Implementing MRP with Advanced Repetitive Sean Donahue – RFBP Nadia Truxell – Logan Consulting

Introduction – Sean Donahue 15 years experience in the MFG/PRO & QAD environment in the food industry. Activities included purchasing, logistics, inventory management, advanced repetitive scheduling, MRP and master scheduling. Have also assisted with MRP implementations/training, software and policy upgrades, MRP support, development support of custom programs within QAD as well as integration support of third party software with QAD. Positions held: Shipping and Receiving, S&R leader, Plant Scheduler and Master Scheduler. Education: Grand Valley State University APICS

Introduction – Nadia Truxell Operations/Materials Manager – Scherdel Sales & Technology Automotive Supplier of Springs and Stampings Implemented QAD Project Manager – Logan Consulting QAD Implementations and Business Process Consulting Automotive Food & Beverage Consumer Goods Industrial Products Education: Grand Valley State University APICS

MRP– Introduction Introduction MRP Implementation Approach at RFBP Elements of MRP Process Advanced Repetitive Aspects Lessons Learned Questions

Introduction – RFBP Bread, Griddle, and Cookie products for Industrial, Foodservice, and Retail markets 11 Manufacturing plants across the US and Canada Advanced Repetitive processing

Implementation Approach Prerequisites to MRP: Accurate BOMS Accurate Inventory Accurate Demand

Implementation Approach 1) Define Goals and Benefits of Project

Implementation Approach A common understanding of planning processes and a common set of terms and definitions used in planning throughout the division

Implementation Approach A single, repeatable process throughout the organization

Implementation Approach Easier transfer of planning methodology to new planners and new plants.

Implementation Approach Better decisions on what SKU’s to produce and in what quantities to fulfill customer orders and meet forecast demand.

Implementation Approach Reduction possibilities in overall inventory with minimal shortages and expedites

Implementation Approach Improvement in Customer Service (reduction in SO leadtime and improvement in fill rate, on-time delivery)

Implementation Approach Reduction opportunities in obsolescence (both FG and Ingredient SKUs)

Implementation Approach Reduction in overtime, improvement in direct labor productivity

Implementation Approach Accountability throughout the organization based on a single set of criteria

Implementation Approach 2) Organize Team Define Roles and Responsibilities Project Sponsor Project Manager Subject Matter Expert Core Team (from Plant) End Users

Implementation Approach 3) Conduct Kickoff Meeting, Current State Assessment and Gap Analysis at each plant site

Implementation Approach Gap Analysis

Implementation Approach 4) Core Team Training Onsite Training with Core Team members Train the Trainer approach

Implementation Approach 5) Process Design Work with SME and Core Team to resolve identified gaps to evolve the end state processes.

Elements of MRP Process 6) Data Cleansing Work with core team to update static data (master data, planning parameters) and clean up dynamic data (PO, DO, SO, WO).

Elements of MRP Process 7) User Acceptance Testing Execute processes in a test database environment to gain approval from the users that the process meets the expected goals

Elements of MRP Process 8) End User Training Core Team trains End Users with support from SME and Project Manager

Elements of MRP Process 9) Data Conversion and Go Live Conduct upload of master data changes and finalize static data cleansing

Elements of MRP Process 10) Support Plant during live processing

Elements of MRP Process Supply Planning Model

Elements of MRP Process Forecast Feedback Process

Elements of MRP Process Master Scheduling Process

Elements of MRP Process Plant Scheduling Process

Elements of MRP Process ABC Stratification Item Sales Ranking 80/20 Rule Applied to determine Period Order Quantity A= POQ 7 B= POQ 14 C= POQ 28

Elements of MRP Process Item Site Planning

Elements of MRP Process MRP Control File

Elements of MRP Process MRP Net Change/Regen Set to run through batch process MRP Regen – Weekly MRP Net Change – Nightly End User Access restricted – Master Schedulers can execute upon request

Elements of MRP Process MRP Planned Order Browse

Elements of MRP Process MRP Action Message Browse

Advanced Repetitive 32Soft Schedule Upload Tool

Advanced Repetitive Line Schedule Workbench

Advanced Repetitive Line Schedule Workbench

Advanced Repetitive Line Schedule Workbench

KPI-Results

Lessons Learned MRP Implementation Challenges Mindset that “MRP Doesn’t Work” Data integrity Plants “have always done it this way” and fall back into old habits Major struggles with Operational vs Production Forecast accuracy

Questions Questions?