Oracle Planning

Explanation and Guide

Agenda
 Current MRP Blueprint
Overview of Process MRP Workbench How On Time Delivery is Affected

 Inventory Planning Options

Min-Max Reorder Point Planning

 Demonstrate MRP Planning

MRP
 MRP is what you do to get supply to meet demand  In Oracle it is limited to a single inventory organization  MRP can be setup to run overnight and provide updates based on the previous days production and demand changes  Material requirements planning (MRP) calculates net requirements from gross requirements by evaluating:
the master schedule bills of material scheduled receipts on-hand inventory balances lead times order modifiers

 It then plans replenishments by creating a set of recommendations to release or reschedule orders for material based on net material requirements. These planned recommendations are stated in:
discrete quantities, with due dates

The MRP Process

Forecasting
 Defining Manual Forecasts  Defining Forecasts from Sales History  Forecast Consumption  Time Buckets  You can estimate future demand for items using any combination of historical, statistical, and intuitive forecasting techniques.  You can create multiple forecasts and group complimenting forecasts into forecast sets.  Forecasts are consumed each time your customers place sales order demand for a forecasted product.  You can load forecasts, together with sales orders, into master demand and production schedules, and use the master schedules to drive material requirements planning.

All forecasts must belong to a forecast set. You can vary your bucket requirements by period, days or weeks. You can enter multiple buckets by adding an end date. The source information indicates if the demand comes from manual or other forms of imput. You can also veiw consumptions of the forecast.

Master Scheduling
Demand Management Scheduling Production Validating the Production Schedule Managing the Production Schedule  Demand Types    
item forecasts spares demand sales orders internal requisitions

 The MDS is a statement of demand and contains details of the anticipated shipment schedule.  You can consolidate all sources of demand into a master demand schedule to represent a statement of total anticipated shipments.  The master demand schedule provides an extra level of control that allows you to view and modify your statement of demand before creating a detailed production schedule.  You can use the timephased master demand schedule as input to the master production scheduling process or the material requirements planning process.

Master Scheduling
Your MDS can include SO demand and forecast demand. In the one shown, only SO demand is loaded. You can use the Reliefs form to see which orders have relieved the MDS.

Planner Workbench
          Review your resources Review item details Review of supply/demand details Review components, using assemblies, and end assemblies Review the horizontal, material, and capacity plan Display a summary supply and demand Implement and maintain planned orders Create planned orders manually Implement repetitive schedules Release implemented orders  You can review and implement recommendations suggested by the planning process with the Planner Workbench.  You can selectively implement these recommendations as new and rescheduled orders, and release all or some of them.

MRP Workbench

MRP Workbench

MRP Pegging

Here we see how you can drill down into the pegging information and see the demand causing the need for the order.

MRP Horizontal Plan

In this slide we can view the Horizontal Plan. The preferences have been modified to show only relevant information for this part.

MRP Exceptions

This shows the process for finding MRP exceptions.

MRP Exception Details

You can use the exception details from to find which demand is at risk because of late supply.

How On Time Delivery is Affected

 MRP Schedules Based on Order Deliver minus Lead Times  MRP is very Sensitive to Data Accuracy  MRP Produces an Exceptions List on every MRP Run  MRP Helps Maintain a Consistent Production Schedule but Un-forecasted Demand can Effect OTD

Planning without MRP

Other Planning Options

Other Planning Processes

 Min/Max Planning  Reorder Point Planning  Kanban Replenishment

Beyond MRP  Advanced Supply Chain Planning

Min/Max Planning
 With min-max planning, you specify minimum and maximum inventory levels for your items. When the inventory level for an item (on-hand quantities plus quantities on order) drops below the minimum, Oracle Inventory suggests a new purchase requisition, internal requisition, move order, or job to bring the balance back up to the maximum.

Min/Max Planning

Reorder Point Planning

 Reorder point planning uses demand forecasts to decide when to order a new quantity to avoid dipping into safety stock. Reorder point planning suggests a new order for an item when the available quantity-on-hand quantity plus planned receipts-drops below the items safety stock level plus forecast demand for the item during its replenishment lead time. The suggested order quantity is an economic order quantity that minimizes the total cost of ordering and carrying inventory.

Reorder Point Planning

Kanban Replenishment
 Kanban is a means of supporting pull-based replenishment in manufacturing systems. A Kanban system is a self-regulating pull system that leads to shorter lead times and reduced inventory. Kanban systems are typically applied to items that have relatively constant demand and medium-to-high production volume.  The system includes an API that can be called by external systems, such as bar code readers, to trigger replenishment signals.

Kanban Replenishment

Advanced Supply Chain Planning

 Oracle Advanced Supply Chain Planning (ASCP) is a comprehensive, Internet-based planning solution that decides when and where supplies (for example, inventory, purchase orders and work orders) should be deployed within an extended supply chain.  ASCP works across many inventory organizations  ASCP can run on a separate server to allow for multiple planning runs during day or evening

MRP vs ASCP MRP

MRP MRP Demand

ASCP

ASCP

INV ORG 1 INV ORG 1 INV ORG 2 INV ORG 2 INV ORG 3

Questions