59537717 BaanERP Enterprise Planning

8/6/2019 59537717 BaanERP Enterprise Planning

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Training Agenda

� Planning Overview

� Master data

� Planning Parameters

� Planning Process



Planning Overview

Baan ERP enterprise planning module acts as the core in entire Baan ERP suite and features utilities to

plan material requirements based on predefined set of demand and supply constraints.

This training document is based on Planning engine assumes the capacity availability as infinite &

based on ³Order based Planning with Master Plan´.

Infinite Planning (Planning without capacity constraints) : Infinite planning assumes that capacity

necessary for the production of an item are available or can easily be made available. Workload control

on the other hand, aims at generating a feasible production plan if there are constraints on the availability

of critical capacity.

Order based Planning : Supply is planned in the form of planned orders.

If you make the order horizon equal to the planning horizon, BaanERP will plan all the supply through

order-based supply planning.

Item Master Plan : An item master plan contains item-specific information by plan period about:

- Demand

- Supply

- Inventory



Planning Overview

RAW MTRL.

PRODUCTION

SUB ASSEMBLY

PRODUCTION

COMPONENTS

END

PRODUCT

Purchase Dept Production Dept

Sales DeptWarehouse

Co-ordination

Planning Dept

Goods Flow



Planning Overview

Only Production and Purchase represents the supply part of this configuration, and demand forecastsand Sales orders represent the demand Part.



Planning Overview

The below diagram shows the inputs and outputs of an ideal planning run executed in Enterpriseplanning module..



Training Agenda


� Master data





Master Data

Enterprise planning is configured to rely on certain static data across all packages of Baan like.

- Warehouse ± Nettable / non-nettable

- Business partners ± Suppliers/customers

- General item data ± Type of item, units etc.

- Item ordering data ± Plan system, order policy, quantity settings, order interval etc.

- Plan item data - Default supply source, warehouse, plan level, horizons and time fences, extra

lead times

- Item supplier information ± various lead times. Supplier priority, Quantity restriction by supplier and item.

- Item production data ± Lead time, Phantom.

- Bill of Materials - Quantities, scrap, yield and warehouses.

Apart from above static various transactional data like open orders (purchase, production and sales),inventory levels.



Master DataItem Ordering Data

Item Ordering Data :

Item Ordering data is used to set defaults for order generation.



Order Settings

� The order policy for the item can be

� Make-to-order

� Anonymous

� The order system for the item can be� SIC

� Planned

� M anual

� The order method for the item can be:

� Lot-for-l ot

� Economic order quantity � Fixed order quantity

� Repl enish to ma ximum inventory




Order Settings

� The order policy for the item can be

� Make-to-order

� Anonymous

� The order system for the item can be� SIC

� Planned

� M anual

� The order method for the item can be:

� Lot-for- l ot

� Economic order quantity � Fixed order quantity

� Repl enish to ma ximum inventory




Order Settings

Order Qty Multiple of: The recommended order quantity must be a multiple of quantity that you specifyas the Order quantity multiple of. This order quantity setting is used if the order method for the item isLot for Lot, Economic Order Quantity and Replenish to Maximum Inventory.

Minimum Order Quantity: Baan always recommends an order quantity greater than or equal to theminimum order quantity, when planned orders are generated. This field is used for all Order methods.

Maximum Order Quantity: Baan always recommends an order quantity smaller than or equal to themaximum order quantity, when planned orders are generated. This field is used for all Order methods.

Fixed Oder Quantity: If the order method for the item is fixed order quantity then this field value is usedby the Baan to create planned orders

Economic order Quantity: If the order method for the item is Economic order quantity then this fieldvalue is used by the Baan to create planned orders




Item Ordering Data :

Item Ordering data is used to set defaults for order generation.




Safety Stock: The buffer inventory necessary to meet fluctuations in demand and delivery lead time. It

is a quantity of stock planned to be in inventory to protect against fluctuations in demand and supply

Safety Time: The time you can add to the normal lead time to protect delivery of goods against

fluctuation in the lead time so that an order can be completed before its real need date..




Order Interval: The minimum number of days between two orders for the same item. Te order interval

is used in order to prevent too many planned orders in one time period..




Master DataPlan Item Data

A Plan Item is an item with a Planned order system. These items are first defined in Item Base

Data module. Then we can maintain planning related data for these item in plan item Data. A plan

item can also be a product family.




The most important data that you define in the Plan Item Data (cprpd1500m000) session is :

± Plan level

± Plan item type

± Default warehouse

± Default supply source

± Planning horizon ± Order horizon

± Maintain Master Plan




Plan Level & Plan item Type : The plan level is a level within a hierarchical planning structure. If

you plan on a higher plan level, plans are general and less detailed. We will do the planning item

level. As we set the Plan Item Type field in the Plan Item Data (cprpd1500m000) session to

µItem¶.

Default Warehouse: The default warehouse is the warehouse from and to which the item is

normally delivered.

