Transcript Sage User Network Preactor Or MRP? 13 / 2 / 2013

www.sl-ect.co.uk
Sage User Network Feb 13th 2013
Preactor Or MRP?
Steve Littlewood
[email protected]
1
MRP
Planning
Preactor
Scheduling
MRP
Planning
Preactor
Scheduling
MRP
Preactor
Planning
Scheduling
TLA = Three Letter
Acronym
Longer And More
LAMOA = ?
Obscure Acronym!
MRP = Material Requirements PLANNING
MRPII = Manufacturing Resource PLANNING
MPS = Master Production SCHEDULING
FCS = Finite Capacity SCHEDULING
APS = Advanced PLANNING and SCHEDULING
Define! Planning and Scheduling.
• How?
• You may have an employee called a “planner”
but what does that mean?
• Or maybe you call them a “master production
scheduler”?
• And customers send you a “schedule” of what
they want
Confused?
Supply & Demand
Demand
Supply
• Sales Orders (SO) / Forecasts
• Work Orders (WO) needing components
• Re-order levels
• Stock
• WO to make products
• Purchase Orders (PO)
Supply & Demand
It’s actually about 2 things:
How Many
When
• Stock levels we need
to keep (minimum or
days of cover).
• We don’t have stock,
what quantity do we
need to make or buy?
• When is the demand?
• When can we get
components / raw
materials?
• When are machines /
people available?
My Definition
I find it easiest to think of it this way:
• Scheduling is what’s on the next 2 slides.
• Everything else is Planning
Scheduling is…..
A process of placing production
orders onto resources, taking into
account resource capacity and any
other constraints
There is a SEQUENCE to it.
So we can answer questions like:
“which job is it best to run next?”
TIME
RESOURCES
Planning is…..
Working out the quantities
that you must to supply in
order to meet the demand
And setting target dates
for when you must have
the supply available
Planning is MRP
• One way to get the “production required by a
target date” is to manually create WO for a
Quantity and Due Date.
• The other is to run MRP (for manufacturing) to
see what it recommends.
Define MRP
• Customer: Can we have 200 on 31/3?
• Prodn: We’ll have to make 150 by 30th, starting on 24th
• Prodn: So we also need 300 of sub-assembly by 23rd
•
Which we’ll have to start on the 20th
• Purchasing: We’ll buy packaging for 24th
•
And raw materials for 20th
Sage screenshot of MRP menu and PFS
Sage screenshot of PFS
Define MRP
Sales Orders / Forecasts
BOM
&
Routes
&
Inventory
MRP
Works
Orders
Purchase
Orders
Standard / Dynamic Lead Times used in MRP, which processes
orders backwards from the top level due date, with no consideration
of capacity.
Define MRP
• The output is: Raise WO of 2000 for 25/3,
2500 for 16/4…. at all levels of the BoM
• Before the 3rd, raise a PO for 5000 for delivery
on the 24th
• Thus matching up supply to demand, which is
what we asked it to do!
Recommendations from MRP
•
•
•
•
•
•
Raise New Order (PO or WO)
Increase Quantity
Decrease Quantity
Cancel Order
Bring Forward
Put Back
Define MPS
• Most often used by FMCG companies who are
supplying supermarkets, B&Q etc
• Tomorrow from stock
• The task is to say what production you need
each week to keep future stock levels high
enough to mitigate the risk of shortages
• Concentrates on the finished goods SKUs only
Define MPS
• The output is: Make 2000 this week, 2500
next week ….
• Which then is seen (via BoM) as a demand on
the rest of the company
• May then feed full MRP for manufacturing and
purchasing
MRP Summary
“ MRP is great at telling us what quantities
are needed, but it doesn’t really know much
about the WHEN ”
• Manufacturing lead times know nothing about
capacity.
• MRP is a simple backwards calculation,
sometimes resulting in recommendations to
“Place PO 3 weeks ago for delivery last
Wednesday”
IMPORTANT POINT!!
How Many
• Definitely PLANNING
and MRP
When
• Be clear – MRP has a
WHEN
• But at best it is a
TARGET of when
something is required
• SCHEDULING gives us
the ACTUAL of WHEN
items will be available
MRP = Material Requirements PLANNING
MRPII = Manufacturing Resource PLANNING
MPS = Master Production SCHEDULING
FCS = Finite Capacity SCHEDULING
APS = Advanced PLANNING and SCHEDULING
P L A N N I N G
MPS = Master
Production
SCHEDULING
(Single level MRP for Finished Goods only,
MRP
= Material
giving
suggested
production in weekly buckets)
Requirements
PLANNING
MRPII =
Manufacturing
Resource
PLANNING
Qty to make, by
a Target Date
FCS = Finite
Capacity
SCHEDULING
S C H E D U L
APS = Advanced
PLANNING and
SCHEDULING
… where we have considered
BOTH materials and the
(finite) capacity of resources.
I N G
Take a breath….
• Pause and consider where we are headed with
all of this…..
• I want to describe the fundamental flaw in
MRP
• And to explain a little of the history of
Preactor and how it has developed from a
scheduling tool into a rival for the planning
stuff that MRP is (now!) famous for.
The MRP and Lead Times Problem
MC1
WO20
The existing work load shows a bottleneck......
