1. Material and Production Planning Options with XA Deborah Vermillion, CPIM, CIRM CISTECH Inc. www.cistech.net

2. Agenda Traditional Planning-MPSP, MRP, CRP Advanced Planner Thru-Put

3. PRODUCT DATA (PDM+, IM) Item Master Bills Of Materials Routings Inventory Levels Workcenters Existing Mos Existing POs FinancialControl TRADITIONAL CAPACITY PLANNING MPSP Production Schedules (Inventory Management) Procurement (Procurement Management +) Production SHOP FLOOR CONTROL (PM&C, PC&C, Paperless) Vendor Scheduling (Procurement Management +) Shipping(COM)Receiving (Inventory Management) Customer Orders (COM)Forecasts(Forecasting) Reporting(Browser) MRP Capacity and Material Analysis Analysis

4. Traditional Planning Cycle Master Scheduling –Interface with Forecast thru DMDIFF file –Blends COM orders and Forecast or Forecast only –Allows build up for seasonal demand –Rough cut capacity for critical items

5. Traditional Planning Cycle But: –Limited view of capacity –Can be Iterative, time consuming…

6. Traditional Planning Cycle Material Requirements Planning –Uses Master Schedule from MPSP, COM Orders or Manual requirements to drive plan –Uses PO’s, MO’s, Rep Schedules to satisfy plan requirements –Result is Time phased purchased material and production plan

7. Traditional Planning Cycle But: –Capacity not considered –Requires MPSP update for changes in blended demand –‘what-if’ capabilities limited (manual req’s) –Impact of new demand- wait until night Order/Schedule Recommendation by Item

8. Traditional Planning Cycle How does yours work today? –Appropriate staff effort? –Integration from demand to scheduling? –Length of planning cycle, can we provide quick response to changes in customer demand? –What if we get this order? –On time deliveries and consistent schedule performance? –Excess inventories? Do shortfalls cost us time/money/cust sat?

9. What is Advanced Planner? Advanced Planner is an alternative to XA MPSP, MRP and CRP Windows based fast MRP that helps you to do interactive planning Allows you to visualize load on the facilities (work centers). AVP uses color coded graphs and charts that makes it easier to manage the master schedule process. This includes material and capacity testing Helps you to take appropriate decisions such as offloading, outsourcing, level loading etc to meet the on time delivery of your customer orders You can also estimate the labor requirements to support your plant schedules Generates suggested supplies( both MOs and POs), supply exceptions, detailed operation start times and shipment delivery dates

10. How does AVP do this? Planning information is downloaded from the AS400 creating an Access database on the PC Planning run is done on the PC eliminating job conflicts on the 400 and decreasing processing time. This allows for “more” planning runs. Quicker response time!!!

11. Product Structures part attributes Standard and workorder bills Standard and workorder routings AVP Engine Demand Forecasts customer orders Replenishment policy Supply inventory on hand shop orders and allocations Outside operations purchase orders Plant Structures Workcenters Labor Procurement Plan purchase order releases expedite; defer; cancel Production Plan manufacturing order releases load vs. capacity workcenter schedules Shipping Plan customer promise dates AVP- Input Output

12. AVP/MRP Similarities Both use all the planning modifiers in the Item Balance/Plan record Both use the MRP Execution Options for re- scheduling, auto-release, etc. Both use the MRP Horizon Dates Both have direct or indirect interface to Mapics Forecast module Both use the Manufactured due date from the customer orders for planning

13. AVP vs. MRP An MRP generation is performed by a BOM explosion and netting routine usually overnight With Advanced Planner NO AS400 MRP generation is ever necessary

14. MRP/CRP uses Mapics calendars AVP has its own calendar within the database. This calendar holds hours of operation per day. MRP has no easy “what if” capability short of a new MRP generation AVP has powerful “what if” capability directly with the AVP access database on the PC AVP vs. MRP

15. AVP vs. MRP cont’d MRP interfaces with MPSP AVP has its own Master Schedule Routine MRP uses Lead Time to calculate start date AVP uses backward scheduling and the times in the routing to calculate start date

16. MPSP uses the greater of Customer Order or Forecast AVP nets the CO’s against the Forecast and plans with the CO’s and Net Forecast MRP assumes infinite capacity AVP plans the work load in each work center for capacity review prior to accepting the plan AVP vs. MRP cont’d

17. MRP provides a warning if a planned order quantity exceeds the Maximum AVP uses the Maximum to create multiple orders due on the same day for the Max quantity (or less) MRP plans an order to be due the same day as the requirement AVP plans an order to be due the day before the requirement AVP vs. MRP cont’d

18. Forecast can be consumed in four ways: – –Individual Item: The sales of each item consume the item forecast – –An item and its parents: If many possible finished product configurations exist, made from a small number of components, you can forecast at the component level rather than the finished product level. The sales of the item and any parent consume the item forecast – –Planning bill Family: Identify an item as a planning bill item and enter shippable forecasts for the item (% based on qty per in Planning Bill. Forecast is consumed by end item and matching configurations in the Bill of Material – –Product Family: Does not use a Planning Bill. The ‘Base’ Item is forecasted. Customer Order Demand for items within the Product Family consume the ‘Base’ Item’s forecast. AVP extras: Forecast Consumption

19. Forecast Consumption This is the forecast consumption chart within AVP

20. AVP Extras Config.ini settings to: – –Calculate run time by flow or batch method – –Uses RM Quantity (at the time of the RM transaction) or Operation Quantity Completed (from Labor Reporting) to calculate balance due – –Can define horizon length values 1-999 days

21. AVP Extras You can optionally update either or both – –The promise date on the customer order – –The manufacturing due date on the customer order

