seminarie best practices voor eto en mto bedrijven · getting the maximum valu\ from your erp...
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Best Practices voor ETO en MTO bedrijven18 september 2014
Agenda
Verwelkoming door Frisomat
Ad Ultima Value Proposition
Engineering BOM & Versiebeheer
Kracht van UltimAX PLM
Pauze
Best Practices in Resource Planning
14:00-17:30
14:00-14.15
Verwelkoming Frisomat
5
14:15-14:30
Ad Ultima Value proposition
> 340 tevreden klanten
THE AD ULTIMA GROUP
ERPStrategisch AdviesProduct Lifecycle ManagementXRMInfrastructureSynergie
° 1999 185
Historiek
GroeiTHE AD ULTIMA GROUP
Omzet
Netto Resultaat
BelgiëFrankrijkNederlandInternationaal
Nieuwe initiatievenFusiesOvernames
145
+15%jaarlijkse groei
0
5 000
10 000
15 000
20 000
25 000
30 000
2008 2009 2010 2011 2012 2013
Our Value Proposition
“You can rely on Ad Ultima Group as a long-term
partner to support your sustainable growth by 360°
ICT advice and solutions that enable your users to
Create better insights, accelerate innovation, and
intensify collaboration with a special focus on
project, production and logistic oriented companies”
THE AD ULTIMA GROUP
Value Proposition
Our Target Markets
THE AD ULTIMA GROUP
Our Target Market
Manufacturing
ProjectbasedManufacturing
Distribution & Services
Advanced Logistics
GebruiksvriendelijkHerkenbaar
AD ULTIMA GROUP
Standaard SoftwareUitbreidbaarheidBerschermde investering
Methodologie1. Sure Step2. One Step
Gedragen
Veranderingscapaciteit medewerkersVeranderingsbehoefte organisatie
Onze visie: Slim automatiseren
Optimalisatie trajecten
Partner ecosysteem
Volledige integratie
Kennisoverdracht
Microsoft VISIONAD ULTIMA GROUP
Microsoft VISIONAD ULTIMA GROUP
Role-based productivity and insights
14:30-15.15
Engineering BOM en versiebeheer
Product Lifecycle Management (PLM)
Agenda
PLM Domain
EBOM
MBOM
Reference case
Change Management
Conclusion
How PLM is Evolving
ERP
PLMCRM
SCM
Mfg.
HR
Today/TomorrowYesterday
Supplier strategy
Designstrategy
Cost & green
strategy
Mfg.strategy
PLM
Servicestrategy
….
HRCRM
ERP
PLM’s Impact on ROIPLM ERP
Cost of change to the product here = X
Intellectual assets
Physicalassets
MCADECAD
EMB SW
eBOM
mBOM ServicesBOM
Partners(design &
mfg)Compliance &
analysisInventory tracking
Materials handling Forecasting
hand off
Cost of change to the product here = 100X , 1000X, +
Decision made here can Impact ~80% of Product cost
Decisions made here canImpact ~20% of product cost
What is PLM?
19
Typical PLM Processes
DesignPlan Concept SupportValidate ProduceOrganization
Requirements Definition and ManagementApplication Engineering
Tooling Design and ManufactureManufacturing Process Management
Regulatory Compliance
Program and Portfolio Management
Quality & Reliability ManagementChange and Configuration Management
Project Management
Concept DevelopmentSystem Architecture Design
Detailed DevelopmentVerification and Validation
Design and Manufacturing Outsourcing
Variant Design & Generation
Component and Supplier Management
Product Cost Management
Product Support Analysis and PlanningService and Parts Information Creation and Management
Equipment Lifecycle Management
Environmental Performance Management
P R O D U C T L I F E C Y C L E
Hardware & Software
Engineering
Management
Supply Chain &
Manufacturing
Sales & Service
Performance Analysis and Feedback
Service Information Delivery and Field Knowledge Management
Service and Parts Order and Delivery
PLM – ERP processes
Change Management
Configuration Management
Requirements Capture and Management
Detailed Design
Variant Design and Generation
Production Scheduling
Inventory Management
Sourcing and Procurement
Sales and Order Management
Shipping Logistics
Financial Reporting
Manufacturing Process Management
System Design
PLM - Product Development Processes
ERP - Production Processes
Workflow
Graphically define and manage product
development processes
Optimize task assignments
Ensure compliance with approval
processes
DistributedCollab.
