
Managing Resource Variability
When the topic of resources comes up on projects invariably the question arises how the resource can be made flexible to account for the constantly changing factors in the supply chain.
One way of dealing with constraints that are constantly changing is with the use of capacity variants. Variants allow SCM to modify resource capacity by time of day, by week, or by month. This can help in making the resources “flex” through time to match the reality of the supply chain. Different capacity variants can be used for different planning runs. A second method is using alternate production process models (PPMs) which means using different capacity constraints. Jorg Dickensbach has the following to say on this topic.
In addition to alternative PPMs and PDSs, SCM has the ability to use alternative resources. This allows the system to select from say one machine that is more expensive, but faster vs. a machine which is less expensive but slower. Depending upon the circumstance, either machine can be selected depending upon how it fits the need. - Jorg Dickensbach
Willingness to Maintain the System Master Data?
A second issue which is not very often discussed is how capable companies are in maintaining these constraints. The answer is not very. Most companies I have consulted with basically want the system to maintain itself, and the trend towards outsourcing system maintenance in faraway locations where the individuals are purely technical, and lack business knowledge is only exacerbating the situation. The best systems are those that are self adaptive. I have a video from the CEO Joseph Shamir on this topic from the SCM Focus Inventory Optimization and Multi Echelon site in which I think he expresses very well that clients want in terms of maintainability.
Title: Joseph Shamir of ToolsGroup on What Clients Are Looking For
So we learned from Joseph that demand shaping is one thing that clients are asking for. Also that there is a recognition that many supply chain planning systems end up being difficult to maintain. As a personal comment I think Joseph is absolutely right, and I hold the consulting firms as accountable as the the vendors as many solutions are designed without consideration to whether they will be truly sustainable. Its good to see a vendor with an eye on this issue.
Unfortunately SAP APO/SCM is not there yet. SCM requires a high degree of maintenance in all of its master data.
MDM to the Rescue? (Not Really)
One might ask the question if whether the expense of implementations is actually sucking money away from the maintenance of systems. This could be the topic of a separate article by itself. So while Master Data Management MDM software is selling very well and MDM consultants are doing great, master data is not improving much if at all, (repeated use of the terms “governance” and “taxonomy” do not seem to be magically improving the master data) and the vast majority of MDM projects are simply consulting boondoggles. MDM is known among partners as an excellent way to extract large amounts of money from clients.
See this article on this topic if you are interested in details as to why.
http://www.scmfocus.com/supplychainmasterdata/2010/06/why-software-based-mdm-is-a-consulting-boondoggle/
Secondly, one topic is not discussed with regards to master data maintenance is in many ways getting worse due to outsourcing. Outsourcing of IT is essentially a way to get short term costs reduced, while reducing IT capabilities even more than the cost go down. This means less support for everything and system maintenance is one of them. Its automatic, as soon as outsourcing occurs, the business starts having to perform their own system maintenance. Master data is of course part of this.
Other Methods
Maintenance in SCM can be managed by maintaining Setup Groups and the Setup Matrix in an Excel file and using it for an upload of the Setup Groups to SAP ERP with a CATT via LSMW. Step two is to transfer the Setup Groups to APO with a report, and the third step is to load the Setup Matrix from Excel to APO using the APO loader.
References
http://www.lib.umd.edu/drum/bitstream/1903/7488/4/25813_cov.pdf
Supply Chain Management with APO, Jorg T Dickensbach
http://planettogether.com/capacity-planning.php