Place, publisher, year, edition, pages
TAYLOR & FRANCIS LTD, 2016
Keyword
Typology; decoupling point; planning and control; process industry; modularisation
National Category
Production Engineering, Human Work Science and Ergonomics
Identifiers
urn:nbn:se:liu:diva-132245 (URN)10.1080/09537287.2016.1220649 (DOI)000384468200004 ()
Note

Funding Agencies|Swedish Foundation for Strategic Research [PIC-LI]; Process Industrial IT and Automation (PiiA) - VINNOVA; Swedish Energy Agency, Formas; Swedish industry [2014-05110]

Available from: 2016-10-24 Created: 2016-10-21 Last updated: 2017-11-29
3. A modularized framework for sales and operations planning with focus on process industries
Open this publication in new window or tab >>A modularized framework for sales and operations planning with focus on process industries
2016 (English)In: Production & Manufacturing Research, ISSN 2169-3277, Vol. 4, no 1, 65-89 p.Article in journal (Refereed) Published
Abstract [en]

This paper suggests a modularized sales and operations planning (S&OP) framework, consisting of content and process. The framework’s content is based on a typology of decoupling points in which the effect of decoupling points on the decision variables in S&OP is studied. The framework’s process takes a step back and addresses the need for a more elaborate design to precede the operational use of S&OP content for different production contexts. The framework supports both process industries (PIs) and discrete manufacturing industries (DIs), and recognizes their specific requirements and reflects them in their S&OP. The differentiating characteristics of PIs and DIs are emphasized through three different decoupling points, namely: discretization decoupling point, control mode decoupling point, and customer order decoupling point. The suggested framework aims to fill the gap in the literature regarding the lack of aggregate planning processes that match the PIs’ specific requirements by reflecting the differentiating characteristics of PIs in S&OP.

Place, publisher, year, edition, pages
Taylor & Francis, 2016
National Category
Economics and Business Other Mechanical Engineering Software Engineering
Identifiers
urn:nbn:se:liu:diva-133240 (URN)10.1080/21693277.2016.1200502 (DOI)
Available from: 2016-12-15 Created: 2016-12-15 Last updated: 2017-11-29Bibliographically approved

Open Access in DiVA

A Framework for Sales and Operations Planning in Process Industries(1026 kB)5574 downloads
File information
File name FULLTEXT01.pdfFile size 1026 kBChecksum SHA-512
fb4206071054566e0f72087f326337e5b7a8091e66d73a009983583bcea40e6af662823ef0ef2928d4aaf9d51d3507ffd06514b61dc38f02255ec9b8dfe1a7c7
Type fulltextMimetype application/pdf
omslag(2753 kB)38 downloads
File information
File name COVER01.pdfFile size 2753 kBChecksum SHA-512
e538ad7b221b40e37ab6cf4c4776c49c256d57254ce725c70448a1da412afc98a07569efb09c8a90ffd00e9c3c02657a7b2e6bf1b913edf97c20b2f18d7188bb
Type coverMimetype application/pdf

Other links

Publisher's full text

Authority records BETA

Noroozi, Sayeh

Search in DiVA

By author/editor
Noroozi, Sayeh
By organisation
Production EconomicsThe Institute of Technology
Engineering and Technology

Search outside of DiVA

GoogleGoogle Scholar
Total: 5574 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

doi
isbn
urn-nbn

Altmetric score

doi
isbn
urn-nbn
Total: 862 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