Shih-Chih Chen*, Yu-Cheng Kao, and Huei-Huang Chen

Transcription

1 African Journal of Business Management Vol. 6(14), pp , 11 April, 2012 Available online at DOI: /AJBM ISSN Academic Journals Full Length Research Paper Advanced and scheduling (APS) and enterprise system (ERP) reference models for Personal Computer assembly industry: A process perspective Shih-Chih Chen*, Yu-Cheng Kao, and Huei-Huang Chen Department of Information Management, Tatung University, 40, Chungshan North Road, Section 3 Taipei, 104, Taiwan. Accepted 24 November, 2010 Faced with fierce market competition, the life cycle of computer products is shorter than other products which caused the supply and demand changing quickly. If the PC assembly industries still adopted ERP for material, it cannot response to customer s demands swiftly. Therefore, it is necessary to adopt the advanced and scheduling (APS) system. The goal of APS is to solve a complicated supply chain and scheduling question. This study discussed the related issues of APS system implementation for Personal Computer (PC) assembly industry and developed an implementation process of APS system. The research applied ARIS s EPC model to establish the reference models of APS and ERP from the process perspective. Finally, we proposed the integration of APS and ERP reference model to information system implementation for the PC assembly industry. Key words: Advanced scheduling system (APS), enterprise system (ERP), architecture of integrated information system (ARIS), event-driven process chain (EPC). INTRODUCTION Faced with the increasing enterprises competition, shorter product life cycle, and quick supply and demand variation, the typical material resource (MRP) adopted by current PC assembly industries for logic to solve production logistics issues, no longer could respond to customer s order changes swiftly. Such situation not only reduced customer s satisfaction and loyalty, but also unable to control operation costs effectively, consequently, seriously affected the enterprise s capability to receive orders. For shorten schedule and improve efficiency, it is necessary for the information technology industries Liguid Crystal and Personal Computer (LCD and PC) to implement the advanced and scheduling (APS) system (Jeong et al., 2001; Jeong et al., 2002). The APS *Corresponding author. scchendr@gmail.com. Tel: ext Fax: make use of advanced information technologies and methodologies, so that the enterprise has the capability to synchronize, consider the best under enterprise resource limitation, prompt and support policy decision. The majority of current APS belongs to the research of fundamental aspects of and scheduling theories, and the researches on relevant application of APS and it applied to enterprise are rare. Moreover, traditional ERP supports enterprise routines (such as sale, finance and production functions); whereas, APS amends the formerly MRP-based production of the ERP, and it is also a production logistics policy decision supporting system (Lee et al., 2002). In addition, APS shall integrates with each information system (such as ERP, B2B and e-logistics), thus it is not appropriate to extend ERP s implementation approach. Specially, choose APS system that fulfills the industrial characteristics and the way of organization is important (Jeong, 2002).

2 Chen et al Figure 1. APS function modules (Stadtler and Kilger, 2007). There are lots of proposed approaches to BPR and implementation models (for example, Integrated Computer-Aided Manufacturing Definition (IDEF) ARIS, Unified Modeling Language (UML),Open System Architecture of Computer Integrated Manufacturing (CIMOSA) and so on) but few have investigated the implementation model integrated with an architecture of integrated information system (ARIS) methodology (Ou- Yang and Hon, 2006; Chang et al., 2007). The main propose of this study is to adopt the ARIS to establish scenarios for APS system and scheduling processes and construct APS reference models for PC assembly industries. ADVANCED PLANNING SCHEDULING SYSTEM (APS) FUNCTIONAL MODULE APS solution providers such as I2, Manugistics, J. D. Edwards, Fygir, SAP, DigiChain APS, AsiaTEK and others are now marketing software-based solution procedures for many scenarios that were unsolvable with different focus and function in the past. Considering early promotional publications distributed by software vendors, it appears that the structure of these so-called APS system has developed historically with a two-dimensional view of as depicted in Figure 1, one dimension being the business function involved and the other dimension being the horizon (Stadtler and Kilger, 2007). In general, APS comprised nine modules including strategic network design, master, material requirements, production, scheduling, distribution, transportation, demand and available to promise. ARCHITECTURE OF INTEGRATED INFORMATION SYSTEM (ARIS) METHODOLOGY A critical factor in the development of the basic idea for the architecture of integrated information system (ARIS) concept was the connection between the different views thinking of those responsible for the business processes and the tools level, that is to say the IT system used to support the business process (Scheer, 1998; Scheer, 2001; Changs et al., 2007). The implementation of APS changed the original production process, and its process could be described by EPC. Different from other process description tools, the EPC could integrate other views from organization, function and process to construct integrated system process, and serve as reference model of APS operation. An appropriate modeling tool is very important for setting up a business process model. After think over modeling tool s expression to APS process, completeness of information coverage and developmental of follow up research, this thesis selects ARIS as the process modeling tool. Architecture of integrated information system (ARIS) had been developed by Professor August Wilhelm Scheer, and its design ideal is to bring out an integrated concept obtained from an overall analysis of business operation process (Scheer, 2000). The purpose of ARIS developed under such framework is to involve all fundamental concepts that describe business process. Therefore, it is thus clear that such model must be very complicated. In order to decrease the complexity, it must be cut from different views. In the ARIS framework model, analyze the organization view, function view, data view and integrated control view, express complex business process by these four views (Figure 2). However, there are still requirements definition, design specification and implementation within individual view, through requirements definition transform to design specification, and implementation at last (Scheer, 2000). The implementation of APS changed the original production process, and its process could be described by EPC. Different from other process description tools, the EPC could integrate other viewpoints from organization, function and process to construct integrated system process, and serve as reference model of APS operation. ARIS takes the whole business for consideration, and could express respectively or integrally the

