Page 229 - DCAP302_ENTERPRISE_RESOURCE_PLANNING

Unit 14: Case Study – ERP Application on Supply Chain

constraint-based optimization with Bottleneck Detection notes
BaanSCS Planner synchronizes procurement, production and distribution activities across
the supply chain in a manner that optimizes total throughput and minimizes inventory
and cycle time.
Optimization is directly related to planning with constraints. In order to optimize the
supply plan, the planning engine takes constraints and optimization objectives into
account to generate a plan across the supply chain that will maximize plant thoughput
and minimize manufacturing cycle times. It simultaneously considers both material and
capacity constraints in order to synchronize production operations and sub – assemblies.
BaanSCCS Planner Engine algorithm can be characterized as employing:
1. Memory resident ( in – RAM) processing for speed
2. Constraint-based throughput optimization in accordance with the Theory of
Constraints
3. A sorting engine which uses iterative backward – leveling / forward – compression
phases to converge on an optimal solution

4. Rules – based resource allocation simulation
Parameters taken into account during a Planning Engine run include operation predecessor/
successor relationships, firm allocations, resource capacity, material availability, operation
overlapping, set – up optimization rules, planning buffers and order priorities. The net
result is an optimized operations plan across the supply chain. In doing so, the Planning
Engine determines the details of how the product will be made and where it will be
made.
BaanSCS Planner also contains net change engines. These Net Change Engines are
specialized algorithms that optimize certain performance criteria, based on company
business rules. They are event – driven engines that are invoked multiple times during
the day as certain actions occur. For example, the Order Insertion Engine is the first of a
series of net change engines to be introduced. Its purpose is to quickly insert new supply
orders into the plan to provide coverage for new customer orders, and to support order
promising.
High performance planning capabilities
BaanSCS Planner has a memory – resident planning engine that is roughly 50 to 100 times
faster than the traditional database – driven ERP systems planning engines. Hence the
ability to respond to plan changes can be measured in seconds or minutes compared to
hours in traditional ERP systems. Memory – resident planning technology also makes
simulation and dynamic order promising capabilities feasible, and hence increases the
richness of the planning environment.
advanced analysis tools and user interface
BaanSCS Planner’s client-based decision support system provides a very rich set of
graphical visualization and problem identification capabilities to assist the planner.
It has a performance tracking monitor that assesses the quality of a plan and alerts the
planner to problems that need to be addressed. It focuses on planned future performance,
and enables the planner to be proactive in managing potential problems before they get a
chance to become real problems. Key analysis tools available in the monitor include:

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