PPC Task Plan Sourcing: Synchronization of Procurement and Production. A Model-based Observation

Research output: Chapter in book/report/conference proceedingConference contributionResearchpeer review

Authors

  • Simon Hillnhagen
  • Selim-Hendrik Koller
  • Alexander Carolus Erich Mütze
  • Peter Nyhuis
  • Matthias Schmidt

External Research Organisations

  • Leuphana University Lüneburg
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Details

Original languageEnglish
Title of host publicationProceedings of the Conference on Production Systems and Logistics
Subtitle of host publicationCPSL 2022
Pages287-296
Number of pages10
Publication statusPublished - 1 Jul 2022

Publication series

NameHannover : Institutionelles Repositorium der Leibniz Universität Hannover

Abstract

As companies continue to globalize, manufacturers face the challenge of strategically adjusting their vertical integration and restructuring production and supply chains. This leads manufacturers to increasingly pursue two strategies of restructuring. On the one hand, in the form of outsourcing value-adding activities, the focus is being placed on the core competencies of the company's own production. As a result, the vertical range of manufacture within the company is decreasing, while outsourcing is becoming more and more important. On the other hand, companies are also pursuing the strategy of least possible dependency to secure production through regional procurement of resources and expansion of the necessary competencies by means of increased vertical integration. In order to understand the consequences and effects of these changes at the level of production planning and control (PPC), a model-based view is necessary for an expanded understanding of the processual context of these changes. The PPC is the essential steering instance of production. It combines long-term tasks, e.g. Plan Sales or Roughly Plan Resources, with short-term tasks, e.g. Schedule Throughput or Plan Resources in Detail. The main PPC task, Plan Sourcing, is an essential link with its tasks and procedures between the core processes of procurement and production in the company's internal supply chain. In the context of this paper, the PPC main task Plan Sourcing is to be considered in a model-based manner, which focuses on the selection and connection of suppliers as well as the general view of the supplier management of manufacturers. For this purpose, the effect on the PPC and the production logistic objectives variables is presented by means of the consideration of the tasks and possible procedures for the fulfilment of these PPC tasks. Utilizing collected findings, a process-related derivation for the synchronization of the affected areas of procurement and production is presented.

Keywords

    Modelling, PPC, Procurement, Production Planning and Control, Sourcing, Synchronization

ASJC Scopus subject areas

Sustainable Development Goals

Cite this

PPC Task Plan Sourcing: Synchronization of Procurement and Production. A Model-based Observation. / Hillnhagen, Simon; Koller, Selim-Hendrik; Mütze, Alexander Carolus Erich et al.
Proceedings of the Conference on Production Systems and Logistics: CPSL 2022. 2022. p. 287-296 (Hannover : Institutionelles Repositorium der Leibniz Universität Hannover).

Research output: Chapter in book/report/conference proceedingConference contributionResearchpeer review

Hillnhagen, S, Koller, S-H, Mütze, ACE, Nyhuis, P & Schmidt, M 2022, PPC Task Plan Sourcing: Synchronization of Procurement and Production. A Model-based Observation. in Proceedings of the Conference on Production Systems and Logistics: CPSL 2022. Hannover : Institutionelles Repositorium der Leibniz Universität Hannover, pp. 287-296. https://doi.org/10.15488/12121
Hillnhagen, S., Koller, S.-H., Mütze, A. C. E., Nyhuis, P., & Schmidt, M. (2022). PPC Task Plan Sourcing: Synchronization of Procurement and Production. A Model-based Observation. In Proceedings of the Conference on Production Systems and Logistics: CPSL 2022 (pp. 287-296). (Hannover : Institutionelles Repositorium der Leibniz Universität Hannover). https://doi.org/10.15488/12121
Hillnhagen S, Koller SH, Mütze ACE, Nyhuis P, Schmidt M. PPC Task Plan Sourcing: Synchronization of Procurement and Production. A Model-based Observation. In Proceedings of the Conference on Production Systems and Logistics: CPSL 2022. 2022. p. 287-296. (Hannover : Institutionelles Repositorium der Leibniz Universität Hannover). doi: 10.15488/12121
Hillnhagen, Simon ; Koller, Selim-Hendrik ; Mütze, Alexander Carolus Erich et al. / PPC Task Plan Sourcing : Synchronization of Procurement and Production. A Model-based Observation. Proceedings of the Conference on Production Systems and Logistics: CPSL 2022. 2022. pp. 287-296 (Hannover : Institutionelles Repositorium der Leibniz Universität Hannover).
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abstract = "As companies continue to globalize, manufacturers face the challenge of strategically adjusting their vertical integration and restructuring production and supply chains. This leads manufacturers to increasingly pursue two strategies of restructuring. On the one hand, in the form of outsourcing value-adding activities, the focus is being placed on the core competencies of the company's own production. As a result, the vertical range of manufacture within the company is decreasing, while outsourcing is becoming more and more important. On the other hand, companies are also pursuing the strategy of least possible dependency to secure production through regional procurement of resources and expansion of the necessary competencies by means of increased vertical integration. In order to understand the consequences and effects of these changes at the level of production planning and control (PPC), a model-based view is necessary for an expanded understanding of the processual context of these changes. The PPC is the essential steering instance of production. It combines long-term tasks, e.g. Plan Sales or Roughly Plan Resources, with short-term tasks, e.g. Schedule Throughput or Plan Resources in Detail. The main PPC task, Plan Sourcing, is an essential link with its tasks and procedures between the core processes of procurement and production in the company's internal supply chain. In the context of this paper, the PPC main task Plan Sourcing is to be considered in a model-based manner, which focuses on the selection and connection of suppliers as well as the general view of the supplier management of manufacturers. For this purpose, the effect on the PPC and the production logistic objectives variables is presented by means of the consideration of the tasks and possible procedures for the fulfilment of these PPC tasks. Utilizing collected findings, a process-related derivation for the synchronization of the affected areas of procurement and production is presented.",
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