ERP AND APPLICATION

1. ERP AND APPLICATION Lesson 3 By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

2. Demand time face Planning time face Firm planned time face Planning Flexible Preparation Production Forecasting Unrestricted RO Frozen TIME FENCES Order delivery CPO FPO By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

3. ORDERS • Computer Planned Orders (CPO) –suggested work orders • Created by the computer • Serve as a suggestion to the person who scheduling that a firm planned order on the material and/or production requirements • May be changed or deleted by the computer during subsequent MPS processing • Generate lower-level requirements via the BOM explosion process By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

4. ORDERS • Firm Planned Orders (FTO) • Master scheduler take control of the order • The order could not be changed on subsequent MPS processing • The order could only by changed by the scheduler • Can by used to override the normal lead time and requirements, this is a one time deviations from the standard without affect the master data By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

5. ORDERS • Firm Plan Order (FPO) • Although, computer logic cannot automatically change FPOs, the standard time-phased logic of master production scheduling and material requirements planning that calculates the projected available balance critiques the schedule of FPOs By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

6. ORDERS • Released Orders (ROs) • Work orders, purchase orders, etc By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

7. TIME FENCES • Unrestricted • Future planning • Planned orders can be changed by the system logic itself • Computer is allowed to schedule, reschedule, or cancel orders as per the changes of the requirements By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

8. TIME FENCES • Flexible • Material Ordered Capacity in Place • Total demand is a combination of actual orders and forecasts • Change to schedule may adversely affect component schedules, capacity plans, customer deliveries, and cost • Master scheduler may change the MPS manually within the limits of established rescheduling rules By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

9. TIME FENCES • Frozen • Stabilize • Forecast is not included in total demand and projected available inventory calculations • Change to MPS must be approved by an authority higher than master scheduler • Customer orders may be promised without the higher authority approval if there are quantities available to promise By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

10. MASTER PRODUCTION SCHEDULING • An anticipated build schedule for manufacturing end items or product options by quantity per planning period (the time buckets) • Listings of • Products and sub-assemblies • Quantity of individual item to be produced • When the items are ready for shipment By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

11. OBJECTIVES OF MASTER SCHEDULING • Develop data to drive detailed planning • Reconciles customer’s desires with plant, material, and vendor capabilities • Provide delivery schedule and evaluate the effects of changes By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

12. OBJECTIVES OF MASTER SCHEDULING • Coordinate plans and actions of all organization functions and to measure their performance • Authorize and control all resources • Schedule production and purchase orders By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

13. FUNCTIONS OF MPS • Short horizon • Bases for planning material requirements, production of components, order priorities, and short-term capacity requirements • RCCP check • Production smoothing • Netting – net requirements • Lot-sizing By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

14. FUNCTIONS OF MPS • Long horizon • Bases for estimating long-term demands on company resources • Plant • Equipment • Human resources • Warehousing • Capital By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

15. FREQUENCY OF MPS • Geared to the forecast cycle • Usually weekly By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

16. INPUTS TO MPS • Production plan • Demand data • Inventory status • Planning data from item master • RCCP By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

17. PROJECTED AVAILABLE BALANCE (PAB) • Predicts what will be in inventory at a specific point of time PAB = On-hand balance + MPS – Customer orders By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

18. AVAILABLE TO PROMISE • Shows where new customer orders can be promised for delivery based on the existing master production schedule By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

19. ROLE OF THE MASTER SCHEDULER • Compare actual and forecasted demand and suggest revisions to forecast and MPS • Covert forecasts and order-entry data into MPS • Correlate MPS with shipping and inventory budgets By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

20. ROLE OF THE MASTER SCHEDULER • Maintain MPS data files • Participate in MPS meetings, prepare agendas, anticipate problems, providing data for possible solutions, and bringing conflicts to the surface • Evaluate the impact of top-down inputs By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

21. ROLE OF THE MASTER SCHEDULER • Revise MPS when necessary • Develop and monitor customer delivery promises • Manage the MPS By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

22. CHARACTERISTICS OF MASTER SCHEDULER • Experienced in production and inventory management • Good communicator • Good with numbers • Cool under pressure By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

23. CHARACTERISTICS OF MASTER SCHEDULER • Disciplined in maintaining data accuracy • Assertive to make things happen • Proactive and foresighted rather than fire-fighting • Flexible in approach By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

24. SYMPTOMS OF A MISMANAGED MPS • Overloaded or extensively front-loaded • Excessively short lead-times and frequent need for expediting • Excessive past due orders • Poor on-time delivery • Increased (mainly WIP) inventory By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

25. MEASUREMENT OF MPS • Validity • On-time deliveries • Hot lists versus schedule By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

26. PERFORMANCE INDICATORS OF MPS • Capacity utilization rate • Accuracy and effectiveness of supplier communication • Inventory turnover ratio • Delivery performance (on-time percentages) By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

27. PERFORMANCE INDICATORS OF MPS • Deviations of actual production from the MPS • Conformance to the productions plan • Frequency of need for expediting (unplanned activities) By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

28. MRP Logic • Uses backward infinite scheduling to explode demands for making items through the bills and generate production schedule • Infinite resource capacity • Manufacturing order has a fixed lead time regardless of lost size, current production loads and available resource capacity • No material constraints By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

29. ADVANCE PLANNING SCHEDULER • Uses finite scheduling based on capacity and material constraints to synchronize activities in the supply chain • Comprehensive models of available resource capacity • Detailed routing information • Finite scheduling rules By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

30. ADVANCE PLANNING SCHEDULER • Schedules the start of an operation when all required materials and resources are available • Might generate schedules that do not meet due dates • High degree of complexity By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK

31. Infinite capacity Over capacity Average capacity of work centre Delivery date Delivery date S M T W T F S S M T W T F S S Finite capacity Average capacity of work centre Delay！ S M T W T F S S M T W T F S S M INFINITE AND FINITE CAPACITY By David Pun, MPA, MEC, MBA, BSc, ACEA, ATIHK