Guide Dogs Maximising the impact of Raffle appeals Kate Parker Senior Insight Analyst.
PLANNING ENGINE Presented by: Dave Parker Sr. Business Analyst.
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Transcript of 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!