Exploring problems related to the materials planning user environment

Jönsson, Patrik

doi:10.1016/j.ijpe.2007.04.015

Cited by 5 publications

(6 citation statements)

References 30 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Firm size and flexibility in increasing and decreasing capacity are used here as control variables. Company size is often emphasised in the literature as a variable that might influence the performance of planning approaches and methods (e.g., Jonsson, 2008;Schroeder et al, 1981). Larger companies often have more complex material flows and more products, resources, and cross-functional relationships, which might result in a more complex planning process.…”

Section: H2mentioning

confidence: 99%

“…Studies indicate several problems involved in successfully using sophisticated methods in planning processes, including difficulties with understanding output, personnel's lack of motivation to update data, and small changes on the shop floor that result in major changes in the schedule (Carvalho et al, 2014;Ivert and Jonsson, 2011;Jonsson, 2008;Kreipl and Dickersbach, 2007). As many companies are prepared to invest or have already invested in standardised commercial off-the-shelf software, it is of necessity to evaluate how using sophisticated methods can affect performance.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Improving performance with sophisticated master production scheduling

Jönsson

Ivert

2015

International Journal of Production Economics

Self Cite

View full text Add to dashboard Cite

Literature addressing master production scheduling (MPS) typically focuses on the development of sophisticated MPS methods with the expectation that these methods will result in feasible plans and improved performance. However, empirical evidence showing that sophisticated methods are better than simpler ones remains scarce, and companies have reported difficulties with using sophisticated planning methods. In this study, we therefore investigate how sophisticated MPS methods impact three perception-based performance variables-namely, plan feasibility, inventory turnover rate, and delivery service-while accounting for the complexities of planning environments and MPS maturity. We define six MPS methods, ranging from those that ignore capacity to those exhibiting capacity-constrained planning using optimisation. An analysis of survey data from a sample of Swedish manufacturing companies reveals a significant negative effect of less sophisticated methods compared to highly sophisticated ones in terms of plan feasibility, as well as a significant negative effect of the simplest method in considering available capacity compared to highly sophisticated methods in terms of delivery service. The maturity of the MPS process most significantly impacts all performance measures, whereas planning environment complexity shows only a weak negative impact. Findings also indicate that both MPS process maturity and sophisticated MPS methods mediate the negative performance prompted by complex planning environments. Results thus suggest that sophisticated MPS may generally affect performance both directly and indirectly. Using sophisticated MPS methods reduces the negative effects of complex planning environments and results in more feasible plans irrespective of environment complexity and process maturity.

show abstract

Section: H2mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Improving performance with sophisticated master production scheduling

Jönsson

Ivert

2015

International Journal of Production Economics

Self Cite

View full text Add to dashboard Cite

show abstract

“…The internal material planning context covers a wide range of internal company issues that can impact material planning. Jonsson (2008) uses the term user environment for the operational context surrounding the material planner in his or her 840 IJPDLM 46,9 daily planning activities. He defines four dimensions of the user environment: the software support, the education and knowledge of the planner, the organisational design and function of the planning activities, and the quality of the basic data used as input in the material planning methods.…”

Section: Materials Planning Context and Direct Inventory Performance Effectsmentioning

confidence: 99%

“…External and internal contextual difficulties were measured using six and seven items, respectively, on a seven-point Likert scale ("The issue generates planning difficulties […]"; 1: Disagree, 7: Agree, see Table II). The internal context measures were adopted from Jonsson (2008), and the planning environment measures were newly developed. The construct validity of the internal and external context constructs was tested using exploratory factor analysis (Varimax rotation).…”

Section: External and Internal Contextual Difficulties Measuresmentioning

confidence: 99%

Advanced material planning performance: a contextual examination and research agenda

