Mrp.manual

(1)

Epicor ERP

Material Requirements Planning

Course

10.0.700.2

(2)

(3)

Disclaimer

This document is for informational purposes only and

This document is for informational purposes only and is subject to change without notice. This document and is subject to change without notice. This document and itsits contents, including the viewpoints, dates and functional content expressed herein are believed to be accurate as of i contents, including the viewpoints, dates and functional content expressed herein are believed to be accurate as of i tsts date of publication. However, Epicor Software Corporation makes no guarantee, representations or warranties with date of publication. However, Epicor Software Corporation makes no guarantee, representations or warranties with regard to the enclosed information and specifically di

regard to the enclosed information and specifically di sclaims any applicable implied warranties, such as fitness for sclaims any applicable implied warranties, such as fitness for aa particular purpose, merchantability, satisfactory quality or reasonable skill and

particular purpose, merchantability, satisfactory quality or reasonable skill and care. As each user of Epicare. As each user of Epicor software iscor software is likely to be unique in

likely to be unique in their requirements in the use of such software and their business processes, users of this documenttheir requirements in the use of such software and their business processes, users of this document are always advised to discuss the content of this document with their Epicor account manager. All information contai are always advised to discuss the content of this document with their Epicor account manager. All information contai nedned herein is subject to change without notice and

herein is subject to change without notice and changes to this document since printing and other important informationchanges to this document since printing and other important information about the software product are made or published in

about the software product are made or published in release notes, and you are urged to obtain release notes, and you are urged to obtain the current releasethe current release notes for the software product. We welcome user comments and reserve the right to revise this

notes for the software product. We welcome user comments and reserve the right to revise this publication and/orpublication and/or make improvements or changes to the products or

make improvements or changes to the products or programs described in this publication programs described in this publication at any time, without notice.at any time, without notice. The usage of any Epicor software shall

The usage of any Epicor software shall be pursuant to an Epicor end user be pursuant to an Epicor end user license agreement and the performance oflicense agreement and the performance of any consulting services by Epicor

any consulting services by Epicor personnel shall be pursuant to personnel shall be pursuant to Epicor's standard services terms and conditions. UsageEpicor's standard services terms and conditions. Usage of the solution(s) described in this document with other Epicor software or third party products may require the purchase of the solution(s) described in this document with other Epicor software or third party products may require the purchase of licenses for such other products. Where any software is expressed to be

of licenses for such other products. Where any software is expressed to be compliant with local laws or requirementscompliant with local laws or requirements in this document, such compliance is not a

in this document, such compliance is not a warranty and is based solely on Epicor's current understanding of such warranty and is based solely on Epicor's current understanding of such lawslaws and requirements. All laws and requirements are subject to varying interpretations as well as to change and accordingly and requirements. All laws and requirements are subject to varying interpretations as well as to change and accordingly Epicor cannot guarantee that the software will be compliant and

Epicor cannot guarantee that the software will be compliant and up to date with such changes. All up to date with such changes. All statements ofstatements of platform and product compatibility in this document shall be considered

platform and product compatibility in this document shall be considered individually in relation to the products referredindividually in relation to the products referred to in the relevant statement, i.e., where any Epicor software is stated to

to in the relevant statement, i.e., where any Epicor software is stated to be compatible with one product and alsobe compatible with one product and also stated to be compatible with another product, it should

stated to be compatible with another product, it should not be interpreted that such Epicor software is compatiblenot be interpreted that such Epicor software is compatible with both of the products running at

with both of the products running at the same time on the same platform or environment. Additionally the same time on the same platform or environment. Additionally platform orplatform or product compatibility may require the application of Epi

product compatibility may require the application of Epi cor or third-party updates, patches and/or service packs andcor or third-party updates, patches and/or service packs and Epicor has no responsibility for compatibility

Epicor has no responsibility for compatibility issues which may be caused by updates, patches and/or service packsissues which may be caused by updates, patches and/or service packs released by third parties after the date of publ

released by third parties after the date of publ ication of this document. Epicorication of this document. Epicor®®_{is a registered trademark and/or}_{is a registered trademark and/or}

trademark of Epicor Software Corporation in the United States, certain other countries and/or the EU.

trademark of Epicor Software Corporation in the United States, certain other countries and/or the EU. All otherAll other trademarks mentioned are the property of their respective owners. Copyright

All rights reserved. No part of this publication may be reproduced in any publication may be reproduced in any form without the prior written consent ofform without the prior written consent of Epicor Software Corporation.

Epicor Software Corporation.

ED816905 ED816905 90521-10-9263-58310702 90521-10-9263-58310702 10.0.700.2 10.0.700.2

Revision: July 25, 2014 2:29 a.m. Revision: July 25, 2014 2:29 a.m. Total pages: 68

Total pages: 68 course.ditaval course.ditaval

(4)

Material

Material Requirements

Requirements Planning

Planning Course...

Course...

...

...5

Before

Before You

You Begin...

Begin...

...

...6

..6

Audi

Audienceence...6..6 Prere

Prerequisiquisites...tes...6..6 Environment

Environment Setup...Setup...7...7 Workshop

Workshop Constraints...Constraints...7.7

Material

Material Requirements

Requirements Planning

Planning Overview...

Overview...

...

...8

....8

MRP

MRP Features...Features...9...9 MRP

MRP Flow...Flow...12...12 Related

Related MRP MRP Processes...Processes...16...16

Application

Application Setup...

Setup...

...

...17

17

Company

Company Configuration...Configuration...17.17 MRP

MRP Sheet...Sheet...17...17 Job

Job Sheet...Sheet...18...18 Site

Site Maintenance...Maintenance...18...18 Workshop

Workshop - - Modify Modify a a Site Site Record...Record...19...19

Daily

Daily MRP

MRP Processing...

Processing...

...

...21

Material

Material Requirement Requirement Planning Planning Parts Parts Setup...Setup...21...21 Workshop

Workshop - - Duplicate Duplicate Existing Existing Parts...Parts...21...21 Workshop -

Workshop - Select Select the MRP the MRP Process and Process and Approve Approve Revisions...Revisions...22.22 Manufacturing

Manufacturing Lead Lead Time Time Calculation...Calculation...22...22 Workshop

Workshop - - Calculate Calculate Manufacturing Manufacturing Lead Lead Times...Times...24...24 Workshop

Workshop - - Review Review and and Modify Modify a a Part Part Record...Record...25...25 Forecast

Forecast Entry...Entry...26...26 Workshop

Workshop - - Enter Enter a a Sales Sales Forecast...Forecast...26...26 Sales

Sales Order...Order...27...27 Workshop -

Workshop - Enter a Enter a Sales Sales Order for Order for a a Non-Stock Part...Non-Stock Part...27...27 Evaluate

