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Planning Features

  • Sales order by order planning based on priority, due date and quantity

  • Bucket based approach in searching for material and capacity

  • Size of the bucket is specified by the user

  • Material search is based on priority specified by the user – inventory, existing order or new order

  • When new orders are created for material supply, immediately search for capacity from the demand date

  • When existing orders are increased in quantity for supply, immediately check for the extra capacity availability

  • Capacity search is made in primary resource, alternate resource and alternate routing

  • If one node is short, then clean-up will adjust the quantity at the other node as well

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Planning Steps

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Clean up of Previous Plan

The database acts as a repository for all production related data to carry out planning, and execution and also to maintain history. During planning, distribution, procurement and work orders are generated. When the plan is run again, all the generated orders are deleted except those

  • Work orders which are released or scheduled

  • Procurement or distribution orders which are ordered, shipped or received

  • User locked the quantity or locked the pegging

  • Orders falling within the frozen horizon

Now new orders and peggings are generated based on the changed conditions.

Pushing of WIP

WIP is pushed to inventory so that capacity of resources is first allocated to these orders. WIP would occur due to

  • Work orders not completed on time

  • Some other order was expedited

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Here the WIP lying after Op 1 is pushed through Op 2 and Op 3. Hence the capacity of resources in Op 2 and Op 3 is occupied by this order.

Planning Logic

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Let us assume the following

  • Both Route 1 and Route 2 take 1 minute to make a unit

  • Both Route 1 and Route 2 have a bucket build ahead of 2

  • Route 1 has Capacity Priority of Bucket Build Ahead and then Alternate Resource

  • Route 2 has Capacity Priority of Alternate Resource and Bucket Build Ahead

  • Item A, Item B and Item C has Material Priority of Inventory, Existing Order and then New Order

Planning logic when there is a Sales Order for 100 units of Item A on 10th January is as given below:

  • Search for Inventory of Item C. If not available, check Existing Orders. If that is also not available, create new Work Order

  • When creating new Work Order for Item C, capacity for 100 minutes is searched as shown below using Bucket Build Ahead – Alternate Resource

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  • If a capacity of only 80 minutes is found, then a Work Order for 80 is created

  • Demand of 80 is created for Item B. Search for Inventory of Item B. If not available, check Existing Orders. If that is also not available, create new Work Order

  • When creating new Work Order for Item B, capacity for 80 minutes is searched as shown below using Alternate Resource – Bucket Build Ahead

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  • If a capacity of only 80 minutes is found, then a Work Order for 80 is created

  • Demand of 80 is created for Item A. Search for Inventory of Item A. If not available, check Existing Orders. If that is also not available, create new Procurement Order for 60 for Item A.

  • If the resolved type is 'None', then cleanup will take place, which will reduce the Work Order for Item C from 80 to 60 and the Sales Order is short by 40

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  • If the sales order had been shorted due to material constraints and if the resolved type is 'Material Shortage', then the sales order will be moved by that many days when the material is available. Hence, delaying the sales order.

  • In our example, the sales order has been shorted due to capacity constraints. So if the resolved type is 'Material and Capacity Shortage', then the Sales Order will be moved by a day to 11th January and the process will repeat again.

Fix Cross Feeds

During the planning of sales orders, it might have so happened that earlier supply would be pegged to later demand and vice versa as shown below

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After planning all the sales orders, fix cross feeds will try to resolve the above problem and re-assign the peggings as shown below

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Fix cross feeds can be enabled by a parameter under Factory Parameters. This is an additional step and so will increase the total planning time.