Oracle Advanced Supply Chain Planning

Integrated Supply Planning Processes

Supply Planning consists of four primary planning and scheduling processes: Supply Planning Processes
1. Distribution Requirements Planning (DRP)
The quantity I need at each location by SKU by day [typically unconstrained requirements]

3. Master Production Scheduling (MPS) 2. Deployment Planning

The quantity I plan to move from location A to location B by SKU by day [constrained] The quantity I schedule to produce for each production line by SKU sequenced by day [constrained]
2

The quantity I plan to produce at each facility by SKU by week [constrained]

4. Finite Scheduling

Module Overview: Topics

Planning business issues Oracle Advanced Supply Chain Planning Plan types Implementation progression Planning business flow Planning data flow

Business Trends Toward Demand-Driven Adaptive Planning

EVOLVING CHALLENGES IMPACTS TO SUPPLY CHAIN Move from static demand planning to demand sensing and shaping
Capture demand signals more frequently and closer to the point of sale drive to consensus demand number Shape your demand with profitability and capacity as key drivers Implement continuous and collaborative sales and operations planning process

Older business models are challenged by decentralized global network model

New challenges and focus areas: Globalization and global sourcing, leaner supply networks, increased demand variability and cost volatility Increased customer expectations, faster product life cycles with local market requirements Mergers and acquisitions, and continued consolidation of suppliers and customers Increasing compliance requirements such as SarbanesOxley

Multi-tier decision support replaces enterprise plans

Materials and logistics are both primary constraints Cross-enterprise synchronized view of demand signal encompassing both supply and demand visibility

Focus on more frequent supply network flow analysis

Analyze optimal flows for market response, changing geo-political situations, and unplanned events Rationalize suppliers to minimize risk Determine postponement strategies

Demand-Driven Adaptive Planning

The demand driven company runs on real-time information.
Sense Demand

Shape Demand

Respond to Demand

Disconnected Systems Cannot Enable DemandDriven Adaptive Planning

Maintain excess inventory Reserve production capacity Expedite everything!
CUSTOMERS

Supply chains built on Inventory

SUPPLIERS
Tier 2 Tier 1

Fax

Paper
Distribution plans

Paper
Production plans Manufacturing plans

Marketing

?
Sales
Manufacturing

Demand Planning

Manual reconciliation of different numbers

6

Long planning cycles

Supply Planning

Demand-Driven Adaptive Planning Platform

Real-time end demand visibility Quickly sense and respond to demand changes Shape demand and align business plans quickly Manage your business with real-time sales and operations planning SUPPLIERS Monitor performance to drive continuous improvement
CUSTOMERS

Tier 2

Supply Chains built on Information

Portal
Marketing Automated Exceptions

Tier 1

Portal
Internet

Single holistic plan Sales

Demand hub & multidimensional analysis

Manufacturing Real-Time S&OP

Consensus demand and production plan

Holistic Supply Planning

Manufacturing

Embedded Analytics
7

Oracle Advanced Planning Solution

Complete, best-in-class e-business planning process platform
Best in class Business Processes

Supply Chain Risk Management

Demand driven adaptive planning

Sales and Operations Planning

Operational Excellence

Multi-Enterprise Collaboration

Role-based Portals

Network Design Integrated Planning Functions

Demand Sensing And Shaping

Postponement Optimization

Holistic Supply Planning

Promise, Distribute, and Replenish

Preconfigured Worksheets & Workbenches

Execute to plan

Products

SNO

IO

RT S&OP

DM

PTP

ASCP

PS

GOP

CP

Platform WFL

Connectors Common planning data model

Embedded Analytics

Oracle Advanced Planning Complete E-Business Planning Solution

Oracle Advanced Supply Chain Planning (ASCP)
Oracle Constraint Based Optimization (CBO)

Oracle Collaborative Planning (CP) Oracle Demantra Demand Management (DM)

