Material and Production

Planning Optionswith

XA

Deborah Vermillion, CPIM, CIRMCISTECH Inc.

www.cistech.net

Agenda

• Traditional Planning-MPSP, MRP, CRP

• Advanced Planner

• Thru-Put

PRODUCT PRODUCT DATADATA(PDM+, IM)(PDM+, IM)

Item MasterItem Master

Bills Of Bills Of MaterialsMaterials

RoutingsRoutings

Inventory Inventory LevelsLevels

WorkcentersWorkcenters

Existing MosExisting Mos

Existing POsExisting POs

FFiinnaanncciiaall

CCoonnttrrooll

TRADITIONAL TRADITIONAL CAPACITY PLANNINGCAPACITY PLANNING

MPSPMPSP

Production SchedulesProduction Schedules(Inventory Management)(Inventory Management)

ProcurementProcurement(Procurement Management +)(Procurement Management +)

ProductionProductionSHOP FLOOR CONTROLSHOP FLOOR CONTROL

(PM&C, PC&C, Paperless)(PM&C, PC&C, Paperless)

Vendor SchedulingVendor Scheduling(Procurement Management +)(Procurement Management +)

ShippingShipping(COM)(COM)

ReceivingReceiving(Inventory Management)(Inventory Management)

Customer OrdersCustomer Orders(COM)(COM)

ForecastsForecasts(Forecasting)(Forecasting)

ReportingReporting(Browser)(Browser)

MRPMRPCapacity Capacity and Materialand Material

AnalysisAnalysis

Traditional Planning Cycle

• Master Scheduling– Interface with Forecast thru DMDIFF file– Blends COM orders and Forecast or Forecast

only– Allows build up for seasonal demand– Rough cut capacity for critical items

Traditional Planning Cycle

• But:– Limited view of

capacity– Can be

Iterative, time consuming…

Traditional Planning Cycle

• Material Requirements Planning– Uses Master Schedule from MPSP, COM Orders

or Manual requirements to drive plan– Uses PO’s, MO’s, Rep Schedules to satisfy plan

requirements – Result is Time phased purchased material and

production plan

Traditional Planning Cycle

• But:– Capacity not

considered– Requires MPSP update

for changes in blended demand

– ‘what-if’ capabilities limited (manual req’s)

– Impact of new demand-wait until night

Order/Schedule Order/Schedule Recommendation by ItemRecommendation by Item

Traditional Planning Cycle

• How does yours work today?– Appropriate staff effort?– Integration from demand to scheduling?– Length of planning cycle, can we provide

quick response to changes in customer demand?

– What if we get this order?– On time deliveries and consistent schedule

performance?– Excess inventories?

• Do shortfalls cost us time/money/cust sat?

What is Advanced Planner?• Advanced Planner is an alternative to XA MPSP, MRP and CRP• Windows based fast MRP that helps you to do interactive planning• Allows you to visualize load on the facilities (work centers). AVP

uses color coded graphs and charts that makes it easier to manage the master schedule process. This includes material and capacity testing

• Helps you to take appropriate decisions such as offloading, outsourcing, level loading etc to meet the on time delivery of your customer orders

• You can also estimate the labor requirements to support your plant schedules

• Generates suggested supplies( both MOs and POs), supply exceptions, detailed operation start times and shipment delivery dates

How does AVP do this?

• Planning information is downloaded from the AS400 creating an Access database on the PC

• Planning run is done on the PC eliminating job conflicts on the 400 and decreasing processing time. This allows for “more” planning runs. Quicker response time!!!

Product Structures•part attributes•Standard and workorder bills•Standard and workorder routings

AV

P E

ngi

ne

Demand•Forecasts•customer orders •Replenishment policy

Supply•inventory on hand•shop orders and allocations•Outside operations•purchase orders

Plant Structures•Workcenters•Labor

Procurement Plan•purchase order releases•expedite; defer; cancel

Production Plan•manufacturing order releases•load vs. capacity•workcenter schedules

Shipping Plan•customer promise dates

AVP- Input Output

AVP/MRP Similarities

• Both use all the planning modifiers in the Item Balance/Plan record• Both use the MRP Execution Options for re-scheduling, auto-release, etc.• Both use the MRP Horizon Dates• Both have direct or indirect interface to Mapics Forecast module• Both use the Manufactured due date from the customer orders for planning

AVP vs. MRP

• An MRP generation is performed by a BOM explosion and netting routine usually overnight

• With Advanced Planner NO AS400 MRP generation is ever necessary

• MRP/CRP uses Mapics calendars • AVP has its own calendar within the database.

This calendar holds hours of operation per day.

