Specialize in Value Chain Planning...
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Specialize in Value Chain Planning Solutions
Transcript of Specialize in Value Chain Planning...
Specialize in Value Chain Planning Solutions
Enterprise Value Chain Planning
Capacity Management
A Business Perspective
Agenda
■ Capacity Management - A Perspective
■ What does it look like?— Resource and RCCP Planning— Capacity Requirements Planning— Scheduling (Dispatching load and balance)
■ Summary / Questions
Oracle Value Chain Planning Solution
e-business planning process platform………….
Demand SignalManagement
DemandManagement
Organization Collaboration
Internal and External
PlantScheduling and
Monitoring
OrderPromising
Service Parts
Planning
Trade PromotionManagement
Supply and DistributionPlanning
RiskManagement
Sales and OperationsPlanningPerformance
Management
Capacity Management
The function of establishing, measuring, monitoring, and adjusting limits or levels of capacity (capabilities) in order to execute all plans; i.e., the production plan, master production schedule, supply chain, material plan, and dispatch list, etc.
Capacity management is executed at four levels:
1) Resource Requirements Planning
2) Rough-Cut Capacity Planning
3) Capacity Requirements Planning
4) Input/Output Control (Finite Load and Balance)
Planning and Control in PerspectiveSynchronous / Closed Loop
Plan
Schedule
Execute
ControlFeedback
Evaluate
Re - Plan
Planning only what we can and will produce not what we wish we could
Validate / Verify -”Know before you go”
Feed back for corrective action
Re-initiate and re-synch the process
Demand SignalManagement
DemandManagement
Organization Collaboration
Internal and External
PlantScheduling and
Monitoring
OrderPromising
Service Parts
Planning
Trade PromotionManagement
Supply and DistributionPlanning
RiskManagement
Sales and OperationsPlanningPerformance
Management
Plan
Schedule
Execute
ControlFeedback
Evaluate
Re - Plan
A Control Model
Compare achievementto objectives
Reviseobjectives
Perform activitiesPlan actionsSet objectives
Reviseplans
Adjustperformance
Feedback
Measure results
Activity Control
Built upon………● Environment Characteristics and Strategies
● Demonstrated Capacity, Utilization, Efficiency
● Balancing Requirements and Capabilities
● Cycle Time
● Priority Rules
● External Relationships
● Variances
Capacity / Priority Interrelationship
Sales and Operations
Operations Planning
Supply Chain Planning
FiniteScheduling
Validates
Feedback
Resource Planning
Rough-Cut Capacity Planning
Capacity requirements Planning
Finite Capacity Planning
Source: Adapted from Bihun and Musolf, Capacity Management
Priority Planning Capacity Planning
Priority Control Capacity Control
ASCP / Demantra
Tools / Technique
ASCP / Demantra
ASCP
ASCP, EBS, PS
Dispatching Execution SFS, MES, EBS, PS
Total E-Business Planning Process Model
Material Plan
Resource plan
Master Production Scheduling
Rough-cutcapacity plan
Capacity Requirements Plan
Executing theResource plan
Supply Chain Planning
S&OP
Business plan
Executing the Material Plan
Demand Planning
Sales and Marketing
Product Development
Inbound Logistics Outbound Logistics
EAM Plan
Cumulative Overload—Balanced
Capacity
Load
Cumulative Underload—Balanced
CapacityLoad
Cumulative Overload—Unbalanced
Capacity
Load
Skewed Load Profiles
Advantages and Limitations
➔ Advantages☑ Provides time-phased visibility of capabilities ☑ Confirms adequate cumulative capacity☑ Considers specific lot sizes and routings☑ Estimates lead times more precisely☑ Contributes to the elimination of erratic
lead times☑ Foundation for consistent and reliable information
Advantages and Limitations - Continued
➔ Limitations☑ Requires a great deal of computation☑ Unconstrained performs only a backward schedule☑ Requires extensive amount of input data☑ Planned computational preciseness is somewhat illusory☑ Must be compared to demonstrated for validation☑ Unable to give precise level of detail☑ The effect of revisions not always clear without simulation
Effects of Not Doing
➔ Bottlenecks
➔ Low Productivity
➔ Higher work-in-process inventory
➔ Late deliveries and shortages
➔ Extended lead times
➔ Higher costs
➔ Loss of competitive stance
Agenda
■ Capacity Management - A Perspective
■ What does it look like?— Resource and RCCP Planning— Capacity Requirements Planning— Scheduling (Dispatching load and balance)
■ Summary / Questions
Resource / RCCP Example
Pre-Requisites
➔ Valid Resource and Routing Details
➔ Family Structure and/ Hierarchy
➔ Demand Management
➔ Data Series / Adjustment
➔ Demand Scenario Driven
What does it look like?