MC2
WO21
Late
New Sales Order with 2 x BOM levels
Mfg Lead
Time= 14 days
SO
MRP says “Raise New PO”
for delivery here
Mfg Lead
Time= 7 days
WO20
WO21
Hours Work
In the real world the
PO is needed here
Start
9/1/11
Start
23/1/11
Sales
Order
Due
30/1/11
Preactor Story
• 20 years ago it was developed as way to plan
the resources of a factory
• Initially looking only at generating a schedule
of the production orders that were thrown at
it from ERP systems
• All jobs are FORWARD scheduled from NOW
to see if the can be ready on time
WO Scheduling in Preactor
54 1
2
3
FORWARD LOADING
MC 1
MC 2
10
10
MC 3
MC 4
NOW
20
30
40
20
20
10
30
30
TIME
40
How are related WO linked together?
FG1
WIP1
RM10
PACK2
RM15
WO Scheduling
Frame
Making
Wheel
Making
WO 1
WO 1
WO 2
Assemble
WO 3
WO 3
Preactor - BIG PROBLEM:
When can we start each WO?
FG1
WIP1
RM10
PACK2
RM15
Sage screenshot of WO header Don’t Start Until Date
When can we start each WO?
How was it solved?
• Preactor were being asked to provide
solutions to ever bigger problems
• Manual methods no longer suitable
• So they invented a new acronym:
P400 APS = Advanced Planning &
Scheduling
Preactor 400 APS
And then (sorry) another one:
SMC = Static Material Control
(Often called “Pegging”)
Which required the full internal supply chain to be
described inside Preactor:
•
•
•
•
Bills Of Material
Current Stocks
Purchase Orders
And Sales Orders / Forecasts
3 Scenarios
How can we calculate when a WO can
start?
Each WO BoM line could be fed from:
1. Purchase orders expected in.
2. Current physical stock.
3. Shortages
1.
PO Purchase order cover?
• For any WO there will be 1 PO for a
component that is being delivered last.
• The date of that latest PO is, from a
purchasing point of view, the Earliest Start
Date of the WO
WO Scheduling With PO
PO 1
Frame
Making
Wheel
Making
WO 1
WO 2
Assemble
WO 3
WO 3
2. WO could be supplied from stock!
• Therefore the WO can start any time from
now
• Subject to availability of machines and people
and tooling etc
IS = Initial
Stock
Wh = P2
Product = RM01
How the did it………Material Explorer etc
WO with 1 operation
BoM
Linked WO
3. Or there could be shortages…
• So do we plan it anyway and tell purchasing
what we need and by when?
• Or go ask them first?
Sage screenshot of PFS
Supplying WO
SO
How the did it………Material Explorer etc
PO
Shortages Are The Key!
• If Preactor can calculate the shortages
then the logical next step is to suggest
ways of plugging the gaps.
• Just like MRP does!
• Could be shortages of BUY parts, or of
MAKE parts
• Solving this is the answer to the
fundamental point that was made
earlier……
TIME
RESOURCES
Software demos…
And 3 new acronyms:
PRO = Preactor / Production Order (not quite a WO!)
PSUG = Purchase Suggestion
GMPS = Graphical Master Production Schedule
Initially only the WO for MIXING will schedule –
everything else has shortages
We can do a “Schedule Despite Shortages”
But we don’t know if purchasing can resolve the shortages.
Or we can now ask Preactor to make suggestions to fill
the shortages:
P2SCENT had a shortage,
now it has a PSUG
“Purchase Suggestion”
On Today 7/3/11 +
Supplier Lead Time of 7
days  14/3/11
So now we can properly schedule ALL the WO:
Comparing the 2 schedules, with and without shortages:
Schedule Despite Shortages:
Use PSUG to resolve the Shortages:
More realistic, but many WO are running later than before
Now use PRO & SUG to generate a promise date for a
new order. A customer asks
“When Can I Have 50000 of this product?”:
Which generated some new PRO production orders:
Two linked PRO orders and a number of PSUGs were
generated by exploding the Sage BoM:
P00795 & P00796 are PRO
orders that could bee converted
to full Sage WO
PSUG were created for BUY
shortages, to work out when we
can start the PRO
We also looked at the new Preactor GMPS, which can generated suggested
MPS production to satisfy “days of cover” in a make to stock environment:
Conclusions
• Complimentary – MRP still needed in
many companies
• But there is less for it to do
• For instance shortages are no longer
a problem to Preactor
Conclusions
MRP
• Raise New Order (PO or WO)
– PSUG and PRO
• Increase Quantity
– PSUG and PRO
• Decrease Quantity
• Cancel Order
– Unused stock reports
• Bring Forward
• Put Back
– Scheduling is about changing sequences!
Preactor
Conclusions
• MRP still important for planning long
lead time purchases
• MRP can bucket requirements
together for better batch sizing
• MRP can auto create PO and WO
• Preactor (at the moment) can only
create WO from PRO
Conclusions
• MRP knows that it needs to top up
quantities to meet minimum stock levels
• MRP knows nothing about bottlenecked
resources
• MRP sometimes tells us to place orders
in the past, Preactor never does this
Conclusions
• Preactor in a multi BoM level, make to order
environment, can give a fast answer to a
customer who wants to know “When can I
have….?”
• By doing a mixture of planning AND
scheduling!!
• And the new “GMPS” program can generate
production suggestions in make to stock
environments, responding to days cover
requirements
www.sl-ect.co.uk
Contact:
Steve Littlewood
sl-ect limited
Mob. 07791 862 556
Email. [email protected]
www.sl-ect.co.uk
www.sl-ect.co.uk