OPM Planning Setup Training Application:
OPM MPS and P/MRP
Process:
Planning Setup
Objectives:
1. Setup Shop Day. (Pages 1 & 2) 2. Setup Shop Calendar. (Pages 3 – 5) 3. Setup Schedule. (Pages 5 – 7) 4. Plant/Warehouse Relationships (Steps 7 -
Prerequisites:
1. Define Inventory Items.
OPM Planning Setup Overview OPM supports Material Requirements Planning (MRP) and Master Production Scheduling (MPS). MRP provides the user with long-term "views" of material demands and projected supply actions to satisfy those demands. MPS provides a shortened view, to a much narrower and immediate time horizon. MPS shows the user the immediate effects of demand and supply actions. This document provides information pertaining to the setup of the MPS and P/MRP applications within OPM. Shop Day The first setup step that is required for OPM planning is to define a shop day. A shop day is a type of workday. It can be a regular workday or can be variations of workdays, such as a weekend workday. Users can define as many types of workdays as required. For each workday, users define the beginning and ending time for up to three working shifts. Note: the total number of hours for the day must not exceed 24 hours. Shop days are defined globally in OPM. This means that any shop day defined can be used by any OPM organization. In the OPM Process Planning responsibility: Navigate to:
OPM MRP: Setup: Shop Days
The Shop Days window opens: (See Next Page)
On the Shop Day screen, enter the following information: Shop Day: Description:
Enter a name for the shop day. This field is required. Enter a description, for the particular shop day. This field is required.
In the Time Details area of the screen, define the working shifts for this shop day. Shift: Start:
End:
Enter a name for the shift. This field is required. Enter a start time for the shift. Start and End times are entered, based on a 24-hour clock. For example, 4 AM will be entered as 04:00 and 4 PM is entered as 16:00. The earliest time a user can enter is 00:00:01. Enter an end time for the shift. Start and End times are entered, based on a 24-hour clock. For example, 4 am will be entered as 04:00 and 4 PM is entered as 16:00. The latest time a user can enter is 23:59:59.
Once the information has been entered, save the record.
Shop Calendar Once shop days have been defined, the user defines the Shop Calendar. Planning refers to the shop calendar when calculating the suggested start dates for supply orders. Calendars indicate the dates for which manufacturing can be scheduled. Users may define as many calendars as required. The user must first define the default workday types (shop days) for each day of the week. Next, the user will “fine tune” the calendar, on the Calendar Detail window. In this window, the user may edit exceptions to the default workdays. The user will also indicate which days are working days, and which days are non-working days. Calendars are globally defined. That is, any organization can use any calendar defined. In the OPM Process Planning responsibility: Navigate to:
MRP: Setup: Shop Calendar
The Shop Calendar window opens:
On the Shop Calendar screen, enter the following information: Calendar: Description: Active: Sunday - Saturday:
Enter a unique identifier for the calendar. This field is required. Enter a description for the calendar. This field is required. This box indicates if the calendar is an active calendar. The default is to have a check in this box. This field is required. Enter or select a shop day as the default for this calendar. Once the shop day is entered, the description for that shop day will appear. Default shop days should be entered for any day requiring a default. If no default is required, the field can be left blank. For example, if Saturday and Sunday are non-working days, they can be left blank.
Once the data has been entered on this screen, save the record. Next, click on the Details screen to
“Fine tune” the particular shop calendar. The first time a user accesses the Details Window, the calendar range must be entered. The calendar range is the start and the end date for the particular calendar. This range can be modified, if required. Click OK to save the calendar ranges.
.
The Calendar Details window will then display.