Oracle Demantra Advanced Forecasting and Demand Modeling (AFDM) Oracle Demantra Real-Time Sales and Operations Planning (RTS&OP)

Oracle Global Order Promising (GOP) Oracle Inventory Optimization (IO) Oracle Production Scheduling (PS) Oracle Strategic Network Optimization (SNO)
9

Integrated Oracle Advanced Supply Chain Planning

E-Business Suite
Items and categories Bills of material Routings Resources Production and inventory costs Organizations Customers Calendars and shifts Units of measure WIP discrete jobs OPM process batches OPM complex routings and recipes OSFM lot-based jobs

Advanced Planning
Advanced Supply Chain Planning
Demand forecast Constrained supply Order forecast Supply commit Safety stock Sourcing rules Planned orders Demand Management Real-Time Sales and Operations Planning

Inventory Optimization

Strategic Network Optimization

Production Scheduling

Global Order Promising

Collaborative Planning

Trade Promotion Planning

10

APS Business Flow: Plan

Collaborative Planning Supplier capacity

APS

Source
Order Management Sales demand Inventory WIP

Demand Management Forecasted demand Customer demand forecast

Shop Floor Mgt. Purchasing Existing supply

Inventory Optimization Safety stock demand

Supply Chain Sourcing rules

BIS Performance KPI targets

Bills of Material ASCP Optimized plans

Production capacity Product structure

11

Advanced Supply Chain Planning

Supply Chain and Distribution Planning

Product family and item level planning Alternate components, resources, processes, suppliers, facilities, and ship methods End-item substitution Critical items and resources; aggregate resources Bills of distribution and transfer rules Circular sourcing, load consolidation, allocation rules Include customer and supplier facilities

Manufacturing Planning
Sequence dependent setups/changeovers Simultaneous resources Batch resources Alternate resources Minimum transfer quantities Complex, network routings By-products and co-products Line rates and takt times

Transportation Suppliers

Transportation

Transportation Distributors Customers

Manufacturing
12

Advanced Supply Chain Planning

Evolve at your own pace to a best-in-class solution.
Start anywhere
Interactive what-if simulation

Cost-based optimization Advanced decision rules Transportation constraints

Unconstrained MRP Planning Automate release processes Automate selection of alternates Collaborate with suppliers Constrained finite planning Multi-facility supply chain planning

Eliminate spreadsheets

Material and capacity planning Personalized exceptions and queries Tailor workbench for individual users

From less complex to best-in-class -->

13

Topic Overview: Oracle Advanced Supply Chain Planning

Oracle Advanced Supply Chain Planning Oracle Advanced Supply Chain Planning features

14

Oracle Advanced Supply Chain Planning

Balanced supply and demand

across the supply chain

Respects constraints

while meeting organizational objectives

15

Oracle Advanced Supply Chain Planning Features

Optimization:
iLOG solver and optimization technology automates decision making: Optimizes plans to strategic objectives Generates coordinated sourcing, production, and distribution plans for supply chain partners Recommends alternate suppliers, components, routings, and resources Incorporated with third-generation memory-based planning

16

Oracle Advanced Supply Chain Planning Features

Optimization objectives
Maximize inventory turnover ratio Maximize plan profit Maximize on-time delivery

0.23
0 1

17

Oracle Advanced Supply Chain Planning Features

Planner Workbench:
Decision-support tool Flexible, intuitive, and easy to use interface Navigation paths to related information Designed to streamline common activities of planners

18

Oracle Advanced Supply Chain Planning Features

Simulation:
Quickly simulate plans with modified parameters (item simulation sets, plan options) Use key performance indicators (KPIs) to evaluate alternate plans: Inventory turnover On-time delivery Plan profit Resource utilization Graphical KPI display

19

Oracle Advanced Supply Chain Planning Features

Integrated Performance Management:

Multiplan KPI comparisons Multiplan exception comparisons Integration with Oracle Workflow: Notification and corrective action alerts