Fast global access to the most critical
product data
Provide secure access to data to
internal and external partners
Work concurrently on separate design
elements
Keys: “Must Have” Components of PLM
EmbeddedVisualization
View a any product data (CAD/ECAD, PDF) without the
authoring tool
Conduct real-time design
collaboration, analysis and simulation
regardless of the location
Complete BOM Mgmt
Combine ECAD,MCAD and software domains in a single product
structure
Concurrently develop the mBOM
and eBOM in the design phase
Change & Config. Mgmt
Automate rapid and accurate
communication of changes –
regardless of complexity
Generate rules for each option then generate product variants based on selected options
Multi-CAD Data Mgmt
Manage all CAD data
(MCAD/ECAD)in a single integrated
BOM
Access, reuse, & synchronize design
data across CAD systems
Document Mgmt
Manage document structure and
inherit complex information relationships
Search, retrieve, and up-to-date info
from central repository
Track data changes, audit trails
Keys: “Extended Value” Components of PLM
Component & Supplier
Mgmt
Identify the right parts and suppliers in the initial design
stage
Manage the us of approved mfg and
vendor lists (AVL/AML)
RequirementsManagement
Align customer requirements with
design and technical
requirements
Understand the cost of requirement
change by tracking from requirements
to product data
Program Portfolio
Management
Focus on management of
higher order program and
product efforts
Achieve richer evaluation of
program progress
Manuf.Process Mgmt
Concurrently develop product and mfg process
and allocate resources
Associatively transform eBOMs to
mBOMs
Product Analytics
Provide centralized dashboard of data
from disparate systems and in varied formats
Analyze trade-offs in product business performance - like cost vs. compliance
Service Information
Deliver accurate, concise and
relevant service information based
on up-to-date product
data
Provide interactive service information
Communities of Practice
Tap new knowledge
resources – internal and external
Reveal valuable and ‘hidden’
knowledge by stimulating
free and easy expression of ideas
Quality, Reliability and
Risk MgmtProvide real-time
visibility into performance
metrics and project status to all team
members
Initiate quality projects without
requiring IT involvement
23
• Manages all Product Development Dataof the enterprise
– Vaulting / revision control • Documents, CAD-files, Articles/items
– Product structure management (BOM)– Embedded visualization– Lifecycle and workflow management
• Enables enterprise-wide accessto the product information through
– Direct integrations to all major CAD system– Direct integration with Microsoft Office applications– Integration with other Enterprise Systems (ERP, …)
Windchill PDMLink as Business Solution
Engineering BOM
EBOM
25
Process Transformation Opportunities
DesignPlan Concept SupportValidate ProductionOrganization
Change and Configuration Management
Program and Project Management
P R O D U C T L I F E C Y C L E
Best PracticesStandardized, automated change processIntegrated, cross-discipline change managementSoftware change managementSoftware configuration management
Software release managementSystem and software asset reuseIntegral engineering to manufacturing changemanagementPartner change management integration
Integrated product issue managementChange dashboardsProduct configuration lifecycle managementProduct configuration-sharing to enterpriseUnified hardware-software configuration management
Best PracticesStandardized decision checkpointsBalanced performance metricsAutomated lifecycle metrics collection
Proactive resource planningSystematic risk assessmentGate decision management
Integrated program data managementRegular program reviewsProject planning and tracking
Distributed project collaborationProject dashboards
Manufacturing Process ManagementBest PracticesAutomated NC process planningIntegral manufacturing data managementAssociative eBOM/mBOM
Digitally defined process plansDynamically generated manufacturing documentationIntegral engineering to manufacturing change managementAutomated release-to-production
26
• Practice– Create and maintain the parts and structures needed to define a
product, by allowing stakeholders across the enterprise to contribute to the BOM definition
• Capabilities– Automatically create multi-level product
structures from CAD software– Edit the product structures directly in Windchill– Perform multi-level BOM comparisons– Trace Where Used lineage– Share multi-level and consolidated BOM reports
• Value– Elimination waste by providing a common BOM view– Increase efficiency and accuracy of BOM changes
by accurately comparing BOMs
BOM CreationBest Practice
Challenge: Quickly create, share and maintain a product structure
Share & Export BOM
Create BOM from CAD
Create and Edit the BOM
Provide BOM Reports & Understand Changes
EBOM in Windchill
28
• Practice: – Proactively plan and architect products to support top-down,
concurrent, team-based development.
• Capabilities:– Create and validate conceptual design structures in Windchill– Concurrently design subassemblies in CAD and synchronize
updates with associated product structures
• Value:– Shorten time to develop complex products by enabling
concurrent design process– Communicate design intent and distribute concurrent design
tasks across multi-discipline teams– Reduce design conflicts by managing interdependencies
between related designs
Top Down DesignBest Practice
Challenge: Avoid gridlock while developing complex, multi-disciplined products
29
Collaborative Design Process
B
Top Level
A
C
Concept Product Architecture
DetailedProduct Definition
A
Top Level
a
b
1
d
B
c
C
D
E
002
003
001
Bcd
A.asm
a.prt
b.asm
1.prt
A-Skel
D.asm
001.prt
E.asm
002.prt
003.prt
D-Skel.prt
Top Level
B
A
C
a
b
c
DevelopStructure
Top Level
B
A
C
a
b
c
D
Create CAD A.asm
a.prt
b.asm
1.prt
A-Skel
Create CAD models
30
• Practice: – Streamline development of a common platform by
capturing and managing a configurable product.
• Capabilities:– Capture product platform definition in an overloaded
product structure– Validate configuration logic and constraints– Filter overloaded product structure to generate variant
configurations– Create new and update product variants
• Value:– Define and validate configuration logic during platform
design to reduce invalid configurations (costly downstream errors)
– Reduce effort and complexities of managing product families and all related design data by managing it in one system
Configurable Product Platform DesignBest Practice
Challenge: Design and Manage Modular Product Families
Product Options
Option Choices
Option
Configuration Logic ManagementConfigurable Product
Structure
Variant Configuration
Example Option & Variants
32
• Practice– Manage evolving product configurations over
entire lifecycle
• Capabilities– Managing multiple views of a product (Design,
Manufacturing, Costing, …)– Define baselines to capture configurations at
various points in time– Create replacement parts to manage acceptable
BOM substitutions – Apply effectivity by: Date, Lot, …
• Value– Improve ability to support analysis, planning and
audit by accessing known historical and future configurations
Product Configuration Lifecycle Management Best Practice
Challenge: Understanding product configuration evolution over time
Effectivity Management
Manufacturing BOM
MBOM
DIFFERENT USERS NEED DIFFERENT PERSPECTIVES TO WORK EFFECTIVELY
Product DefinitionProduct XYZ
Feature 1Option A [ ]Option B [ ]Option C [ ]
Feature 2Option D [ ]Option E [ ]Option F [ ]
ModelX
A CB
NM
Product Cost Model XPart A €3.00Part B €2.20
Part M €1.00 Part N €1.20
Part C 2.40Total €7.60
Model X Operation SheetOP 001 Part M OP 002 Part NOP 003 Part A OP 004 Part C
Model X Spares ListPart A 1 offPart B (inc M) 1 offPart C 1 offPart N 1 off
Service
EngineeringManufacturing
Business PlanningSales
ProductDefinition
35
Concurrently develop eBOM and mBOMBest pratice
• Practice:– Transform eBOM into mBOM) while maintaining
bidirectional traceability – Start the creation of the mBOM before design
release and put the mBOM under formal configuration management
• Capabilities:– Create manufacturing (equivalent) parts– Bi-directional associativity between eBOM and
mBOM– Analyze and resolve BOM discrepancies
• Benefits:– Concurrently develop BOMs– Ensure BOM conformity– Improve production planning
Assy 1500
Assy 1500
Part 100
Part 200
Assy 1300
Assy 1100
Assy 1200
Part 300
Part 700
EngineeringeBOM(As Designed)
Part 400
Part 500
Part 100
Part 300
equivalent
equivalent
equivalent
Part 400
Part 500
Assy 1600
ManufacturingmBOM(As Planned)
36
• Practice– Automate sharing and synchronization of product configuration
information across enterprise systems.
