planning engine presented by: dave parker sr. business analyst
TRANSCRIPT
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PLANNING ENGINE
Presented by: Dave ParkerSr. Business Analyst
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Agenda• Overview of Planning Process• Net Change vs. Regenerative Planning• Planning Triggers Explained• Avoiding ‘Clutter’• Typical Planning Cycle• Curveballs• Q&A
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Overview
• Independent Demand = Forecast or Sales Order Line• Infinite Capacity Planning Model
MPS (Master Production Schedule)
• Prioritize (Color, Allergens, Setup, etc.)• Heel-to-Toe
Schedule
• Dependent Demand based off MPS; also Component Forecasts• Infinite Capacity Planning Model
MRP (Material Requirements Planning)
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Balance Supply vs. Demand
Demand
Supply
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MPS Inputs
MPS Calculation
Planning “Triggers”
Sales Orders
Production Forecast (Sales)
Inventory Stock Levels
Open Documents
(Backorders)
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MPS Outputs
FG Production
FG Purchases
FG Transfers
MPS Suggestions
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MRP Inputs
MRP Calculation
Planning “Triggers”
Production Forecast
(Component)
Demand from MPS
Inventory Stock Levels
Open Documents
(Backorders)
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MRP Outputs
WIP Production
RM/PKG Purchases
RM/PKG Transfers
MRP Suggestions
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Net Change vs. Regenerative
• Net Change Plan– Direct changes to the demand requirements
• Ex: Change in forecast, sales order, production order
– Changes to standard data or planned supply• Ex: Change to BOM, safety stock, inventory, purchase order
– Saves time and system resources• Only re-plans items with demand or supply changes since last plan
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Net Change vs. Regenerative
• Regenerative Plan– Plans for ALL items
• Starts by deleting all ‘planned’ supply orders that are currently loaded
• Consumes more time and system resources to execute
– Necessary if there are changes to capacity or standard data that would affect the total plan
• Ex: Change to shop calendar, overall safety lead time
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Planning Policies
• Blank – do not include in planning• Maximum Inventory – what is needed to get to value of
Maximum Inventory• Order – separate supply per demand instance• Fixed Reorder Quantity – when need is identified,
always suggest value of Reorder Qty.• Lot-for-Lot – whatever supply is needed within the
Reorder Cycle
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Planning Triggers
• Vendor Lead Times– “No matter WHAT I buy from this vendor, it takes x days.”
• Item Lead Times– “No matter WHO I buy this item from, it takes x days.”
• Vendor Item Catalog– “Item A from vendor A takes x days. Item B from vendor A takes y
days.”
• Safety Lead Times (Manufacturing Setup, Item Card)– Added to any other lead times
- Lead Times
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+ Lot Acc. Per. (6D)
Looks out 6 days past the first demand date and suggests 25 cases.
Planning Triggers - Lot Accumulation Period
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+ Lot Acc. Per. (7D)
Looks out 7 days past the first demand date and suggests 30 cases.
Planning Triggers - Lot Accumulation Period
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Planning Triggers - Lot Accumulation Period
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- Reorder Point vs. Safety Stock
• Reorder Point– Reactive response to an inventory level
• Safety Stock– Proactive response to an inventory level
Planning Triggers
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Reorder Point
Reorder Point
Inventory
Lead Time
Replenishment (Reorder Quantity)
Time
Qu
an
tity
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Safety Stock
Safety Stock
Inventory
Lead Time
Replenishment
Time
Qu
an
tity
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- Order Quantity Manipulators
• How to ensure orders are at least a full batch (or full pallet)?– Minimum Order Quantity
• How to ensure orders are in full batch (or full pallets) increments?– Order multiples
• How to ensure orders are split into standard run sizes?
– Maximum Order Quantity
Planning Triggers
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Avoiding ‘Clutter’
If this is all you do, it’s not enough!Now you’ve doubled your supply – and the Cancel will be back again next time!
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Avoiding ‘Clutter’
Scenario: Cancel one date, New order for another
WHY does this happen?
A) Demand changes (unavoidable!)B) The new supply needed is further away from original supply than the Reorder Cycle.
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Avoiding ‘Clutter’ – How?
• Planning Flexibility–Any supply can be set to ‘None’ and the
plan will leave it alone
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Avoiding ‘Clutter’ – Planning Flexibility option
Purchase LinesTransfer LinesProd. Order Lines
Req. WorksheetPlanning Worksheet
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Avoiding ‘Clutter’ – How?• Planning Flexibility
• Dampeners–Plan only suggests change outside of a
‘tolerance’ (date or qty)– In 2013, these are at Item / SKU level, not
overall Manuf. Setup
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Avoiding ‘Clutter’ - Dampeners
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Avoiding ‘Clutter’ – How?• Planning Flexibility• Dampeners
• Rescheduling Period–Plan will use ‘Reschedule’ if within the
period (as opposed to Cancel + New)
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Avoiding ‘Clutter’ – Rescheduling Period
For NAV 2013, Reorder Cycle split into two fields:
- Lot Accumulation Period
- Rescheduling Period
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Planning Engine
What does a typical planning process look like?
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STEP 1 – Plan FG Production
• Filter for which FG to include• Dates - Longest lead time component
1.1. MPS
• Firm plan next week• Plan everything else
1.2 Carry Out Action
• Shortage report / meet with purchasing• Early detection of packaging issues
1.3 Shortage Analysis
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STEP 2 – Schedule FG Production
• Primary work center/machine center• Sort by Item Scheduling Property• Throughput based on routing setup/run
times• Heel-to-toe prioritizing
2.1 Capacity Task List
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STEP 2 – Schedule FG Production
• Heel-to-toe prioritizing
2.1 Capacity Task List
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STEP 2 – Schedule FG Production
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STEP 3 – Plan WIP Production
• Dates - Longest lead time component• Suggestions align with FG schedule
3.1 MRP (WIP)
• Firm plan next week• Plan everything else
3.2 Carry Out Action
• Shortage report / meet with purchasing• Early detection of component issues
3.3 Shortage Analysis
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STEP 4 – Plan RM/PKG
• Dates - Longest lead time component• Suggestions align with FG/WIP schedule
4.1 MRP (RM/PKG)
• Create PO for order date of today/tomorrow• Ignore everything else
4.2 Carry Out Action
• Shortage report / meet with purchasing• Double check plan
4.3 Shortage Analysis
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- Planning
• Make-to-Order Environment– Will need to combine MPS and MRP
• Co-pack / Subcontracting Environment– Will need to insert Subcontracting Worksheet into the
process– Links a production order and a purchase order
• Multi-location Environment– Transfer order suggestions may not represent your reality
Curve Balls
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• Schedule WIP instead of FG– Production Order Linking
• WIP Requirement is Line Specific– May need to use variants to trigger production suggestions
by line
• Batch Sizes Change by Line– Alternate Routings (or versions) with different batch UOMs
• Routing or BOM Changes Based on Production Location– Routing versions by Location
Curve Balls - Scheduling
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Characteristics of successful implementations
• Maintain accurate data input– Forecasts, orders, inventory levels, BOMs, routings
• Proper treatment of expedited orders– Additional resources, multiple lines
• Close collaboration between sales/marketing and production– The forecast is a key contributor to successful planning
• Accurate and timely shop floor feedback and tracking
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Questions?
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Thank you!
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