Jönsson

Mattsson

2016

IJPDLM

Self Cite

View full text Add to dashboard Cite

Purpose The purpose of this paper is to examine the inventory performance effect of advanced material planning modes and analyse how internal and external contextual difficulties moderate this relationship. This study also identifies avenues for future research. Design/methodology/approach The empirical analysis uses a survey of material planning for purchased items in 292 Swedish manufacturing and wholesaling companies. Three dimensions of inventory performance are dependent variables: material planning performance, inventory turnover rate, and service level. Findings Advanced material planning modes are directly associated with material planning performance, but this study could not verify direct associations with inventory turnover rate and service-level performances. External and internal contextual difficulties have direct effects on all inventory performance dimensions and moderate the inventory performance effect of advanced material planning modes. The moderating effect is stronger in non-difficult contexts, for which advanced material planning has significant inventory performance effects. Demand- and human-related contextual dimensions are especially critical. Practical implications The study identifies the following guidelines for companies to consider in order to unlock the potential of advanced material planning: consider full implementation of advanced material planning in non-difficult contexts; minimise the plan variability effects of high parameter revision and planning frequencies; minimise the need for, and use of, manual modification of planned orders before release; reduce demand uncertainty and variability; and secure appropriate human skills and working time. Originality/value This study somewhat contradicts the literature on material planning by not finding a direct positive effect on any inventory performance dimension from analytical design of order quantities and safety stocks. The research adds to the literature by identifying direct and moderating effects of external and internal contextual difficulties on all three-inventory performance dimensions. The relative importance of managing automatic order release identified in the study motivates future research as the effect has not been previously highlighted in the literature. Accordingly, avenues for future research and an agenda for practice-oriented research are suggested.

show abstract

“…Regarding SCM software on the one hand system´s complexity is considered the major reason for the slow propagation and its limited use (Hvolby and Steger-Jensen 2010). On the other hand the benefits of these systems increase with the planning complexity to deal with (Jonsson andMattsson 2003, Jonsson et al 2007).…”

Section: Cost-benefit Analysismentioning

confidence: 99%

Evaluation of configurations of supply networks supported by it systems

Mittermayer¹

View full text Add to dashboard Cite

Transactional systems such as Enterprise Resource Planning (ERP) systems have been implemented widely while analytical software like Supply Chain Management (SCM) add-ons are adopted less by manufacturing companies. Although significant benefits are reported stemming from SCM software implementations, companies are reluctant to invest in such systems. On the one hand this is due to the lack of methods that are able to detect benefits from the use of SCM software and on the other hand associated costs are not identified, detailed and quantified sufficiently. Coordination schemes based only on ERP systems are valid alternatives in industrial practice because significant investment in IT can be avoided.Therefore, the evaluation of these coordination procedures, in particular the cost due to iterations, is of high managerial interest and corresponding methods are comprehensive tools for strategic IT decision making. The purpose of this research is to provide evaluation methods that allow the comparison of different organizational forms and software support levels.The research begins with a comprehensive introduction dealing with the business environment that industrial networks are facing and concludes highlighting the challenges for the supply chain software industry. Afterwards, the central terminology is addressed, focusing on organization theory, IT investment peculiarities and supply chain management software typology. The literature review classifies recent supply chain management research referring to organizational design and its software support. The classification encompasses criteria related to research methodology and content. Empirical studies from management science focus on network types and organizational fit. Novel planning algorithms and innovative coordination schemes are developed mostly in the field of operations research in order to propose new software features. Operations and production management researchers realize cost-benefit analysis of IT software implementations. The literature review reveals that the success of software solutions for network coordination depends strongly on the fit of three dimensions: network configuration, coordination scheme and software functionality. Reviewed literature is mostly centered on the benefits of SCM software implementations. However, ERP system based supply chain coordination is still widespread industrial practice but the associated coordination cost has not been addressed by researchers. Fundamentals of efficient organizational design are explained in detail as far as required for the understanding of the synthesis of different organizational forms. Several coordination schemes have been shaped through the variation of the following design parameters:

show abstract

Exploring problems related to the materials planning user environment

Cited by 5 publications

References 30 publications

Improving performance with sophisticated master production scheduling

Improving performance with sophisticated master production scheduling

Advanced material planning performance: a contextual examination and research agenda

Evaluation of configurations of supply networks supported by it systems

Contact Info

Product

Resources

About