The user will navigate through the months in the calendar and change any values that should not use the defaults. A check mark indicates that the particular day is a workday. If the day should not be a workday, click on the day, to remove the check mark. The user can change the shop day type by clicking on the particular day, then entering another shop day, in the Shop Day field. Schedule After defining shop calendars, the user defines schedules. Schedules are used to define the parameters to drive planning. Schedules determine the horizon for which planning will consider material activity. The schedule will link a shop calendar to a specific OPM organization (plant), for planning. Schedules are specific to OPM organizations. In the OPM Process Planning responsibility: Navigate to:
MRP: Setup: Schedule
The Schedule window opens. The Schedule window has two associated tabs, for data entry:
On the Schedule screen, enter the following information: Organization: Schedule: Schedule Description:
Enter the OPM organization for the particular schedule. This field is required. Enter a schedule identifier. This field is required. Enter a description for the particular schedule. This field is required.
Navigate to the Indicators Tab and enter the following information: Make to Stock:
Make to Order:
Unreleased Blanket Order:
Blanket Order Suggestion:
Active Indicator: Organization: Calendar: Inner Time Fence:
Outer Time Fence:
Indicate if a sales forecast should be included or excluded. The default is to include sales orders. Select “Exclude Forecasts”, if forecasts should not be included by MRP, as a demand source. This field is required. Either the “Make to Stock” or the “Make to Order” field should be entered, so that MRP has a demand source. Indicate if sales orders should be included or excluded. The default is to include sales orders. Select “Exclude Sales Orders”, if sales orders should not be included by MRP as a demand source. If the schedule is defined to exclude Sales Orders, MRP will not consider these in planning, but MPS will still look at sales orders and consume them into the forecast. This field is required. Enter a description for the particular schedule. This flag controls if MRP should consider items on the Blanket Purchase Orders Delivery Schedule as a source of supply when MRP is run. The default is to Exclude Receipts, applies if MRP should not include projected receipts from the BPO, during an MPR run. This field is required. Enter whether or not MRP is able to suggest changes to scheduled BPO release quantities. These suggestions may include action messages to alter BPO delivery quantities, delivery dates, or suggestions to cancel deliveries altogether. The default is to Suggest Changes. This field is required. The “Active Indicator” designates if the schedule should be considered by MRP. The default is that the schedule is active. This field is required. The schedule organization will default into this field. Enter the shop calendars that planning should use. This field is required. Enter a value for the inner time fence, of the planning horizon. The setting of the inner time fence indicates that planning should not suggest any activities before a particular date. This value is entered in days. The inner time fence is the number of days from the MRP run, during which MRP will suggest no supply orders. The default value is 0 days. This field is required. Enter a value for the outer time fence, of the planning horizon. The setting of the outer time fence indicates that planning should not suggest any activities after a particular date. This value is entered in days. The inner time fence is the number of days after the MRP run, during which MRP will suggest no supply orders. The default value is 0 days. This field is required.
Navigate to the Time Tab and enter the following information: Days:
Enter the number of one-day increments, which should be viewed, on the Bucketed Material Report.
Weeks:
Enter the number of weekly increments, which should be viewed, on the Bucketed Material Report. Months: Enter the number of monthly increments, which should be viewed, on the Bucketed Material Report. Quarters: Enter the number of quarterly increments, which should be viewed, on the Bucketed Material Report. Once the data is entered, save the record. Plant – Warehouse Relationships The first setup step that is required for OPM planning is to define a shop day. A shop day is a type of workday. It can be a regular workday or can be variations of workdays, such as a weekend workday. Users can define as many types of workdays as required. For each workday, users define the beginning and ending time for up to three working shifts. Note: The total number of hours for the day must not exceed 24 hours. Shop days are defined globally in OPM. This means that any shop day defined can be used by any OPM organization. In the OPM Process Planning responsibility: Navigate to:
MPS: Setup: Plant - Warehouse
The Plant - Warehouse window opens: (See Next Page)
OPM Planning Rules Entry Training Application:
OPM Planning
Process:
Entering Reorder Rules
Objectives:
1. Create Warehouse Rules 2. Create Production Rules 3. Create Warehouse Transfer Rules
Prerequisites:
1. Define Inventory Items 2. Define OPM Organizations (Warehouses)
Planning Rules Overview Users establish reorder and production rules for OPM planning. The reorder rules provide MRP with item specific planning information such as safety stock level, lead times and standard quantity information. OPM uses two types of planning rules: Warehouse Rules and Warehouse Transfer Rules. In addition to the warehouse rules, users must define production rules. These rules provide the system with the manufacturing related information such as manufacturing lead time and standard batch quantities. Warehouse Rules Warehouse rules define information such as safety stock, time fences, and lead times associated with material. Warehouse rules are unique to items, within a given warehouse. A warehouse rule is specific to a warehouse and item combination. The warehouse rule will also indicate if the material is purchased, produced or transferred from another warehouse. In the OPM Process Planning responsibility: Navigate to:
MRP: Setup: Warehouse Rules
The Warehouse Rule window opens: (See Next Page)
At the Warehouse Rules Window enter: Item: Warehouse: Safety Stock: Reorder Point: Days Supply: Sources: Purchasing Rules:
Minimum Quantity:
Maximum
Enter or select the item for this reorder rules. Required. Enter or select a valid warehouse code. If the rule applies to this item in all warehouses, leave this field blank. Required. Enter the level of inventory that covers unexpected changes in supply and/or demand. MRP suggests replenishment to this level when any demand pushes the available quantity below the safety stock quantity. Enter a value in this field if the item should appear the Reorder Point Report. Enter a value to indicate the number of days inventory stocked, in addition to the safety stock quantity. This differs from the safety stock quantity in that it is not fixed and varies based on demand. Select Purchase if MRP should suggest purchasing this item. Select Produce if MRP should suggest manufacturing this item. Select Transfer if MRP should suggest warehouse transfers for this item. This field indicates the type of purchasing rule that MRP should apply. The system provides the following options: Manual Schedule is used for complete manual scheduling. MRP will not suggest purchases for this item but will report shortages; Lot for Lot applies when users wish to schedule replenishment on a lot-for-lot basis; Economic Order is used when MRP should suggest reorders in multiples of the standard quantity. This field works with Purchasing Rules. If this item in the specified warehouse will be purchased lot-for-lot specify the minimum purchase quantity in the primary stocking UOM. If MRP should always suggest purchase orders of a specific quantity, select lot-for-lot and set the minimum quantity equal to the maximum quantity.
Quantity:
Standard Quantity:
Reschedule Period: Fixed Lead Time: Variable Lead Time: Inner Time fence:
Outer Time fence:
This field works with Purchasing Rules. If this item in the specified warehouse will be purchased lot-for-lot, specify the maximum purchase quantity in the primary stocking UOM. This quantity must be equal to or greater than the minimum quantity. This works with the Purchasing Rules. If the reorder rule is set to Economic Order quantity, MRP will suggest reorders in multiples of the standard quantity. If the reorder rule is set to anything other than Economic Order, the system will only use the standard quantity for calculating variable lead time. Enter the number of days from the requirement date during which scheduled purchase orders could be considered for rescheduling. Enter a value for the fixed lead time. This should be the lead time requirement that does not vary because of an increase in order quantity. This value is entered in days. Enter a value for the variable lead time. This lead time changes proportionately, based on the quantity ordered. This value is entered in days. Designate the inner time fence. MRP will make suggestions between the inner and outer time fences. No suggestions will be made prior to the inner time fence. Companies can not typically react quickly to all MRP suggestions. The inner time fence sets this limit. Designate the outer time fence. MRP will make suggestions between the inner and outer time fences. No suggestions will be made after to the outer time fence. Companies can not typically do not want to plan beyond a particular date. The outer time fence sets this limit.
Navigate to the Physical Classes tab and enter the following information: ABC Rank: Count Class:
Count Date:
Enter or select the ABC rank to apply to this item. If an ABC Rank is defined, cycle counting will use value defined specifically to the warehouse. This field is optional. Enter or select a valid count class for this item. A count class refers to an exception status for a group of items (with zero or negative on-hand balances). This classification indicates whether or not these items should be included in cycle counts. This field is not required. Enter the date of the last physical count for the item in this warehouse. Thereafter, the system updates this date when values are entered or posted as physical inventory counts.