3 4786 Afr. J. Bus. Manage. Requirement Definition Design Specification Implementation Organization View Requirement Definition Design Specification Requirement Definition Design Specification Requirement Definition Design Specification Implementation Implementation Implementation Data View Control View Function View Figure 2. ARIS Methodology framework concept (Scheer, 2001)., information and function series connection associated with business process. Because ARIS integrate data, organization and function through control view, and could express important relevant business information clearly by EPC. Therefore, it is more appropriate for constructing business process to adopt ARIS (Aichele et al., 1999; Ou-Yang and Chang, 2000; Juan and Ou- Yang, 2005). Here we show EPC elements in Table 1. REFERENCE OF PLANNING PROCEDURES FOR APS AND ERP This part describes a segment of the procedures of the production of informational industry, including from getting the order, for production, to, sending out the finished products. In Figure 3, customers make purchase orders to the sales of the company, and the company transfers it to sales orders. After finishing confirming the orders, sales employees categorize the received orders and input it into the ERP system. Then use the APS system according to the recent goods in stock and products that are about to finish in the future, out ATP to satisfy clients orders, and make responses. After the employees of production get the new orders, they start to proceed production, confirm and release invoice including material demands, and precede prepared materials and production. After the material receives the material demands, they start to examine the stocks in the factory, and stocks on the road, decide the data of the total amount of original materials that it needs, transmit to the purchase to make the purchase. Then after the purchase receives the material demands from the material, integrate stock strategy and purchase strategy to negotiate with the provider the date and the way to deliver the materials (if it uses the JIT way to deliver the goods). The procedures after the provider sends the goods to the material are temporary not considered. According to the observation of this case study, none of the s neither the procedure of the assignments in the company nor its functioning, has suffered a wide margin of change because of the induction of APS. But before inducting the APS system, the reply of ATP to the clients by the business not only needs to waste a lot of time, but also it is not able to reply on the modifications of the order rapidly. The production needs a man-made confirmation about the production of bottlenecks, regulation of worksheet, and ignores easily a displaced production. The material needs a man-made confirmation about the state of the materials, regulate the modifications of Engineering Change Notice (ECN), etc, and ignores easily the displaced materials and supplies. The purchase needs a man-made confirmation about the procedures of adjusting purchase orders, and cannot obtain information about the urge materials easily. Furthermore, every has to convoke to a production and marketing coordination conference frequently to resolve the ERP system plan of production and marketing s results. These usually are not identical with the authentic state of condition, generating the inability to a quick response to the needs of adjusting the order by the client. After the induction of the APS system, the business, production, material, and purchase s functions still functions as detailed earlier. But the business can obtain a rapid and precise ATP response of the client s amount order and deliver date, and it would be able to respond rapidly about the changes on the order, by simulating the case through the what-if simulating function. The production can obtain the information of plan for production through the APS system, and be advised for the deficient material worksheet and delayed worksheet. The material can make sure the relations between materials and invoices, and can master the