Evaluate the the MRP100-NS-XXX MRP100-NS-XXX Part...Part...27...27 Enter

Enter a a Sales Sales Order...Order...28...28 Workshop -

Workshop - Enter a Enter a Sales OSales Order for rder for a a Stock Part...Stock Part...29...29 Evaluate

Evaluate the the MRP100-LT-XXX MRP100-LT-XXX Part...Part...29...29 Enter

Workshop - Enter Enter a a Sales Sales Order Order for Multiple for Multiple Releases...Releases...31...31 Evaluate

Evaluate the the MRP100-SD-XXX MRP100-SD-XXX Part...Part...31...31 Enter

Workshop - Enter a Enter a Sales Order Sales Order for the for the DSS-1000-XXX Part...DSS-1000-XXX Part...33...33 Evaluate

Evaluate the the DSS-1000-XXX DSS-1000-XXX Part...Part...33...33 Enter

Workshop - Enter a Enter a Part Without Part Without a Method a Method of Manufacture...of Manufacture...35...35 Workshop - Enter a

Workshop - Enter a Sales Order for Sales Order for a Part Without a a Part Without a Method of Manufacture...Method of Manufacture...36...36 Contents Contents Material Requirements Planning Course

(5)

Workshop - Enter a Sales Order for the Plan as Assembly Part...37

Master Production Schedule Entry...38

Workshop - Enter a Master Production Schedule...38

Workshop - Convert a Sales Forecast to the Master Production Schedule...39

Process MRP...40

Workshop - Run Process MRP...41

Planning Workbench...43

Workshop - Create a Job...44

MRP Results Evaluation...45

Job Status Maintenance...45

Workshop - View the Job Status...46

Available To Promise...46

Workshop - Check The Part Availability...47

Time Phase Inquiry...49

Workshop - Review Time-Phased Material Requirements...49

Job Status Report...50

Priority Dispatch Report...50

Specialized MRP Processing...51

Process MRP Recalculation Needed...51

Workshop - Enter a Sales Order...52

Workshop - Update Recycle Thresholds...52

Workshop - Run Process MRP (Regenerative)...53

Workshop - Evaluate MRP Results...54

Workshop - Run Process MRP (Net Change)...55

Workshop - Run Process MRP Recalc Needed...57

Workshop - Run Process MRP (Net Change)...58

Multi Level Pegging...60

Process Multi Level Pegging...61

Multi Level Pegging Display...61

Workshop - Process and View Multi Level Pegging...62

Select the MRP Process for a Part...62

Run Multi Level Pegging Process...62

Display Multi Level Pegging Results...63

View Pegging for Future Demand...63

MRP Job Management...64

Workshop - Mass Release Unfirm Jobs...64

Co-Part Functionality...64

Conclusion...66

Material Requirements Planning Course Contents

(6)

Material Requirements Planning Course

This course is designed to teach the primary functions of the Material Requirements Planning (MRP) module, including the process flow. In addition to the primary functions, this course reviews related functions such as how to establish forecasts and master production schedules. Use Material Requirements Planning to both estimate potential demand and propose the supply that answers this demand.

This course begins with a review of the MRP system configuration and the part maintenance file setup. The emphasis of this course is on the MRP process - running MRP on a scheduled basis and firming up jobs for production. Processes that relate to MRP (such as purchasing suggestions and cycle counting) are then reviewed along with applicable reports and trackers. Hands-on workshops create the opportunity to see the MRP

functionalities.

Upon successful completion of this course, you will be able to:

• Identify factors that affect material requirements planning. • Determine setup requirements.

• Use different scenarios to process MRP. • Create a forecast for a part.

• Create a master production schedule.

Material Requirements Planning Course Material Requirements Planning Course

(7)

Before You Begin

Read this topic for information you should know in order to successfully complete this course.

Audience

Specific audiences will benefit from this course.

• COO/Operations Manager • Scheduler

• Shipping and Receiving • Production Manager • Purchasing Staff/Buyer

Prerequisites

To complete the workshops in this course, the necessary modules must be licensed and operating i n your training environment. For more information on the modules available, contact your Epicor Customer Account Manager at [email protected]. It is also important you understand the prerequisite knowledge contained i n other valuable courses.

• Navigation Course - This course introduces navigational aspects of the Epicor application's user interface.

Designed for a hands-on environment, general navigation principles and techniques available in two user interface modes - Classic Menu and Modern Shell Menu. Workshops focus on each of these modes and guide you through each navigational principle introduced.

• Manufacturing Foundations Course - The Manufacturing Foundations course introduces you to the principal

building blocks in establishing a strong manufacturing environment. This course discusses the necessary prerequisites involved with efficient production floor configuration.

• Knowledge Camp Course - This course provides a high level overview of the quote to cash flow through

the Epicor application. You begin with how to create a quote, process it as an order, and fill the order across production planning and purchasing. The course also covers the manufacturing plan and shipment of parts to a customer, as well as how to process invoices, enter cash receipts, and generate supplier payments.

• Purchase Management Course - This course focuses on the Purchase Management process. This process

includes the creation and approval of purchase orders (POs) and requisitions, managing suppliers and their price lists, working with purchase order suggestions, and monitoring the purchase order process using related reports and trackers. The advanced functionality in the Supplier Relationship Management and Purchase Contract modules also aids in managing purchase orders.

• Inventory Management Course - This course provides an overview of the entire inventory management

process. Use this module to update and maintain raw materials, work in process (WIP) as well as finished goods inventory quantities and costs.

Material Requirements Planning Course Before You Begin

(8)

Environment Setup

The environment setup steps and potential workshop constraints must be reviewed in order to successfully complete the workshops in this course.

Your Epicor training environment, in which the Epicor demonstration database is found, enables you to experience Epicor functionality in action but does not affect data in your live, production environment.

The following steps must be taken to successfully complete the workshops in this course. 1. Verify the following or ask your system administrator to verify for you:

• Your Epicor training icon (or web address if you are using Epicor Web Access) points to your

Epicor training environment with the Epicor demonstration database installed. Do not complete the course workshops in your live, production environment.

Note It is recommended that multiple Epicor demonstration databases are installed. Contact Support or Systems Consulting for billable assistance.

• The Epicor demonstration database is at the same service pack and patch as the Epicor

application. Epicor's education team updates the Epicor demonstration database for each service pack and patch. If your system administrator upgrades your Epicor application to a new service pack or patch, he or she must also download the corresponding Epicor demonstration database from EPICweb > Support > Epicor > Downloads and install it. If this is not performed, unexpected results can occur when completing the course workshops.

