2. Christian Kemp Developer Ulrik Mølgaard Honoré,Program Manager Microsoft Corporation AX209

3. Master planning projects are BPR projects Key areas to focus on Parameters and usage Work center Finite / infinite capacity Operation schedule/ job schedule Time fences Positive/negative days Multiple plans Very long, Long, Medium, short, very short. Dynamic / static

5. Masterl panning parameters Item setup Resource setup

6. Firmed orders, Productions may be Job rescheduled Time buckets starting from Today Frozen Master plan Operation scheduling Estimated Lead times daysweeksmonthsquarters

7. WC grouping – the higher aggregation level, the better. Set up as 1 work centergroup: Fully alternative resources, Also machines, tools and workers which always operate together. Consider Efficiency %, Operation scheduling %, Finite vs. Infinite capacity

8. Do not define too long period No separate line for defining Breaks or Shift changes

9. Thomas: Prerequisites

11. Operation scheduling is recommended for Master scheduling (rough-cut capacity plan) Remember to set capacity time fence not to high. Please ensure that multiple plans are used. Detailed or Job re-scheduling may be used in Production scheduling ONLY if job scheduling is needed.

12. Time fence is based on Requested ship date Only used for Master scheduling, ignored in Production scheduling Capacity and Explosion time fences have biggest impact on performance Minimize them for daily scheduling Should not be less than longest purchase Lead time of materials ordered on a daily basis Substitute to estimated Lead time for orders falling beyond Capacity time fence horizon Action, Futures - time horizon for analyzing messages

13. Figure out the bottlenecks in Production shop floor: Run Infinite time to time to see which Resources are most overloaded Use seperate master plan for that purpose Do the same for long lead time purchase Mark only bottleneck work centers as Finite capacity

14. Staffan: Scheduling

15. Master scheduling Regeneration is run in 4 main loops: 1. Reqs update (only in Regeneration, skipped in Net change) 2. Coverage calculation 3. Action messages generation 4. Futures messages generation

16. Coverage planning searches for free Capacity backwards from Requested Delivery date Planned order delay due to - Material shortage - scheduled Start before Todays date or - Workcenter overload may trigger Futures re-scheduling loop, forward from Futures date

17. Master planning will search until free capacity is found going backwards If there was no enough free Capacity, it would search backwards and finally reserve Capacity before Todays date! That would trigger Futures rescheduling forward Means, long time spent on searching for free Capacity backwards went in vain!

18. Set Operations scheduling % to 50% This ensures that Operation scheduling reserves not more than 50% of Workcenters capacity for 1 Operation This is a way how to solve the conflict, leaving workcenter flexible to choose, or Production planner to fine-tune with the specific sequence depending on Priorities This % can be reduced also for Capacity buffering purposes or for scheduling several actual physical workcenters defined as 1 WC in the system

19. Thomas: Futures & Actions

20. Operation scheduling % The less, the more flexible WC is Can be used for scheduling several actual physical workcenters defined as 1 WC in the system Efficiency % Dont set to 100% everywhere To be able to do re-work without hurting Delivery date in case of error in Operation To be able to process extra Productions without overload Setup a environment that is feasible ( I do know that there is a high load on minimizing lead-time and cost so no will accept to overbook capacity. Alternative workcenters)

21. Consider what is more cost-effective: Material shortage will cause idle time on WC (idle workcenter is still cheaper than doing what is not actually needed, just to keep it busy) Not enough Capacity may cause too early Material order Capacity shortage in case of needed re-work will affect the whole process and delay Delivery to customer Concentrate attention to bottleneck WCs: Make sure they never run out of Material That processed semi-finished goods are moved ASAP to fast WCs for subsequent Operations Therefore it is important to set up Material delivery for each operation rather than all for the 1st, as set up now!

22. Safety stocks Size and frequency dependant on the price and material purchase lead time Take advantage of using Safety stock journal, when demand history reaches 1 year Multiple Qty Vs. Max order qty. Usage of Max order qty can lead to performance issues. Request material for relevant Operation vs. all for the 1st operation

23. Buffers: Thomas

24. Approving Planned orders vs. Firming Freezing time fence: For FG - the period within which you wouldnt manage to Produce it from the scratch, if it is requested now For material – shortest possible Lead time Switching between Master and Coverage groups setup Dedicated Master plan (for example, quarterly run) For long-term Raw material purchasing For budgeting Send Master plan to your Vendors, letting them update their own plans and ensure stable supply

25. Firmed orders, Productions may be Job rescheduled Time buckets starting from Today Frozen Master plan Operation scheduling Estimated Lead times daysweeksmonthsquarters

26. Staffan: Time fences

27. Dynamic master plan may be: Refined with Net change (minimized) principle scheduling as many times a day as needed Local scheduling – Explosions – used by SalesReps to calculate Delivery dates If customer accepts it, calculated Futures date can automatically become new Delivery date, which will drive the demand during normal scheduling of Static plan If planned order doesnt match the original date or qty, Action message will be displayed giving a hint Dynamic plan can have relatively long time fences

29. Thomas: Net Change etc & Explosion

30. Be aware of negative days. Do not set this to high, it will make lots of logs of Actions and futures. And decrease performance.

31. Dynamic Negative days Lead time Negative days NegLeadtime Calculation dynamicNegativeDays = leadTime + standardNegativeDays+todaysDate - reqDate; Outcome Old Outcome Dynamic 268=6+2+1-1 New P2 Po at the 7 th and sales order future set The sales order would be matched to P1 and sales order future set to 5 th. Sales order Date 9/18/17/16/15/14/13/11/12/1 Old PO New PO P1P2 Dynamic neg days

33. Positive days

34. Staffan: + and - days

35. FDFDORDORD RDRD ORDORD RDRD FDFD LeadtimeLeadtime IMIM RMRM OMOM ODOD ORDORDFDFD IMIM RDRD RDRD RMRM ORDORD LeadtimeLeadtime OMOM ODOD FDFD

37. Material reqs can be replenished. Capacity reservations of Planned orders or Projects can be ignored. Group (Production pools) Prioritize Use Sorting in prod scheduling Operation vs Job scheduling Urgent orders may use Infinite capacity Balance the number of Conflict solution qty and Max allowed job lead time

38. Set up Overlapping operations ( new to 4.0 Transfer Batch VS overlap)

39. HardLink ensures shortest Production order lead time SoftLink allows time gaps between Operations Only used in production planning, not master planning.

40. Staffan: The scheduling stuff

41. Staffan: Helpers, other perf changes

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