Default Supply Source :The default supply source is either Production, Purchase, or Distribution.

This does not necessarily correspond with the item type (Manufactured or Purchased), but

generally the for manufactured item the default supply source production and for item type

purchase default supply source is purchase. You can overrule the default supply source by

defining a sourcing strategy for the plan item.




Planning Horizon: The planning horizon is the number of days in the future for which BaanERP

Enterprise Planning plans supply. You must make the planning horizon no longer than

necessary. Short planning horizons improve system performance.

Order Horizon: The order horizon is a very important parameter. Together with the planning

horizon, it determines which method is used for supply planning in a particular plan period. The

use of the order horizon and the planning horizon is illustrated is figure below.

If you make the order horizon equal to the planning horizon, BaanERP plans all supply throughorder-based supply planning.




Item Master Plan : If you select the Maintain Master Plan check box, BaanERP maintains an item

master-plan for the item. The advantage of defining ³Item Master Plan´ for an item is that we can

manually enter the demand forecasting and can see the consumption of forecast by actual

demand. Item master plan for an item shows the demand and supply for a plan item by plan

period.




Item Master Plan : The disadvantage of maintaining an item master-plan is that it has an adverse

effect on system performance. Therefore, you must only maintain an item master plan if you

need specific master-plan functionality.




Time Fence :The date until which an item's supply plan and planned orders are frozen. The time

fence is expressed as a number of working days from the date Planning is carried out.

Enterprise Planning does not regenerate the planned orders within the time fence. However, this

can be overruled through simulate orders. So The time fence is meant to prevent:

� Disturbance of orders that have already started (at the shop-floor level).

� Generation of planned orders with start dates in the past (that is, orders that are late).

Usually, the lead time of an item's production process is a reasonable value for the time fence.

Forecast Time fence: The date until which ERP Enterprise Planning ignores the demand forecast

when generating planned orders. The forecast time fence is expressed as a number of working

days from the date Planning is carried out. Within the forecast time fence, Enterprise Planning

only considers actual customer orders. Beyond the forecast time fence, total demand is a

combination of actual orders and forecasts.

A reasonable value for the forecast time fence is the minimum time period between the receipt of customer orders and the requested delivery dates.




Lead Time : Order planning contains the simulation of orders to meet demand. Part of the

simulation is the calculation of orders dates, the simulation determines requirement for an item

and generates planned orders with start and finish date. The calculation of these start and finish

dates depends on the requirement. Calculation of start and finish date is in fact the planning of

lead times.

For Manufactured item the EP takes Lead time from Item Production data and for the Purchaseditem the Lead time is taken from Item supplier information.



Master DataItem Supplier Information

Item Supplier Information : The Item supplier Information Contains following main information :

± Approved / Blocked

± Priority

± Sourcing percentage

± Lead Time Components (calculated)



Training Agenda


� Master data





Planning Parameters

Scenarios:

A scenario is an umbrella for a specific set of planned orders that were planned according toscenario dependent parameter settings. In this way a user can simulate several situations.

- Plan Start date: Determines the start date of the time frame in which EP is capable of planning. It does not determine the date from where the goods flow is read. Also the goodsflow transactions before plan start date are considered and put on the start date of the

scenario. Note that it is strongly advised to define a start date in the past. Preferably so far inthe past that all open transactions (like unfinished sales orders) are within the scenario startand finish date.

- Plan Finish date: determines the end of the range where EP is capable of planning. Incontrast to the start date, it determines until which date the goods flow is read.

- Rolling Plan: this determines the whether the plan is rolled yes or no. This means that theplan periods are rolled when time goes by. Rolling is done when running the session .Roll,Initialize, Update Scenario.

Since the planning process is an iterative process that is subject to many changes beforereleasing the final planning to execution level takes place, it should be possible to edit andevaluate the planning easily. The simulation and evaluation capabilities are supported viasimulation scenarios.



Planning Parameters

Scenarios:

Only one scenario can be the actual. Actual means that the scenario represents the plan that would

be are really going for execution. Only from the actual scenario it is possible to transfer the

planned orders to execution level. To determine which scenario is actual, the user should define

the scenario in the EP parameters session.



Planning Parameters

Plan Periods & Rolling :

Planning is performed in buckets. A bucket is a plan period of predefined length for which a separate

forecast and production schedule is determined. Often the plan periods are small (days/weeks)

in the near future and long (months) far into the future, because it is harder to forecast in detail

far into the future.

So the plan periods become longer further into the future, which means that as time progress , the

division of periods in front is changing. This is not desired, because the detail of forecasting andplanning must be the same every time the master planner generates, evaluates, and delivers a

new planning. This is supported by rolling, which is controlled by data Rolling Plan, Reference

Date, and Rolling Frequency at the scenario.