20

Oracle Advanced Supply Chain Planning Features

Supporting all manufacturing methods in mix mode:

Oracle Discrete Manufacturing Oracle Project Manufacturing Oracle Flow Manufacturing Oracle Process Manufacturing Oracle Shopfloor Management (OSFM)

21

Topic Overview: Plan Types

Unconstrained Constrained
Enforce capacity constraints Enforce demand due dates Decision rules

Optimized

22

Unconstrained

Balanced supply and demand

across the supply chain

23

Constrained

Balanced supply and demand

across the supply chain

Respects constraints

24

Optimized

Balanced supply and demand

across the supply chain

Respects constraints

while meeting organizational objectives

25

Production

Plan Class Example: Unconstrained

Demand

Production

Demand

Production

4
Demand Production Demand Machine constraint Labor constraint Production Demand

5 1 2 3
26

Production

Demand

Plan Type Example: Constrained

Production

Demand

Production

4
Demand Production Demand Machine constraint Labor constraint Production Demand

5 1 2 3
27

Plan Type Example: Optimized with Maximum OnTime Delivery

Overtime Labor constraint

Machine constraint

Production

Production

Production

Production

Demand

Production

Demand

Demand

Demand

Demand

3
28

Plan Type Example: Optimized with Minimize Inventory Carrying Costs

Labor constraint

Machine constraint

Production

Production

Production

Demand

Production

Demand

Demand

Demand

Demand

Production

3
29

Plan Type Scenario

Planning Period Sales Orders Priority 1, $1.00 Priority 2, $2.00

Day 1
25 75

Day 2
25 75

Day 3

Day 4

Supply constraint
Material capacity Resource capacity 50 60 50 60 50 60 50 60

30

Plan Type Scenario - Unconstrained

Planning Period

Sales orders
Priority 1, $1.00 Priority 2, $2.00 Supply constraint Material capacity Resource capacity Planned supply P1 Order, $1.00 P2 Order, $2.00

Day 1 25 75

Day 2 25 75

Day 3

Day 4

50 60

50 60

50 60

50 60

25
75
31

25
75

Plan Type Scenario Constrained - Enforce demand due dates

Planning Period

Sales orders
Priority 1, $1.00 Priority 2, $2.00 Supply constraint Material capacity Resource capacity Planned supply P1 Order, $1.00 P2 Order, $2.00

Day 1 25 75

Day 2 25 75

Day 3

Day 4

50 60

50 60

50 60

50 60

25
25
32

25
25 50 50

Plan Type Scenario : Constrained - Enforce capacity constraints

Planning Period

Sales orders
Priority 1, $1.00 Priority 2, $2.00 Supply constraint Material capacity Resource capacity Planned supply P1 Order, $1.00 P2 Order, $2.00

Day 1 25 75

Day 2 25 75

Day 3

Day 4

50 60

50 60

50 60

50 60

25
35
33

25
35 60 20

Plan Type Scenario : Optimized

Planning Period

Sales orders
Priority 1, $1.00 Priority 2, $2.00 Supply constraint Material capacity Resource capacity Planned supply P1 Order, $1.00 P2 Order, $2.00

Day 1 25 75

Day 2 25 75

Day 3

Day 4

50 60

50 60

50 60

50 60

50
50
34

50

50

Topic Overview: Implementation Progression

Implementation progression Benefits of implementing in phases

35

Implementation Progression: Unconstrained

Create database links to establish communication Set up collection programs Run collection programs to copy supply chain models to the APS instance Define supply chain plan names and plan options Launch named supply chain plan

36

Benefits of Implementing in Phases

Fast Forward implementations of supply chain planning and constraint-based planning quickly begin return on investment Analyze costs and benefits before committing to additional implementation phases Realized benefits pay for advanced implementation phases

37

Topic Overview: Planning Business Flow

ASCP business flow ASCP business flow: Prepare ASCP business flow: Execute ASCP business flow: Analyze ASCP business flow: Implement

