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PLANNING 1

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On this tab the following fields can be viewed:

 

hmtoggle_plus1Abc Classification

One of the ABC Classification options has to be selected I.E "high Value" (A), "Intermediate Value" (B) or "Low Usage" (C) which is the default.

 

A warning is given once, if the Part "Safety Stock" Policy is not, "Not Applicable" and the ABC Class value is "High" or "Intermediate".

 

When ABC Class has a value of "High" or "Intermediate", "Floor Stock" can not be checked.

 

The ABC concept basically states that a small percentage of items are responsible for a much larger percentage of the usage value of all items ((A) Class Items).

 

BUSINESS RULES FOR ABC ANALYSIS:

 

1.        ABC Analysis is done separately for procured and manufactured parts.

2.        ABC Analysis for parts with dependant demand is typically done 12 months into the future.

3.        ABC Analysis for parts with independent demand is typically done 12 months into the past.

 

RELATED TOPIC: Update ABC Class on ABC Analysis

hmtoggle_plus1Admin Days 3

This is the lead time for administrative tasks not included in the specified part lead time.

 

For purchased items, this is the internal lead time required by inventory planners and buyers to analyze the need to purchase, check for possible substitutes, obtain quotations and requisition approval, submit quotes for approval and to do the actual negotiations, paper work and order placement.

 

For Manufactured items, this lead time represents the internal lead time required by production planners to analyze the need to manufacture, check for possible substitutes, capacity constraints and shortages, obtain and prepare shop floor documentation and other administrative tasks.

 

This administration lead time is added to the part lead time when MRP calculates the action date for a suggested stock replenishment order.

hmtoggle_plus1Buyer

This combo box is populated with the last name, first name, middle initial and the employee ID from the Employee Master table where the employee is a company buyer (Y) and has a status of Active (A) or Unavailable (U).

 

The number of characters to be entered before the list is shown is governed by the value of "populate length".

 

The Part Buyer can change details on the Planning 1 and Planning 2 tabs without a security profile permitting change to the Part Master screen.

 

The buyer can only change parts with a source of "Purchased", "Sub-contracted", "Customer-furnished" or "Interplant" and only need inquiry rights on a profile linked to the part master function to insert, update or delete the part's financial year data on the Financial Year Data and Part Price Scenario tabs (inherited rights).

 

Take note, that if a person that is not the part master's buyer, maintains the part's financial year data, mail will be send to inform the applicable buyer of the change (see Financial Year Data tab for more detail).  

 

An employee who is acting for the buyer can also update the part's financial year data and part price scenarios.

hmtoggle_plus1Days Supply

The days supply is specified in conjunction with the lot sizing technique Period Cover Interval .

 

The number of days specified will govern the intervals at which MRP will suggest planned orders, and, will therefore directly impact on the amount of stock carried in inventory and the resulting inventory turnover.

 

The Division table contains preset defaults for the days supply separately specified for class A,B, and C items.

 

When adding a new part with an order policy of "Period Cover Interval", or changing the ABC class of an existing part with a similar order policy, the function will aid the user by displaying the default days supply from the Division table,  as applicable to the ABC class selected on the screen.

The user can override the default values if necessary.

 

The days supply can be between 0 and the setting Days Supply (Max) as specified in System Configuration.  When the user selects a part number, this field displays the value of Days Supply from the Part Master table for the selected part.

 

RELATED TOPICS: Update Days Supply on ABC Analysis

Days Supply Default Class A Items on Division

Days Supply Default Class B Items on Division

Days Supply Default Class C Items on Division

Days Supply Max in System Configuration

hmtoggle_plus1Decouple Time

It is the number of days required to inspect the parts and to receive them into Stores. MRP deducts the Decouple days from the required date to determine the arrival date for planned purchase orders.

 

Decouple time forms part of the lead time of a purchased part.

 

The Decouple Time must be between zero and the Purchase Inspection Time (Days) Max in System Configuration.

hmtoggle_plus1Discrete Project Mrp Rule

This frame provides 3 options regarding the discrete planning of a part by MRP.  Discrete planning relates to identification of a contract project on suggested MRP replenishment orders and extending the project identification to stock level.

 

Such project identification is important if different projects applying the same part number, has different requirements regarding the part's marking, surface treatment, quality standards or other criteria.

 

Thus, if discrete project planning is selected, MRP will suggest orders by project rather than for net requirements and the resulting stock will only be available for the project itself, as well as for other projects in the same project group or to projects that allow receipts from other projects outside of it's own group.

 

If discrete planning is not selected, MRP will plan for collective requirements irrespective of projects and the resulting stock would be available for use by any project. This may well be applied to commodities of items that are never subject to project specific requirements and are thus available for use by any project. Type classes may include raw materials, forgings, tools, consumables and others.

