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[Everest Overview] [Manufacturing] [Work
Order] [Shop Floor Control] [Production Planning]
The Production
Planning Module includes both Material Requirements Planning (MRP) and
Forecasting. Production planning looks at actual demand, forecasted demand, and
inventory requirements to generate manufacturing orders, suggested work orders
and suggested purchase orders. After approving the suggested orders, actual
works order and/or purchase orders are generated.
Production Planning Overview
The following flowchart is an overview of
the process for using the Production Planning module.
PLN enables the manufacturer to explode the
firm work orders to generate material requirements for purchased items and
subassembly items. PLN processes data in sales orders, purchase orders,
inventory control (on hand, reorder points, order multiples) and work orders in
the system to generate suggested work orders (MORs) for subassemblies and
suggested purchase orders (SPOs) for raw materials (purchased items). The user
can review this data on the screen or printed reports, then approve
Manufacturing Orders and Suggested Purchase Orders quickly and easily to ensure
that the proper inventory stock levels are maintained for subassemblies and
purchased items.
PLN greatly reduces inventory planners time
calculating requirements on a daily basis. EM is powerful enough to generate
production planning every day or multiple times a day if desired. There is no
more waiting for the weekend or running overnight – processing is quick. By
knowing when inventory is required the manufacturer can reduce the amount of
inventory necessary to stock on hand. Thus saving much money in inventory
carrying costs and saving on physical storage space. These savings alone can
pay for an entire manufacturing system within one year.
PLN saves the purchasing department many
hours per week in determining what to order, when to order, and how much lead
time to allow. Because it automatically generates purchase orders when
approved, it saves time entering purchase orders. This allows purchasing more
time to find better suppliers and/or better pricing.
PLN processes actual demand data in sales
orders, inventory control (on hand, reorder points, order multiple) and work
orders. If there is insufficient inventory to accommodate the demand, a
suggested order is created. The user can review this data on the screen or
printed reports, then approve the manufacturing orders, suggested work orders,
and suggested purchase orders quickly and easily to ensure that proper inventory
stock levels are maintained. Each time this is processed, the data is
regenerated to take into consideration any change to data since the previous
generation.
In order to
ensure appropriate stock levels for assemblies and purchase items, sometimes
they need be available before an actual demand is in the system. This is where
you can add a forecasted demand into the system for an item. Regions help
determine how the system should look at the forecasted demand. The quantity
entered for the forecast is typically based on historical sales information.
Forecasted can be entered for purchase, assembly, or subassembly items.
PLN uses 3 time
fence regions for calculating suggested work orders. In the first time fence
only actual demand is used to generate Manufacturing Orders and Suggested
Purchase Orders. In the second time fence the greater of sales order demand or
forecast generates Manufacturing Orders and/or Suggested Work Orders and
Suggested Purchase Orders. In the third time fence only forecast quantities are
used to generate Suggested Work Orders and Suggested Purchase Orders.
Forecasting is
very useful for products that are stocked by the manufacturer in anticipation of
forecasted demands. Also, this is very useful for products that require a long
production lead-time or requires long purchasing lead-time for raw materials.
Production Planning has unlimited planning periods that are user defined by
location. Each period can range from 1 to 999 days.
The three
different types of orders - Manufacturing Orders (MORs), Suggested Work Orders (SWOs),
and Suggested Purchase Orders (SPOs), are all driven by different criteria fed
into Production Planning. MORs are driven by actual demand from sales orders,
inventory requirements, etc. SWOs are driven exactly as a MOR but are critical
items that may require special attention and therefore segregated in a separate
approval process. Actual demand and forecast drive SPOs.
Production
Planning generates a list of Suggested Manufacturing Orders, Suggested Work
Orders, and Suggested Purchase Orders to approve. After the work orders are
approved, a firm work order is automatically generated. An approved SPO can
automatically create a purchase order.
This is the process
that explodes all demand to determine the material requirements for purchased
items, subassembly items and adjusts for inventory on hand or on order. During
this process, the program balances each inventory requirement in multiples of
its order quantity, and offsets the net requirements by the appropriate lead
times. Suggested work orders for subassemblies and suggested purchase orders
for the components are generated.
This process
enables the user to approve or combine MORs for subassembly items by simply
“tagging” them. The system then changes the status of these Manufacturing
Orders to firm work orders.
This process
enables the user to approve or combine SWOs for subassembly items by simply
“tagging” them. The system then changes the status of these SWOs to firm work
orders.
This process
enables the user to approve or combine SPOs for purchased items by simply
“tagging” them. Multiple items may be tagged for a single vendor or multiple
vendors at one time. The system then places the user into a clone of
ACCOUNTMATE’s purchase order process to allow editing the purchase order
created.
This provides an
inquiry screen to show the detail requirements for an inventory item generated
by sales orders, purchase orders and firm work orders. The user can also
select whether to include requirements generated by manufacturing orders (MOR),
suggested work orders (SWO), suggested purchase orders (SPO), or forecasted
demand.
[Everest
Overview] [Manufacturing] [Work
Order] [Shop Floor Control] [Production Planning]
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