Forecasting and MRP: Setup & Configuration Andrew Good President & CEO Liberty Grove Software #CollaborateCanada

Introductory Slide Andrew Good, P.Eng., DCP, MCT President & CEO Liberty Grove Software Toronto Chapter Twitter: @agood2 Email: agood@Libertygrove.com LinkedIn: https://www.linkedin.com/in/andrewgood/

Session Objectives Upon completion of this session, participants should be able to: You will be able to assess your operational requirements and select the most effective Replenishment System to use. Fine tune Planning Parameters Understand the importance of Master Data Management

Session Agenda What are MRP & MPS? What Master Data affects Replenishment? How do I setup my Master Data? What tools get used for Replenishment Planning?

What are MPS & MRP?

Master Production Schedule What is it? What does it do? What is independent demand?

Material Requirements Planning What is it? What does it do? What is dependent demand?

What Master Data Affects Replenishment?

Master Data Involved Items Bill of Materials Routings SKU Cards Bill of Materials Routings Work & Machine Centers

How do I – Setup my Items?

Items Replenishment Systems Purchase Prod. Order Lead Time Calculation

Items – Purchase Replenishment Details Summit Nashville 2017 9/12/2018 1:44 PM Items – Purchase Replenishment Details Vendor No. Vendor Item No. Purchase UOM Item Vendor Catalog © 2017 Dynamic Communities. All rights reserved.

Items – Prod. Order Replenishment Details Summit Nashville 2017 9/12/2018 1:44 PM Items – Prod. Order Replenishment Details Manufacturing Policy Routing No. Production BOM No. Scrap % Lot Size © 2017 Dynamic Communities. All rights reserved.

Items – Reordering Policy Summit Nashville 2017 9/12/2018 1:44 PM Items – Reordering Policy <blank> Fixed Reorder Qty. Maximum Qty. Order Lot-for-Lot https://msdn.microsoft.com/en-us/library/hh879478(v=nav.90).aspx © 2017 Dynamic Communities. All rights reserved.

Items – Order Tracking Policy Summit Nashville 2017 9/12/2018 1:44 PM Items – Order Tracking Policy None Tracking Only Tracking and Action Msg. https://msdn.microsoft.com/en-us/library/hh175954(v=nav.90).aspx © 2017 Dynamic Communities. All rights reserved.

Setup Planning Parameters & Order Modifiers

Planning Parameters & Order Modifiers Summit Nashville 2017 9/12/2018 1:44 PM Planning Parameters & Order Modifiers Dependent on Reordering Policy Note what happens to parameters that are set and Reordering Policy changes. © 2017 Dynamic Communities. All rights reserved.

Planning Parameters – Dampener & Safety Summit Nashville 2017 9/12/2018 1:44 PM Planning Parameters – Dampener & Safety Dampener Period Dampener Quantity Safety Lead Time Safety Stock Quantity Note what happens to parameters that are set and Reordering Policy changes. Safety Stock Quantity The safety stock quantity must always be below the reorder point. If you enter a negative number in the field, then the value is ignored. Safety Leadtime Production order line Ending Date + Safety Lead Time + Inbound Warehouse Handling Time = Due Date Assembly order line Purchase order line Planned Receipt Date + Safety Lead Time + Inbound Warehouse Handling Time = Expected Receipt Date © 2017 Dynamic Communities. All rights reserved.

Planning Parameters – Lot-for-Lot Summit Nashville 2017 9/12/2018 1:44 PM Planning Parameters – Lot-for-Lot Include Inventory Lot Accumulation Period Rescheduling Period Note what happens to parameters that are set and Reordering Policy changes. Include Inventory – If you change Reordering Policy to something other than Lot-for-Lot change this to “No” first. Lot Accumulation Period – This is the time period used by Lot-for-Lot grouping of demand. Rescheduling Period – Adds a Rescheduling Period before and after a supply date. If demand changes within in this period the Action Message will be Reschedule. If this is not used the message will be Cancel & New. © 2017 Dynamic Communities. All rights reserved.

Planning Parameters – Re Order Point Summit Nashville 2017 9/12/2018 1:44 PM Planning Parameters – Re Order Point Reorder Point Reorder Quantity Maximum Inventory Overflow Level Time Bucket Note what happens to parameters that are set and Reordering Policy changes. Reorder Point - represents demand during lead time. When projected inventory is at or below this point a create an order proposal. Reorder Quantity - optimal results, you should set up this field so that the reorder point is higher than safety stock and smaller than the reorder quantity Maximum Inventory - The program uses the maximum inventory minus the safety stock quantity to calculate order proposal quantities Overflow Level - Specifies a quantity by which you allow projected inventory to exceed the reorder point before the system suggests to decrease existing supply orders Time Bucket – Used to group requirement together when not using Lot-for-Lot © 2017 Dynamic Communities. All rights reserved.

Planning Parameters – Order Modifiers Summit Nashville 2017 9/12/2018 1:44 PM Planning Parameters – Order Modifiers Minimum Order Quantity Maximum Order Quantity Order Multiple Note what happens to parameters that are set and Reordering Policy changes. © 2017 Dynamic Communities. All rights reserved.

Stockkeeping Units (SKUs) Summit Nashville 2017 9/12/2018 1:44 PM Stockkeeping Units (SKUs) These are item/location specific planning parameters Values from Item Card are copied when SKUs are setup Values can be independently managed moving forward © 2017 Dynamic Communities. All rights reserved.

SKUs - Continued Replenishment System includes Transfer Summit Nashville 2017 9/12/2018 1:44 PM SKUs - Continued Replenishment System includes Transfer Transfer-from Code © 2017 Dynamic Communities. All rights reserved.

Planning Tools

Worksheets Planning Worksheet Requisition Worksheet Summit Nashville 2017 9/12/2018 1:44 PM Worksheets Planning Worksheet Requisition Worksheet © 2017 Dynamic Communities. All rights reserved.

Planning Worksheet What does it do? Calculates MRP and MPS Summit Nashville 2017 9/12/2018 1:44 PM Planning Worksheet What does it do? Calculates MRP and MPS Regenerative Net Change Retrieve Action Messages Carry Out Action Messages © 2017 Dynamic Communities. All rights reserved.

Requisition Worksheet Summit Nashville 2017 9/12/2018 1:44 PM Requisition Worksheet What does it do? Calculates Plan Purchase or Transfer Create Drop Shipment POs Create Special Order POs © 2017 Dynamic Communities. All rights reserved.

Planning or Requisition Worksheet? Summit Nashville 2017 9/12/2018 1:44 PM Planning or Requisition Worksheet? Which one should I use? © 2017 Dynamic Communities. All rights reserved.

Session Wrap-Up

Key Take Aways Item Setup SKU Setup Worksheets Master Data Management and Control is critical

Suggested Resources Run MPS & MRP Setting Up Reordering Policies https://msdn.microsoft.com/en-us/library/hh173804(v=nav.90).aspx Setting Up Reordering Policies https://msdn.microsoft.com/en-us/library/hh879478(v=nav.90).aspx

Thank You Andrew Good, P.Eng., MCT, DCP President & CEO Twitter: @agood Liberty Grove Software email: agood@libertygrove.com Toronto Chapter Please complete the surveys #CollaborateCanada