Sales Inventory Operation Planning SIOP

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

2. Sales & Operation Planning Data Flow

3. XA Forecasting Forecast Code in Item Balance record determines: 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 Master

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 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. 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

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 brock.miller@cistech.net Ben.mccormick@cistech.net 704-814-0010 704-814-0016

44. THANK YOU FOR ATTENDING!