3:28 AM
Process Definition
Demand Management
determines requirement quantities and delivery dates for finished products
assemblies. To create a demand program, Demand Management uses Planned
Independent Requirements and Customer Requirements. Planned Independent
Requirements (PIRs) are used to determine the quantities of a material required
in a particular time period. The PIRs could be both manually maintained or
determined using Sales and Operational Planning. Customer Requirements
represents the Sales Orders in the system. Once a sales order arrives, the PIRs
are reduced.
Planning Strategy
To create the
demand program, a planning strategy has to be defined for a product. Planning
strategies represent the methods of production for planning, and manufacturing
or procuring a product, which are assigned in the Material Master of that
product. A planning strategy determines if production is triggered by Sales
Orders (make-to-order production), or if it is planned independently without
having Sales Orders (make-to-stock production).
At MYCOMPANY, strategy type “Planning with Final
Assembly-40” would be used. In this planning strategy, procurement and production of all components and assemblies including the final
assemblies are initiated on the basis of planned independent requirements
before sales orders are received but Sales orders affect requirements and
consume planned independent requirements of the finished product. If the
costumer requirement quantity exceeds the planned independent requirements then
a planned order is automatically created for the unplanned quantity during the
next MRP run. Sales orders consume Planned Independent Requirements (PIRs) as
defined by the consumption mode and consumption period.
At MYCOMPANY, Make to Stock planning strategy is followed. Make-to-stock
strategy is used when stocks are produced independently without a direct
reference to a sales order. The requirements from the sales orders are met from
those stocks. For this strategy production would be based on the sales
forecast. This means that make-to-stock strategies can support a very close
customer-vendor relationship because the objective is to provide customers with
products from stocks as quickly as possible.
Creation of Active version: Production Plan (Rough Cut Capacity Planning - RCCP)
Process
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Description
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Process owner
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Triggering event
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Run RCCP and
create PRODUCTION plan
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The planning Manager
would CHECK capacities using the version 200; demand plan. If the capacities
were available, the planning Manager would copy the demand plan and save it
as the production plan. This production plan thus created would be saved as
version 300 and would become the input for the MRP run.
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Planning Manager
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Creation of Demand
Plan: version 200.
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Edit Demand Plan;
Version 200
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The planning Manager
would CHECK capacities using the version 200; demand plan. If the capacities
were not available, the planning Manager in collaboration with MSD would edit
the Demand Plan and update the version 200 i.e. inactive version.
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Planning Manager
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RCCP check
fails.
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The planning Manager
would check rough cut capacities using the Demand plan; Version 200. If the
capacities are not available, the planning Manager would edit the Demand Plan.
If the capacities were available, the planning Manager would copy the Demand
plan as Production plan; version 300. As soon as the planning Manager saves the
production plan, the planned independent requirements are automatically
generated.
Planned Independent Requirement (MPS)
The planned
independent requirements provide the information that which finished materials
are to be produced, when these should be produced and in what quantities. The
PIRs would be created automatically as soon as the planning Manager saves the
production plan; version 300.
Splitting Planned Independent Requirement:
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Process
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Description
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Process owner
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Triggering event
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Splitting
of monthly PIRs into weekly PIRs.
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Planning Manager
would run splitting of PIRs.(MD67: Staggered Split)
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Planning Manager
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Creation of
Planned Independent requirements (PIR).
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The splitting results in weekly forecast
that becomes the input for the MRP run.
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