4 Chen et al Table 1. The Elements and definitions ARIS and EPC (Scheer, 2001). Element name Elements Definition Function Function Function is a technological assignment or activity performed on element for the achievement of one or more targets. In the process analysis, Function is the synonym of process, activity and task, such as inspection, incoming material and etc. Event Event Event is employed to describe each element s status in business process. The events are both triggers of functions and results of functions. Logic operators For the indication of logic relation among Event, Function or process. From left to right are three different relations AND, OR and XOR. Logic operators decide what Function (Event) could drive what Event (Function), to control the direction or relationship of processes. Cluster Cluster This is the element cited directly from eerm by EPC, which represents the data objects described from macro-view in business process, and same as the description of data view (for example,. quotation inquiry, order notification, etc.). Application system Appliaction System Represents the information system involved in the process such as ERP, VMI, APS, etc. Organization unit Organization unit Describe manpower structure, limits of authority and function in charge within the company. information about the deficient material and the remained material. could gather information about the categorization of the new orders. Also making connections with orders, invoices and purchase list, through the APS system. As well, the APS system can produce advised purchase list, leading to the reducing the time of man-made adjustment of the purchase list. These are five different production scenarios of APS and ERP, and use the EPC to establish the response of consented amount, middle/long term critical material, short term material, pullin/push-out/cancel the lists of recommended purchase and purchase orders and track of unusual conditions of orders. 1) The orders and anticipated orders are input into the ERP system by the sales personnel. After the data of the orders has entered the ERP system, passing through a daily update, and an APS system s production, the results will be entered into the ERP system. personnel will be able to obtain the new order s delivery date and amount from the ERP system, being able to make a response to the client (Chen et al., 2001; Chen et al., 2002; Richard, 2005). 2) Business personnel inquire ATP and input into the APS system. After the re-production through the APS system is finished, business personnel can obtain the approved consented amount and delivery date, to reply to the client. Response of available-to-promise personnel will receive orders and anticipated orders from the client, and inquired available-to-promise (ATP) (Figure 4). These procedures can be divided as: Middle/long term critical material After predicting the client s middle/long term requirements, the predicted products needed in the coming weeks (about the fourth to the thirteenth week),

5 4788 Afr. J. Bus. Manage. Figure 3. The integration of APS and ERP in the PC industry. Receive client's order/ FCST/ ATP inquiry Receive inquired order requirement Receive client's order/ FCST APS system Update What-if simulated order Update order/ FCST ERP system Update complete Input complete Obtain the charge against Acceptance and obtain ATP Re-production Obtain the charge against Acceptance and obtain ATP APS planned order/ FCST results input in the ERP B2B System Transfer the simulated What-if results to the client Department Transfer the planned order/ FCST of ATP delivery date and amount to the client B2B Systyem Finished ATP response to the client Figure 4. Response of consented amount. will be input in the ERP system by the business personnel (Figure 5). Then the ERP system will gather the information of the products required and input into the APS system (Taylor and Plenert, 1999). As it is, proceed

6 Chen et al Receive FCST from the client Input FCST amount Complete input of FCST ERP system a middle/long term production, here we only calculate the crucial materials; the general materials are not taken into account in the production. Following, the material personnel decide and adjust the requirements of amount of the crucial materials, and uses APS system to produce the recommended purchase list. Finally, the purchase personnel decide the supplier and assign the predicted requirement to the supplier through the B2B system, for the supplier to precede the preparation of the materials. Management Department APS/ERP information precede to be transformed and sent to APS Complete transformation Proceed material Finished of advised purchase order Decide advised amount of purchase APS/ ERP transformer system Short term material The material transforms the archives obtained from the ERP system to the APS system, the APS system precedes the production according to the information transformed (Figure 6). Once finished transformation, the list of deficient materials (crucial material conditions are determined from the supplier, if they cannot provide them), and the list of urge materials (the materials required for the production within the lately week) will surge (Xiong et al., 2003). Finishing the lists of the deficient and urge materials, the material and the purchase will inquire about the conditions of a shortterm required deficient and urge materials for production. The material will apply to the purchase for a confirmation of a purchase condition, and will press the supplier. Finally, the results will be reported to the production, provide the confirmed urge material list, substitute material reporting data, and deficient material list. Then, the production will update the information of the short-term materials for production in the ERP system. Transfer results response to APS Decision of choosing supplier Supplier be decided Transfer the predicted material to the supplier Complete of crucial material ERP System B2B System Figure 5. Middle/long term critical parts and material. Pull-in / push-out / cancel the lists of recommended purchase and purchase orders When the APS system proceeds with the production, first they obtain related information from the ERP system (as the requirement and modifications on the supply of the amount of responses and conditions about crucial materials, orders, working orders, etc.). APS system proceeds with the production according to the transformed archives, after ; it will produce modification on the recommended purchase list at the same time. The modifications of the purchase are caused by the increment, reduce, and cancel of the order by the client, causing the needs of modifications on the purchase condition in the central factory. The material and purchase checks the recommended purchase order and PO advance/ postpone/ cancel advice. The different steps are detailed as follows (Figure 7):