• Your system administrator restored (refreshed) the Epicor demonstration database prior to

starting this course. The Epicor demonstration database comes standard with parts, customers, sales orders, and so on, already defined. If the Epicor demonstration database is shared with multiple users (that is, the database is located on a server and users access the same data, much like your live, production environment) and is not periodically refreshed, unexpected results can occur. For example, if a course workshop requires you to ship a sales order that came standard in the Epicor demonstration database, but a different user already completed this workshop and the Epicor demonstration database was not restored (refreshed), then you will not be able to ship the sales order. Epicor's education team has written the course workshops to minimize situations like this from occurring, but Epicor cannot prevent users from manipulating the data in your installation of the Epicor demonstration database.

2. Log in to the training environment using the credentials manager/manager. If you are logged into your training environment as a different user, from the Options menu, select C hange User.

3. From the Main menu, select the company Epicor Education (EPIC06). 4. From the Main menu, select the Main Site.

Workshop Constraints

The workshops in this course can be performed only once in each instance of a restored (refreshed) database. If a user has already completed these workshops in the database, the database must be restored (refreshed) before another user can complete this course.

Before You Begin Material Requirements Planning Course

(9)

Material Requirements Planning Overview

Use the Material Requirements Planning (MRP) tools to both estimate potential demand and propose the supply that answers this demand.

The MRP tools do this by generating job, purchase, and transfer order suggestions. MRP is designed primarily for companies that manufacture make to stock quantities or for mixed-mode manufacturers that run both custom and stock products. By using MRP, you can anticipate the future demand for your products and ensure materials are in the right place at the right time.

Master Production Schedule

The process starts at the top level with a Master Production Schedule (MPS). This is an amalgam of known demand, forecasts and product to be made for finished stock. The phasing of the demand may reflect the availability of the site to respond. The remainder of the schedule is derived from the MPS. Two key considerations in setting up the MPS are the size of time buckets and the planning horizons. A time bucket is the unit of time on which the schedule is constructed and is typically daily or weekly. The planning horizon is how far to plan forward, and is determined by how far ahead demand is known and by the lead times through the operation. There are three distinct steps in preparing an MRP schedule:

1. exploding 2. netting 3. offsetting Exploding

Explosion uses the Bill of Materials (BOM). This lists how many, of what components, are needed for each item (part, sub assembly, final assembly, finished product) of manufacture. Thus a car requires five wheels includi ng the spare. BOM's are characterised by the number of levels involved, following the structure of assemblies and sub assemblies. The first level is represented by the MPS and is 'exploded' down to final assembly. Thus a given number of finished products is exploded to see how many items are required at the final assembly stage. Netting

The next step is netting, in which any stock on hand is subtracted from the gross requirement determined through explosion, giving the quantity of each i tem needed to manufacture the required finished products.

Offsetting

The final step is offsetting. This determines when manufacturing should start so that the finished items are available when required. To do so a lead time has to be assumed for the operation. This is the anticipated time for manufacturing.

The whole process is repeated for the next level in the BOM and so on until the bottom is reached. These will give the requirements and timings to outside suppliers.

There are three major assumptions made when constructing an MRP schedule:

• The first, and the most important, is that there is sufficient capacity available. For this reason MRP is sometimes

called infinite capacity scheduling.

• The second is that the lead times are known, or can be estimated, in advance.

• The third is that the date the order is required can be used as the starting date from which to develop the

Material Requirements Planning Course Material Requirements Planning Overview

(10)

MRP systems offer a number of potential benefits to manufacturing firms. Some of the main benefits include helping production managers to minimize inventory levels and the associated carrying costs, track material requirements, determine the most economical lot sizes for orders, compute quantities needed as safety stock, allocate production time among various products, and plan for future capacity needs. Production managers, who must balance work loads across departments and make decisions about scheduling work, and site foremen, who are responsible for issuing work orders and maintaining production schedules, also rely heavily on MRP output. Other users include customer service representatives, who must be able to supply customers with projected delivery dates, purchasing managers, and inventory managers.

Business Scenario

Company Epicor USA produces and sells part PAA-200-ML. Part PAA-200-ML is a produced (make) not a purchased (buy) part and it is managed by MRP. It is assumed that the full required component quantities needed to produce part PAA-200-ML are not in stock. It has a lead time of 62 days and a minimum order quantity of 10.

MRP Features

Review this list for information on key features in the Material Requirements Planning (MRP) module. MRP offers several tools:

Available-to-Promise

Use the Available-to-Promise function to view running balances. Enter a quantity and the Epicor application finds the earliest date the quantity becomes available. Enter a date and view the parts available on that specific day. Bill of Material

Material Requirements Planning (MRP) checks the revision level and verifies approvals before pulling in a standard bill of material (BOM) and routing. For parts that do not have a current approved revision, a job suggestion is created in the new/change order queue, reducing the possibility of forgetting a requirement.

Consume Minimum Quantity

Long lead times can cause some purchase order change requests to either never execute or generate excessive purchase order suggestions. You can correct these situations by using the Consume Minimum Quantity calculation. When you activate this calculation, you cause both the MRP and PO Suggestion processes to use another level of lead time calculations. When certain supply conditions are met within the purchase lead time, an additional set of Urgent Planning parameters activate. PO suggestions then use these alternate parameters to calculate their specific quantity, supplier, and lead time values.

Dynamic Days of Supply

Use the Dynamic Days of Supply calculation to more accurately generate material requirements when a new purchase suggestion may not satisfy demand at the correct point in the lead time range of days. When this calculation is active, the MRP engine checks for points when the Net On-Hand Quantity is ei ther below or above the Reorder Quantity. When this situation occurs, the calculation locates the next available supply record and uses the date on this record as the End Date to expand the Days of Supply date range. The demand included in the expanded Days of Supply date range is used to determine the quantity to increase or decrease on the purchase suggestion, job suggestion, or unfirm job.

Material Requirements Planning Overview Material Requirements Planning Course

(11)

Forecast

Enter general part forecasts or specific customer/part forecasts. Material Requirements Planning (MRP) consumes the forecast with actual orders as they are received.

• Manual Forecast Entry - Manually enter forecasts for companies, sites, customers, dates, and parts.

Cut-and-paste from other applications into the forecast application.

• Forecast Export - Historical information can be exported to third-party applications for forecast calculation. • Forecast Import - Import forecasts from other applications or customers. Import options allow forecasts to

be broken down by part, customer, site, date, and company. This i mport can be additive, update the existing forecast, or a complete clear and re-load.

Log File

The Log File contains the Material Requirements Planning (MRP) log information. Use the Log File to see the changes MRP made.

Master Production Schedule

Use the Master Production Schedule (MPS) to enter production forecasts for specific end parts. Perform an iterative process of entering a planned schedule, viewing the effect on your resources, and modifying the plan until you achieve an optimal schedule.

Material Planning

Create purchase order suggestions for inventory and purchased parts needed to complete production. Use lead-times and supplier price breaks to determine when to order the part and at what price.