• Capabilities– Configure Release-to-Manufacturing process
• Delivers the product definition (product design and process plans)• Exposes ERP attributes (e.g. cost and inventory) to product design• Supports multi-location, multi-ERP production
– Leverages industry-leading EAI tool (for SAP, Oracle)• Supports standards-based system communication• Provides end-to-end transaction integrity
• Value– Deliver accurate and timely product information to production
systems reducing delays, errors and rework– Engage sourcing and manufacturing early in the design process to
reduce time to market.
Product Configuration Sharing to Enterprise Best Practice
Challenge: Sharing and managing product configurations with downstream systems
Plant 1
Plant 2
Deliver product information to
production systems
Windchill ESI(or) ERP
Connector
•Parts•eBOM•mBOM•Change•Documents•Process Plans•Process material•Skills•Work instructions
ProductionSystems
(ERP/MES)
Windchill(PDM/PLM)
Reference case
SchréderHarmonize product development
Business Issue
Solution
Customer Benefits
• Standard component selection• Allow for data management of CATIA, SolidWorks and Altium• BOM transformation (local production processes)• Integrate with Dynamics AX• Implement enterprise wide Change Management
• Classification and Supplier Management• WGM to support CATIA, SolidWorks and Altium CAD files• MPMLink enabling multi-company mBOM preparation• PDMLink – AX integration (multiversion, multisite)
• Company catalog available• Integrated design change – manufacturing process change• BOM and change data automatically fed into ERP
Schréder (www.schreder.com) is a leading expert in the design and development of outdoor lighting equipment (LED) with more than 2600 employees and 450 M€revenue.
MBOM 1Aa
ConfigurableMBOM 150%
MBOM 1(incl. receipt)
MBOM 2(incl. receipt)
MBOM 1a
GlobalProduct (typical)
Local AX 1 BaaNLocal AX 2
MBOM 1A MBOM 1A
MBOM 1Ab
Color, sourcing MBOM 2
Localproduct
MBOM 2
ConfigurableEBOM 150%
PLM
ERP
Schréder case
Change Management
41
Integral Engineering to ManufacturingChange Management Best Practice
Challenge: Coordinating change activities across engineering and manufacturing• Practice:
– Streamline changes from engineering to manufacturing; ensure accuracy of manufacturing deliverables.
• Capabilities:– Extend problem reports, change requests and
change notices to mBOM, process plans, resources and manufacturing documents
– Facilitate change impact with visual indicators and compare reports
• Value:– Provide full traceability and history of changes– Streamline ENG to MFG change process– Ensure accurate and up-to-date manufacturing
deliverables
42
To synchronize the change of related objects,change management is used
P-96005621
Retro.CATProduct
Norm.doc
IPA_SVB_0064
FCO_1930
A
Master Version
A B
A B C
A B
A B
Requirement
Functions
Parts
CAD Docs
Documents
ECR01 - Introduce Dead Angle Detection
ECR02 - …… ………………….. .
ECR03 - …… ………………….. .