7 4790 Afr. J. Bus. Manage. Receive order from the client APS/ERP information precede to be transformed and sent to APS APS/ERP transformer system Complete transformation Proceed with the production Complete APS System APS System of deficient material list of urge material list of finished deficient and urge material list Confirm the deficient and urge material's condition with the supplier Finish pressing action Update short-term worksheet information ERP System Finish short-term material Figure 6. Short term material.

8 Chen et al Modifications in the requirements and providence APS/ERP information precede to be transformed and sent to APS APS/ERP transformer system Complete transformation Proceed with the production APS system Complete APS system of advised purchase modification of advised purchase orders Finish reports of advised purchase modifications Adjust the purchase advise to purchase list Discussion with the supplier about the modifications of the advised purchase Discuss finished Decision of supplier ERP System ERP System Input the discussed results in the ERP Supplier decided Complete input of discussed results Transfer the purchase information to the supplier B2B System Complete transfer of purchase information Figure 7. Pull-in / push-out / cancel the Lists of recommended purchase and purchase orders.

9 4792 Afr. J. Bus. Manage. Information of the stocks to arrive Conditions of the equipments information E-Logistics System Report the information to APS B2B System Update complete MES System Proceed with production of ALERT delayed orders Survey unusual orders Update complete Inquire about the reason of the delayed order cause cause Resolved cooperation Adjust the material requirements/urge materials X X capacity can not be adjusted Advise the client of the delayed order capacity can be adjusted Proceed with overtime work or external packing of the production Adjustable Plan the updated material information ERP System Non-adjustable Advise the client of the delayed order Complete tracking of the unusual order Figure 8. Track of unusual conditions of orders. Recommended purchase order: personnel combines the purchase order list according to different materials and the purchase chooses the supplier, sending the purchase information to the supplier through the B2B system. Pull-in / push-out / cancel of purchase list: personnel notify the purchase personnel and supplier about the purchase order s modification information, and negotiate about the modifications of the purchase order. After reaching an agreement, the purchase order will be modified in the ERP system. The modified PO will be send to the supplier through the B2B. Track of unusual conditions of orders In the routine assignments of the system, transforms daily archives from ERP, e-logistics, and B2B to the APS system for the production. And the related users from the company would be able to check the order s condition in the day after. If the results arranged by the APS system could not satisfy the client s needs (referring to the delayed delivery date order), business personnel can look for help in the APS system, using its 3O tracking mechanism they can check rapidly the reasons of the delay. The delayed order s causes could be differentiated as follows (Figure 8):