Material Requirements Planning Technical Reference Guide

The Material Requirements Planning Technical Reference Guide explores how the Material Requirements Planning (MRP) engine calculates job suggestions and purchase suggestions. The guide examines, in detail, the primary components that make up the MRP engine, base calculations that run the engine, and the modifiers used to refine the suggestion results.

MRP Generation

Run Material Requirements Planning (MRP) with either net change or full MRP regeneration options. The MRP generation process balances the demand of customer orders and forecasts with the supply of jobs. As orders and forecasts change, MRP automatically adjusts corresponding jobs so you are in balance.

Multi-Level Pegging

Analyze all the supply and demand in your Epicor application; peg each supply against demand prioritized by due date.

Multi-Site

Run Material Requirements Planning (MRP) for all sites or for individual sites within a company. Changed schedule dates roll down to all subcomponents, even those manufactured in another site.

Part Planning Tools

Account for production preparation, kit, and receipt. Use this time to derive appropriate lead-time for manufacturing the product in addition to cycle times required to produce a product.

(12)

Planning Horizon

Review the planning horizon of a part or resource and do not plan beyond the horizon, preventing premature planning.

Planning Types

Maximize your planning accuracy with multiple types of inventory planning, including minimum/maximum/multiple, days of supply, and run out.

Plan as Assembly

This functionality enables MRP to plan the lower level component manufactured parts in a direct planning relationship to the top level part without those parts actually being included in the assembly structure. This new functionality uses Epicor's multiple-level assembly structure for planning purposes, correctly synchronizing the required demand. The functionality further enables increased flexibility in planning execution by enabling subassembly parts to be manufactured to stock or manufactured on a job directly linked to the parent requirements. This capability minimizes the impact to standard MRP by using the Pull as Assembly (PAA) logic for creating PAA assemblies, using Auto-Consume stock during the scheduling process, and creating a new process to firm up jobs which breaks off PAA assemblies to separate jobs and creates the material demand links.

Start the Minimum Quantity

Enabling MRP to start production of a part without waiting for all the materials needed for the job is the driver behind the Start Minimum Quantity functionality.

Example MRP would like to build a job for 200,000 parts based on a customer order but in this instance only 100,000 are available. However, the customer is willing to take a lower quantity now rather than wait for the full order. This new functionality all ows MRP to cater for that requirement, make the required material plan, and schedule production.

Recycle Jobs

The purpose of this MRP feature is to significantly speed up the MRP process by removing the time spent within the application deleting un-firming jobs at the beginning of a full MRP regeneration. This option makes the MRP process more efficient by reusing un-firm jobs rather than requiring they be deleted and recreated.

Rough Cut Scheduling

This MRP feature is designed to enable MRP to process more efficiently by removing the time spent scheduling beyond a specified threshold or rough cut horizon. The material due dates are derived from the days offset from the requested due date of the job. In order to keep the material due dates accurate, a process has been created that populates the material offset by part and alternate revision.

Short Horizon Days of Supply

To improve Material Requirements Planning (MRP) performance, the Days of Supply field was added to the Part Maintenance > Sites > Planning sheet. This field defines the material value MRP uses when it determines the needed materials fall within the short horizon. The following describes how the Short Horizon Days of Supply value is calculated:

• If the day is <= (less then or equal to) Schedule Start Date + Short Horizon Days, then the Short Horizon Days

of Supply value is used for the materials.

• If the date is > (greater than) Schedule Start Date + Short Horizon Days, then the Standard Days of Supply

value is used.

(13)

Short Horizon Planning

Part Maintenance has the Short Horizon Planning functionality. The Part > Sites > Detail sheet contains the following fields in the Short Horizon Planning section:

• Horizon Days • Min Lot Size • Max Lot Size • Days of Supply

Sourcing by Site

Defines a unique source per part or site, whether its default sourcing is purchased, produced, or transferred. What is produced in one location can be purchased or transferred from another location.

Smart Forecast ®

The Smart Forecast®_{application is fully integrated with the Epicor application.}

MPS Entry - Combine Forecast Quantities

The Copy from Forecast functionality is updated; this functionality is an option on the Actions menu within MPS Entry.

MRP Flow

This section of the course describes the Material Requirement Planning (MRP) process flow as a whole.

Note For more information on the MRP planning tools, review the MRP Technical Reference Guide. This guide contains complete details about how the MRP engine both generates demand and suggests the supply that can answer that demand.

Establish MRP Options

In Company Configuration > Modules > Production > MRP sheet, you establish the number of days before and after the forecast date that the forecast for a date should include sales orders.

Example If the Days After value is 15, the forecast for 11/20/2009 includes all sales orders with a required due date between 11/20/2009 and 12/05/2009.

Determine Demand

In the Epicor application, you can determine the demand for parts in three different ways:

• MPS - Master Production Schedules (MPS) are entered by part in MPS Entry. This functionality is useful when

you know how many parts total you require, by what dates, well ahead of when the orders are placed, or you know which customers might order. Note that MPS is consumed by jobs between it and the next MPS, if one exists. The last MPS is consumed by all jobs after its date.

• Forecasts - Forecasts are entered in Forecast Entry, by part and customer. This functionality is useful when

you know which customers require what parts, by what dates, well ahead of when the orders are entered. Material Requirements Planning Course Material Requirements Planning Overview

(14)

If MPS and Forecast Entry reference the same part, the Forecast Entry for the part is ignored in favor of the MPS Entry.

If one of the entries previously mentioned creates demand for a part and a sales order is entered for the same part, then the sales order consumes the demand from the entry (either Forecast or MPS, whichever is used). Provide Supply

In the Epicor application, you can provide part supplies in three different ways:

• Job Entry - Use Job Entry to enter jobs and specify parts. You can also specify assemblies, materials, related

operations, subcontract requirements, and so on. This functionality is valuable as job demand comes i n, from any order, for any item.

• Inventory Management - Stock is issued to manufacturing as material is needed, according to the job. This

functionality is valuable as job demand includes material from elsewhere in the organization. Inventory can provide supply to a job created for an order, or it can be used to replenish demand for a Forecast or MPS Entry.

• Purchase Order Entry - Items are purchased as needed for jobs. This functionality is valuable as job demand

includes material that must be purchased. For more information, refer to the Purchase Order Entry topic in the Application Help.

Process MRP

Process MRP is the heart of the MRP functionality. This program examines the demand from forecasts, master production schedules, and sales orders to generate both manufacturing and purchasing suggestions. The program then compares this demand with the current supply - which is all the jobs and purchases orders that are not yet complete.

When the supply does not meet the demand, the Epicor application creates jobs, manufacturing suggestions, transfer orders, and purchase order suggestions using the MRP parameters defined within each part record. If the part has an approved method of manufacturing (MOM), Process MRP creates new unfirm jobs and generates manufacturing suggestions for existing jobs. If it cannot find an approved MOM, Process MRP instead creates a job suggestion for the part. It also creates purchase orders and transfer orders which can then be approved or

canceled.