Planning Parameters


Refer the picture to understand the idea of Rolling. In the picture it is depicted that the division of

plan periods changes in time from 7 days, to 14 days, and finally 28 day periods. The reference

date defines the date on which the scenario can be rolled for the first time. The rolling frequency

determines the cycle of rolling the scenario after the reference date. So, when the rolling

frequency is 7 days and the reference date falls on a specific Sunday, the scenario can be rolled

every Sunday. Note that it is not mandatory to roll every week when the frequency is 7 days.When it is rolled after 17 days, the scenario is rolled 2 weeks in time (multiple of 7).



Planning Parameters


In the following situations, you must use the Initialize, Roll, and Update Scenario (cprpd4200m000)

session to initialize or roll a scenario: .

± When you create a new scenario, you must run this session to initialize it.

± When you change a scenario¶s plan-period definition, you must run this session to reinitialize the

scenario.

± If a scenario is defined as a rolling plan, you must regularly run this session to roll the scenario

(that is, shift it forward in time).



Planning Parameters

Phase numbers & Re-compute Phase numbers :

Plan items must be planned in a specific order because the material requirements for the

manufacturing or supply of one plan item influence the logistic plans of other plan items. As

most items are planned based on dependent demand coming from parent items, it is important

that the items are planned in the correct order, so no demand is missed.

To determine the order in which items must be planned, the planning engine uses phase numbers.

The order planning engine uses phase numbers and it is based on the Bill of Materials. Thehigher the phase number, the lower the planning order, it means items with phase number 0 will

be planned first. Each plan item receives a phase number, which is stored in the Plan Item Data

session.



Planning Parameters

Signals by Planner:

Planning process generates signals. Signals are basically messages, warnings and suggestions to

implement or take note of.

Cancel Order: Part of the order or part of the supply plan can be canceled, because there is no

demand for it (for example, because a sales order has been canceled). The signal includes an

indication of the quantity that is superfluous. This signal is also generated for redundant orders

within the time fence. Lot size parameters (e.g. minimum order quantity) are not taken intoaccount when creating this signal.



Planning Parameters

Signals by Planner:



Reschedule In: Part of the order must be delivered earlier. The quantity attached to the signal

indicates the quantity to be rescheduled; the signal itself states to which date this quantity must

be rescheduled. The reschedule in signal is only generated for firm orders outside the time

fence.



Planning Parameters

Signals by Planner:



Reschedule Out: Part of the order can be delivered later (for example, because of postponed

customer orders). The quantity attached to the signal indicates the quantity to be rescheduled;

the signal itself states to which date this quantity must be rescheduled. The reschedule out signal

is only generated for firm orders outside the time fence.



Training Agenda


� Master data





Planning Process

MRP Execution:

Planning process actually involves the following three activities.

� Re-compute phase numbers.

� Initialize, update and Roll scenario if needed.

� Simulate orders.

The above three steps constitute the actual planning process, in which the exact planning is carried

out in ³Simulate Order´ Process.



Planning Process

MRP Execution:

Initialize, Roll and update scenario will make sure new plan items are also initialized into the

scenario with master plans (i.e make an entry in Item master Plan session as per plan item data

default) and also gets the scenario rolled based on rolling frequency and reference date.



Planning Process

MRP Execution:

Simulate Orders is the actual planning process, It determines demand for every plan item based on

the forecast, customer orders and generates Planned Purchase and Planned Production orders

based on all the master data configured for items. A Planned order has a start date, finish date

requirement date and quantity of the item. This process also updates the Time phased planning

overview table, which can be seen through ³Time Phased planning overview ³session. Also

simulate orders updates signals by item and planner on case to case basis.



Planning Process

Post - MRP activities:

On completion of MRP, based on generated signals the planner/buyer has to decide on

implementing the signals. The generated planned orders needs to be transferred for execution,

that has to be done as follows.

1. Confirmation of Planned orders

2. Transfer of Planned orders

Confirmation of planned orders has to be executes session ³Confirm Planned orders´ This process

updates the status of a planned order to ³Confirmed´, hence making it ready for transferring to

execution.

Transfer of planned orders has to be executed by session ³Transfer Planned orders´ . This process

transfers the planned orders to execution, which means Planned purchase orders will get moved

to ³Purchase control´ module as Purchase orders and Planned Production orders will be moved

to ³Shop floor control´ module as Production orders with ³Planned´ status. On transferring

Planned orders are deleted from system automatically.



Planning Process


1. Confirmation of Planned orders

Confirmation of planned orders has to be executes session ³Confirm Planned orders´ This process

updates the status of a planned order to ³Confirmed´, hence making it ready for transferring to

execution.



Planning Process


2. Transfer of Planned orders

Transfer of planned orders has to be executed by session ³Transfer Planned orders´ . This process

transfers the planned orders to execution, which means Planned purchase orders will get moved

to ³Purchase control´ module as Purchase orders and Planned Production orders will be moved

to ³Shop floor control´ module as Production orders with ³Planned´ status. On transferring

Planned orders are deleted from system automatically.



Planning Process


2. Transfer of Planned orders (Form 1)



Planning Process



59537717 BaanERP Enterprise Planning

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