10 Chen et al Figure 9. The As-Is and To-Be production process of the APS system. cause: If the order is delayed by a delay of material, the material and purchase have to press the supplier for the materials according to the results planned in the APS system. If the supplier can adjust the amount and delivering date of the materials, then the APS system will re-plan the situation according to the response of the supplier. If the supplier cannot co-operate, the business personnel will be in charge of informing the client about the causes of the delaying order. cause: If the order is delayed because of an insufficient production, the production has to discuss with the operating staff about a possibility of an overtime work, to make up the deficient production; also the external packing is considered, and notice the clients about the results. If the production can not be adjusted, then they will inform the business personnel about the delaying of the order. Conclusion The inducing of APS system, replaces the production of the ERP system, consequently, changes in the production procedure will surge (Figure 9): 1) Before the inducing of the APS system, ERP system can not take into account the production capability and material providence at the same time. After the APS system is induced, it helps to adjust the results of the production and the material, preventing the waste of time in regulating the personnel. 2) When the ERP system proceeds with the material, it gathers the material demands as an output form, and cannot react in front of a modified order easily, increasing the cost of the storage. APS system will plan the required purchase order according to the order, preventing the traditional MRP gathered results, lowering the storage s cost and increasing the visibility of the execution of the production plan. In these years, enterprises in Taiwan had already replaced the old information system with the ERP system. But after the implementation of the ERP system, they gradually detected that the traditional MRP logic cannot resolve correctly the problems of the production ; only the APS system is able to make a rapid plan, satisfying the client s needs and best make-up of the enterprise s resource s material requirement and production procedure arrangement. An APS system inducement apart from the nuclear technique of the software, needs also a production procedure that conforms with the enterprise s characteristics, only in this way, the APS can completely replace the production that the personnel has been doing. Nowadays with the creation, materialization of products with computers and information, lots of key materials are not controlled in our hands. And the amplification of the making process is much simpler than others of much difficulty. Therefore, choosing APS system is the best choice, because it emphasizes the material. Before this, there were already many APS system s suppliers who brought up systems that conform to these

11 4794 Afr. J. Bus. Manage. industries production procedure, but there were fewer systems that could conform to the PC assembly industry. In this study, confer and conclude information industry s actual production, reply of order modifications, and discussion of material with the supplier, and develop induced APS system business, production, material, and purchase, to employ the APS system in order to improve and order the reaction speed of the supplier chain. Analyze according the circumstances (as reply of available-to-promise, critical material, or purchase order and advise) to expound the business, production, material and purchase s coordination and manipulation, for a rapid and accurate response to the client s needs. REFERENCES Aichele C, Hanebeck HC, Kiang AM (1999). Business Process Reengineering with ARIS. IDS-Gintic Pte. Ltd. Chang TH, Fu HP, Ou JR, Chang TS (2007). An ARIS-based Model for Implementing Information Systems from a Strategic Perspective. Prod. Plan. Control, 18(2): Chen CY, Zhao ZY, Ball MO (2001). Quantity and due date quoting available to promise. Inf. Syst. Frontiers, 3(4): Chen CY, Zhao ZY, Ball MO (2002). A model for batch advanced available-to-promise. Prod. Oper. Manage., 11(4): Chopra S, Meindl P (2001). Supply Chain Management: Strategy, Planning, and Operation. Prentice-Hall, New Jersey. Genin P, Thomas A, Lamouri L (2007). How to manage robust tactical with APS (advanced systems). J. Intell. Manuf., 18(2): Jeong B, Kim SW, Lee YJ (2001). An assembly scheduler for TFT-LCD manufacturing. Comput. Ind. Eng., 41(1): Jeong B, Sim SB, Jeong HS, Kim SW (2002). An available-to-promise system for TFT-LCD manufacturing in supply chain. Comput. Indus. Eng., 43(1-2): Juan YC, Ou-Yang C (2005). A process logic comparison approach to support business process benchmarking. Int. J. Adv. Manuf. Technol., 26(1-2): Lee YH, Jeong CS, Moon C (2002). Advanced and scheduling with outsourcing in manufacturing supply chain. Comput. Ind. Eng., 43: Ou-Yang C, Chang RH (2000). Applying an integrated analysis method to develop a shop floor control system. Int. J. Adv. Manuf. Technol., 16(5): Ou-Yang C, Hon SJ (2006). Developing an agent-based APS and ERP collaboration framework. Int. J. Adv. Manuf. Technol., 35(9-10): Richard P (2005). Advanced available-to-promise: Classification, selected methods and requirements for operations and inventory. Int. J. Prod. Econ., 93-94(8): Scheer AW (1998). Business Process Engineering: Reference Models for Industrial Enterprises. Berlin: Springer. Scheer AW (2000). ARIS-Business Process modeling. Berlin: Springer. Scheer AW (2001). Business Process modeling with ARIS: A Prcatical Guide. Berlin: Springer. Stadtler H, Kilger C (2007). Supply Chain Management and Advanced Planning: Concepts, Models, Software and Case Studies, 3rd ed., Springer. Taylor SG, Plenert GJ (1999). Finite capacity promising. Prod. Invent. Manage. J., 40(3): Xiong MH, Tor SB, Khoo LP (2003). WebATP: A Web-based flexible available-to-promise computation system. Prod. Plan. Control, 14(7):