You act on the results of the MRP process through the following programs:

• Job Entry

• Planning Workbench • Buyer Workbench • PO Suggestions

Use Asynchronous Processes for Performance

For optimal performance, Material Requirements Planning (MRP) performs its logic in multiple asynchronous processes. The Number of MRP Processes and Number of Schedulers fields determine the number of processes and schedulers.

If you select the Run Finite Scheduling during MRP Calculation check box, the first scheduler process is always the finite scheduler. The other schedulers are infinite schedulers.

If you select the Recycle MRP Jobs check box, the MRP process will reuse un-firm jobs rather them delete them, and then recreate them as needed. This speeds up the MRP process by removing the time spent within the application deleting un-firming jobs at the beginning of a full MRP regeneration.

(15)

Analyze Results

The Results section describes the records you can create and the programs you can use to view them:

• Unfirm Job– When the Material Requirements Planning (MRP) engine discovers a demand requirement for

a manufactured part with an approved MOM, it generates an unfirm job to satisfy that demand requirement. A MOM defines the assemblies, operations, and materials required to produce a quantity of a manufactured part. Unfirm job records display in Job Entry.

• Job Suggestion– When the MRP engine discovers a demand requirement for a manufactured part that does

not have an approved MOM, it creates a job suggestion. These are job shell records you can turn into a job later. You can view job suggestions in Job Manager.

• Purchase Suggestion– When the MRP engine discovers a demand requirement for a purchased part, it

generates a purchase suggestion. You can turn suggestions into new purchase orders or update existing open purchase orders. Use New PO Suggestions to view suggestions. You can run the Generate PO command from the Actions menu to turn suggestions into open purchase orders. The open purchase orders display in PO Entry. You can update open purchase orders as needed each time you run the MRP engine.

• Transfer Order Suggestion – When the MRP engine discovers a demand requirement for a transfer part,

it generates a transfer order suggestion. You can turn suggestions into new transfer orders or can update existing open transfer orders. View, edit, delete, and accept transfer order suggestions within the Transfer Order Workbench. You can launch this program from Transfer Order Entry using the Actions menu. Review Post-MRP Activity

The MRP Log File is generated. This file lists exactly what was generated by the Material Requirements Planning (MRP) application.

Based on the schedules entered for parts overall (MPS Entry) and specific for customers (Forecast Entry), any job required to satisfy the MRP records must be marked as Firm. The Time-Phased Material Requirements Report displays Master Production Schedule (MPS) and Forecast records.

At the end of the year, you can make good use of the Sales Analysis Report in conjunction with MRP; run the report for the previous year to examine what part activity you can expect in an upcoming year, analyze the report, and base forecasts and master production schedules for the future from that activity.

(16)

(17)

Related MRP Processes

The following are the Material Requirement Planning (MRP) related processes: Purchasing Suggestions

Each time a full regeneration of MRP is processed, it automatically deletes all PO suggestions that have not been acted on and replaces them with new suggestions and actions. Purchase orders can be tagged to be cancelled, expedited, or delayed based on the new dates the MRP run establishes.

Purchase Contracts

Each time MRP is processed, include any purchase contract items in the Generate PO Suggestions process that is done during the MRP run. It is not required to process these items as part of MRP, when the Generate Purchase Schedules process runs, the Epicor application runs the Generate PO Suggestions process for purchase contract items.

Cycle Counting

As indicated in the overview of the MRP module, accurate inventory is required in order for MRP to function properly. Cycle counting is one way to ensure errors are caught on a timely basis.

Methods of Manufacture

How a part is manufactured and what raw materials are required must be accurate to ensure MRP performs accurately.

Job Completion and Closing

Jobs must be completed by manufacturing and closed by accounting. When all the parts on a job are produced and shipped to the customer or received i nto inventory, the job should be completed. This removes unused time on the scheduling board and any unused material requirements.

When a job is complete, the accounting department closes the job after all labor is posted and all outstanding invoices are received.

(18)

Application Setup

There are many factors that affect material requirements planning (MRP) processes. Some factors are entered into Company Configuration or Site Maintenance while others are part of MRP setup programs. The entered data then become defaults that govern how MRP operates.

Company Configuration

Company Configuration defines options for companies in the Epicor application. Use these options to customize the application to best fit each company within your organization.

When you install the Epicor application, one company record is automatically created by default. You can then use this program to define how the company interacts with the various modules you have licensed.

If you use Epicor Express, you only can have one company record within your database. If you use the Epicor application, you can purchase a Multi-Site license to set up multiple companies within this program. To do this, you first create the company within the Epicor Administration Console. You can then display the new company in this program and configure it as you need.

Menu Path

Navigate to this program from the Main Menu:

• System Setup > Company/Site Maintenance > Company Configuration

MRP Sheet

Use the Company Configuration > Modules > Production > MRP sheet to define the options for the Material Requirements Planning (MRP) module.

The following are the key fields: Days After

This field specifies the number of days after the actual forecast date that the forecast should include sales order demand. Along with the Days Before field, this field establishes a range/window around the forecast date in which sales order demand should be included in the overall forecast.

Example If the value in the Days After field is 15, the forecast for November 20, 2009, includes all sales orders whose required due date is between November 20, 2009, and December 5, 2009.

Days Before

This field specifies the number of days before the actual forecast date that the forecast should include sales order demand. Along with the Days After field, this field establishes a range/window around the forecast date in which sales order demand should be included in the overall forecast.

Example If the value in the Days Before field is 15, the forecast for November 20, 2009, includes all sales orders whose required due date is between November 5, 2009, and November 20, 2009.

Application Setup Material Requirements Planning Course

(19)

Firm Job Prefix

Specifies the prefix that replaces the Unfirm Job Prefix when the Firm check box is selected for an unfirm job. If more than one site is already in place for the company, this field is not available. In this case, update the Firm Job Prefix field in Site Maintenance.

Important If the application has a Firm Job Prefix and no Unfirm Job Prefix, errors could be generated when job numbers are typed in. Therefore, if you enter a Firm Job Prefix, Epicor strongly recommends that you enter an Unfirm Job Prefix as well.

Unfirm Job Prefix

This field specifies the prefix added to an MRP run, where the Epicor application uses a range of job sequences that otherwise would be available to firm jobs. If more than one site is already in place for the company, this field is not available. In this case, update the Unfirm Job Prefix field i n Site Maintenance.

Important You cannot manually update Unfirm jobs. Also, Epicor strongly recommends you enter a prefix here. If the Epicor application has a Firm Job Prefix and no Unfirm Job Prefix, errors could be generated when job numbers are entered.

Job Sheet

Use the Company Configuration > Modules > Production > Job sheet to to hold the scheduling option to prevent MRP from scheduling in the past.

