Planning Engine

2. Planning Engine Presented by: Dave Parker Sr. Business Analyst

3. Agenda • Overview of Planning Process • Net Change vs. Regenerative Planning • Planning Triggers Explained • Avoiding ‘Clutter’ • Typical Planning Cycle • Curveballs • Q&A

4. Overview

5. Balance Supply vs. Demand

6. MPS Inputs Inventory Stock Levels Open Documents (Backorders)

7. MPS Outputs

8. MRP Inputs Inventory Stock Levels Open Documents (Backorders)

9. MRP Outputs

10. Net Change vs. Regenerative • Net Change Plan • Direct changes to the demand requirements • Ex: Change in forecast, sales order, production order • Changes to standard data or planned supply • Ex: Change to BOM, safety stock, inventory, purchase order • Saves time and system resources • Only re-plans items with demand or supply changes since last plan

11. Net Change vs. Regenerative • Regenerative Plan • Plans for ALL items • Starts by deleting all ‘planned’ supply orders that are currently loaded • Consumes more time and system resources to execute • Necessary if there are changes to capacity or standard data that would affect the total plan • Ex: Change to shop calendar, overall safety lead time

12. Planning Policies • Blank – do not include in planning • Maximum Inventory – what is needed to get to value of Maximum Inventory • Order – separate supply per demand instance • Fixed Reorder Quantity – when need is identified, always suggest value of Reorder Qty. • Lot-for-Lot – whatever supply is needed within the Reorder Cycle

13. - Lead Times Planning Triggers • Vendor Lead Times • “No matter WHAT I buy from this vendor, it takes x days.” • Item Lead Times • “No matter WHO I buy this item from, it takes x days.” • Vendor Item Catalog • “Item A from vendor A takes x days. Item B from vendor A takes y days.” • Safety Lead Times (Manufacturing Setup, Item Card) • Added to any other lead times

14. - Lot Accumulation Period Planning Triggers + Lot Acc. Per. (6D) Looks out 6 days past the first demand date and suggests 25 cases.

15. - Lot Accumulation Period Planning Triggers + Lot Acc. Per. (7D) Looks out 7 days past the first demand date and suggests 30 cases.

16. Planning Triggers - Lot Accumulation Period

17. Planning Triggers - Reorder Point vs. Safety Stock • Reorder Point • Reactive response to an inventory level • Safety Stock • Proactive response to an inventory level

18. Reorder Point Replenishment (Reorder Quantity) Inventory Quantity Lead Time Reorder Point Time

19. Safety Stock Inventory Quantity Replenishment Lead Time Safety Stock Time

20. Planning Triggers - Order Quantity Manipulators • How to ensure orders are at least a full batch (or full pallet)? • Minimum Order Quantity • How to ensure orders are in full batch (or full pallets) increments? • Order multiples • How to ensure orders are split into standard run sizes? • Maximum Order Quantity

21. Avoiding ‘Clutter’ If this is all you do, it’s not enough! Now you’ve doubled your supply – and the Cancel will be back again next time!

22. Avoiding ‘Clutter’ Scenario: Cancel one date, New order for another WHY does this happen? A) Demand changes (unavoidable!) B) The new supply needed is further away from original supply than the Reorder Cycle.

23. Avoiding ‘Clutter’ – How? • Planning Flexibility • Any supply can be set to ‘None’ and the plan will leave it alone

24. Avoiding ‘Clutter’ – Planning Flexibility option Purchase Lines Transfer Lines Prod. Order Lines Req. Worksheet Planning Worksheet

25. Avoiding ‘Clutter’ – How? • Planning Flexibility • Dampeners • Plan only suggests change outside of a ‘tolerance’ (date or qty) • In 2013, these are at Item / SKU level, not overall Manuf. Setup

26. Avoiding ‘Clutter’ - Dampeners

27. Avoiding ‘Clutter’ – How? • Planning Flexibility • Dampeners • Rescheduling Period • Plan will use ‘Reschedule’ if within the period (as opposed to Cancel + New)

28. Avoiding ‘Clutter’ – Rescheduling Period For NAV 2013, Reorder Cycle split into two fields: - Lot Accumulation Period - Rescheduling Period

29. Planning Engine What does a typical planning process look like?

30. STEP 1 – Plan FG Production

31. STEP 2 – Schedule FG Production

32. STEP 2 – Schedule FG Production

33. STEP 2 – Schedule FG Production

34. STEP 3 – Plan WIP Production

35. STEP 4 – Plan RM/PKG

36. - Planning Curve Balls • Make-to-Order Environment • Will need to combine MPS and MRP • Co-pack / Subcontracting Environment • Will need to insert Subcontracting Worksheet into the process • Links a production order and a purchase order • Multi-location Environment • Transfer order suggestions may not represent your reality

37. Curve Balls - Scheduling • Schedule WIP instead of FG • Production Order Linking • WIP Requirement is Line Specific • May need to use variants to trigger production suggestions by line • Batch Sizes Change by Line • Alternate Routings (or versions) with different batch UOMs • Routing or BOM Changes Based on Production Location • Routing versions by Location

38. Characteristics of successful implementations • Maintain accurate data input • Forecasts, orders, inventory levels, BOMs, routings • Proper treatment of expedited orders • Additional resources, multiple lines • Close collaboration between sales/marketing and production • The forecast is a key contributor to successful planning • Accurate and timely shop floor feedback and tracking

39. Questions?

40. Thank you!