Holt, Modigliani, Muth, and Simon's work and its role in the renaissance and evolution of operations management

Singhal, Jaya; Singhal, Kalyan

doi:10.1016/j.jom.2006.06.003

Cited by 60 publications

(43 citation statements)

References 46 publications

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“…The starting steps of S&OP was taken in 1950s by Holt, Modigliani, Muth and Simon when they initiated the work on aggregate production planning and forecasting (Holt, et al, 1955) (Singhal & Singhal, 2007) (Feng, et al, 2011). Some other authors though state that S&OP has emerged from MRPII and been improved since 1970s (Wight, 1984) (Ling & Goddard, 1988) (Basu & Wright, 2008).…”

Section: Sales and Operations Planningmentioning

confidence: 99%

A Framework for Sales and Operations Planning in Process Industries

Noroozi¹

2014

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This thesis studies Sales and Operations Planning (S&OP) in process industries. S&OP is a planning process which has a role of balancing demand and supply at an aggregate level. S&OP has traditionally been considered as a generic process meaning that it is independent from the context of the industry in which it is implemented. Process industries do; however, have specific characteristics which affect their planning and control processes, including S&OP. Therefore, the aim in this thesis is to reconcile these two contradictory stances and furthermore investigate how the specific properties in process industries should be included into an S&OP framework. Such a differentiated framework aims to support process industries to design/implement their S&OP process based on their unique requirements in relation to their markets, products and processes while it also takes into account the specific characteristics regarding the continuous production. Consequently, the process industries would realize the expected benefits from S&OP process to a greater extent.The study starts with a literature review on S&OP in process industries in order to build the knowledge foundation for subsequent studies. The results show that the underlying difference between process industries and discrete industries is the object continuity which affects the selection of production processes including resources. Thus, process industries are often hybrids in the sense that their production processes include both continuous production, when the transformed object (material) is continuous, and discrete production when the object (material) turns into discrete products after the discretization point. In other words, process industries deploy both continuous production and discrete production while discrete industries use only discrete production. The specific characteristics of process industries are actually related to the continuous production part and influence the planning processes as well. As the result of this study, the continuous production characteristics that can affect the S&OP process are identified.In the continuation of the thesis and in order to provide a typology for planning and control purposes, the object type (continuous and discrete) is combined with two other dimensions i.e. mode type (onetime, intermittent and continuous) and driver type (customer order driven and forecast driven) into a planning and control typology. The mode type addresses the repetitivity of the flow and the driver type takes into account the trigger of the flow. Each dimension has a transition point -i.e. the discretization point for the object type, mode interface point for the mode type and customer order decoupling point for the driver typeand represents a hybrid situation since different production environments are required before and after each transition point. The typology aims to illustrate how each dimension affects the planning and control issues as well as how the dimensions are interrelated and how this combination influence the manage...

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Section: Sales and Operations Planningmentioning

confidence: 99%

A Framework for Sales and Operations Planning in Process Industries

Noroozi¹

2014

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“…In systemic terms, local optima are should not be pursued at the expense of the global optimum. Singhal and Singhal (2007) examined the impact of early work in aggregate production planning on the recent evolution of operations and supply chain management. They considered a broader objective for aggregate production planning as it plays a key role in enterprise resource planning and organizational integration by linking operations with accounting, distribution, finance, human resources management, and marketing.…”

Section: Hierarchical Production Planningmentioning

confidence: 99%

Optimal product/customer mix selection as a strategic tool for cross-functional integration

Figueiredo

Mayerle

Donato

2011

JOSCM

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Cross-functional integration is a necessity as operations become ever more important for the formulation and implementation of overall company strategy. Despite the abundance of theoretical studies extolling the advisability of smooth intra-company interfacing, the operations strategy literature has not been as prolific regarding tools to increase this desired integration. This paper develops an uncomplicated multi-period analytical model that helps increase coordination of the engineering, purchasing, marketing, and sales areas among themselves and with manufacturing by focusing on the overall company objective of maximizing contribution to profits. The paper begins describing the theoretical underpinnings of production and operations processes as they relate to the strategy of the firm, presents the model, and then expands its scope to include interfaces with other functional areas of the firm. The methodology is based on a two-stage multi-period optimization model for aggregate production planning encompassing component supply management and final assembly. This methodology expands the concept of Sales and Operations Planning (S&OP) through a linear programming model that uses cost and profit contribution data to select the optimal product and customer mix. The sensitivity of results to costing and pricing data leads to increased cross-functional coordination. An illustrative application improving the medium-term operations strategy of a Brazilian OEM manufacturer is presented.

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“…O processo de S&OP teve sua origem na década de 1950, a partir do planejamento agregado de produção, evoluindo para um processo de negócio mais amplo (Singhal & Singhal, 2007), conhecido como Manufacturing Resource Planning (MRP II), popularizado na década de 1980 (Wallace & Stahl, 2003;Dougherty & Gray, 2006;Thomé et al, 2012b). As aplicações iniciais ocorreram, na sua maioria, em indústrias (Grimson & Pyke, 2007), sendo que atualmente esta tendência continua presente, havendo publicações sobre o assunto predominantemente na área de manufatura (Gianesi, 1998;Ivert & Jonsson, 2010).…”

Section: Introductionunclassified

Dinâmica de implantação do Sales and Operations Planning: principais desafios

Pedroso

Silva

2015

Gest. Prod.

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The need to build greater synchronization between the demand side and the supply side of the business is among the many challenges faced by a company. The objective of this paper is to characterize the dynamics ofResumo: Existem vários desafios que as empresas enfrentam nos dias atuais, dentre eles a necessidade de construir maior sincronia entre demanda e suprimentos. O objetivo deste artigo é caracterizar a dinâmica do processo de S&OP, identificando a motivação, os objetivos, os desafios e os principais resultados obtidos por empresas que já o adotaram no Brasil. Inicialmente realizou-se revisão de literatura e, a seguir, um estudo multicaso em três empresas brasileiras. Dentre as principais motivações, observou-se o alinhamento de informação (previsão de vendas e capacidade e maior conhecimento do mercado) entre as áreas. Dentre os objetivos estavam: melhorar o planejamento, em especial de capacidade, incluindo Vendas no processo. Os principais desafios foram: melhorar a comunicação fragmentada e, construir visibilidade da gestão de capacidade. Como resultado, observou-se melhoria na comunicação, otimização do planejamento de capacidades, maior assertividade na previsão de vendas. A principal contribuição foi identificar que a implementação do S&OP exigirá que desafios diversos sejam enfrentados a fim de que o processo possa oferecer os resultados esperados para a gestão de operações. Palavras-chave:Sales and Operations Planning; Gestão de operações; Gestão da demanda e gestão da cadeia de suprimentos.

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Holt, Modigliani, Muth, and Simon's work and its role in the renaissance and evolution of operations management

Cited by 60 publications

References 46 publications

A Framework for Sales and Operations Planning in Process Industries

A Framework for Sales and Operations Planning in Process Industries

Optimal product/customer mix selection as a strategic tool for cross-functional integration

Dinâmica de implantação do Sales and Operations Planning: principais desafios

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