Versions and Change Management
Change in Windchill (information set for ERP)
PLM – ERP approach
Business Strategies to Sell Products
Assemble-To-Order• Products fully designed
with identified options• Orders configured and
processed by ERP
Assemble-To-Stock• Products fully designed
with identified options• ERP plans productions of
pre-defined options• Identified product
combinations manufactured based on forecast
Low Amount of Order-Specific Custom Engineering High
Many
Num
ber o
f Pro
duct
s in
an
Ord
er
One
Configure-To-Order• Products fully designed
with rules that allow creation of custom parts
• Each order configured & validated by PLM using rules established by Engineering
Engineer-To-Order• Significant custom
engineering added to generic product
• Each order validated by Engineering and PLM
PLM or ERP for MPM (& PCF)
PLM ERP
ATS
ATO
CTO
ETO
MPM PCF
15.15-15.30
De kracht van UltimAX PLM
UltimAX PLM
INTEGRATING PLM AND ERP
UltimAX PLM Link
No redundant data entry
Flexible
No ‘PLM light’ in AX
Best in class applications:• PTC Windchill• MS Dynamics AX
Standard technology:• ERP connector• AX Webservices
Closed loop
INTEGRATING PLM AND
ERP
Main architecturePTC Windchill 10
Webservice on IIS
Microsoft Dynamics AX 2012
Proxy server (of Biztalk server)
http
http
WCF
INTEGRATING PLM AND ERP
Supported entitiesINTEGRATING PLM AND ERP
PTC Windchill 10
Microsoft Dynamics AX 2012
Products BOM’s Logistic information
ECN’s
Company mappingINTEGRATING PLM AND ERP
PTC Windchill distribution target=
Dynamics AX Company
Product00-01-520
Released product
00-01-520
Released product
00-01-520
Released product
00-01-520
Standard AXmanual release process
Automatic release process
Auto-created productManaged by Windchill
Company: CEUDistribution target 1
Company: CEEDistribution target 2
Company: CECNo distribution target
Product templatesINTEGRATING PLM AND ERP
Windchill part AX Released product
AX Template selection
released product
Limited information
‘ERP’ infoSelection attributes
Variant mappingINTEGRATING PLM AND ERP
Configurable part
00-01-520
Variant 300-02-014
Variant 200-02-013
Variant 100-02-012
Windchill
Product master 00-01-520
Variant 3Config: 00-02-014
Variant 2Config: 00-02-013
Variant 1Config: 00-02-012
Product 00-02-014
Product 00-02-013
Product 00-02-012
AX
Version mappingINTEGRATING PLM AND ERP
PTW Windchill part version=
Dynamics AX BOM version
15 minuten
PAUZE
15:45-17.15
Beste Practices in Resource Planning
Resource Planning
Plan
Agenda
AX Product Definition
S&OP and Forecasting
Resource Planning
Master Scheduling
Detailed Scheduling & Planning
Lean Manufacturing
MASTER PLANNING OF RESOURCES
Master planning of resources
Sales and Operations Planning
DemandMgt.
&Fore-
casting
Master Scheduling
Detailed Scheduling & Planning
Resource Planning
Rough-cut Capacity Planning
VOLUME
MIX
MASTER PLANNING OF RESOURCES
Master planning of resourcesAlso called: Enterprise Resource Planning (ERP)
Manufacturing Resource Planning (MRP II)
Business Resource Planning (BRP)
AX Product Definition
AX PRODUCT DEFINITION
You want to manage this flow?
Steel plate 10Cut
10Fold
10Punch
(subcon)
BOM level 0
BOM level 1
BOM level 2 AXPhys.
AXPhys.
AXPhys.
Ship
Receive
Cut profile
Punched profile
Bent profile SUBCONTRACTOR
AXPhys.
Cut profile
AX PRODUCT DEFINITION
Then you need to schedule thisAX Multi level BOM of “Bent profile”
Bent profile(manufactured)
Cut profile(manufactured)
Punched profile(manufactured)
Steel plate(purchased)
Service Item(type “Vendor”) 10
Cut
10Punch
(subcon)
10Fold
Each manufactureditem has a route consisting of oneoperationBOM
BOM
BOM
AX PRODUCT DEFINITION
You want to manage this flow?
Steel plate 10Cut
Ship
Receive
WIP
WIP
20Punch
(subcon)
30Fold
AXPhys.
Bent profile SUBCONTRACTOR
AX PRODUCT DEFINITION
Then you need to schedule thisAX BOM of “Bent profile”
AX Route of “Bent profile”
10Cut
20Punch
(subcon)
30Fold
Bent profile(manufactured)
Steel plate(purchased)
Oper. 10
Service Item(type “Vendor”)
Oper. 20
mBOM structure determines what to scheduleAX PRODUCT DEFINITION
VERPAKTE VEERMATRAS
Finished good
Semi-finished item
Raw material
Legend
VERPAKKING ID. LABELKATOENEN BINNENHOES MATRASKERNAFGEWERKTE
HOES (ev OA)
RITS BIESLABEL STIKGAREN HANDVATEN(O/A)
BIESSTOF VULLING VOERING
BORDERS(O/A)
VULLING VOERING STOF
PLATEAU(ev. O/A)
STOF VULLING VOERING
VEREN VERSNEDENVILT
ROL VILT
PLATENLATEXVEREN
Phantom item
This is how that BOM will look like in productionAX PRODUCT DEFINITION
VERPAKTE VEERMATRAS
Finished good
Semi-finished item
Raw material
Legend
VERPAKKING ID. LABELKATOENEN BINNENHOES
AFGEWERKTE HOES (ev OA)
RITS BIESLABEL STIKGAREN BIESSTOF VULLING VOERING VULLING VOERING STOFSTOF VULLING VOERING
VEREN ROL VILTPLATENLATEXVEREN
Phantom item
Production order 1
Production order 2
AX PRODUCT DEFINITION
BOM Designer
AX PRODUCT DEFINITION
Routes in AX A route is a sequence of operations
Same route can be used for multiple items But item specific run times, resource selection criteria, ...
PREPAREPIPES
PREPAREFLANGES
WELDING HYDRO TEST MILLING ASSEMBLY FINAL QC
10
20
30 40 50 60 70
AX PRODUCT DEFINITION
Routes in AXPREPARE
PIPES
PREPAREFLANGES
WELDING HYDRO TEST MILLING ASSEMBLY FINAL QC
10
20
30 40 50 60 70
Op. Nbr Priority Operation Work center W/C type10 Primary PREP. PIPES Preparation W/C Machine20 Primary PREP. FLANGES Preparation W/C Machine30 Primary WELDING Welding department Machine30 Secondary 1 WELD INSP Outside inspector HRM… … … … …60 Primary ASSEMBLY Assembly line Machine70 Primary FIN.INSP.IN Inside inspector HRM
AX PRODUCT DEFINITION
Product definition across legal entities
Materialbought locally
71.80.9342Confidea
Wired Base2
MFC_Parts(1 wk)
71.98.0103Delegate
Interpretation Unit
12.01.0209Loudspeaker
Assemble(1 wk)
24.07.2510Front socket
71.98.0103.SCDelegate
Interpretation Unit
Subcontracted
71.98.0103.SCDelegate
Interpretation Unit
Subcontracted
Belgian EntitySite Antwerp
Bulgarian entitySite Plovdiv
13.16.9000Top cover unit
13.16.9012Buttons array
13.16.9011Buttons micro
delegate
71.98.0103.SCDelegate
Interpretation Unit
Subcontracted
Intercompany
Sales & Operations Planning
MASTER PLANNING OF RESOURCES
Master planning of resources
Sales and Operations Planning
DemandMgt.