Navigate to the Inventory Classes Tab. The Inventory Classes fields will display.
At the Inventory Classes tab and enter the following information: General Ledger: Shipping: Freight:
Enter a General Ledger class for this item. This field has no associated functionality, when defined at the warehouse level. This field is optional. Enter a shipping class for this item. This field has no associated functionality. This field is optional. Enter a freight class for this item. This field has no associated functionality. This field is optional.
Production Rules Production rules provide MRP with information to plan manufactured products. Users define information such as standard batch size, lead times and manufacturing plant in this window. In the OPM Process Planning responsibility: Navigate to:
MRP: Setup: Warehouse Rules
The Production Rule window opens:
On the Production Rules window enter: Item: Organization: Reorder Rule:
Enter or select the item for the production rules. This field is required.. Enter the OPM organization (plant) for which this production rule is defined. This field is required. Indicate MRP should suggest to supply orders for this item/plant combination. The following options are available:
Select Manual Schedule for complete manual scheduling. MRP will not suggest production batches for this item at this plant. MRP will report shortages however. Select Lot for Lot if MRP should suggest production on a lot-for-lot basis. If the maximum quantity specified in the Maximum Quantity field is more than the demand, MRP will suggest a production quantity equal to the demand. Select Economic Order if MRP should suggest batches in multiples of the standard quantity until the net requirement is satisfied.
Quantity Minimum:
Maximum:
Specify the smallest quantity (in the primary stocking unit of measure) of the item that can be produced at this plant. If the minimum quantity is set to "0" (the default), there is no lower limit to the quantity that MRP suggests. Enter the greatest item quantity that MRP can suggest to produce, at this plant (the default is "999999999.99"). If the net requirement is larger than this quantity, MRP will suggest orders using the lot-for-lot rule. Orders will be suggested in multiples of the maximum quantity until demand has been satisfied. This field does not restrict the quantity of the
Standard:
Lead Time Period Reschedule: Fixed Lead Time: Variable Lead Time:
Inner Fence:
Outer fence:
item that can be produced at this plant. Rather, it limits the quantity that MRP may suggest for a specific production order. Enter the standard quantity in the primary unit of measure of the item that is produced in this production plant. If the Reorder Rule flag is set to economic order quantity, MRP will suggest supply orders in multiples of the standard quantity you specify here. If the Reorder Rule flag is set to anything but economic order quantity, MRP will ignore the standard quantity and refer to the minimum and maximum quantities when suggesting supply orders. Enter the number of hours from the requirement date and time during which scheduled batches could be considered for rescheduling. Enter the production lead time, that does not vary based on batch quantity. For example, production requiring setup and cleanup time can have a fixed lead time assigned. This value is entered in hours. Enter the process time which changes as the size of the production batch changes. If production of this item in this plant entails variable lead time, specify the number of hours to be added to the fixed lead time. The default is "0". Enter the number of days from the date and time of the MRP run during which MRP will not suggest planned batches for this item, regardless of stock levels. MRP will make production batch suggestions only for the period between the inner and outer time fences. The default is “0”. This field is optional. Enter the number of days from the date and time of the inner time fence during which MRP will suggest production batches. MPR will make suggestions only for the period between the inner and outer time fences. The field default is 999999999.99 days. This field is optional.