The following are the key fields: Allow Scheduling Before Today

Select this check box to indicate you want to allow jobs to be scheduled with start dates prior to the current date. Clear this check box if you want jobs that must start in the past to be forward scheduled using the current date as the start date.

Site Maintenance

Use Site Maintenance to add and update sites available in the current company to define segment security codes.

You enter the primary information for each site through this program. Items you define include planning parameters such as Production Preparation Time, Rough Cut Horizon, and the Production Calendar. You can also define the cost set, which determines the costing method used for the parts manufactured at the site. Lastly, define the transfer order parameters the site follows when fulfilling internal sales orders.

When a company is created in the Epicor application, one site record is created automatically by default. This site record is the default site selected for each part you create within Part Maintenance for the current company. To add more than one site record through this program, you must license the Multi-Site module. You can then set up as many sites as you need for each company within your organization.

You define the primary values for each site within Site Maintenance. Launch Site Configuration Control to set up how each site interacts with other modules. Use this system management program to pull in the site records you create in Site Maintenance. You can then define the module parameters you need for each site record.

Material Requirements Planning Course Application Setup

(20)

Menu Paths

• Financial Management > Multi-Site > Setup > Site Maintenance

• Material Management > Inventory Management > Setup > Site Maintenance • Production Management > Job Management > Setup > Site Maintenance

Workshop - Modify a Site Record

In this workshop, use Site Maintenance to enter planning parameters necessary to complete the Material Requirement Planning course.

Navigate to Site Maintenance.

Menu Path: Production Management > Job Management > Setup > Site Maintenance 1. In the Site sheet, search for and select Main Site.

2. In the Finite Horizon field, enter 30.

This field defines a number of days added to the Schedule Start Date during MRP processing. Any jobs with Start Date values during this date range are scheduled finitely - which means that load is not placed against a resource when it does not have the capacity to handle it. However, any jobs with Start Date values outside this range are scheduled infinitely - which means that load can be placed against a resource above its capacity to handle it.

3. In the Overload Horizon field, enter 7.

This field defines the number of days from the current application date (today) at which resource capacity is calculated against the demand that falls within this date range. A tracker program, the Overload Informer, then displays the capacity used on each resource per each day, indicating when a resource is below capacity (such as 72%), at capacity (100%), and above capacity (such as 117%). Only resources scheduled with infinite capacity display on this tracker. If you do not use this tool, enter a 1 value to load only one day's records into the Shop Load Table.

4. In the Rough Cut Horizon field, enter 60.

This field defines the number of days from the current application date (Today) where the Rough Cut Scheduling calculation will be used to schedule jobs. Any jobs that fall outside of the Rough Cut Horizon date range use the Rough Cut Scheduling calculation to generate the schedule. This formula uses the Need By Dates and Lead Time values on each material and operation to calculate how much time is required for each job to finish its operations and gather its materials. This data, or load, is not recorded against your resources, which reduces the processing time needed to generate the overall schedule. Rough cut scheduling also gives you a general idea of the production plan you may require in the future.

5. In the Auto Firm Horizon field, enter 5.

This field defines the number of days the MRP function will monitor to create firm jobs. If demand is placed within the number of days you enter, the MRP Process creates firm jobs automatically from these demand records.

6. In the Unfirm Series Horizon field, accept the value of 0.

This field defines the number of days from the current application date (today) where the unfirm jobs created by the MRP process generate with a job number that uses the Firm Job Prefix value; indicating these jobs are ready to engineer and schedule. Any jobs generated outside of this date range use the Unfirm Job Prefix value for their numbers.

Application Setup Material Requirements Planning Course

(21)

7. In the Calendar field, search for or verify D5H8 displays.

This field specifies the default Production Calendar ID for this Site. 8. Click Save and exit Site Maintenance.

Material Requirements Planning Course Application Setup

(22)

Daily MRP Processing

This section of the course reviews MRP processing that takes place during a typical work day. The following are the MRP process tasks:

• Sales forecast - project part quantities you need for particular customers. • Sales order - enter sales orders or change demands.

• Master Production Schedule - schedule production quantities and generate demand in advance of orders. • Process MRP - run the MRP process to process entered demand for a number of MRP parts through sales

orders, sales forecast, and master production schedule entries.

• Planning Workbench - create new jobs or change existing jobs based on suggestions from the Epi cor

application.

• MRP results evaluation - Once MRP is complete, the results are evaluated to determine if the results meet

expectations.

Material Requirement Planning Parts Setup

In this section of the course set up all the MRP parts used in this course.

Workshop - Duplicate Existing Parts

For the purpose of the course duplicate the existing MRP database parts rather then create new ones. In this workshop, duplicate a number of MRP parts (manufactured parts) and review their details.

Navigate to Part Maintenance.

Menu Path: Production Management > Material Requirements Planning > Setup > Part 1. In the Part field, enter DSS-1000 and press Tab.

2. From the Actions menu, select Duplicate.

The Duplicate Part DSS-1000 Details window displays.

3. In the Part field, enter DSS-1000-XXX (where XXX are your initials). 4. Click OK and click Save.

5. Repeat steps 1 through 4 to duplicate the following parts: Duplicated Part Existing Part

MRP100-LT-XXX (where XXX are your initials) MRP100-LT

MRP100-NS-XXX (where XXX are your initials) MRP100-NS

MRP100-SD-XXX (where XXX are your initials) MRP100-SD

MRP100-SK-XXX (where XXX are your initials) MRP100-SK

PAA-200-ML-XXX (where XXX are your initials) PAA-200-ML

Daily MRP Processing Material Requirements Planning Course

(23)

6. Remain in Part Maintenance.

Workshop - Select the MRP Process and Approve Revisions

In the previous workshop you duplicated the existing MRP parts which will be used in this course. Once you duplicate a part in the Epicor application you still need to set up certain MRP parameters for the part to be registered by the MRP process. As the parts are manufactured you also need to approve part revisions.

1. In the Part field, enter MRP100-LT-XXX (where XXX are your initials) and press Tab. 2. Navigate to the Part > Sites > Planning sheet.

The Planning sheet is used to configure site planning details. 3. In the Site field, verify Main Site defaults.

This is the identifier of the site. Each part can belong to multiple sites. 4. Select the Process MRP check box.

When you select this check box the part will be processed once the MRP process is run. 5. Navigate to the Part > Revisions > Detail sheet.

6. Select the Not Approved check box.

This check box indicates whether this revision has been approved for use. Only approved revisions will be considered valid revisions in entry programs.

The Description of Change window displays. 7. Enter Approved and click OK.

8. Click Save.

9. Repeat steps 1 through 7 for the following parts (where XXX are your initials):

• MRP100-NS-XXX • MRP100-SD-XXX • MRP100-SK-XXX • DSS-1000-XXX • PAA-200-ML-XXX

The DSS-1000-XXX (where XXX are your initials) part should have the Process MRP check box selected by default.

