The Magic of MRP - Accessing and Using It To Your Advantage Agust Bjornsson, Microsoft

The Magic of MRP - Accessing and Using It To Your Advantage Attend this session and learn how to access the MRP tool, how to use it properly and tips and tricks that will help you be a successful and efficient Master Planner user. We will review common settings and clarify often misunderstood terminology and concepts. If Master Planning is not producing what you expect this is the session to help you out. 

Who are you? Customer Partner Microsoft Dynamics AX version? Earlier? 2009 2012 The New Dynamics AX („AX7“) Are you in the middle of an implementation?

Agenda Explanation of Master Planning (MRP) results Understanding, visualizing and applying action messages Save your selection in list pages Tips and tricks Benefits: Explanation of MRP results Easy visualisation of the Action messages Easy way of grouping large amounts of production orders or planned orders, for a better processing. In this session we will go thorugh this set of features. Action: please throw questions as we go

Explanation of MRP results Sequential description of what Master Planning is doing Translated into end user language Two options Directly form the client, through Explosion Only for one order at a time From Event viewer, for a full Master Planning run Learn how to enable on the Dynamics AX Production Management team blog: http://blogs.msdn.com/b/axmfg/archive/2012/12/05/logging-and-tracing-dynamics-ax-mrp-runs.aspx It is essentially functionality that explains in a human readable language what MRP is doing and how it came up with the suggestions it makes. Why did we implement this? Feedback from the users Master planning results have until now been a ‘black box’ for everybody but the planning experts. However it’s useful for order processors to understand delays in delivery dates so they can make informed communications to customer, for example. We were getting quite a few Connect cases that were either – explain what Connect is. Not bugs, if the users would have understood what was going on Poorly documented issues and we had to spend a lot of time trying to come up with a repro. Our engineers, while internally testing MRP, experience strange results and it took usually long debugging time to figure out what was going on. In practice, once you run any explosion on a transaction, you can see the sequential description MRP is doing.

Tracing for a full Master Planning run Setup in Performance Monitor and view in Event Viewer

Explanation of the MRP results 6/3/2018 Explanation of the MRP results © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Look at the explosion log to understand why the requirement date can’t be met Contact procurement to see if anything can be done Procurement does magic and the items arrive earlier Check that the required date can now be met Confirm the date with the customer Could be used by sales

Visualize and apply action messages View interdependent relations between actions One action often has one or more “linked” actions Apply actions An automated process to apply an action Minimize material bindings in supply chain ( inventory, WIP, …) Make Plan changes more visual, so impact on business can be analyzed before changes are applied Getting the priority right, so Planners can focus on tasks that adds value to the business.

Visualize and apply action messages Wants to change a production order, since it has an action message Wants to make sure that this change won’t affect other orders Looks at the action graph Aplies the action on the production order

How to visualize and apply action messages 6/3/2018 How to visualize and apply action messages © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Save your selection in list pages A simple, yet powerful way to save selection in production list pages Has to be activated in the License configuration

DEMO How to save selection in list pages 6/3/2018 © 2012 Microsoft Corporation. All rights reserved. Microsoft, Windows, and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries. The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Tips and tricks

Planning Parameter Hierarchy Master Scheduling Options /Master planning/Area page/Setup/Master Planning parameters Coverage Group /Master planning/Area page/Setup/Coverage/Coverage group Master Plans Parameters /Master planning/Area page/Setup/Plans/Master Plan Item Coverage rules (Per Item) /Product information management/Common/Released products/Plan/Item Coverage If a parameter is filled in 4), it will take priority over the parameter in 2)

Create the relevant coverage groups Easy maintenance of all items in the group Use item coverage only for exceptions E.g. hundreds of items in the groups and only a few exceptions If you get to many exceptions try to generalize a new group

Coverage code Requirement: Demand-based 6/3/2018 11:42 PM Sale 25 Sale 15 Sale 5 Sale 10 Time Purchase 25 Purchase 15 Purchase 5 Purchase 10 © 2006 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

Coverage code Period: Demand based 6/3/2018 11:42 PM Sale 25 Sale 15 Sale 5 Sale 10 Time Purchase 40 Purchase 15 Coverage period Coverage period © 2006 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

Coverage code Period: Demand based 6/3/2018 11:42 PM Sale 25 Sale 5 Sale 15 Sale 10 Purchase 40 Purchase 15 © 2006 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

Coverage code Min./Max.: Inventory level-based 6/3/2018 11:42 PM Minimum Inventory Lead Time Maximum Time (Reorder cycle) Inventory level © 2006 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

Coverage code Min./Max.: Inventory level-based Maximum Qty. = 50 6/3/2018 11:42 PM Min./Max.: Inventory level-based Sale 25 Sale 10 Maximum Qty. = 50 Purchase 50 Purchase 45 Sale 15 Sale 5 Minimum = 10 © 2006 Microsoft Corporation. All rights reserved. This presentation is for informational purposes only. Microsoft makes no warranties, express or implied, in this summary.

Order Policies NOT the same as Coverage Code Default Order settings Multiple - Orders are created in multiples of this quantity (i.e. cases of 24) Minimum Order Quantity - Min quantity that can be ordered without a warning Maximum Order Quantity - Max quantity that can be ordered without a warning Default Order settings Site Specific Order Settings

Setting the Time Fences Automatic firming of planned orders (Create Production- and Purchase orders) Existing planned orders are not changed when running a new master schedule - they are frozen Futures setting for detecting and reporting delays and scheduling possible (delayed) delivery dates Action setting to optimize inventory carrying cost by proposing changes to existing Production and Purchase orders Capacity evaluation and planning using production route (outside the time fence Inventory lead time is used) Explosion of BOM items to detect derived demands (both material and capacity) Scheduling period

Use helpers for Master scheduling What’s the magic number? Use two helpers per server core minus one E.g. Server with 8 cores = (8*2) - 1 = 15 helpers In case of timeout or deadlocks, try to reduce the number of helpers. This can be the case having complex BOM structures with many levels Actual Results With no Helpers: 11 hour average run With 8 Helpers: Less than 1 hour average run (AX 4 with 13 BOM levels)

Use the correct coverage code Requirement Configurable items/orders (1:1) Period Non predictable inventory draw, season influenzed item, high cost items Min./Max. Predictable inventory draw, high runners or cheap items Manual Not calculated during Master Planning

Use actions Planned orders will only ensure that you have enough supply Actions will help you get an optimized supply plan and maintain approved and firmed orders You can really save inventory carry cost with AX2012 it’s made easy to use

Resources Microsoft Dynamics AX Manufacturing and Planning blog http://blogs.msdn.com/b/axmfg/ Master Planning Wiki Site: https://ax.help.dynamics.com/en/wiki/master-planning/

Questions?

Final reminders CPE Credit Code: 53C2 Complete Surveys 34

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