22. Questions?

23. Advanced Planner Process Downloading Data to the Engine – –Pulls BOM, Route, Item, Item process, Item plan, Forecast, CO’s and/or Manual Requirements – –Creates flat files that are pulled in to create access database

24. Generating the Plan – –Forecast Consumption – –Nets the Requirements against on hand & on order (Load Project) using Access Database Builds product structure network using the BOM and Routing Plans Orders (PO, MO & Schedules) Advanced Planner Process

25. Manipulate the Plan – –View Load to Capacity Chart – –View items on Load – –Level Load both Material and Capacity – –Time phased view – –Drill down/up – –Perform “what-if” planning Advanced Planner Process

26. Load To Capacity and Time phased load : Identify overload problem Orders that can be offloaded-Yellow Planned Orders- Green New Colors at AVP 6.1: Firm Planned- Pink Released- Light Orange

27. Load To Capacity Chart Red – W/C is overloaded Yellow – W/C has past due backlog Blue – Overload within one time period that can be corrected by re- scheduling, offloading, etc. Green – Plan is within capacity constraints Routing Facilities Process Hours; Setup hours; Capacity hours

28. As decisions are taken you get instant feedback

29. Order waterfall view: Identify what is needed when and the Critical chain

30. Advanced Planner Process Upload to Mapics Files – –Loads info into the MRP planning work files: Requirements-unconsumed forecast and generated demand Planned Orders-all supply orders, including open, firm planned and planned Demand Ref-Demand information Reschedule Activity-rescheduling actions

31. Advanced Planner Process What happens? – –Reschedules open MO’s/PO’s/Rep schedules according to set up – –Updates the CO dates if specified in the upload options – –Updates work center file in the MO/REP operations as specified during offloading – –Loads the MRP planning files – –Creates the Order Review file – –Prints MRP reports as specified

32. Planning Execution Once plan is saved – –Execute plan using OBPM OR – –Green Screen Order review and release OR – –Repetitive

33. Execute Plan using OBPM

34. Green Screen Execution

35. MRP Requirements inquiry

36. Estimating the Labor Requirement

37. Which Orders to push out New Commands show the potential order list that will be delayed based upon the current schedule. Global Records not limited to within the Facility. “Which Customer Orders..” lists only Customer Orders where Demand Suggested Date > Demand Due Date. Customer Orders pushed out will be displayed from the “List of Customer Orders..” Generated from within the Facility. Lists supply orders where Supply Due Date > Supply Suggested Dated

38. Questions?

39. Why Thru-Put? AVP is a planning tool; Thru-Put is an execution tool. 1.Use Thru-Put to identify all resources (internal –machines, tools, labor and external-suppliers, subcontractors) that limit your output (your constraints) 2.Decide how to best exploit the constraints’ capacity-Synchronize the work sequence of your constraints with prioritized demand

40. Why Thru-Put? 3.Subordinate everything to the constructed schedule-Synchronize all important support functions 4.Promise new orders based on Real Capacity and materials constraints, on an ongoing basis.

41. ThruPut – Load Data Thru-Put first reads the database from the host system(s) – ERP, MES or other – and pulls all relevant information into the Server’s memory

42. ThruPut – Quote Delivery Dates Using a web-based workbench, users quote delivery dates for new demand based on currently available capacity AND raw materials Users also have the option to “force” new demand in the schedule, and have Thru-Put calculate the impact of the new demand on existing orders

43. Creating an Executable Schedule With Thru-Put

44. Phase 1 – Analyze Purchased Parts During the first phase of scheduling, Planners and Buyers analyze materials shortages, based on existing POs and component lead times. This phase allows purchasing to work on shortages BEFORE the corresponding orders are pushed out by Thru-Put Users follow Thru-Put’s phased scheduling approach which is based on the first 3 steps of Theory of Constraints: -Identify The Constraint(s) -Exploit the Constraint(s) -Subordinate everything else to the Constraint(s)

45. Thru-Put highlights materials shortages (required date prior to available date) Phase 1 – Analyze Purchased Parts This process allows Purchasing to work with Planning and determine possible solutions to shortages PRIOR TO analyzing capacity

46. Phase 2 – Analyze Machine Capacity During the “identify machine constraints” phase, ThruPut calculates load on all work centers based on released and planned work, and corresponding demand. It displays resulting % of load to capacity in simple bar charts and graphs. Automatic level-loading is also available to the user at this stage.

47. Phase 3 – Analyze Labor Constraints Thru-Put displays the results of a detailed analysis of labor capacity and load. Users can then limit the work centers capacity based on labor availability.

48. Phase 4 – Level-Load Constraint(s) Thru-Put then level loads all work on selected constraints using a finite capacity model. Various tools such as Overtime, Offloading, and Batching are available to the user to eliminate lateness caused by capacity shortage In this simulation, Thru-Put will group all similar parts scheduled over 3 consecutive days

49. Phase 5 – Subordinate Non-Constraints In the last phase of constructing the schedule (subordination), Thru-Put creates a dispatch priority list for each non-constraint resource in the facility. It does so by backward and forward scheduling from the level-loaded constraints The result is an EXECUTABLE schedule which maximizes the output of the constraints –hence the plant, WHILE minimizing necessary WIP and Purchased Parts inventory to support it

50. Executing ThruPut Schedules

51. Execute Schedule – Dispatch and Track After completion, optimized schedules are available for display and adjustments on high-resolution, large-format monitors throughout the facility.

52. Users can access several Thru-Put standard scheduling reports on line at any time, or easily build their own using off-the-shelf reporting tools Execute Schedule – Dispatch and Track

53. Secure access to ThruPut reports and screens can be tightly controlled using Thru-Put’s User Manager Execute Schedule – Dispatch and Track

54. Thank you!!