 

The options are:

Yes, plan discrete replenishments per project  (value 'Y' in table)

Select this option to ensure discrete project planning and identification

 

No, discrete replenishments per project not required  (value N in table)

Select this option if discrete project planning and identification is not required for the part.

 

Use setting for part commodity code  (value C in table)

Select this option to source the rule from the part's commodity code.

If the commodity code enforces it's setting on all parts in the commodity, this is the only setting that will be permitted for a part linked to such a commodity code.

 

Parts that are linked to a commodity where the commodity code option is set to enforce the rule, will be auto-updated as and when a commodity is changed to enforce the commodity setting for discrete project planning.

hmtoggle_plus1Fixed Order Quantity (F)

When doing an inquiry on a part, this field will default to selected, if order policy on the Part Master table is equal to "F". This lot sizing technique will always result in MRP suggesting a planned order equal to the order quantity minimum.

 

Should the order quantity minimum be less than the net requirement MRP will inflate the suggested quantity with the increment quantity until the quantity of the planned order or the order quantity maximum is reached, whichever is first.

 

Should the resulting quantity exceed the order quantity maximum , the MRP action message for the suggested planned order will reflect an appropriate warning.

 

This lot sizing technique is popular for parts that fall into the category of floor stock items or parts that are primarily planned on a Re-order Point/Level (ROP/ROL), although it can also be applied for parts that have a dependant demand.

 

This policy must be executed with care, since, as stated, MRP will always order at least the minimum order quantity even if this exceed the actual demand for the part and could therefore result in excess inventory.

 

Setting the order minimum , maximum , and increment quantities to 1 can convert this policy into a discreet lot sizing technique.

hmtoggle_plus1Fixed/Period Combination (C)

When doing an inquiry on a part, this field will default to selected, if order policy on the Part Master table is equal to "P". This lot sizing technique is very suitable for parts with

dependant demand or a combination of dependant and independent demand.  The policy is applied in conjunction with the field Days Supply as well as the order quantity minimum

and order quantity maximum .

 

Days Supply must be greater than zero or equal to or less than the Days Supply Max as specified in System Configuration.

 

MRP will calculate the suggested order quantity by adding a number of days supply to the date of the net requirement and summing all requirements within the calculated horizon.

 

Should the "Days Supply" quantity be less than the order quantity minimum as specified on the Part Master, MRP will adjust the planned order quantity to be equal to the minimum

order quantity.  If the "Days Supply" quantity is greater than the order quantity maximum MRP will adjust the planned order quantity to the order quantity maximum.

 

Should the "Days Supply" quantity exceed the minimum order quantity, but when dividing by the order quantity increment results in a decimal, MRP will adjust the planned order

quantity to be in step with the specified order quantity increment.

 

Should the suggested quantity exceed the maximum quantity , the MRP action message relating to the planned order will reflect an appropriate warning.

hmtoggle_plus1Immediate

Safety stock is used to manage independent demands for parts with an ABC Classification of Low Value Usage, also including Floor Stock items.

 

When stock quantity drops below the Safety Stock Quantity (Re-order Point Quantity) specified, the system (MRP) will suggest a replenishment order with a lot size (Quantity Ordered) equal to the Safety Stock Quantity specified for the item.

 

The required date is determined by adding the lead time of the part to the current date.  When Floor Stock is checked, this safety stock policy must be used.

hmtoggle_plus1Inspection Code 3

This field, if applicable, is used to define the method, per part, to be applied, for the verification of quality and conformance to specification, when receiving purchased or manufactured goods or shipping goods to your customers.

 

This criteria is also entered on purchase, production and sales orders.

hmtoggle_plus1Lead Time

It is an estimate of the amount of time (stated in work days) required to produce an item or assembly (manufacturing lead time) or to obtain an item from an outside source (purchase lead time).

 

This lead-time is the primary element for the lead-time of a part, but do take note that provision is also made for 'Admin lead-time' (administrative time) and "Decouple time' (incoming inspection time) which all add up to the total lead-time of a part.

 

MRP applies the lead time stated for a part when calculating order start dates and action dates, but this depends on the lead-time calculation method and applies where the calculation method stipulates that the part master lead-time must be applied. If the calculation method stipulates that the part operations (routing) must be applied, the part master lead-time is not applied since the lead-time is calculated via the part operations.

 

For calculation method "Use part master lead-time", when adding internal manufacturing orders (production orders) the part master lead-time as specified will be applied for the order, as well as the lead-time for any phantom parts in the product structure that have to be manufactured on the same order. If the phantom parts were actually specified as manufactured parts, they would have had their own orders with the related lead-time. Since the phantoms have to be manufactured on the same order, the extra lead-time of phantom parts will be added to the lead-time of the order line part to allow adequate time on the order to manufacture all related items.

