planning engine presented by: dave parker sr. business analyst

PLANNING ENGINE

Presented by: Dave ParkerSr. Business Analyst

Agenda• Overview of Planning Process• Net Change vs. Regenerative Planning• Planning Triggers Explained• Avoiding ‘Clutter’• Typical Planning Cycle• Curveballs• Q&A

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)

Balance Supply vs. Demand

Demand

Supply

MPS Inputs

MPS Calculation

Planning “Triggers”

Sales Orders

Production Forecast (Sales)

Inventory Stock Levels

Open Documents

(Backorders)

MPS Outputs

FG Production

FG Purchases

FG Transfers

MPS Suggestions

MRP Inputs

MRP Calculation

Planning “Triggers”

Production Forecast

(Component)

Demand from MPS

Inventory Stock Levels

Open Documents

(Backorders)

MRP Outputs

WIP Production

RM/PKG Purchases

RM/PKG Transfers

MRP Suggestions

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

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

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

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

+ Lot Acc. Per. (6D)

Looks out 6 days past the first demand date and suggests 25 cases.

Planning Triggers - Lot Accumulation Period

+ Lot Acc. Per. (7D)

Looks out 7 days past the first demand date and suggests 30 cases.

Planning Triggers - Lot Accumulation Period

Planning Triggers - Lot Accumulation Period

- Reorder Point vs. Safety Stock

• Reorder Point– Reactive response to an inventory level

• Safety Stock– Proactive response to an inventory level

Planning Triggers

Reorder Point

Reorder Point

Inventory

Lead Time

Replenishment (Reorder Quantity)

Time

Qu

an

tity

Safety Stock

Safety Stock

Inventory

Lead Time

Replenishment

Time

Qu

an

tity

- 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

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!

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.

Avoiding ‘Clutter’ – How?

• Planning Flexibility–Any supply can be set to ‘None’ and the

plan will leave it alone

Avoiding ‘Clutter’ – Planning Flexibility option

Purchase LinesTransfer LinesProd. Order Lines

Req. WorksheetPlanning Worksheet

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

Avoiding ‘Clutter’ - Dampeners

Avoiding ‘Clutter’ – How?• Planning Flexibility• Dampeners

• Rescheduling Period–Plan will use ‘Reschedule’ if within the

period (as opposed to Cancel + New)

Avoiding ‘Clutter’ – Rescheduling Period

For NAV 2013, Reorder Cycle split into two fields:

- Lot Accumulation Period

- Rescheduling Period

Planning Engine

What does a typical planning process look like?

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

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

STEP 2 – Schedule FG Production

• Heel-to-toe prioritizing

2.1 Capacity Task List

STEP 2 – Schedule FG Production

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

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

- 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

• 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

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

Questions?

Thank you!