&Fore-
casting
Master Scheduling
Detailed Scheduling & Planning
Resource Planning
Rough-cut Capacity Planning
VOLUME
MIX
SALES & OPERATIONS PLANNING
S&OP Process Primary purpose = establish supply rates that meet
management targets MTS: projected inventory
MTO: backlog level
Seeks to get demand and supply in balance
Focus = the big picture: volume per product family
Benefits? MTS: higher customer service + lower FG inventories
MTO: higher customer service + short customer LT
SALES & OPERATIONS PLANNING
Strategies to meet customer demand
Product delivery strategy Demand impact
MTS: Make-to-stock Ship from stock
ATO: Assemble-to-order Assemble/finish & ship
MTO: Make-to-order Build & ship
CTO: Configure-to-order Assemble or build in high volume(APICS: mass customization)
ETO: Engineer-to-order Design, build & ship
SALES & OPERATIONS PLANNING
Product delivery strategiesMTS FGBuild
ORDER DELIVERY
ATO Ship
ORDER DELIVERY
SALES LEAD TIMEMFG. LEAD TIME
SALES LEAD TIMEMFG. LEAD TIME
MTOCTO
DELIVERYORDER
SALES LEAD TIMEMFG. LEAD TIME
RM, components
SFG, components
Finish
Ship
Ship
Build
Build
ETO
DELIVERYORDER
SALES LEAD TIMEDESIGN + MFG. LEAD TIME
ShipBuildDesign
RM
SALES & OPERATIONS PLANNING
Strategies to meet customer demand
Product delivery strategy Company concerns
MTS: Make-to-stock Inventory costs, FC errors
ATO: Assemble-to-order Assemble within shortest LT; flexible finishing operations
MTO: Make-to-order Mgt. of backlog and LT;material & capacity availability
CTO: Configure-to-order Flexible operations that support a large variety of product variations
ETO: Engineer-to-order Availability of technical resources, designers; proj. mgt.; cost control
SALES & OPERATIONS PLANNING
Batch sizes and flexibilityDay 1 Day 2 Day 3 Day 4
A B C D A
A B C D A B C D A B C D A
Inventory AInventory
A InventoryA
Safety stock
A
InventoryA
Safety stock
A
D
D
SALES & OPERATIONS PLANNING
Demand Reaction FlexibilityLarge batch sizes cause: Higher inventories
Higher costs
Less flexibility to react on demand
Longer sales lead times
Possible loss of business
Demand Management & Forecasting
MASTER PLANNING OF RESOURCES
Master planning of resources
Sales and Operations Planning
DemandMgt.
&Fore-
casting
Master Scheduling
Detailed Scheduling & Planning
Resource Planning
Rough-cut Capacity Planning
VOLUME
MIX
DEMAND MANAGEMENT AND FORECASTING
Responsibilities Management of actual customer order demand
Distribution planning
Anticipating demand
DEMAND MANAGEMENT AND FORECASTING
Anticipating demand: how? Sales forecasting
Safety stock for demand variaton Protects against higher sales than FC
Can be calculated by AX
Order point logic E.g. min/max replenishment
Maximum inventory should cover estimated demand during
item’s replenishment LT
DEMAND MANAGEMENT AND FORECASTING
Advantages of forecasting To anticipate inventory levels and capacity demands
To increase communication and awareness of likely impact
of sales on operations
Makes blanket orders visible unto master scheduling
When forecast? When horizon of committed orders
< horizon needed for resources commitments
DEMAND MANAGEMENT AND FORECASTING
How to anticipate demand? Consider product mix & product delivery strategy
MTOETOCTO
ATOCTO
MTS
Finished goods
Semi-finished goods, subassemblies
Raw materials, accessories, components
DEMAND MANAGEMENT AND FORECASTING
Forecast which item?
Product delivery strategy Items to forecast
MTS: Make-to-stock Finished goods
ATO: Assemble-to-order Semi-fin. products, subassemblies
MTO: Make-to-order Raw material, accessories, components
ETO: Engineer-to-order Raw material, accessories, components
CTO: Configure-to-order Mix between ATO and MTO
DEMAND MANAGEMENT AND FORECASTING
Calculate supply forecast for non-FGPlanning Bill
Components & RM requirements
Sales forecastingsimulation
GENERIC CAR BOMengine 1600d: 20%engine 2000d: 30%engine 1800i: 50%
Sales forecast generic item
SALES FORECASTALL CARSJ: 500F: 700M: 600A: 300M: 400J: 800
REQUIREMENTS FOR ENGINES 1600d 2000d 1800iJ: 100 150 250F: 140 210 350M: 120 180 300A: 60 90 150M: 80 120 200J: 160 240 400
Convert into
Supply forecast for components & RM
SUPPLY FORECAST ENGINES 1600d 2000d 1800iJ: 100 150 250F: 140 210 350M: 120 180 300A: 60 90 150M: 80 120 200J: 160 240 400
DEMAND MANAGEMENT AND FORECASTING
Calculate supply forecast for non-FGPlanning Bill
Demand for components & RM
Sales forecastingsimulation
GENERIC CAR BOMengine 1600d: 20%engine 2000d: 30%engine 1800i: 50%
Sales forecast generic item
SALES FORECASTALL CARSJ: 500F: 700M: 600A: 300M: 400J: 800
REQUIRED SUPPLY ENGINES 1600d 2000d 1800iJ: 100 150 250F: 140 210 350M: 120 180 300A: 60 90 150M: 80 120 200J: 160 240 400
Convert into
Supply forecast for components & RM
SUPPLY FORECAST ENGINES 1600d 2000d 1800iJ: 100 150 250F: 140 210 350M: 120 180 300A: 60 90 150M: 80 120 200J: 160 240 400
NEW IN AX 2012 R3Statistical forecast
calculation based on historical data
X
?