10. Exit Part Maintenance.

Manufacturing Lead Time Calculation

Material Requirements Planning Course Daily MRP Processing

(24)

manufacture all levels of an assembly. Usually this is calculated by system based BOM & Routing. If not calculated, this time can be also manually assigned.

Tip You can calculate manufacturing and cumulative lead times for manufacturing or engineering items. Updating the values assigned to your lead times may impact functions that use dynamic lead time offsetting - such as material and resource requirements planning. Updating cumulative lead times can also impact material plans and available to promise calculations if these lead times are used to set time fences.

Use the Selection sheet to select the calculation parameters. Use the Filter sheet(s) to select the specific records to include on the calculation. For more information, review the Filters Overview topic.

Menu Path

• Production Management > Engineering > General Operations > Mfg Lead Time Calculation

(25)

Workshop - Calculate Manufacturing Lead Times

One of your sales people has asked you for the lead time for part PAA-200-ML-XXX (where XXX are your initial s) as he would like to give a delivery date to one of your customers. Part PAA-200-ML-XXX consists of subassemblies (CA10, CA12).

The Epicor application provides a utility that calculates the manufacturing lead times based on existing database entries. In this workshop, use Mfg Lead Time Calculation to calculate the manufacturing lead times for

subassemblies and the parent part PAA-200-ML-XXX so the sales person can answer the customer request. Navigate to Mfg Lead Time Calculation.

Menu Path: Production Management > Engineering > General Operations > Mfg Lead Time Calculation 1. Navigate to the Filter > Part sheet.

2. Click the Part button.

The Part Search window displays.

3. In the Starting At field, enter CA20 and click Search.

Part CA20 is a subassembly for part CA10. For the application to calculate the manufacturing time for part CA10, it first needs to determine the number of days required to make part CA20.

4. In the Search Results grid, verify part CA20 is highlighted and click OK. In the Part List sheet, part CA20 displays.

5. Click Process.

6. Click the Part button again.

7. In the Starting At field, enter CA10 and click Search.

8. In the Search Results grid, using the Ctrl key select the following parts. Both parts are subassemblies for part PAA-200-ML-XXX (where XXX are your initials):

• CA10 • CA12

9. Click OK.

In the Part List sheet, the selected parts display. 10. Click Process.

11. Click the Part button and search for and select part PAA-200-ML-XXX (where XXX are your initials). Now that the manufacturing lead times for all the subassemblies are calculated the application can determine the actual manufacturing time for the parent part.

12. Click Process.

13. Exit Mfg Lead Time Calculation.

(26)

Workshop - Review and Modify a Part Record

After running Mfg Lead Time Calculation, use Part Maintenance to review planning details for part

PAA200-ML-XXX. You will see that the values now reflect the new values calculated by Mfg Lead Time Calculati on. Navigate to Part Maintenance.

Menu Path: Production Management > Job Management > Setup > Part

1. In the Part field, enter PAA-200-ML-XXX (where XXX are your initials) and press Tab. 2. Navigate to the Part > Sites > Planning sheet.

3. In the Site field, verify Main Site defaults. 4. In the Multiple field, enter or verify 10 displays.

This is the manufacturing lot size multiple. MRP creates jobs in multiples of this field. 5. In the Min Lot Size field, enter or verify 100 displays.

This is the minimum manufacturing lot size. I f the required quantity is less than this amount, MRP creates a job with this production quantity.

6. In the Max Lot Size field, enter or verify 1000 displays.

This is the maximum manufacturing lot size for the short horizing planning. If the required quantity is greater than this amount, MRP creates additional job(s) to satisfy the required production quantity.

7. In the Cumulative Time field, record the value:_________

This is the calculated value based on the lead times of the part's subassemblies.

Note The cumulative times for the PAA-200-ML-XXX (where XXX are your initials) part can vary, depending on the lead times of its materials. The following example demonstrates the lead time calculations made by the application. In this example, the Cumulative Time value for PAA-200-ML-XXX is 60.

Example:

The following are the parts subassemblies and their related lead times: Material CA10 Data Field 59 Cumulative Time 3 This Level Time

Note Material CA10 contains subassembly CA20. The manufacturing lead time for material CA20 is 56 days. The application therefore calculates the lead time for part CA10 as follows: 56 + 3 (this the actual manufacturing time for part CA10) = 59.

Material CA12 Data Field 16 Cumulative Time 2 This Level Time

(27)

Note The cumulative lead time for material CA12 is 16 days. Material CA12 contains purchased material CM14 with the lead time of 14 days. The application therefore calculates the lead time for part CA12 as follows: 14 (this is the lead time for part CM14) + 2 (this is the actual manufacturing time for part CA12) = 16.

The application always takes the highest lead time i nto consideration when calculating manufacturing lead time for the parent part. In the example above the parent part PAA-200-ML-XXX (where XXX are your initials) has the cumulative lead time of 60 days. The application therefore calculated the lead time for part PAA-200-ML-XXX (where XXX are your initials) as follows: 59 (this is the cumulative lead time for part CA10) + 1 (this is the actual manufacturing time for part PAA-200-ML-XXX (where XXX are your initials) = 60.

8. Click Save and exit Part Maintenance.

Forecast Entry

Use Forecast Entry to project part quantities you need for particular customers. Forecasts are done by part, then customer. If no customer is entered, all the current forecasts for a part display. If a customer is entered, then only the forecasts for that customer display.

Menu Path

• Production Management > Material Requirements Planning > General Operations > Forecast Entry

Note You must generate purchasing suggestions in order for the Epicor app lication to update the consumed quantity in Forecast Entry.

Workshop - Enter a Sales Forecast

Over the last six months you have noticed a regular order pattern for part MRP100-NS-XXX. You have also had inquiries for this part from other customers so you have decided to enter a forecast to project the part quantities that the customers are likely to order. In this workshop, enter a forecast for part MRP100-NS-XXX.

Navigate to Forecast Entry.

Menu Path: Production Management > Material Requirements Planning > General Operations > Forecast Entry 1. In the Part field, enter MRP100-NS-XXX (where XXX are your initials) and press Tab.

2. Click New.

3. In the Forecast Date field, enter the first day of next month. 4. In the Forecast Quantity field, enter 200.

5. Click Save.

A customer is not required.

(28)

Sales Order

As you enter a sales order or change demand, it is necessary to run Process MRP to evaluate the results against assumptions.

Workshop - Enter a Sales Order for a Non-Stock Part

Dalton Manufacturing calls to place an order for part MRP100-NS-XXX (where XXX are your i nitials). They require 50 pieces two weeks from today, an additional 50 pieces four weeks from today, and 50 pieces they can purchase eight weeks from today.

