1. Sales & Inventory Operation Planning (SIOP)
XA tools to assist with Forecasting, Material Planning & Cash Flow Analysis

2. Sales & Operation Planning Data Flow
Forecast – Projection of Future Sales
Feeds Material Planning:
Master Production Schedule Planning
MRP
Advanced Planner
Planning Applications create Planned MO’s & PO’s
Cash Flow Analysis:
Use Existing AR, COM Orders & Forecast for income
Use Existing AP, PO & Planned Orders for Expenditures

3. XA Forecasting Forecast Code in Item Balance record determines: Codes:
Build forecast for item
Build forecast and pass to MRP or MPSP
Codes:
0 = No Forecast
1 = Forecast, do not pass to planning
2 = Forecast, pass to MPSP as requirement and MRP as reference
3 = Forecast, pass to MPSP and MRP as requirement

4. Forecast Code

5. Forecasting
Month End Processing will retrieve booking information from COM
Move the periods forward by 1 period
Calculate the forecast (using experiential roughing)
Menu option to pass forecast to MPSP
Updates Demand Interface (DMDIFF) file

6. Forecast Master Forecast Master holds:
Sales vs. Forecast for past 12 periods
Forecast for next 12 periods
Seasonality Factor for fluctuating sales
Safety Stock and Reorder Point (option in Tailoring to update Item Balance record)
System Calculated forecast can be manually overridden, either at the ‘Annual’ level or in individual periods

7. Forecast vs. Sales (past)
Forecast Master
Forecast vs. Sales (past)
Future Forecast

8. Forecast in SIOP
If the Forecast is used as a requirement in the Material & Capacity Planning Applications:
Forecast needs to be an accurate representation of sales (i.e. not a ‘wish list’)
If there is seasonality within the monthly forecasts, the Master Schedule will need to be ‘smoothed’
Need to verify that there is capacity to produce the forecast prior to running material planning

9. Other Forecast Options
3rd party forecasting applications can ‘feed’ forecast to material planning
Futurecast
Customer provided forecasts
FD6
MPSP – put forecast in Demand Interface file (DMDIFF)
MRP – load forecast to Requirements (REQMTS) file
Advanced Planner – put forecast into access table

10. Forecast Metrics Forecast vs. Sales Shipments by Item/Quantity
Forecast vs. Sales Shipments by dollar
Customer Order fill rate (actual ship date vs. manufacturing schedule due date)
Forecast vs. Master Schedule Production

11. Planning

12. Master Schedule
Master Schedule needs to be an accurate statement of what is to be built
Master Schedule should be isolated to Finished Goods (level 0 of the bill of material)
If lower level items are flagged as MPSP items, their parent items also need to be MPSP items
Master Schedule should be reviewed by Senior Management within the company
Summarized by Product Family

13. MPSP
MPS Source Code in Item Balance determines what will be treated as a requirement in MPSP:
F = Forecast only
C/E = Customer Orders only
B/D = Greater of Forecast or CO for the period (Forecasting Tailoring determines period length weekly/monthly)
M = no requirements, master schedule is manually entered

14. MPSP Sequence of Events
Load Forecast to Demand Interface (DMDIFF)
Set Horizon dates
Generate Master Schedule
Test Master Schedule against capacity constraints (rough cut capacity test)
Work/approve the Master Schedule
Transfer Master Schedule to MRP

15. Resource Profiles
Resource Master record needs to specify hours/day resource is available
Resource ID is loaded into Production Facility
‘Prime Load Code’ determines if resource constraint is machine or labor time
‘Resource Profile Build’ job will go through the indented BOM for the MPSP item to find load in constraining facility and time offset

16. Production Facility Record

17. Resource Test
Resource test will compare master schedule against ‘Resource Profile’ file
Resource display will show weekly periods where master schedule has overloaded the constraining facility
Use date field to determine which Master Schedules are contributing to overload
No report is available, only inquiry

18. MPSP load to MRP
When performing an MRP generation question ‘Transfer new orders from MPSP?’ answered ‘Yes’ will bring the master schedule planned orders from MPSP to MRP to generate planned orders through all levels of the bill of material

19. Master Schedule Metrics
MPSP MO Performance
% of MPSP orders started on time (actual start date vs. scheduled start date)
% of MPSP orders completed on time (actual completion date vs. due date)
Quantity completed vs. quantity orders
MPSP order changes within ‘frozen’ zone (i.e. ‘X’ number of days from start and/or due date)

20. Advanced Planner

21. Advanced Planner ‘Next Generation’ of material and capacity planning
Download planning information from XA into an Access database
Planning performed on a PC or Server, eliminating job conflicts