DEMAND MANAGEMENT AND FORECASTING
FC Reduction principle = Sales orders
MP
0
10
20
30
40
50
60
WK2 WK3 WK4 WK5 WK6 WK7
Sales orders
Gross requirement
0
10
20
30
40
50
WK2 WK3 WK4 WK5 WK6 WK7
Req. quantity
0
10
20
30
40
50
WK2 WK3 WK4 WK5 WK6 WK7
MP = Master planning
Case HG International: FC with seasonal demandDEMAND MANAGEMENT AND FORECASTING
LICHT VOORJAAR
EXTREEM VOORJAAR
LICHT NAJAAR
EXTREEM NAJAAR
REGELMATIG VraagpatroonMTS strategy
DEMAND MANAGEMENT AND FORECASTING
Safety stocks: on which items? Keep safety stock on item level with fewest parts
Safety stocks create demand in explosion logic MRP
MTOETOCTO
ATOCTO
MTS
Finished goods
Semi-finished goods, subassemblies
Raw materials, accessories, components
Safety stock calculationDEMAND MANAGEMENT AND FORECASTING
μ = Average demand
σ = Standard deviation (actual demand versus forecasts)
Service level = percentage of chance there is no stockout
Safety Factor Service Level
+/- 1σ 84,1 %+/- 2σ 97,7 %+/- 3σ 99,86 %+/- 4σ 99,99 %
Safety stock calculationDEMAND MANAGEMENT AND FORECASTING
Case Abriso: Calculation for service level of 95%
Safety stock calculationDEMAND MANAGEMENT AND FORECASTING
Case Abriso: Calculation for service level of 99%
Fixed safety stockDEMAND MANAGEMENT AND FORECASTING
05
101520253035
1 2 3 4 5
Min: 10 (fixed)Max: 30
Seasonal safety stockDEMAND MANAGEMENT AND FORECASTING
05
101520253035
1 2 3 4 5
Min: 10-20 (seasonal)Max: 30
Variable safety stockDEMAND MANAGEMENT AND FORECASTING
05
101520253035
1 2 3 4 5 6
Min: 10-20 (variable)Max: 20-40 (variable)
Specify seasonality with Minimum/maximum keysDEMAND MANAGEMENT AND FORECASTING
Supply ScheduleDEMAND MANAGEMENT AND FORECASTING
Demand per item group per period (purchase item)DEMAND MANAGEMENT AND FORECASTING
Demand per item group per period (purchase item)DEMAND MANAGEMENT AND FORECASTING
Demand per item group per period (production item)DEMAND MANAGEMENT AND FORECASTING
Resource Planning
MASTER PLANNING OF RESOURCES
Master planning of resources
Sales and Operations Planning
DemandMgt.
&Fore-
casting
Master Scheduling
Detailed Scheduling & Planning
Resource Planning
Rough-cut Capacity Planning
VOLUME
MIX
Validation of planned load of machinesRESOURCE PLANNING
Demand impact analysisRESOURCE PLANNING
1st bar = # open work orders2nd bar = # open order lines (backlog)3rd bar = # planned work orders4th bar = # order lines having future messages
Validation of planned load of human resourcesRESOURCE PLANNING
Validation of planned load of human resourcesRESOURCE PLANNING
Blue = available capacity (hrs)Orange = scheduled capacity (hrs)
Validation of supplier capabilitiesRESOURCE PLANNING
Validation of supplier capabilitiesRESOURCE PLANNING
Master Scheduling
MASTER PLANNING OF RESOURCES
Master planning of resources
Sales and Operations Planning
DemandMgt.
&Fore-
casting
Master Scheduling
Detailed Scheduling & Planning
Resource Planning
Rough-cut Capacity Planning
VOLUME
MIX
MASTER SCHEDULING
S&OP vs. Master scheduling Sales & operations planning Long term planning
Focus = the big picture: VOLUME per product family
Calculates gross requirements
Master scheduling Short term planning
Focus = the details: MIX of individual products & order qties
Calculates net requirements & converts into planned orders
MASTER SCHEDULING
Master Planning Scope
Master Planning
Organization Administration
Accounts payable
Accounts receivable
General ledger
Product information
management
Production control
Inventory and warehouse
management
Sales and marketing
ScopeMASTER SCHEDULING
-50
-40
-30
-20
-10
0
1 2 3 4
Net requirement, calculated from known issues
0
10
20
30
40
50
1 2 3 4
Planning to fit the net-requirement
Master planning
sales orders production lines requests from projects transfer orders
IssuesReceipts
purchase orders productions project orders transfer orders
Gross requirement(Forecasting)Basic setup
MASTER SCHEDULING
MaterialRequirement
Planning
Planned purchase orders
Planned production orders
Purchase planning Production planning
Purchase orders
Demand Mgt.