 

Example: The final assembly of part A takes 2 days. Part A has in its structure 2 phantoms (Part B and part C) on the next level. Part B has a lead-time of 1 day and part C has a lead-time of 3 days. The system will add the longest lead-time (being part C with 3 days) to the lead-time of part A (2 days) to suggest an order lead-time of 5 days.

 

NOTE: Where order splitting or auto releasing of purchase orders applies, as stated on the Supplier catalogue function, MRP will apply the lead time per supplier as defined on the Supplier catalogue.

 

Lead time can have a value between zero and the value specified on the settings Lead Time Days (Purchasing) Max or Lead Time Days (Manufacturing) Max in System Configuration.

 

RELATED TOPIC: PO Auto Release Horizon Days on External Organization Parts

 

hmtoggle_plus1Technical Detail

When a manufacturing part order is inserted the lead time is calculated via thee product structure and if a phantom exists, its lead is added. To find the related parts use this SQL:

 

SELECT ps.Component_Part_Number, pm.Lead_Time, pm.Lead_Time_Calculation_Method, ps.*

 

FROM Product_Structure ps

 

INNER JOIN Part_Master pm

 

ON pm.Part_Number = ps.Component_Part_Number

 

WHERE ps.Parent_Part_Number = 'part_number'

 

AND ps.Project = 'project_number'

 

AND pm.Source = 'N'

 

hmtoggle_plus1Lead Time Calculation Method

This field is enabled for phantom parts and for all other parts that are Mrp planned.   The field is applied to select an option for lead-time calculation by MRP (when planned orders are suggested for stock replenishment), as well as for lead-time suggestion when production orders and customer orders with exploded requirements are manually added.

 

For parts that are neither a phantom part nor planned by MRP, the option "Not applicable" is applied.

For purchased parts, subcontract parts and customer furnished items, the option "Part lead-time" (as defined in the lead-time field) is applied, since these parts normally do not have routings via which the lead-time can be calculated.

However, if the part has part operations and is occasionally manufactured, the option "Use routing lead-time" can be selected.

This option calculates the lead-time dynamically by applying the production operations for the part, the intended order quantity and the values for set-up and run times and whether those values were specified as "time per piece" or "elapsed time" for a specified batch size.

The latter option can only be selected if the part currently has a routing (Part operations).

 

When the lead-time is required by a function or by MRP and the part no longer has a valid routing, the lead-time from Part master will be applied for the calculations.

hmtoggle_plus1Lead Time Days 3

It is an estimate of the amount of time (stated in work days) required to produce an item or assembly (manufacturing lead time) or to obtain an item from an outside

source (purchase lead time).

 

MRP applies the lead time stated for a part when calculating order start dates and action dates.

 

NOTE: Where auto releasing of purchase orders applies, as stated on the buying records on the External Organization Parts function, MRP will apply the lead time stated on the buying record.

 

Lead time can have a value between zero and the value specified on the settings Lead Time Days (Purchasing) Max or Lead Time Days (Manufacturing) Max in System Configuration.

 

RELATED TOPIC: PO Auto Release Horizon Days on External Organization Parts

hmtoggle_plus1Mps Class

It is used to identify different categories of master scheduled parts.  It has a length of 1 character.

hmtoggle_plus1N/A

When this policy option is selected it indicates that a safety stock policy does not exist for the selected part number.

hmtoggle_plus1Not Yet Determined (&Quot;&Quot;)

When doing an inquiry on a non-planned part, this field will default to selected.

 

Since order policies are applicable to MRP planned parts, this policy is selected for all non-planned parts.

 

An attempt to change a part from non-planned to planned, will force the user to select either the "Fixed Order Quantity" or "Period Cover Interval" order policy.

 

RELATED TOPIC: Fixed Order Quantity

Period Cover Interval                

hmtoggle_plus1Order Policy

One of the order policy options must be selected.  When doing an inquiry on a part this frame defaults to the order policy option of the selected part, from the Part Master table.

hmtoggle_plus1Period Cover Interval (P)

When doing an inquiry on a part, this field will default to selected, if order policy on the Part Master table is equal to "P". This lot sizing technique is very suitable for parts with

dependant demands or a combination of dependant and independent demand.  The policy is applied in conjunction with the Days Supply field.

 

MRP will calculate the suggested order quantity by adding a number of days supply to the date of the net requirement and summing all requirements within the calculated horizon.

 

Since this order policy can never 'over order' and schedule orders to replenish the equivalent of the preset days supply period requirements, for example, 1 day, 4 weeks, 6 months; it is ideally suited, to be used in conjunction with the ABC analysis.  It aids you to accomplish present goals for inventory turnover, and cash flow control.

