1. MF14 - How to look like an MRP guru
Ken Sebahar, Solution Systems, Inc.
Mark Heick, Solution Systems, Inc.

2. Notes to the Presenter
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3. Notes to the Presenter
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4. Quick Best Practices Frame your presentation by answering:
What do you want your audience to learn?
What do you want your audience to do differently?
What result or outcomes do you want your audience to realize?
Clarify your session objectives up front.
Use more pictures, far less words (7 words on a slide is wonderful).
Alternate communication methods, e.g., polls or videos, to increase attention and interaction.

5. Quick best practices Plan and follow a rough agenda, e.g.:
5 minutes – opening, objectives, intros
5 minutes – share story
10 minutes – slides
20 minutes – demo
20 minutes – Q&A

6. Slide templates follow

7. Your presenters 15 Years of NAV Experience!
Ken Sebahar
President
Solution Systems, Inc.
Mark Heick
Implementation Director
Solution Systems, Inc.

8. Session Preview
My Planning Worksheet is a mess! What are all of these action messages?

9. Session Preview
I want it to look like this:

10. Session objectives
Identify the central concepts of the Planning Engine
Review how the Reordering Policies and Planning parameters impact planning
How to use the Planning Worksheet to automate planning suggestions and decisions
How changes to supply and demand impact the Planning Engine suggestions

11. Session objectives
The focus is on MRP (Material Requirements Planning), or the purchase and production of components required to complete the MPS (Master Production Schedule).
This session assumes that the top-level Item planning has been completed.
General planning topics that relate to MPS may still be covered.

12. Session objectives
But this is a user group event! So what questions do you have and what MRP topics would you like us to cover today?
Page Numbers referenced on slides refer to the NAV 2013 Supply Planning Technical White Paper

13. HEADer TExt: Size 30pt Main Topic 1: Size 28pt Main Topic 2: Size 28pt
Subtopic: Size 24 pt
Main Topic 2: Size 28pt
Main Topic 3: Size 28pt

14. Central concepts of the NAV planning system

15. Central concepts of planning
NAV balances Supply-Demand per Location Code
Items – contain replenishment/reordering parameters
Stockkeeping Units – Required when:
More than 1 Location Code
Variants are used
Bins not considered

16. Central concepts of planning
Planning behavior changes based on the setting and use of the Location Code field (blank):
Checkmark in “Location Mandatory”?
Does a SKU record exist?
What is “Components at Location” set to?
Page 56

17. Central concepts of planning
Planning functionality is contained in the “Calculate Plan” Batch Job
Planning Assignment Table – tracks changes to supply- demand per Item/Location
Calculate Net Change Plan – re-plans Items with changes to supply-demand (Planning Assignment)
Calculate Regenerative Plan – re-plans all Items
Page 55

18. Central concepts of planning
The Planning Worksheet is the user interface to running the Calculate Plan function and working with Action Messages (Suggestions)
Types of Order Suggestions: Purchase Order, Production Order, Assembly Order, Transfer Order
Types of Actions: New, Change Qty., Reschedule, Resched. & Change Qty., Cancel

19. Central concepts of planning
Planning Starting Date
All supply and demand before the Starting Date of the planning period will be considered a part of inventory or shipped (or already executed).
Pages 6, 27

20. Central concepts of planning
Planning Starting Date Exceptions
Projected Available Inventory in frozen zone is below zero
“Emergency” order – get Avail. Inv. To zero on Planning Starting Date
Serial/Lot Nos. required on the back-dated Orders
Supply-demand set is linked via order-to-order policy

21. Central concepts of planning
Order-to-Order Link Types:
Reordering Policy = Order
Manufacturing Policy = Make-to-Order
Assembly Policy = Assemble-to-Order
Sales Order Planning feature used to create Prod. Orders
Page 12

22. Central concepts of planning
Impact of Reservations on the Planning System
Reserved Quantities are included in the Projected Inventory Profile (determine if Reorder Point has been met)
The reserved demand-supply set is excluded from calculations (the supply is reserved and so cannot be re-assigned to other demand)

23. Central concepts of planning
Dynamic Order Tracking (Pegging) Real-time search and link of a supply source to a new demand Link to supply plan from sales order is visible in a view-only “Order Tracking” window
Page 6

24. Central concepts of planning
Dynamic Order Tracking (DOT) vs. Planning DOT is done “on the fly” with “first come-first serve” basis. Planning system considers all planning factors. Planning system deletes all DOT links and re- builds them based on Planning logic

25. Central concepts of planning
Sequencing and Prioritization The planning system in Microsoft Dynamics NAV is demand-driven. Plan low-level Locations first (remote whse) Planning is done using Low Level Code (top down)

26. Central concepts of planning
Production Forecasts & Blanket Orders
The blanket order is a customer-specific forecast on top of the unspecified forecast as illustrated below.

