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Orders management and volume production planning

Ensure the implementation of sales plans with the help of world standards and production management concepts S&OP, MPS, MRP

Question

The system allows to effectively solve problems

Master Production Schedule (MPS)

Rouh cut capacity planning by weeks, decades and months (RCCP)

Operational analysis of work in progress and unclaimed inventory reserves

Planning materials requirements of semi-finished products, tools, labor resources and equipment for the production plan (MRP)

Determination of target dates for the delivery of materials, components and technological operations in the context of each order

Production planning of the own tools for the Master Production Schedule

Planning the production of seasonal demand using smoothing algorithms and taking into account the shelf life

Scheduling shipment of orders to customers

Master Production Schedule

MPS (master production schedule - the main production calendar plan, MCP or MPS plan) is the result of matching the medium-term and operational sales plans with the production capabilities in the medium and short-term plans.

The formation of MPS plan takes place based on the sales forecast, customer orders, finished product stock in warehouses, information about orders already launched into production, required insurance stock sizes, etc.

MPS plan ensures the implementation of the operational sales plan, because it allows you to calculate necessary volumes and timing of production and launch it into production, maintains an insurance stock of products. The MPS plan can also be used to estimate the terms of shipment of products based on quotas of the SOP-plan for sales and production.

As a rule, at the majority of enterprises, the MPS-plan corresponds to the production plan or to the plan for manufacturing of selected items (assembly units or special production conversions).

MPS production plan can be formed according to different strategies:

  • Manufacture to order (MTO)
  • Assembly to order (ATO)
  • Manufacture to stock (MTS)

MPS plan in IT-enterprise system is a rolling plan where new orders are included as they arrive (in practice, usually once or twice a week or daily) and planning is performed from the current date to the release date of all orders accepted in production. In this case, the planning horizon is "floating" and is constantly moving forward. Rolling planning, compared with the traditional for the domestic industry monthly planning, can significantly increase the efficiency of production response to customer needs and ensure a more even utilization of production capacity.

Material Requirements Planning

MRP (material requirements planning, planning demand in materials) — detailed operational production planning requirements for materials, semi-finished products, production resources and completed technological operations.

When all production orders are entered into MPS plan, you can proceed to the calculation of the detailed production schedule for parts and operations, i.e. make an MRP plan.

MRP-planning of sales volumes of products occurs on the basis of the MPS-plan and production technology and includes:

  • Volumetric calendar part or part-operational plans for the manufacture and transfer of parts and assembly units (PAU) between the workshops/areas. At the same time, complex technological routes are taken into account: "loops" (various workshop runs), performance of individual operations at other enterprises, etc.
  • Volumetric calendar plans of demand, supply, delivery of materials and components to the warehouses, shops and sites from central warehouses

The production program is formed based on taking into account the availability of materials and components in workshops and on sites, as well as work in progress in workshops. In this case, plans are reduced accordingly.

The main recommended method of MRP planning is rolling single-level custom production planning, designed to form continuous ("rolling") plans in the context of production orders. With such a system, the plan is constantly updated and the same type of products included in different orders becomes different planning and accounting units.

With a single-level MRP-planning program for the production and sale of products involves the planning of all redistribution and technological operations for the units. For single-level planning, depending on production conditions, various tools can be used:

  • MRP-planning of sales of products without including restrictions
  • MRP and CRP production planning including restrictions
  • Operational calendar optimized production management including restrictions (APS/MES planning)

The key point in the organization of order production planning and accounting is the definition of "order binding" points - production stages that are planned and accounted for by orders and production stages, which are planned and accounted for according to the nomenclature. The system allows you to flexibly configure the binding for producing (assembly) and procuring shops/sections, select a nomenclature (for example, normals and factory unification) for exclusion from custom planning. Accounting for the implementation of production plans depends on the characteristics of production and planning model. The main options are:

  • Accounting using the explicit order in documents of production order number
  • Accounting with the help of automatic placement of executed part operations on production orders according to their priorities in production

It is convenient to carry out accounting of order plans in the form of analysis of the production plan and the actual implementation, when the composition of the production order is presented in the so-called "tree" of the order.

Rough Cut Capacity Planning

RCCP (rough cut capacity planning) — integrated planning of the need of production capacity, equipment and labor resources at specific time intervals (weeks, decades, months, quarters) for the enterprise, divisions and sites.

RCCP planning allows you to quickly assess the possible timing of the promise to release an order with a week accuracy, calculate the capacity utilization in advance, and smooth out seasonal demand.

Advantages

Advantages
of our system

Based on the global production management standard MRPII and implements four-level production planning (S&OP, MPS, MRP, APS)

Quick estimate the dates that you can promise customers

Support for different planning strategies: custom manufacturing (MTO), custom assembly (ATO), stocking (MTS)

Maintaining a nomenclature orders portfolio in the context of options of product structure and customer requirements

Detailed calculation of the net demand for semi-finished products and for execution of each operation

Deep integration with shop-level production planning and manufacturing process control systems

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