22. Advanced Planner Sequence of Events
Download data to Access
Load the plan
Review Load to Capacity for work centers (color coding shows level of capacity problems)
Work daily plans to eliminate capacity overloads
Review Supply vs. Demand (MRP) plan
Upload plan to AS400 (updates PLNORD and REQMTS files)
Release orders same as MRP

23. Load to Capacity

24. Load to Capacity Separate line for each facility
Red – Facility over capacity (total)
Yellow – Facility over capacity for multiple periods
Blue – Facility over capacity for one period
Green – Facility under capacity
Black – Set up time
Can ‘drill down’ to daily load

25. Daily Load

26. Daily Load Use ‘Drop & Drag’ to move order Other options available:
Will reschedule other operations and, if ‘Operation Where Used’ in BOM is completed, will reschedule material
Other options available:
Outsource: Have vendor perform operation
Alternate Route: use different process (EPDM)
Offload: move to different facility (only released MO’s)
Level load: let AVP move load

27. AVP New Functionality vs. MRP
Customer Orders consume forecast
Unlimited number of calendars, can associate multiple facilities to a single calendar
Uses routing times (instead of lead time) to calculate MO start date
Schedules load for each operation based on operation start/due date; can plan to the minute
Uses Maximum Order Quantity to limit order size
Planned Orders due the day before the requirement

28. Supply/Demand for Item

29. Save Plan Uploads AVP plan to the AS400:
Saves Planned Orders in the PLNORD file
Saves requirements to the REQMTS file
Use MRP recommendations (PowerLink) or MRP Order Release and Review to create MO’s and PO’s
Same metrics as MPSP/MRP apply

30. Save Plan

31. Cash Flow

32. Cash Flow Overview
The Cistech Cash Flow application was created to provide a future view of income and expenditures for a company
Cash Flow is written with XA Integrator and runs exclusively in Browser (R6) and PowerLink (R7)
Works with both AM and IFM financials
Provides both summary data and detail to support the summary
This application is especially important these days when cash management is essential to your company’s overall health

33. Sample Screen Time periods are user defined and can be: Daily Weekly
Monthly
Quarterly

34. Income – Existing AR
Uses the existing invoices in Accounts Receivable (either AM or IFM financials)
Uses the invoice due date to determine the period for cash receipt
Past Due invoices will display in a ‘Past Due’ period column

35. Income – Future AR ‘Future AR’ is time phased Customer Orders in COM
Uses the Manufacturing Scheduled Ship Date for each item plus the Customer’s payment days (based on the terms code in the customer master record) to determine date of cash receipt
Assumes shipment/invoice will occur on the Manufacturing Scheduled Ship Date

36. Income - Forecast
Forecast needs to be by Customer and Item for most accurate cash flow
Cistech will provide a custom forecast file/file layout to allow you to populate a forecast file for Cash Flow
Uses the Customer’s ‘Payment Terms Days’ to age the forecast

37. Income Sum of: Existing Invoices in Accounts Receivable
Aged Customer Orders
Aged Forecast

38. Payments – Existing AP
Uses the Existing Vendor Invoices in Accounts Payable (either AM or IFM Financials)
Uses the Payment Due Date on the invoice to determine payment date/period

39. Payments – Future AP
Ages the existing Purchase Orders to determine payment date
Takes the ‘Due to Stock Date’ plus the vendor’s Payment Days from the Terms Code specified on the Purchase Order
Uses the ‘Offset Days’
For Blanket Items, uses the Due to Stock Date for each release

40. Payment – MRP Plan
P-Plan orders from MRP planned order (PLNORD) file are used to calculate future payments
Vendor specified as ‘Primary Vendor’ in Item Balance record will be the Vendor whose terms are used to calculate offset payment days
Vendor Master record holds Terms Code

41. Sample Screen
Summary and detail are both provided and can easily be copied to Excel

42. SIOP Summary
Use Sales Forecast as the beginning point for developing Master Schedule
Use Planning applications to create material and capacity plan
Use Cash Flow analysis to determine company’s cash requirements based on existing orders and plan
Use Metrics to determine success of SIOP plan

43. CISTECH SIOP OFFERINGS
Education (Forecasting, COM, MRP, MPSP, AVP)
Upcoming “AVP JumpStart” Engagements
Free Webinars on AVP functionality
Classroom Education opportunities
On-site AVP “JumpStart” Consulting Engagements
CISTECH’s Cash Flow Analysis Tool
QuickLook consulting program for SIOP
1-2 day review of your current SIOP Process
Executive wrap up session to provide vision and implementation plan for SIOP improvements
CONTACT INFORMATION
Brock Miller Ben McCormick

44. THANK YOU FOR ATTENDING!