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

3. Introductory Slide Andrew Good, P.Eng., DCP, MCT President & CEO
Liberty Grove Software
Toronto Chapter
LinkedIn:

4. 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

5. 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?

6. What are MPS & MRP?

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

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

10. What Master Data Affects Replenishment?

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

12. How do I – Setup my Items?

13. Items
Replenishment Systems
Purchase
Prod. Order
Lead Time Calculation

14. 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.

15. 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.

16. Items – Reordering Policy
Summit Nashville 2017
9/12/2018 1:44 PM
Items – Reordering Policy
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Fixed Reorder Qty.
Maximum Qty.
Order
Lot-for-Lot
© 2017 Dynamic Communities. All rights reserved.

17. Items – Order Tracking Policy
Summit Nashville 2017
9/12/2018 1:44 PM
Items – Order Tracking Policy
None
Tracking Only
Tracking and Action Msg.
© 2017 Dynamic Communities. All rights reserved.

18. Setup Planning Parameters & Order Modifiers

19. 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.

20. 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.

21. 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.

22. 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.

23. 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.

25. 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.

26. 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.

27. Planning Tools

28. 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.

29. 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.

30. 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.

31. 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.

32. Session Wrap-Up

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

34. Suggested Resources Run MPS & MRP Setting Up Reordering Policies
Setting Up Reordering Policies

35. Thank You Andrew Good, P.Eng., MCT, DCP
President & CEO
Liberty Grove Software
Toronto Chapter
Please complete the surveys
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