Implementing MRP with Advanced Repetitive

Sean Donahue – RFBPNadia Truxell – Logan Consulting

Introduction – Sean Donahue

•15 years experience in the MFG/PRO & QAD environment in the food industry. Activities included purchasing, logistics, inventory management, advanced repetitive scheduling, MRP and master scheduling.

• Have also assisted with MRP implementations/training, software and policy upgrades, MRP support, development support of custom programs within QAD as well as integration support of third party software with QAD.

•Positions held: Shipping and Receiving , S&R leader, Plant Scheduler and Master Scheduler.

•Education: Grand Valley State University APICS

Introduction – Nadia Truxell

• Operations/Materials Manager – Scherdel Sales & TechnologyAutomotive Supplier of Springs and StampingsImplemented QAD

• Project Manager – Logan ConsultingQAD Implementations and Business Process ConsultingAutomotiveFood & BeverageConsumer GoodsIndustrial Products

• Education: Grand Valley State University APICS

MRP– Introduction

• Introduction

•MRP Implementation Approach at RFBP

•Elements of MRP Process

•Advanced Repetitive Aspects

•Lessons Learned

•Questions

Introduction – RFBP

Bread, Griddle, and Cookie products for Industrial, Foodservice, and Retail markets

11 Manufacturing plants across the US and Canada Advanced Repetitive processing

Implementation Approach

Prerequisites to MRP:

•Accurate BOMS

•Accurate Inventory

•Accurate Demand

Implementation Approach

1) Define Goals and Benefits of Project

Implementation Approach

• A common understanding of planning processes and a common set of terms and definitions used in planning throughout the division

Implementation Approach

• A single, repeatable process throughout the organization

Implementation Approach

• Easier transfer of planning methodology to new planners and new plants.

Implementation Approach

• Better decisions on what SKU’s to produce and in what quantities to fulfill customer orders and meet forecast demand.

Implementation Approach

• Reduction possibilities in overall inventory with minimal shortages and expedites

Implementation Approach

• Improvement in Customer Service (reduction in SO leadtime and improvement in fill rate, on-time delivery)

Implementation Approach

• Reduction opportunities in obsolescence (both FG and Ingredient SKUs)

Implementation Approach

• Reduction in overtime, improvement in direct labor productivity

Implementation Approach

• Accountability throughout the organization based on a single set of criteria

Implementation Approach

2) Organize TeamDefine Roles and Responsibilities

Project SponsorProject ManagerSubject Matter ExpertCore Team (from Plant)End Users

Implementation Approach

3) Conduct Kickoff Meeting, Current State Assessment and Gap Analysis at each plant site

Implementation Approach

Gap Analysis

Implementation Approach

4) Core Team Training

Onsite Training with Core Team members

Train the Trainer approach

Implementation Approach

5) Process Design

Work with SME and Core Team to resolve identified gaps to evolve the end state processes.

Elements of MRP Process

6) Data Cleansing

Work with core team to update static data (master data, planning parameters) and clean up dynamic data (PO, DO, SO, WO).

Elements of MRP Process

7) User Acceptance Testing

Execute processes in a test database environment to gain approval from the users that the process meets the expected goals

Elements of MRP Process

8) End User Training

Core Team trains End Users with support from SME and Project Manager

Elements of MRP Process

• 9) Data Conversion and Go Live

Conduct upload of master data changes and finalize static data cleansing

Elements of MRP Process

10) Support Plant during live processing

Elements of MRP Process

Supply Planning Model

Elements of MRP Process

Forecast Feedback Process

Elements of MRP ProcessMaster Scheduling Process

Elements of MRP Process

Plant Scheduling Process

Elements of MRP Process

• ABC Stratification

Item Sales Ranking80/20 Rule Applied to determine Period Order Quantity

A= POQ 7B= POQ 14C= POQ 28

Elements of MRP Process

Item Site Planning

Elements of MRP Process

MRP Control File

Elements of MRP Process

MRP Net Change/Regen

Set to run through batch processMRP Regen – WeeklyMRP Net Change – Nightly

End User Access restricted – Master Schedulers can execute upon request

Elements of MRP Process

• MRP Planned Order Browse

Elements of MRP Process

• MRP Action Message Browse

Advanced Repetitive

32Soft Schedule Upload Tool

Advanced Repetitive

Line Schedule Workbench

Advanced Repetitive

Line Schedule Workbench

Advanced RepetitiveLine Schedule Workbench

KPI-Results

Lessons Learned

MRP Implementation Challenges• Mindset that “MRP Doesn’t Work”• Data integrity• Plants “have always done it this way” and fall

back into old habits• Major struggles with Operational vs

Production Forecast accuracy

Questions

Questions?