Advanced Planning & Scheduling Overview

1. Advanced Planning & Scheduling Overview Peter Nelson Sales Manager 888-317-8807, Pete.Nelson@PlanetTogether.com

2. Introduction Collaboration among sales, production, planning, purchasing, maintenance and management to positively impact the bottom line.

3. Critical Business Issues • Late deliveries due to manufacturing delays • Missed sales due to demand exceeding capacity • Lost orders due to excessive Work-in-Process • High production costs due to machine set-up or machine down time • Excessive overhead due to managing scheduling changes and impact on delivery schedule • Difficult to plan for future capacity requirements

4. Critical Business Issues • Job delays due to material shortages (raw materials and/or manufactured components) • Excessive overtime costs due to inefficient resource utilization • Job delays due to tooling, molds or dies unavailable • Disconnect among departmental objectives (sales, production, planning, purchasing, maintenance and management) • Difficult to coordinate between plants and/or planners

5. Resources • Material

6. Manufacturing Operations

7. Management Objectives

8. Manufacturing Process House Sub Assembly Saw 1 3/8 “ plywood Sand 1 Line 1 Bird House Paint & Dry Feeder Sub Assembly Saw 2 1 /4“ plywood Sand 2 Line 2 Bird Feeder Packaging Final Assembly Ship

9. Production Schedule House Sub Assembly Saw 1 3/8 “ plywood Sand 1 Line 1 Bird House Paint & Dry Feeder Sub Assembly Saw 2 1 /4“ plywood Sand 2 Line 2 Bird Feeder Packaging Final Assembly Ship

10. Shop Floor Disruptions Resource Bottleneck Inefficient set-up higher cost J1 J3 J5 House Sub Assembly Saw 1 3/8 “ plywood Sand 1 Line 1 J4 Bird House Paint & Dry Feeder Sub Assembly Saw 2 1 /4“ plywood Sand 2 Line 2 J6 J7 Bird Feeder Machine down J2 Packaging Final Assembly Ship J8 Late order material shortage

11. Shop Floor Optimization J1 J2 House Sub Assembly Saw 1 3/8 “ plywood Sand 1 Line 1 J4 Bird House Paint & Dry J2 Feeder Sub Assembly Saw 2 1 /4“ plywood Sand 2 Line 2 J6 J7 Bird Feeder J3 J5 Packaging Final Assembly Ship J8 Late order material shortage

12. APS – The Solution • Plans and schedules production based on available materials, labor and plant capacity • Optimizes the schedule to meet customer service objectives, operational efficiencies, cost containment and profit objectives • Allows planners to quickly respond to disruptions on the shop floor and immediately see the impact • Provides a safe planning environment using “what-if” as well and ability to “undo” a schedule change

13. APS - Who benefits? • Improves communication among departments • Accurate order dates to sales department • Detailed, actionable schedules to production department • Capacity loads to set staffing and machine resources to the planning department • Schedule-driven material requirements to drive ordering to the purchasing department • Cash flow projections to management • Maintenance & setup schedules to maintenancedepartment

14. APS – The bottom line • Decreased Expenses • Reduced Production Times • Improved Machine Utilization • Reduced Inventories • Increased Revenue • Increased On-time Deliveries • Reduced Customer Stock-outs • Increased Cash Flow • Reduce Order-to-Cash and • Cash-to-Cash Conversion Cycle

15. Process Flow BOM Routing Sales Orders Forecast Work Orders MRP ? Purchase Orders Receiving Production RM Inventory Shop Floor FG Inventory

16. Process Flow BOM Routing Sales Orders Forecast Work Orders MRP Purchase Orders A A Receiving Production RM Inventory Shop Floor FG Inventory

17. Next Step Call (888) 317-8807 To learn more about how Advanced Planning & Scheduling can work for your business