PLAN
NING
EXEC
UTIO
N
Production orders
Work cells
Warehouse
Kanbans
Sales orders Physical inventory Product Master Data+ mBOM
FEEDBACK LOOP
Planned kanbans
Marketing
Forecasts
Logistics
Transfer orders
Planned transfer orders
Purchase
Purchase orders
Engineering
Replenishment of warehousesMASTER SCHEDULING
Define your replenishment hierarchy
MASTER SCHEDULING
AX Order policy: per item and site Order type: Purchase, production, transfer, kanban
Coverage group: MTS, MTO, Min/max…
Lead time
Minimum stock (safety stock)
Maximum inventory
Multiple order quantity
Minimum order quantity
Maximum order quantity
MASTER SCHEDULING
Demand coverage: type Period
MASTER SCHEDULING
Demand coverage: type Requirement
MASTER SCHEDULING
Demand coverage: type Minimum/Maximum
Define your own coverage groups in AXMASTER SCHEDULING
Coveragegroup
Coveragetype
Period
MTO Make-to-order RequirementMTS Make-to-stock Period 14EXPORT Export items Period 21BTO Buy-to-order RequirementBTS 1W Buy-to-stock weekly Period 7BTS 4W Buy-to-stock monthly Period 30BTS 8W Buy-to-stock bimonthly Period 60MINMAX Minimum/maximum Min/Max
MASTER SCHEDULING
Net requirements profile
MASTER SCHEDULING
Net requirements profile per month
You can create your own Period templates (per week, mnth..)
MASTER SCHEDULING
Projected available inventory profile
MASTER SCHEDULING
Action messages: optimize inv. costsStart date(Production)
ProductionDuration: 4 days On hand
Action =postpone(Production)
Purchase(Raw Mat.) - 3 days
Production(to cover A1) - 4 days
Actions notactivated
Sales
A1
Purchase(Raw Mat.) - 3 days
Delivery date(purchase)
Today
Following Action = postpone(Purchase)
Actionsactivated
MASTER SCHEDULING
Future messages: recalc. poss. dlv. dateSales
A1
Planned production time(to cover A1) - 4 days
Necessary date tostart production
Possible delivery date
Today
Necessaryorder date
Planned purchase time(Raw mat.) - 3 days
Planned production time(to cover A1) - 4 days
Planned purchase time(Raw mat.) - 3 days
delay
Possibleorder date
Possible date tostart production
delay
Sales
A1
MASTER SCHEDULING
Futures messages details (ref: sales orders)
MASTER SCHEDULING
Inquire net reqs. profile from future msg.
MASTER SCHEDULING
Inquire net reqs. profile from future msg.
MASTER SCHEDULING
Explosion form: coverage of BOM lines
MASTER SCHEDULING
Planning across companies and sites
Company: legal entity, own books, COA, products, BOM’s
Site: geographic location of warehouses, resources, routes
Warehouse: holds inventory
MASTER SCHEDULING
Planning across companies and sites
Context of production order limited to 1 site
Cross site planning: use (MRP planned) transfer orders
Cross company planning: intercompany master planning
Intercompany Master PlanningMASTER SCHEDULING
Planning of intercompany demand
Detailed Scheduling and Planning
MASTER PLANNING OF RESOURCES
Master planning of resources
Sales and Operations Planning
DemandMgt.
&Fore-
casting
Master Scheduling
Detailed Scheduling & Planning
Resource Planning
Rough-cut Capacity Planning
VOLUME
MIX
AX Planning toolsDETAILED SCHEDULING AND PLANNING
Operations scheduling
Job scheduling
Property planning
Graphical planning (UltimAX)
Flow of Production orders in AXDETAILED SCHEDULING AND PLANNING
Planned production
orderMRP
Production order
(Scheduled)
Production order
(Released)
PRD_2.1Create manual
production order
Production order
(Created)
Firm planned production order
PRD_2.2Schedule
production order
PRD_2.3Release
production order
Manufacturing Execution
Production documents
PRD_2.2Reschedule
production order
BOM and route of Production OrdersDETAILED SCHEDULING AND PLANNING
Production orders get a local copy of the item’s master BOM and route
Manufactured Released Item
PRODUCT MASTER DATA
Master BOM
BOM version
Master Route
Route version
Production Order
PRODUCTION CONTROL
Production BOM
Production RouteCOPIED
COPIED
DETAILED SCHEDULING AND PLANNING
Planning techniques: (in)finite scheduling
DETAILED SCHEDULING AND PLANNING
Planning techniques: Forward scheduling
DETAILED SCHEDULING AND PLANNING
Planning techniques: Backward scheduling
DETAILED SCHEDULING AND PLANNING
Planning techniques: Bottleneck resource planning
Planning techniques: Bottleneck resource planningDETAILED SCHEDULING AND PLANNING
Routing per product family + bottleneck identification
Product family Hulzen Bussen Doorkoppel-systemen Stekeinden Specials
Routing
Draaien Draaien Persen Stuiken Knippen/buigen
Stampen Tappen Inpakken Draadrollen Inpakken
Tappen Verzinken * Inpakken
Verzinken * Inpakken
Stampen
Stampen -- Alternatief --
Inpakken CNC-machine
Verzinken *
Inpakken
DETAILED SCHEDULING AND PLANNING
Operations scheduling vs. Job scheduling
(*) Each type of time specified on a production route operation
(e.g. setup, process) will generate its own production job.