 

Although the resulting suggested quantities are not governed by the minimum, maximum and increment values, the values are taken into consideration, and, should the suggested

quantity be less than the minimum quantity , or exceed the maximum quantity , the MRP action message relating to the planned order will reflect an appropriate warning.

hmtoggle_plus1Planner

This combo box is populated with the last name, first name, middle initial and the employee ID from the Employee Master table where the employee is a company planner and has a status of Active (A) or Unavailable (U).

 

The number of characters to be entered before the list is shown is governed by the value of "populate length".

 

The Part Planner can change details on the Planning 1 and Planning 2 tabs.

The part planner can only change parts with a source of "Phantom", "Interplant" or "Manufactured".

hmtoggle_plus1Quantity

The safety stock quantity is used to determine the following:

 

1.          The lot size (quantity ordered) for the replenishment order when the "Immediate" safety stock policy is used for an item,

 

2.          The next TPOP required quantity for the days supply when the "Time Phased" safety stock policy is used for an item, and

 

3.          The re-order point quantity when the "Immediate" safety stock policy is used for an item.

 

The safety stock quantity is a 9 digit, integer field.

hmtoggle_plus1Quality Controller 3

This field is optional and defines a quality controller for the  selected item.  The same field is mandatory at Product Master level. If not specified here then The quality controller on the product master will be regarded as the applicable Quality controller for this part. The quality controller will be prompted via mail for action or information purposes. The quality controller will be defaulted when quality actions are added.

 

The list is populated with all active employees that has a job assignment as a Quality controller as defined on their Employee Information record.

hmtoggle_plus1Quantity Increment

When doing an inquiry on a part, this field displays the order quantity increment, of the selected part, from the Part Master table.

 

This quantity determines the increments that an order quantity must adhere to and is normally governed by the unit of measure, or the packaged quantity, in which a part is available in the commercial market, for example, paint only available in 5l drums will have a minimum quantity of 5 and an incremental quantity of 5.

 

The Order Quantity Increment is a 10 digit integer field and can only be less than or equal to the Order Quantity Minimum.

 

NOTE: Where order splitting of purchase orders applies, as stated on the buying records on the External Organization Parts function, MRP will apply the order quantity increment as stated on the buying record.

 

RELATED TOPICS: Fixed Order Quantity

Period Cover Interval                

hmtoggle_plus1Quantity Maximum

When doing an inquiry on a part, this field displays the order quantity maximum, of the selected part, from the Part Master table.

 

If the maximum quantity is exceeded when MRP suggests a planned order, it results in a warning message.

 

The maximum quantity can represent the maximum quantity that can be manufactured in the stated lead time or the maximum quantity that can be accommodated due to storage space constraints.

 

The Order Quantity Maximum is a 10 digit, integer field.  The Order Quantity Maximum can not be less than the Order Quantity Minimum, or the Order Quantity Increment.

 

RELATED TOPIC: Fixed Order Quantity

Period Cover Interval                

hmtoggle_plus1Quantity Minimum

When applying a fixed order quantity policy, this is the minimum quantity that will be suggested by MRP.  The minimum quantity can be the predefined order quantity or the result of minimum or incremental quantity conditions specified by your Supplier.

 

The minimum quantity can also relate to production, setup costs that require a minimum quantity to justify the release of a production order.

 

The minimum quantity is also used when purchasing less than this quantity. The cost will increase.

 

The Order Quantity Minimum is a 10 digit integer field and must be less than or equal to the Order Quantity Maximum.

 

NOTE: Where order splitting of purchase orders applies, as stated on the buying records on the External Organization Parts function, MRP will apply the minimum order quantity as stated on the buying record.

 

RELATED TOPIC: Fixed Order Quantity

Period Cover Interval                

hmtoggle_plus1Safety Stock Policy

Safety stock is used to plan for the replenishment of stock that is needed over and above the known requirements.  Safety stock should cover the independent demand for a part and should be calculated as the lead time usage.

 

A warning will be given if you attempt to specify safety stock for a part where the ABC classification is equal to "High Usage Value" (A).

 

Either "Time Phased" (T), "Immediate" (I) or "Not Applicable" (N) (default when quantity is zero) must be selected.  When the "Safety Stock" policy is "Time Phased", the Order Policy must be "Period Cover Interval".

 

When doing an inquiry on a part, this field will default to the safety stock policy, of the selected part, from the Part Master table.

hmtoggle_plus1Time Phased

Time phased order point (tpop) is used to mange independent demand for parts with an ABC classification of Low Usage Value.

 

When suggesting replenishment orders, the system (MRP) will include the Safety Stock Quantity (TPOP Quantity) in the net requirements for the item.  The lot size (Quantity Ordered) for replenishment orders will be determined by the order policy specified, but a TPOP requirement equal to the Safety Stock Quantity specified, will be created.

 

The required date is determined by adding the Days Supply to the current date (i.e. end of forecast period).  The forecast period is determined by the Days Supply .