Warehouse Transfer Rules Warehouse transfer rules are used to identify to MRP any transfer relationship between warehouses. Users define the demand (target) and supply (source) warehouses. OPM will transfer stock to replenish shortages, of the specified items. OPM will not allow the transfer of material if the transfer causes inventory in the source warehouse to fall beneath the safety stock level. In the OPM Process Planning responsibility: Navigate to:
MRP: Setup: Transfer Rule
The Transfer Rule window opens:
On the Warehouse Transfer Rules window enter: Source Warehouse: Enter the code for the individual source warehouse from which OPM should transfer specific items. To indicate all warehouses leave the field blank. This field is required. Target Warehouse: Enter the code for the individual destination warehouse to which OPM will transfer specific items. To indicate all warehouses leave the field blank. This field is required. Item: Enter the individual item for which the rule is defined. If the field is left blank, the rule will apply to all items. This field is required. Reorder Rule: Enter how MRP should suggest transfers for this item/source warehouse/destination warehouse combination. There are three options: 1. Select Manual Schedule for complete manual scheduling. MRP will not suggest transfers for the item between these warehouses. 2. Select Lot-for -Lot if MRP should suggest transfers on a lot-forlot basis. If the maximum quantity specified on this screen is more than the demand, MRP suggests a transfer quantity equal to the demand. 3. Select Economic Order Quantity if MRP should suggest transfers in multiples of the standard quantity, until the net requirement is satisfied. Preference: Enter for each item/source warehouse/destination warehouse combination, the preference in the event that one or more of these sets of rules is impossible to satisfy. The system always tries to use the default preference rules, but proceeds through preference two, then three, and so on until it can perform the transfer based on the specified rules. Transfer Type: Enter the value indicating the type of warehouse transfer to be used. There are three available options. 1.
Select Full Quantity to transfer the whole order quantity from the
2.
3.
Time Periods (Days) Fixed Lead Time: Variable Lead Time:
Inner Fence:
Outer Fence:
Transfer Quantities Minimum:
Maximum:
Standard:
available stock in the selected warehouse, in accordance with the established warehouse transfer rules and the established preferences. Select Full Quantity-Force to have MRP transfer the whole required quantity regardless of whether it is available at the source warehouse. If this creates a net requirement at the source warehouse, MRP will suggest replenishing the source warehouse based on it’s warehouse rules. Select Partial Quantity to have MRP transfer part of the required quantity if the whole quantity is not available at the source warehouse, in accordance with established warehouse transfer rules and established preferences.
Enter the time requirement that does not vary due to an increase in transfer quantity. The lead time is in number of daysThe default is zero (0) days If the transfer quantity is different from the standard quantity, you may incur variable lead time. Variable lead times are those that change as the transfer quantity changes. If transfer of this item in this plant entails variable lead time, specify the number of days to be added to the fixed lead time. The default is zero (0) days. Enter the number of days from the date and time of the MRP run during which MRP will suggest no transfers for this item, regardless of stock levels. MRP will make transfer suggestions only for the period between the inner and outer timefences. The field default value is zero(0) days. Enter the number of days from the date and time of the inner transfer timefence during which MRP will suggest transfers for this item. MRP will make suggestions only for the period between the inner and outer timefences. The field default value is 999999999.99 days. Enter the smallest quantity (in the stocking unit of measure) of the item that can be transferred between the designated warehouses. If net requirements are below the minimum quantity, MRP will suggest a transfer of the minimum quantity. The lowest limit to the quantity that MRP suggests is zero (0) which is the default. Enter the greatest item quantity that MRP can suggest to be transferred between the designated warehouses. If the net requirement is larger than this quantity, MRP will suggest transfers using the lot-for-lot rule. Transfers will be suggested in multiples of the maximum quantity until demand has been satisfied. The default quantity value of this field is 999999999.99. This field does not restrict the quantity of the item that can be transferred between these warehouses. Rather, it limits the quantity that MRP may suggest for a specific, individual transfer. Enter the standard quantity, in the primary unit of measure, of the item that may be transferred between these warehouses. If the Reorder Rule flag is set to economic order quantity, MRP will suggest transfers in multiples of the standard quantity you specify here. If the Reorder Rule flag is set to anything but economic order quantity, MRP will ignore the
standard quantity and refer to the minimum and maximum quantities when suggesting transfers.