• MRP has no easy “what if” capability short of a new MRP generation

• AVP has powerful “what if” capability directly with the AVP access database on the PC

AVP vs. MRP

AVP vs. MRP cont’d

• MRP interfaces with MPSP• AVP has its own Master Schedule Routine

• MRP uses Lead Time to calculate start date• AVP uses backward scheduling and the times in

the routing to calculate start date

• MPSP uses the greater of Customer Order or Forecast

• AVP nets the CO’s against the Forecast and plans with the CO’s and Net Forecast

• MRP assumes infinite capacity• AVP plans the work load in each work center for

capacity review prior to accepting the plan

AVP vs. MRP cont’d

• MRP provides a warning if a planned order quantity exceeds the Maximum

• AVP uses the Maximum to create multiple orders due on the same day for the Max quantity (or less)

• MRP plans an order to be due the same day as the requirement

• AVP plans an order to be due the day before the requirement

AVP vs. MRP cont’d

Forecast can be consumed in four ways:

– Individual Item: The sales of each item consume the item forecast

– An item and its parents: If many possible finished product configurations exist, made from a small number of components, you can forecast at the component level rather than the finished product level. The sales of the item and any parent consume the item forecast

– Planning bill Family: Identify an item as a planning bill item and enter shippable forecasts for the item (% based on qty per in Planning Bill. Forecast is consumed by end item and matching configurations in the Bill of Material

– Product Family: Does not use a Planning Bill. The ‘Base’ Item is forecasted. Customer Order Demand for items within the Product Family consume the ‘Base’ Item’s forecast.

AVP extras: Forecast Consumption

Forecast Consumption

This is the forecast consumption chart

within AVP

AVP Extras

Config.ini settings to:– Calculate run time by flow or batch method– Uses RM Quantity (at the time of the RM

transaction) or Operation Quantity Completed (from Labor Reporting) to calculate balance due

– Can define horizon length values 1-999 days

AVP Extras

You can optionally update either or both

– The promise date on the customer order– The manufacturing due date on the customer

order

Questions?

Advanced Planner Process

• Downloading Data to the Engine– Pulls BOM, Route,

Item, Item process, Item plan, Forecast, CO’s and/or Manual Requirements

– Creates flat files that are pulled in to create access database

• Generating the Plan– Forecast Consumption– Nets the Requirements

against on hand & on order (Load Project) using Access Database

• Builds product structure network using the BOM and Routing

• Plans Orders (PO, MO & Schedules)

Advanced Planner Process

• Manipulate the Plan– View Load to Capacity Chart

– View items on Load

– Level Load both Material and Capacity

– Time phased view

– Drill down/up

– Perform “what-if” planning

Advanced Planner Process

Load To Capacity and Time phased load : Identify overload problem

Orders that can be Orders that can be offloaded-Yellowoffloaded-Yellow

Planned Orders- Planned Orders- GreenGreen

New Colors at AVP New Colors at AVP 6.1:6.1:

Firm Planned- PinkFirm Planned- Pink

Released- Light Released- Light OrangeOrange

Load To Capacity Chart

Red – W/C is overloadedYellow – W/C has past due backlogBlue – Overload within one time period that can be corrected by re-scheduling, offloading, etc.Green – Plan is within capacity constraints

Routing Facilities

Process Hours; Setup hours;

Capacity hours

As decisions are taken you get instant feedback

Order waterfall view:Identify what is needed when and the Critical chain

Advanced Planner Process

• Upload to Mapics Files– Loads info into the MRP planning work files:

• Requirements-unconsumed forecast and generated demand

• Planned Orders-all supply orders, including open, firm planned and planned

• Demand Ref-Demand information• Reschedule Activity-rescheduling actions

Advanced Planner Process

• What happens?– Reschedules open MO’s/PO’s/Rep

schedules according to set up– Updates the CO dates if specified in the

upload options– Updates work center file in the MO/REP

operations as specified during offloading– Loads the MRP planning files– Creates the Order Review file– Prints MRP reports as specified

Planning Execution

Once plan is saved

– Execute plan using OBPM

OR– Green Screen Order review and release

OR– Repetitive

Execute Plan using OBPM

Green Screen Execution

MRP Requirements inquiry

Estimating the Labor Requirement

Which Orders to push out

New Commands show New Commands show the potential order list the potential order list that will be delayed that will be delayed based upon the current based upon the current schedule.schedule.

Global Records not limited to within the Global Records not limited to within the Facility. “Which Customer Orders..” lists only Facility. “Which Customer Orders..” lists only Customer Orders where Demand Suggested Customer Orders where Demand Suggested Date > Demand Due Date. Customer Orders Date > Demand Due Date. Customer Orders pushed out will be displayed from the “List of pushed out will be displayed from the “List of Customer Orders..” Customer Orders..”

Generated from within the Generated from within the Facility. Lists supply orders Facility. Lists supply orders where Supply Due Date > where Supply Due Date > Supply Suggested DatedSupply Suggested Dated

Questions?

Why Thru-Put?• AVP is a planning tool; Thru-Put is an execution

tool.

1.Use Thru-Put to identify all resources (internal –machines, tools, labor and external-suppliers, subcontractors) that limit your output (your constraints)

2.Decide how to best exploit the constraints’ capacity-Synchronize the work sequence of your constraints with prioritized demand

Why Thru-Put?

