APS for tactical planning in a steel processing company

Abstract

Purpose

The main purpose is to describe and analyse the impact that the implementation of an advanced planning system (APS) has on the tactical planning level at a steel processing company. This is done in terms of analysing changes in the tactical planning processes, effects on company performance, and how the APS is used in a practical planning context.

Design/methodology/approach

This research is based on a longitudinal case study in the process industry. The case company, a high‐end steel producer, has been studied during several years using a combination of data sources: literature reviews, interviews, archival records, and also attendance at meetings, workshops, seminars, etc.

Findings

This case study points to the fact that implementing an APS and reorganizing the planning department and the planning processes are mutually dependent. The positive effects at the tactical planning level (in terms of service levels, fast and reliable order promises, more accurate forecasts) could not have been realized without the APS. On the other hand, the APS could not have been effectively utilized without the organizational change.

Research limitations/implications

The results presented in this paper are based on a single case study, but in the context of our literature review and other case studies the findings are still valid and an important step towards better understanding of the practical use of APSs.

Practical implications

The process descriptions, lessons learnt, and issues encountered in case studies like this should be helpful to practitioners on their way to implement APSs, and companies seeking new ways to improve their planning can use this research to investigate the use of an APS.

Originality/value

Studies on the practical use of standard APS software are still scarce. As such this paper provides enhanced knowledge and understanding on the use of APSs in industry settings.

Citation

Rudberg, M. and Cederborg, O. (2011), "APS for tactical planning in a steel processing company", Industrial Management & Data Systems, Vol. 111 No. 4, pp. 608-628. https://doi.org/10.1108/02635571111133579