38

ASCP Business Flow

1. Prepare 2. Execute

Determine consensus forecast

3. Analyze

Run production plan

Analyze plan Adjust plan Simulate with revised constraints Collaborate on revised constraints
4. Implement

Implement revised constraints Release schedule

39

ASCP Business Flow: Prepare

1. Prepare

Determine consensus forecast

40

ASCP Business Flow: Execute

2. Execute

Run production plan

41

ASCP Business Flow: Analyze

3. Analyze

Analyze plan Adjust plan Simulate with revised constraints Collaborate on revised constraints

42

ASCP Business Flow: Implement

4. Implement

Implement revised constraints Release schedule

43

Topic Overview: Planning Data Flow

Planning data flow

44

Planning Data Flow

Transaction Data

Planning Data

45

Planning Data Flow

Transaction Data

Planning Data

Source Instance/Server

Destination Instance/Server

46

Planning Data Flow

Transaction Data Instance/Server

Planning Data

47

Planning Data Flow

Transaction data
Data Collection

Planning data

Release Planned Orders/ Recommendations

Collections Workbench

Planner Workbench

Launch Supply Chain Planning Process

48

65410

49

Summary

In this module, you should have learned how to:

Identify planning business issues Describe outcomes of using Oracle Advanced Supply Chain Planning Describe plan types Describe implementation progression Describe planning business flow Describe planning data flow

50

Demand and Supply

ASCP Fundamentals

51

Objectives

After completing this module, you should be able to do the following:

Describe demand types Describe sales orders Describe forecast consumption Describe supply types Review demand and supply

52

Independent

Customer Order

Forecast

53

Dependent

Customer Order Subassemblies, Buy Components, Transfer Components

Forecast

Independent Demand

Dependent Demand

54

Safety Stock: Inventory Optimization

Fabrication plant

Assembly plant

Distribution centers

Customers

55

Safety Stock: Inventory

PERIODS Gross Requirements Scheduled Receipts Net Requirements Planned Order Due Projected Available 140 140 50 300 300 50 50 500 500 50 1 100 2 300 3 4 500

Manual Safety Stock = 50 Mean absolute deviation

56

Safety Stock: Planning

PERIODS Gross Requirements Scheduled Receipts Net Requirements Planned Order Due Projected Available 157 157 67 367 367 134 134 450 450 84 1 100 2 300 3 4 500

Item attributes

Safety Stock Bucket Days = 3 Safety Stock Percent = 50%

57

Topic Overview: Sales Orders

External and internal Plan to request/schedule/promise dates Sales order entry process Processing cycle Demand priority

58

External and Internal

External

Customer

Distribution center

Internal

Distribution center

Final assembly plant

59

Feeder plant

Plan to Request/Schedule/Promise Dates

60

Sales Order Entry Process

Enter Sales order header information:

Customer name or number Order type

Order line information:

Item Quantity Unit of Measure

Book the sales order Schedule the sales order

61

Processing Cycle
Enter Schedule Book Oracle Order Management

Pick Release Ship Confirm

Oracle Shipping Execution

Oracle Receivables Invoice

62

Demand Priority

Priority 1

Priority 2

63

Topic Overview: Forecast Consumption

Forecasts: Demand Planning Forecasts: Transaction Data Store Forecast consumption overview Consumption days Days Weeks Periods Multiple bucket types Forecast consumption flow options Forecast bucket consumption Demand classes

64

Forecasts: Demand Planning

65

Forecasts: Transaction Data

66

Forecasts: Transaction Data

67

Forecasts: Transaction Data

68

Forecast Consumption Overview

Original forecast

=
Current forecast

Customer orders
69

Consumption Days

Backward consumption limit day

Forward consumption limit day

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 July Sales Order #143 A Jul 8 120