3. Subordinate everything to the constructed schedule-Synchronize all important support functions

4. Promise new orders based on Real Capacity and materials constraints, on an ongoing basis.

ThruPut – Load Data

Thru-Put first reads the Thru-Put first reads the database from the host database from the host system(s) – ERP, MES or other system(s) – ERP, MES or other – and pulls all relevant – and pulls all relevant information into the Server’s information into the Server’s memorymemory

ThruPut – Quote Delivery DatesUsing a web-based Using a web-based workbench, users quote workbench, users quote delivery dates for new delivery dates for new demand based on demand based on currently available currently available capacity AND raw capacity AND raw materialsmaterials

Users also have Users also have the option to the option to “force” new “force” new demand in the demand in the schedule, and schedule, and have Thru-Put have Thru-Put calculate the calculate the impact of the new impact of the new demand on demand on existing ordersexisting orders

Creating an Executable Schedule With Thru-Put

Phase 1 – Analyze Purchased Parts

During the first phase of During the first phase of scheduling, Planners and scheduling, Planners and Buyers analyze materials Buyers analyze materials shortages, based on existing shortages, based on existing POs and component lead POs and component lead times. times.

This phase allows This phase allows purchasing to work on purchasing to work on shortages BEFORE the shortages BEFORE the corresponding orders are corresponding orders are pushed out by Thru-Putpushed out by Thru-Put

Users follow Thru-Put’s Users follow Thru-Put’s phased scheduling approach phased scheduling approach which is based on the first 3 which is based on the first 3 steps of Theory of steps of Theory of Constraints:Constraints:

-Identify The Constraint(s)Identify The Constraint(s)

-Exploit the Constraint(s)Exploit the Constraint(s)

-Subordinate everything Subordinate everything else to the Constraint(s)else to the Constraint(s)

Thru-Put highlights Thru-Put highlights materials shortages materials shortages (required date prior to (required date prior to available date)available date)

Phase 1 – Analyze Purchased Parts

This process allows This process allows Purchasing to work with Purchasing to work with Planning and determine Planning and determine possible solutions to possible solutions to shortages PRIOR TO shortages PRIOR TO analyzing capacityanalyzing capacity

Phase 2 – Analyze Machine Capacity

During the “identify machine constraints” During the “identify machine constraints” phase, ThruPut calculates load on all work phase, ThruPut calculates load on all work centers based on released and planned centers based on released and planned work, and corresponding demand. It work, and corresponding demand. It displays resulting % of load to capacity in displays resulting % of load to capacity in simple bar charts and graphs. Automatic simple bar charts and graphs. Automatic level-loading is also available to the user level-loading is also available to the user at this stage.at this stage.

Phase 3 – Analyze Labor Constraints

Thru-Put displays the results of a Thru-Put displays the results of a detailed analysis of labor capacity detailed analysis of labor capacity and load. Users can then limit the and load. Users can then limit the work centers capacity based on labor work centers capacity based on labor availability.availability.

Phase 4 – Level-Load Constraint(s)

Thru-Put then level loads all work Thru-Put then level loads all work on selected constraints using a on selected constraints using a finite capacity model. Various tools finite capacity model. Various tools such as Overtime, Offloading, and such as Overtime, Offloading, and Batching are available to the user to Batching are available to the user to eliminate lateness caused by eliminate lateness caused by capacity shortagecapacity shortage

In this In this simulation, simulation, Thru-Put will Thru-Put will group all group all similar parts similar parts scheduled scheduled over 3 over 3 consecutive consecutive daysdays

Phase 5 – Subordinate Non-Constraints

In the last phase of constructing the In the last phase of constructing the schedule (subordination), Thru-Put schedule (subordination), Thru-Put creates a dispatch priority list for creates a dispatch priority list for each non-constraint resource in the each non-constraint resource in the facility. It does so by backward and facility. It does so by backward and forward scheduling from the level-forward scheduling from the level-loaded constraintsloaded constraints

The result is an EXECUTABLE The result is an EXECUTABLE schedule which maximizes schedule which maximizes the output of the constraints the output of the constraints –hence the plant, WHILE –hence the plant, WHILE minimizing necessary WIP minimizing necessary WIP and Purchased Parts and Purchased Parts inventory to support itinventory to support it

Executing ThruPut Schedules

Execute Schedule – Dispatch and Track

After completion, optimized After completion, optimized schedules are available for schedules are available for display and adjustments on high-display and adjustments on high-resolution, large-format monitors resolution, large-format monitors throughout the facility.throughout the facility.

Users can access several Thru-Users can access several Thru-Put standard scheduling reports Put standard scheduling reports on line at any time, or easily on line at any time, or easily build their own using off-the-build their own using off-the-shelf reporting toolsshelf reporting tools

Execute Schedule – Dispatch and Track

Secure access to ThruPut Secure access to ThruPut reports and screens can be reports and screens can be tightly controlled using Thru-tightly controlled using Thru-Put’s User ManagerPut’s User Manager

Execute Schedule – Dispatch and Track

Thank you!!Thank you!!