Operations scheduling Job scheduling
Type of planning Rough-cut Dispatching
Resource level Resource groups Resources
Unit of planning Production operations Production jobs (*)
Accuracy of planning Day Time (hh:mm)
Job dispatching? No Yes
Property planning? No Yes
Graphical planning? No Yes
DETAILED SCHEDULING AND PLANNING
Operations scheduling
DETAILED SCHEDULING AND PLANNING
Check capacity of resource group
DETAILED SCHEDULING AND PLANNING
Job scheduling with Job Dispatching form
DETAILED SCHEDULING AND PLANNING
Job scheduling of resource: result
DETAILED SCHEDULING AND PLANNING
Capacity load of resource
DETAILED SCHEDULING AND PLANNING
Capacity load of resource
AX Property PlanningDETAILED SCHEDULING AND PLANNING
Block planning of work orders dependent on item’s scheduling property
Automatic reduction of setup times
UltimAX Graphical PlanningDETAILED SCHEDULING AND PLANNING
DETAILED SCHEDULING AND PLANNING
UltimAX Graphical Planning Built on top of standard AX scheduling engine
Drag & drop planning functionalities Schedule new production orders (status Created)
Advance or postpone productions
Reschedule on other resource
Supports both finite and infinite capacity resources
DETAILED SCHEDULING AND PLANNING
UltimAX Graphical Planning Optimizing resource load
Firming MRP planned orders
Updating ETC graphically
Printed copy of graphical planning
DETAILED SCHEDULING AND PLANNING
Graphical Planning: grouping of productions
Functional enhancement to standard AX
Grouping of distinct productions into a “grouped order”
Advantages Grouped order becomes unit of scheduling
Rescheduling the grouped order automatically reschedules all
productions within the group
Releasing the grouped order automatically releases alle
productions within the group
Case: injection molding, planning layer = itemDETAILED SCHEDULING AND PLANNING
Case: injection molding, planning layer = moldDETAILED SCHEDULING AND PLANNING
Case: food packingDETAILED SCHEDULING AND PLANNING
Lean Manufacturing
Mixed mode schedulingLEAN MANUFACTURING
AdvancedDiscrete
Manufacturing
Leanmanufacturing
ProcessManufacturing
Mixed mode schedulingLEAN MANUFACTURING
Production FlowsLEAN MANUFACTURING
Simple Production Flow
Production FlowsLEAN MANUFACTURING
CEU Speaker Assembly and Packaging Production Flow
Introduction to KanbansLEAN MANUFACTURING
Both manufacturing and withdrawal kanbans can be used in an MTS, MTO,
ATO and ETO manufacturing environment.
Figure 1.2: Kanban Type/Replenishment Strategy
VoorbeeldLEAN MANUFACTURING
LEAN MANUFACTURING
Aansturing eindmontage: setup in AX Opzet vooraf: We geven de eindproducten een Kanban rule van het type
“Fixed quantity kanban”
Dit beperkt het aantal kanbans dat in omloop mag zijn, en
beperkt zo de voorraad in de supermarkets (MTS-scenario)
Is de traditionele kanban zoals we die kennen van Toyota
Principe van “Circulating cards” betekent dat telkens dezelfde
kanbans in omloop blijven
Kanban definition in AXLEAN MANUFACTURING
Kanban definition in AXLEAN MANUFACTURING
LEAN MANUFACTURING
Kanban definition in AX Principe fixed quantity kanbans: Enkel na consumptie van een kanban creëert het systeem een
job om die kanban terug aan te vullen
Er vindt dan een automatische planning plaats die ervoor
zorgt dat de kanbanjobs ingepland worden op het “Kanban
board for process jobs”
LEAN MANUFACTURING
Kanban board Kanban board for process jobs
LEAN MANUFACTURING
Kanban board Kanban board for process jobs met visuele instructies
LEAN MANUFACTURING
Kanban flow
Source: www.toyota-global.com
LEAN MANUFACTURING
AX Process with process kanbansProces in AX De operator opent het AX-kanbanbord bij begin shift
Hij markeert welke jobs hij wilt picken
Hij neemt de fysieke kanban van het fysiek kanbanbord
Operator ziet op het AX-kanbanbord de benodigde
materialen + waar die moeten gepickt worden
AX Process with process kanbansLEAN MANUFACTURING
Operator kan eventueel de pickinglijst voor de kanbanjob afprinten
LEAN MANUFACTURING
AX Process with process kanbans Hij verzamelt de materialen op de pickinglijst
Na het klaarzetten, scant hij de job in als “Prepared” d.w.z.
klaar om uitgevoerd te worden
Fysieke kanbans die hij bij het picken geledigd heeft,
scant hij in als “Empty”, en plaatst de kanbans op het
fysieke kanbanbord van de werkcel die ze moet aanvullen
AX Process with process kanbansLEAN MANUFACTURING
Invoer van gepickte batchnrs/SN voor materialen met tracering
LEAN MANUFACTURING
AX Process with process kanbans De operator die monteert, scant de uit te voeren
kanbanjob die nu “in progress” wordt.
Na uitvoering van de job scant hij de kanbanjob opnieuw
in, die krijgt nu de status “completed”.
De gemonteerde producten worden in de kanban bin of
pallet geplaatst en voorzien van de fysieke kanban.
LEAN MANUFACTURING
AX Process with process kanbans De magazijnier ziet alle kanbanjobs die klaar staan om
getransfereerd te worden naar de supermarket. Dit zijn de jobs die operatoren “completed” hebben
Hij kiest een job en plaatst de bin naar zijn bestemming.
Tot slot voert hij voor die kanbanjob “Complete transfer”
scanning uit.
Bedankt voor de aandacht
CONTACT USAd Ultima N.V. Beneluxpark 78500 Kortrijk
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