70

Days
Backward consumption days = 5 from Day 8 (Days 5, 4, 3, 2, 1) Forward consumption days = 5 from Day 8 (Days 9, 10, 11, 12, 15) 3 Original 20 2 20 1 20 4 20

Current

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 July 5 Sales Order #143 A Jul 8 120 Overconsumption entry in forecast set on July 8 for quantity - 40

71

Demand Classes
DC = MO DC = MO DC = RT DC = RT DC = WS DC = WS

Mail order forecast

Mail order sales orders

Retail forecast

Retail sales orders

Wholesale forecast

Wholesale sales orders

Material plan (MPP, MPS, MRP)

72

Demand Classes

73

On Hand

74

Scheduled Receipts

ITEM A

Gross Requirements
Scheduled Receipts

80
110

80
110

200
110

200
110

200

75

Purchase Requisitions

Buyer Manual Entry and Production Plan

76

Purchase Orders

Buyer

Supplier

Receiving

77

Scheduled Receipts for Make Items

Production Plan

Planner

Shop Floor

Inventory

78

Summary

In this module, you should have learned how to:

Describe demand types Describe sales orders Describe forecast consumption Describe supply types

79

Planning Information and Planner Workbench

80

Topic Overview: Planner Workbench

Introduction Navigation window Planning analysis windows Owning organization Navigation tips Preferences and folders

81

Introduction
Planner Workbench uses Windows

82

D. Expand the + to get the list of Actions for this plan.

83

Summary

In this module, you should have learned how to:

Describe planner workbench Describe how to research data for planning Describe planning results Describe planner strategies

84

Modeling the Supply Chain

ASCP Fundamentals

85

Objectives

After completing this module, you should be able to do the following:

View enterprise data View item data View material data View resource data View sourcing data View supplier data View calendar, lead time, and time fence data View transportation data Model the supply chain

86

Overview

Inventory
Organizations Items Item attributes Org. assignment

Cost
Item costs Resource rates Accounts

Order Mgt
Customers Price lists

Purchasing
Supplier list Supplier capacity Delivery calendar

Engineering
BOM Departments Resources Routings and standards

Supply Chain
Shipping networks Sourcing rules Bills of distribution Assignment sets

87

Topic Overview: Enterprise

Instances Operating units Organizations Subinventories and locators Setting up organizations Organizations and subinventories

88

Instances
Single Instance R12

D1 Singapore

Planning D2 Miami

S1 Chicago

89

Instances
You can launch a supply chain plan to plan organizations regardless of the instances that they are in.
R12 APS Instance R11 Instance AAA AAA:D1 AAA:D2 D1 Singapore R11i Instance CCC Database links

D2 Miami

S1 Chicago

Database links

CCC:S1

90

Operating Units

You can launch a supply chain plan to plan organizations regardless of the operating units or sets of books that they are tied to.
Operating Unit

Item Master V1, Vision

Inventory Organization S1, Chicago

Inventory Organization M2, Boston

91

Organizations

Distribution center

Final assembly plant

Feeder plant

Distribution center

92

Organization Security

93

Subinventories and Locators

Subinventories Locators

94

Setting Up Organizations

Organization window Organization Parameters window Subinventories window

95

Organizations and Subinventories

While setting up organizations and subinventories, consider:

Inventory transactions occur in subinventories ASCP does not plan subinventory transfers Inventory Optimization does not calculate safety stock at the subinventory level Demand Planning forecasts by organization, not by subinventory Global Order Promising calculates availability at the organization level Order Management designates one organization for item validation across the operating unit

96

Topic Overview: Items

Items Item attributes Organization item Order modifiers Item attribute mass maintenance

97

Items

Items

Distribution

Production

98

Item Attributes

99

Item Attributes for Planning

Main Tab
Unit of Measure

Physical Attributes
Weights and measures

Inventory Tab
Inventory Item Stockable Transactable

Work In Process Tab

Build in WIP checkbox Supply Type

Order Management
Customer Orders Enabled Internal Orders Enabled Check ATP

Bills of Material Tab

BOM Allowed BOM Item Type

Purchasing Tab
Purchasable Use Approved Supplier

100

Item Attributes for Planning

General Planning Tab:

