• Effective Master Planning

• Effective Master Planning = Automatic Master Planning

• Depending on the Coverage Group, AX allows different levels of automation
• No planning (“manual”)
• Generation of Planned Orders (PO, PrO) – typical for go-live
• Automatic procurement
• PrO firmed, released, started …
• Problems
• Coverage groups aren’t understood
• Manual
• Requirement
• Period
• Min/Max

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Cont.: Problems of MP automation

• Data quality
• “Trash in – trash out”
• Correct BOMs
• Correct purchase lead times and routes / capacities
• Data completeness (e.g. default vendor on purchase parts)
• Segmentation of items
• Items that don’t need attention (BOMs and lead times are correct, suppliers are reliable)
• Items that don’t deserve attention (c-parts like washers, screws….)
• Continuous master data improvement

• Goal: Materials planners only has to pay attention to the exceptions

• Supplier doesn’t confirm the planned lead time
• Problems with capacity / resource availability
• Quality issues cause shortages

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Strategy

• Get the basics right

• Setup of master plans
• Correct use of coverage groups
• REQ / Period / min/max
• Horizons that make sense
• BOM explosion
• Operations scheduling
• Bottleneck scheduling
• Job scheduling
• Don’t fix the symptom, fix the problem
• Planning suggestions that are wrong shall not be corrected at the symptom
level (fix the PO quantity or date)
• Correct the master data that drives the wrong suggestions

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Cont.: Strategy

• Start small
• Identify a group of items that doesn’t need manual interference
• Put them into their own coverage group (e.g. from “PER10D” into “PER10Dfirm”)
• Transfer more and more items into the “auto firming” coverage groups
• Create a coverage group that “releases” and / or “starts” PrO
• Move more and more items into this group
• Strategic Effort
• Typically users first need to “lean back” for 6 months after an implementation,
before changing the implementation
• Bad habits form during this period
• Tribal knowledge grows, data quality and integrity doesn’t
• Limping processes become the new normal

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T H A N K Y O U

www.tieto.com

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