1. 1 © The Delos Partnership 2003 Detailed Planning processes Material Planning and Capacity Planning

2. 2 © The Delos Partnership 2003 Basic Equations Item Data BOM’s And Routes Stock And Capacity Master Schedule ForecastsOrders Suppliers Factories What do they want ? What have We got ? What does it need ? What do we need to do ?

3. 3 © The Delos Partnership 2003 Material Requirements Planning In response to an Independent or Dependent demand, MRP asks ? Have we enough stock ? [Projected Available Balance] Have we got any on order ? [Scheduled Receipt] Do the due dates match the need dates [Action message] Do we need to order some more [ Planned Order] Go to the next level and repeat steps 1-4

4. 4 © The Delos Partnership 2003 Bill of Material Red Item 14356 Sub-Item 43768 1 per

5. 5 © The Delos Partnership 2003 12345678 Projected Gross Requirements 10 20 Scheduled Receipts 20 Projected Available Balance 40 Planned Order Release Periods Part Number Description : 14356 Red Item Lead Time : 2pds Order Quantity : 40 Safety Stock : 0 12345678 Projected Gross Requirements Scheduled Receipts Projected Available Balance 30 Planned Order Release Periods Part Number Description : 43768 Red Item Lead Time : 3pds Order Quantity : 40 Safety Stock : 0 30403020 0 40 0 -20 20 -20 20 30 -10 30 40 30 40 30-10 30

6. 6 © The Delos Partnership 2003 Planned Orders Planned Orders Capacity Requirements Plan Component Plan Red Item 14356 Sub-Item 43768 1 per Automatic re-plan Plans Matched sets of Parts Plans hours for CRP

7. 7 © The Delos Partnership 2003 Capacity Requirements Plan Provides detailed information of requirements of hours by week Needs information –Where is product made –How long does it take –What work is carried out –How much capacity available

8. 8 © The Delos Partnership 2003 Capacity Requirements Plan 12345678 Projected Gross Requirements 10 20 Scheduled Receipts20 Projected Available Balance 30 Planned Order Release Opn No Work Centre OperationSetRun 1045Inspect0.50.10 2055Mix1.00.5 3065Pack1.00.2 Routing Work Centre Information

9. 9 © The Delos Partnership 2003 CRP and the routing Put Away Set-up & Run Q Move Set-up & Run Q Pick 1 day Dept 10 2 days Dept 30 Opn No DeptWork Centre OperationSetRunSetRunTotal Hrs Total Days 10 45Inspect0.50.10.51010.52 203055Mix1.00.5150517 Product 43768 Lot Size : 100 Calc 2 day7 days Works Order Start Date Works Order Due Date Op Due Date Op Due Date

10. 10 © The Delos Partnership 2003 Capacity Plan resolution

11. 11 © The Delos Partnership 2003 Input/Output Control Work Centre no : 45 Tolerance +/- 30 Description : MixerDate : 22/2 Desired Queue : 60 IN OUT Week -4-3-2Now+1+2+3 Plan 107110104100104107100120 Actual 10990115105 Cum Diff +2-18-7-2 Plan 104 125 Actual 11010585 Cum Diff +6+7-12-31 Plan 6369 59 625853 Actual 6059447494 Cum Diff +9-110+10

12. 12 © The Delos Partnership 2003 Capacity Planning Process Review Weekly with Production –Performance to Schedule –Demonstrated Capacity –Reduction in Queue –Improvements in Capacity Performance measures –Achievement of planned capacity –Achievement of Schedule –Planned capacity/Available Capacity

13. 13 © The Delos Partnership 2003 Planners’ role Release orders on basis of MRP reports Analyse from Top to Bottom and Bottom to Top Respond to Action Messages Material Requirements Capacity Requirements Review Static Item Master Data