Make or Buy Safety Stock Method Order modifiers (lot-sizing rules) Planner Code

101

Item Attributes for Planning

MPS/MRP Planning Tab

Planning Method Forecast Control Pegging Exception Set Time Fences

102

Plan Type and Planning Method Attribute

MPP Planned MPS/MPP Planned MRP/MPP Planned

MPP

MPS

MPS Planning MPS/MPP Planning

MRP

MRP Planning MRP/MPP Planned All planned items

IP

MRP Planning

103

Critical Components

104

Organization Item

Operating Unit

Item Master V1, Vision

Inventory Organization S1, Chicago

Inventory Organization M2, Boston

105

Order Modifiers

Sold in pallets of 100

Net requirement

Planned order

Item A = 72

Item A = 100

106

Item Attribute Mass Maintenance

Planning item attribute values can be modified in the planning server.

Use query criteria to select the items for which planning attributes need to be updated. Selectively update one or more of the item planning attributes. Create multiple versions of item attributes for simulation purposes. Group and save item attribute changes as a Simulation Set. Maintain Simulation Sets independently. Link a Simulation Set to a plan in the Plan Options.

107

Item Attribute Mass Maintenance

The Simulation Set only holds the changes for the collected planning item attributes. When running a plan, these changes overwrite the collected data values for that specific simulation plan.
Oracle ERP source data Simulation Sets Collected data

Plans

Advanced Planning

Note: The collected data itself does not change. Update the source data if a permanent change is required.
108

Item Attribute Mass Maintenance

Use the Query feature to retrieve items for updates:

Query and display the items included or not included in the simulation set. Base the Query on original values or updated values. Save the Query as a folder for later retrieval.

Use the Select all feature to select all displayed records for mass updates. Modify the values of attributes:
Directly set a new value. Increase and decrease original values. Restore original values.

109

Item Attribute Mass Maintenance Benefits

Improve simulation capability.
Modify item attributes to perform what-if analysis. Multiple simulation scenarios can be created, each with its own set of item attributes.

Reduce Planning cycle time.

Rapidly correct or change item attributes without recollecting data.

Update planning specific attributes that are not available in ERP such as:
Minimum Remaining Shelf Life (Days)

110

Item Attributes Supported for All ASCP Plans

Critical Component Preprocessing Lead Time Processing Lead Time Post processing Lead Time Fixed Lead Time Variable Lead Time Fixed Order Quantity Fixed Days Supply Shrinkage Rate Fixed Lot Multiple Minimum Order Quantity Maximum Order Quantity Service Level Carrying Cost Demand Time Fence Days
111

Forecast Control Planning Time Fence Days Standard Cost Net Selling Price PIP Flag Selling Price Substitution Window Safety Stock Days Unit Weight Unit Volume Safety Stock Method Safety Stock Percent ABC Class Planning Method Minimum Remaining Shelf Life

Item Attributes Supported for DRP Plans Only

DRP Planned Max Inventory Days of Supply Max Inventory Window Target Inventory Days of Supply Target Inventory Window

112

Topic Overview: Material

Bills of material Indented bills of material Alternate bills of material

113

Bills of Material

D
114

Indented Bills of Material

Seattle Manufacturing, M1: AS41001 CM86234 CM41102 SB41101

CM41201 MC41203

Chicago Subassembly, S1 SB41202 CM41301 SB41302

CM41401 CM41402

CM41303

SC94043 SC94043

MC41204

MC41205

SC94043

SB41202
115

Alternate Bills of Material

D
116

Topic Overview: Resource I

Workday calendar, work patterns, and shifts Defining work hours for a work shift Departments and resources Routings Modeling resource constraints Non critical patch resources Sequential resources Overlapping resources Simultaneous resources

