Long-term capacity management: Linking the perspectives from manufacturing strategy and sales and operations planning

Olhager, Jan; Rudberg, Martin; Wikner, Joakim

doi:10.1016/s0925-5273(99)00098-5

Cited by 189 publications

(133 citation statements)

References 6 publications

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“…The upper level is sales and operations planning (S&OP), which has been added to the Berry and Hill framework by Olhager et al [4]. A chase strategy would assumingly be used for low-volume, highly customized products, whereas a level strategy would be more suitable for high-volume, standardized products.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…Table 1. Linking planning and control system to the market and product characteristics, according to Berry and Hill [1] and Olhager et al [4]. While the framework in Table 1 mostly deals with manufacturing operations, Fisher [6] developed a framework for supply chains, linking product characteristics with supply chain design types.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

“…The variables for measuring planning and control are related to the different planning levels such as described in [1][2][3][4]. Sales and operations planning is measured using a five step Likert scale ranging from a pure chase planning strategy to a pure level strategy.…”

Section: Data and Measurementsmentioning

confidence: 99%

“…The theoretical models are assumingly sound, have been widely referenced, and have not received specific criticism in the literature. Therefore, it is interesting to test these theories on how to design MPC systems related to the market and product characteristics, drawing on the modeling ideas in Berry and Hill [1], with the amendment of Olhager et al [4]. This paper extends the analysis in Olhager and Selldin [5] by addressing drivers and individual performance measures.…”

Section: Introductionmentioning

confidence: 99%

“…master planning, material planning, and shop floor control. The fourth level in an MPC system is sales and operations planning, which has been added to the Berry and Hill framework by Olhager et al [4], concerned with the choice of planning strategy. The theoretical models are assumingly sound, have been widely referenced, and have not received specific criticism in the literature.…”

Section: Introductionmentioning

confidence: 99%

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Strategic Choice of Manufacturing Planning and Control Approaches: Empirical Analysis of Drivers and Performance

Olhager

Selldin

Advances in Production Management Systems

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The design of manufacturing planning and control systems is a strategic decision for manufacturing fmns. In this paper we analyze the interrelationships among the choices of planning and control approaches at different hierarchical levels, including sales and operations planning (chase; level), master scheduling (make-to-order; assemble-to-order; make-to-stock), material planning (time-phased; rate-based), and production activity control (MRP-type; JIT-type). We test the relationships with product characteristics and perfonnance. These relationships are explored through a survey of 128 manufacturing plants.The results show that choice of approaches at the two higher planning and control levels, i.e. sales and operations planning and master scheduling, are strongly interrelated. The choices at the two lower hierarchical levels, i.e. material planning and production activity control, are also strongly interrelated. However, the link between any of the two upper and any of the two lower levels is much weaker. The most significant drivers of the choice of planning and control approach are: (i) product volume and delivery lead time for sales and operations planning, (ii) product variants and delivery lead time for master scheduling, and (iii) production lead time for production activity control, while material planning is not significantly related with any product characteristic. Significant effects on performance are found for sales and operations planning on volume flexibility, master scheduling on product mix flexibility, and material planning and production activity control approaches on delivery speed. This research supports the notion that sales and operations planning is concerned with volume planning and that master scheduling is concerned with mix planning.

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Section: Theoretical Frameworkmentioning

confidence: 99%

Section: Theoretical Frameworkmentioning

confidence: 99%