ASCP Load
Constraint Forecast
Base-Line Forecast
Demantra Series
Budget Line
Agenda
■ Capacity Management - A Perspective
■ What does it look like?— Resource and RCCP Planning— Capacity Requirements Planning— Scheduling (Dispatching load and balance)
■ Summary / Questions
Capacity Requirements Planning
Pre-Requisites➔ Valid Resource and Routing Details➔ Resource set as Engineered / Cost Basis➔ Capacity Planning
➔ Demonstrated➔ Planned
➔ Capacity Planning Proccess Must be Easy
What does it look like?
Demonstrated Capacity
Average Historical Output Rate for a Resource■ It takes into consideration:
— Historical product mix & lot sizes— Planned & unplanned down times— The Oops factors
■ It is what a Resource has demonstrated it can achieve over time
Demonstrated Capacity
Why Do We Care?
■ Are you using Capable to Promise for order Promise Dates
OR,
■ Are you are just guessing about when you can deliver?
— Plan or schedule is not valid if it is not realistic and achievable
ResourceCapacity
Time
Operation Run Rate Setup(Engineered Capacity)
ResourceDemonstrated Capacity
(Target)
ReduceResource Efficiency %
Setup to Arrive at Demonstrated Capacity
ASCP Planning Engine Rounding
ASCP Planning Engine Rounds in Three Places1. When calculating Resource Rate per Primary Unit it is rounded to the
nearest 6 decimal places
2. When calculating the time required at the Resource for the batch it rounds up to the next highest minute
3. When returning the resource requirement time in the unit of measure used at the Operation the result is rounded to the nearest 6 decimal places
■ Affects Operation Rates greater than 99,000 units/hr
Demonstrated Capacity EBS / OPM
Planned Capacity
Planned Output Rate for a Resource■ It takes into consideration:
— Current product mix & lot sizes— Planned down times— Current Resource constraints
■ This is the Rate the Scheduler Plans for Resource over the short-term horizon— Based on what they know today……….
Planned Capacity Management
ResourceCapacity
Time
Resource Capacity Setup
ResourceDemonstrated Capacity
Planned CapacityAdjustment
Change ScheduledResource Capacity
Planning TimeFence
Trading TimeZone
Future
Planned Capacity in ASCP
Planned Capacity & Collections
Planned Capacity Requirements
■ It’s Got to be Easy
■ It’s Got to be simple
■ Leverage ASCP Functionality
■ Simulation is a must
■ Data must be current
■ Need to Retain history of what we have done
Need to do a small customization
Planned Capacity Made Easy
Resource Capacity Maintenance Spreadsheet
Planned Capacity Made Easy
Agenda
■ Capacity Management - A Perspective
■ What does it look like?— Resource and RCCP Planning— Capacity Requirements Planning— Scheduling (Dispatching load and balance)
■ Summary / Questions
Scheduling (Dispatching – Load and Balance)
MRP / CRP, Rev. 4.1
Pre-Requisites➔ Valid Resource and Routing Details➔ Resource set as Engineered / Cost Basis➔ Planned Capacity Set➔ Time Fence Definitions➔ Business / Priority Rules➔ MES Integration
What does it look like?
Navigation Slides for Scheduling
■ Resource
■ Horizontal (Capacity Preferences)
■ Resource Requirements
■ Order View / Resource View (Bottom)
■ Sequence and Validate within business rules
■ Create Schedule and release / Dispatch
Agenda
■ Capacity Management - A Perspective
■ What does it look like?— Resource and RCCP Planning— Capacity Requirements Planning— Scheduling (Dispatching load and balance)
■ Summary / Questions
Capacity Management
MRP / CRP, Rev. 4.1
Summary➔ Multi Tiered➔ Resource set as Engineered / Cost Basis➔ Planning Capacity Set➔ Time Fence Definitions➔ Business / Priority Rules➔ MES Integration➔ A Pre-requisite to CTP, S&OP➔ Mandate for Constraint or Optimized Planning
Summary / Questions
Contact Information
Dean Steiger:
614-638-8960
www.signumgroup.com
Mike Herald:
www.signumgroup.com