117

Topic Overview: Resource II

Alternate resources Scheduling time window width for alternate resource Resource selection dependency Multiple resource scheduling One resource to one unit at a time Batch resources Minimum transfer quantity Modeling production resource capacity Multiresource scheduling

118

Workday Calendar, Work Patterns, and Shifts

119

Defining Work Hours for a Work Shift

Define work calendar Attach work calendar to organization Define shift name, attached to calendar Define workday pattern for the shift name Define work shift hours for the shift name

120

Departments and Resources

Define resources Define departments Assign resources to departments

121

Routings
Bill Parent AS41001 Work order

SB41101

CM41102

CM86234 Components AS41001 Packaged PDA

Routing Operation 10 Dept: Assembly Resource: Assembly Labor Resource: Tool kit Material: Operation 20 Dept: Shipping Resource: Warehouse Labor Resource: Forklift Material:

SB41101 PDA Asm

CM41102 Stylus

CM86234 Packaging

122

Modeling Resource Constraints

Operation Resource Schedule:

Yes No Prior Next

123

Non Critical Path Resources

Machine paced operation:

Drill: Schedule = Yes Machinist: Schedule = No

Only the machine time is scheduled

Drill

124

Sequential Resources

Operation 10: Finishing

Sander, Schedule = Yes Paint sprayer, Schedule = Yes

Usage time is scheduled consecutively

Sander

Paint Sprayer

125

Overlapping Resources

Operation 10: Finishing

Sander: Schedule = Yes Paint Sprayer: Schedule = Prior Offset 30%

Resources are consumed during an overlapping time period.

Sander

30% Offset

Paint Sprayer

126

Simultaneous Resources

Resources are scheduled for the same time period Primary resource group:

Direct labor

Hammer

Chisel

127

Alternate Resources

Replacement resource group

Direct labor

Hammer

Rock

Chisel

128

Scheduling Time Window Width for Alternate Resource

MSO: Schedule Window Width Time period that you are willing to wait for the primary resource to become available

Alternate Resource (available)

Primary Resource (not available)

Window

129

Resource Selection Dependency

Operation 10 Setup (Primary Resource)

Operation 10 Run (Primary Resource)

OR
Operation 10 Setup (Alternate Resource) Operation 10 Run (Alternate Resource)

130

Multiple Resource Scheduling

Task duration inversely proportional to number of resources applied

Assigned units Maximum available resource units

131

One Resource to One Unit at a Time

Round Order Quantities checkbox = selected:

Operation can not work on a fractional unit Operation time can not be reduced by increasing the number of resources applied

132

Batch Resources

Critical issues for scheduling batch operations are:

Grouping items for scheduling Constraining resources along multiple dimensions Honoring minimum and maximum batch sizes Delaying or building in advance to make up a batch

133

Batch Resources

Batching window Minimum and maximum batch capacity Batchable unit of measure

134

Minimum Transfer Quantity

Operation 10

Minimum transfer quantity

Operation 20

135

Modeling Production Resource Capacity

Define work time available Define production resources available Use efficiency and utilization factors to modify capacity

136

Multiresource Scheduling

Processing Resources

Operation Duration

137

Topic Overview: Sourcing I

Modeling the supply chain Virtual enterprise structure Supply chain structure Modeling shipments between organizations Modeling shipments between organizations and external sites Supply chain links Sourcing rules Allocating demand to suppliers Sourcing splits Allocation rules
138