27. Central concepts of planning
Transfer Orders
Special case for Planning because a Transfer order represents both supply and demand. Demand is not known until the Supply side has been processed. Transfer Level Code used to drive order of demand through the transfer process.
Page 60

28. Central concepts of planning
Routing Link Codes
Assigned to BOM Lines and Routing Lines to link the component demand to a specific operation, allowing “Due Dates” to be set based on the actual operation Start/End Dates instead of the Production Order Start/End Dates

29. Central concepts of planning
Capacity-constrained Resource
Setup table in NAV to instruct NAV that an infinite capacity does not exist at a Work Center. (Infinite capacity is assumed) Planning will automatically push out production activities when no capacity is available at a required Work Center.

30. Reordering policies and planning parameters

31. Reordering policies and planning parameters
Fixed Reorder Quantity
Maximum Quantity
Order
Lot-for-Lot
Page 45

32. Reordering policies and planning parameters
Fixed Reorder Quantity and Maximum Quantity Planning Parameters
Reorder Point
Reorder Quantity
Order Minimum, Maximum, Multiple
Time Bucket
Overflow Level
Page 37

33. Reordering policies and planning parameters
Replenishment Systems
Purchase Order
Production Order
Assembly Order
Transfer Order
Job

34. Reordering policies and planning parameters
Dampeners – minimize planning messages
Dampener Period – i.e. 3D
Dampener Quantity – i.e. 10

35. Reordering policies and planning parameters
Safety Fields – add buffers
Safety Lead Time
Safety Stock Quantity

36. Reordering policies and planning parameters
Lot-for-Lot Parameters
Include Inventory
Lot Accumulation Period
Rescheduling Period

37. Reordering policies and planning parameters
Order Promising
If the “Critical” field is not checked on a component Item, the component Item will be disregarding when running the “Order-to-Promise” function.
Examples of non-critical Items: screws, nails, shop supplies, packaging materials, other Item that can be acquired quickly.

38. Using the planning worksheet

39. Using the planning worksheet
Key functions and features:
Calculate Plan – Net/Regenerative
Warning Messages – multiple types of messages
Fact Boxes – quick visibility to Item details
Item Availability Tools – multiple views available
Carry Out Action Messages

40. Session RECAP
So how did we get the RED Location Planning Worksheet to look like this:

41. Session demo recap Changes to get to RED Planning Worksheet
Set Reordering Policy to be appropriate per Item
Modified (Increased) Reorder Quantity/Max. Quantity
Modified (Increased) Time Buckets/Lot Accum. Periods
Eliminated Safety Stock requirements for some Items
Set Dampeners to reduce nuisance messages
Re-set Demand/Due Dates to be realistic

42. How changes to supply and demand impact the Planning system

43. Changes to supply and demand
Dates and the impact on the planning system
Demand (Due) Date moves in
Demand (Due) Date moves out
Supply (Due) Date moves in
Supply (Due) Date moves out
Impact of Changes on NAV Planning.xls

44. Changes to supply and demand
Quantities and the impact on the planning system
Demand Quantity increases
Demand Quantity decreases
Supply Quantity increases
Supply Quantity decreases
Impact of Changes on NAV Planning.xls

45. Changes to supply and demand
Item Setups and the impact on the planning system
BOM Changes
Routing Changes
Item Reorder Policy & Planning Parameter changes

46. Implementation recommendations
Use a “Training Company” to complete training and what-if scenarios.
Use multiple Locations and SKUs to test various types of Planning parameters (Red vs. Pink)
Start small – only a few Items, one type of Items, one category of Items, etc.
Monitor Planning parameters – continuous effort

47. Bar Chart

48. Thank you
Contact information
Ken Sebahar, Solution Systems –
Mark Heick, Solution Systems –

49. Final reminders
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Have a Great Conference!