Manufacturing Planning

koalado · 2006-04-06

Practical Manufacturing Planning Experience Hunting:

Dear all:
Our Navision have been running for a period but planner are not happy with the MPS & MRP function. Several question as below:
1. Any practical suggestion on the usage of the combination of modifiers such as Reordering Policy, Safety Stock Quantity, Reorder Point, Reorder Quantity, maximum Inventory and etc?
2. How often is good for the planner to run MPS?
3. How often is good for the planner to run MRP? Since several important materials' lead time is quite long, so ...
Some example is greatly appreciated. Thanks a lot.

johnson_alonso · 2006-04-06

I will try to answer your questions as follows:
1. Using the combination of what you said is basically based on manufacturing (mfg) policy you will use. the available is make to order (MTO) & make to stock (MTS), but you can use mulit-level manufacturing MTO & MTS.
Then you will have to use the other parameters depend on the mfg set up.
Make to order uses reordering policy lot for lot and order, MTS uses fixed reorder quantity and maximum quantity. Reorder point used to identify the stock level and relates to reorder qty and maximum inventory.
You should choose the item's replenishment system first before above all, to produce or purchase. If you don't use SKU, you must fill the components at location field in the manufacturing set up. If you don't, all planning parameter except lot for lot and order will not work good.
2. MPS generates only rough schedulling, and you must use fine schedulling using production schedule
3. MRP will generates purchase requisition based on BOM, WIP, Open PO and Inventory. Don't be afraid either there is a long lead time or not.
4. examples:
a. Maximum Inventory (MTS)
item A = parent item (production order) consists of item B = 1 pcs and item C = 1 pcs
manufacturing policy = Make-To-Stock
inventory = 100 pcs
Maximum Inventory = 500 pcs
Reorder point = 500 pcs
reoder cycle = 1W
LEad time = 2D

item B & C = purchase item
manufacturing policy = Make-To-Stock
inventory = 200 pcs
Maximum Inventory = 500 pcs
Reorder point = 500 pcs
reoder cycle = 3D
LEad time = 2D

b. Fixed reorder qty (MTS)
item A = parent item (production order) consists of item B = 1 pcs and item C = 1 pcs
manufacturing policy = Make-To-Stock
inventory = 100 pcs
Reorder Qty = 500 pcs
Reorder point = 500 pcs
reoder cycle = 1W
LEad time = 2D

item B & C = purchase item
manufacturing policy = Make-To-Stock
inventory = 200 pcs
Reorder Qty = 500 pcs
Reorder point = 500 pcs
reoder cycle = 3D
LEad time = 2D

I use planning worksheet (to calculate MPS & MRP), the results areas follows:
case a. :
order proposal for Item A : 350 pcs
order proposal for item B : 150 pcs
order proposal for item C : 150 pcs
case b :
order proposal for Item A : 350 pcs
order proposal for item B : 150 pcs
order proposal for item C : 150 pcs

rgds,

SV · 2006-04-06

Hi,

You need not run the MPS and MRP tools all the time. You should use the planning tools available in Navision based on the industry and requirements of the organization.

You can ask them to use the Sales Order Planning, Order Planning and the Planning worksheet. Even within the planning worksheet, you can use the various options of get action message on a daily basis, net change plan less frequently and the regenerative plan every fortnight or a month.

SV

johnson_alonso · 2006-04-07

my additional explanation is about the planning parameter that is lying in the replenishment tab and planning tabs...

rgds,

Manufacturing Planning

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