Topic Overview: Sourcing II

Bills of distribution Assignment sets Sourcing assignment hierarchy

139

Modeling the Supply Chain

Suppliers

Manufacturing

Distribution

Consumers

Internet-based supply chain collaboration

140

Virtual Enterprise Structure

Suppliers Suppliers
Suppliers Operating Unit Customers

Consumers

Item Master V1, Vision

Inventory Organization S1, Chicago

Inventory Organization M2, Boston

141

Supply Chain Structure

Singapore, D1

Distribution Centers

Miami, D2

Seattle, M1

Manufacturing Plants

Boston, M2

Chicago, S1

Subassembly Plant

Allied

Suppliers

Advantage

142

Modeling Shipments Between Organizations

Shipping methods Shipping networks

143

Modeling Shipments Between Organizations and External Sites

Inter-location transit time Inter-location transit capacity

144

Supply Chain Links

Sourcing rules Bills of distribution Assignment sets

145

Sourcing Rules
Simple from - to relationships
Make at Rank 1 100% Boston, M2

Transfer from Rank 2 60% Chicago, S1

Buy from Rank 2 40% Acme

146

Allocating Demand to Suppliers

Supply

60%

40%

147

Sourcing Splits

Buy from

Transfer from

148

Allocation Rules

The total allocation percentage for all sources within a rank must be 100% The planning engine sources with the highest rank have the highest priority in allocation Optimization sources with the lowest penalty adjusted cost have the highest priority in allocation

149

Bills of Distribution

Model relationships that would otherwise require multiple sourcing rules to describe

SR3

SR1

SR4

SR3

SR2

150

Assignment Sets

ASCP Plan: XYZ Assignment Set: ASN-S1 Item: CM41401 Organization: S1 Sourcing Rule: SR-S1 Supplier: Acme

CM41401 Acme

Chicago, S1

151

Sourcing Assignment Hierarchy

Global General Organization Item Category Item Item Category - organization

Item - organization
Specific

152

Topic Overview: Suppliers

Approved supplier list Approved supplier list functions Enhanced sourcing Supplier sourcing setup Supplier-item attributes Supplier capacity

153

Approved Supplier List

Commodity

Approved Supplier List

Items

Ship-To Organization or Global Organizations

Supplier Site

154

Approved Supplier List Function

Demand need date

Traditional MRP functionality: Align

due date with date of need

Item average processing lead time Planned order release Supply due date

Approved supplier list functionality: Supplier- and item-specific:

Lead times Delivery calendars Order modifiers
Supplier-Item specific processing lead time Planned order release Supply due date Valid delivery calendar date Demand need date

155

Enhanced Sourcing

Based on capacity constraints Use flexible tolerance fences to model supplier capacity constraints that can change with advance notice

156

Enhanced Sourcing

Based on historical allocations Disable ASL entries

157

Supplier Sourcing Setup

Define approved suppliers Define receiving calendar Assign supplier-item attributes

Delivery calendar Order processing lead time and quantity modifiers Supplier capacity and tolerance

Define sourcing rules and bills of distribution Specify the assignment set

158

Supplier-Item Attributes

Delivery calendar Processing lead time Order modifiers Supplier flexible capacity tolerance fences

159

Supplier Capacity

Required

Available Required

Available

Required Available

Balanced

Underloaded

Overloaded

160

Topic Overview: Lead Times and Time Fences

Lead times Lead times in requirements explosion Cumulative lead time Time fences

161

Lead Times

Preprocessing Processing Post processing Fixed Variable In-transit Lead time lot size

162

Lead Time Offset

Total lead time:

Preprocessing Processing Post processing

Cumulative manufacturing lead time Cumulative total lead time User-defined lead time

163

Time Fences

Time fences should be set to the lowest values that are practical. Planning Demand Release

164

Topic Overview: Transportation

Shipping methods Shipping network Transit times Zones and regions

165

Shipping Methods

166

Shipping Network
Customers Singapore, D1 Miami, D2

Distribution Centers

Seattle, M1

Manufacturing Plants

Boston, M2

Chicago, S1

Subassembly Plants

Suppliers

167

Transit Times

Inventory organizations External site and inventory organization Ship method

168

Zones and Regions

169

Summary

In this module, you should have learned how to: View enterprise data View item data View material data View resource data View sourcing data View supplier data View calendar, lead time, and time fence data View transportation data

170