Evaluate the MRP100-NS-XXX Part

Before you proceed to enter the sales order, use the Part Tracker to review the part details such as the on hand quantity or lot sizes. In this workshop task, review details for part MRP100-NS-XXX.

Navigate to the Part Tracker.

Menu Path: Production Management > Material Requirements Planning > General O perations > Part Tracker 1. In the Part field, enter MRP100-NS-XXX (where XXX are your initials) and press Tab.

2. Navigate to the General > Part sheet and verify the part is non-stock. 3. Navigate to the Revisions > List sheet and verify the revision is approved.

4. Navigate to the On Hand > Warehouses sheet and verify no balance or quantity is on hand. 5. Navigate to the General > Sites > Detail sheet and verify the following:

• There is no Min On-Hand, Max On-Hand, or Safety Stock.

• The Generate PO Suggestions and Quantity Bearing check boxes are selected.

Note The Quantity Bearing indicates whether a part record is tracked through the inventory functionality. When inventory calculations are active, transactions to and from stock are used to calculate the On-Hand Quantity for this part. The MRP engine uses the On-Hand Quantity to calculate the remaining production or purchase quantities after the On-Hand Quantity is subtracted from the demand quantity. Typically you will not use this modifier on a non-stock part.

6. Navigate to the General > Sites > Planning sheet and verify the following:

• There is no Min Lot Size, Max Lot Size, or Multiple. • The Process MRP check box is selected.

7. Exit the Part Tracker.

(29)

Enter a Sales Order

Navigate to Sales Order Entry.

Menu Path: Sales Management > Order Management > General Operations > Order Entry

Tip The CRM menu path is: Customer Relationship Management > Order Management > General Operations > Order Entry

1. From the New menu, select New Order.

2. In the Customer field, enter Dalton and press Tab. 3. Enter the following information:

Data Field

two weeks from today Need By

two days before the Need By date Ship By

Factory FOB

4. From the New menu, select New Line. 5. Navigate to the Lines > Detail sheet.

6. In the Part/Rev field, enter MRP100-NS-XXX (where XXX are your initials) and press Tab. 7. In the Order Quantity field, enter 150.

8. Navigate to the Releases > Detail sheet. 9. From the New menu, select New Release. 10. Enter the following information:

Data Field

50 Order Quantity

four weeks from today Need By

11. Click Save.

12. From the New menu, select New Release. 13. Enter the following information:

Data Field

50 Order Quantity

(30)

Data Field

Clear the check box (changes the release status to Not Firm). Firm Release

14. In tree view, select the first release and change the quantity in the Order Quantity field of the first release from 150 to 50.

15. Navigate to the Summary sheet and record the sales order number _______________. 16. Click Save and exit Sales Order Entry.

Workshop - Enter a Sales Order for a Stock Part

Dalton Manufacturing calls to place an order for part MRP100-LT-XXX (where XXX are your initials). They want 150 pieces two weeks from today.

Evaluate the MRP100-LT-XXX Part

Before you proceed to enter the sales order, use the Part Tracker to review the part details such as the on hand quantity or lot sizes. In this workshop task, review details for part MRP100-LT-XXX.

Menu Path: Production Management > Material Requirements Planning > General O perations > Part Tracker 1. In the Part field, enter MRP100-LT-XXX (where XXX are your initials) and press Tab.

2. Navigate to the General > Part sheet and verify the Non-Stock Item check box is cleared. 3. Navigate to the Revisions > List sheet and verify the revision is approved.

• In the Min On-Hand field, verify 100 defaults and there are no Max On-Hand or Safety Stock quantities. • The Quantity Bearing check box is selected.

• In the Min Lot Size, Max Lot Size, and Multiple fields, verify 100 defaults. • Verify the Process MRP check box is selected.

(31)

Enter a Sales Order

Data Field

Factory FOB

6. In the Part/Rev field, enter MRP100-LT-XXX (where XXX are your initials) and press Tab. 7. In the Order Quantity field, enter 150.

8. Click Save.

9. Navigate to the Summary sheet and record the sales order number _______________. 10. Exit Sales Order Entry.

(32)

Workshop - Enter a Sales Order for Multiple Releases

Dalton Manufacturing calls again to place an order for part MRP100-SD-XXX. They require 10 pieces to be shipped in seven releases. In this workshop, enter the sales order for Dalton Manufacturing.

Evaluate the MRP100-SD-XXX Part

Before you proceed to enter the sales order, use the Part Tracker to review the part details such as the on hand quantity or lot sizes. In this workshop task, review details for part MRP100-SD-XXX.

Menu Path: Sales Management > Order Management > General Operations > Part Tracker

Tip The CRM menu path is: Customer Relationship Management > Order Management > General Operations > Part Tracker

1. In the Part field, enter MRP100-SD-XXX (where XXX are your initials) and press Tab. 2. Navigate to the General > Part sheet and verify the part is stocked.

3. Navigate to the Revisions > List sheet and verify the revision is approved.

• There are no Min On-Hand, Max On-Hand, or Safety Stock quantities.

(33)

Enter a Sales Order

Data Field

Factory FOB

6. In the Part/Rev field, enter MRP100-SD-XXX (where XXX are your initials) and press Tab. 7. In the Order Quantity field, enter 14.

8. Click Save.

9. Navigate to the Summary sheet and record the sales order number _______________. 10. From the New menu, select New Release.

The Releases > Detail sheet displays.

11. Create seven releases with the first release due tomorrow and daily shipments thereafter to spread the quantity of 14 pieces over seven days.

Note Remember the first release was automatically created and reflects the original quantity and dates. You will need to return to the first release to update the Order Quantity, Need By, and Ship By fields accordingly.

12. Click Save.

13. Exit Sales Order Entry.

(34)

Workshop - Enter a Sales Order for the DSS-1000-XXX Part

Dalton Manufacturing calls again to place an order for part DSS-1000-XXX. In this workshop, enter a sales order for part DSS-1000-XXX to demonstrate the dependent demand. Once you run the MRP process later in the course, it creates MRP jobs for the make to stock (MTS) subassemblies that are part of the method of manufacture for part DSS-1000-XXX.

Evaluate the DSS-1000-XXX Part

Before you proceed to enter the sales order, use the Part Tracker to review the part details such as the on hand quantity or lot sizes. In this workshop task, review details for part DSS-1000-XXX.

Menu Path: Sales Management > Order Management > General Operations > Part Tracker

Tip The CRM menu path is: Customer Relationship Management > Order Management > General Operations > Part Tracker

1. In the Part field, enter DSS-1000-XXX (where XXX are your initials) and press Tab. 2. Navigate to the General > Part sheet and verify the part is non-stock.

3. Navigate to the Revisions > List sheet and verify the revision is approved.

• There is no Min On-Hand, Max On-Hand, or Safety Stock.