Chapter 4: PlanningCHAPTER 4: PLANNINGObjectives                The objectives are:                        •   Obtain a ge...
Manufacturing II in Microsoft Dynamics® NAV 2009Planning Overview                  In Microsoft Dynamics NAV, "running the...
Chapter 4: Planning      The following figure shows an overview of an enterprise system.      FIGURE 4.1 LEVELS IN AN ENTE...
Manufacturing II in Microsoft Dynamics® NAV 2009                          •   Create a new order                          ...
Chapte 4: Plann                                                                 er       ning              •   The compon ...
Manufacturing II in Microsoft Dynamics® NAV 2009                  NOTE: Low Level Code calculation is required for correct...
Chapter 4: Planning      This is referred to as the production plan. MRP does not automatically create      production ord...
Manufacturing II in Microsoft Dynamics® NAV 2009                  Methods for Generating a Plan                  Most comp...
Chapter 4: Planning                      Reorder Point                      A reorder point represents demand during lead ...
Manufacturing II in Microsoft Dynamics® NAV 2009  Reordering        Description  Policy Type  Order             In a make-...
Chapter 4: Planning                      The four reordering policies have the following effect on the quantity being     ...
Manufacturing II in Microsoft Dynamics® NAV 2009                   Production Planner can release all orders with a starti...
Chapter 4: PlanningFastTab Name   DescriptionOptions        The Options FastTab specifies the type and horizon of the plan...
Manufacturing II in Microsoft Dynamics® NAV 2009                  The planning horizon (the amount of time the plan is ext...
Chapter 4: Planning      Demonstration 3      The following demonstration shows you how to create an item with the followi...
Manufacturing II in Microsoft Dynamics® NAV 2009                  Make the second component, X.                          1...
Chapter 4: Planning              8. Select a status of Certified on the header.              9. Click OK.      FIGURE 4.4 ...
Manufacturing II in Microsoft Dynamics® NAV 2009                          20. In the Sell-to Customer field, select 10000 ...
Chapter 4: Planning                  The program generates net requirements only for the MPS item Z. Review the           ...
Manufacturing II in Microsoft Dynamics® NAV 2009  Field        Description  Original     Similar to Original Due Date; sho...
Chapter 4: Planning      The worksheet now includes the requirements for the lower level subassemblies      and raw materi...
Manufacturing II in Microsoft Dynamics® NAV 2009                  This row tracks to another planning line. The indented l...
Chapter 4: Planning      Planning Parameters for Items X & and Y      The reorder policy is lot-for-lot, meaning the net r...
Manufacturing II in Microsoft Dynamics® NAV 2009                          10. Leave the same filters used before, except s...
Chapter 4: Planning              3. In the Sell-to Customer field, select 10000 (The Cannon Group                  PLC).  ...
Manufacturing II in Microsoft Dynamics® NAV 2009Net Change Planning                  Net Change Planning monitors changes ...
Chapter 4: Planning      The following figure shows the principle in net change planning.      FIGURE 4.8 NET CHANGE PLANN...
Manufacturing II in Microsoft Dynamics® NAV 2009                          •   Now only item E is assigned for planning. Th...
Chapter 4: Planning               The worksheet is populated with only the lines required to manufacture your             ...
Manufacturing II in Microsoft Dynamics® NAV 2009                          •     Resched. and Change Qty.                  ...
Chapter 4: Planning      When a demand is changed, the order tracking system seeks to re-establish      balance in the ord...
Manufacturing II in Microsoft Dynamics® NAV 2009                  The planning worksheet shows the system-generated action...
Chapter 4: Planning      Dynamic Order Tracking and Action Messaging      When demand increases, the system seeks to maint...
Manufacturing II in Microsoft Dynamics® NAV 2009                  The following table shows the possible settings for the ...
Chapter 4: Planning      The dampener for time makes it possible to change the shipment date for a sales      order to a f...
Manufacturing II in Microsoft Dynamics® NAV 2009                  Logging Planning Errors                  The planning ba...
Chapter 4: Planning                Red Font Indicates Critical Planning Lines                The planning system may somet...
Manufacturing II in Microsoft Dynamics® NAV 2009Lab 4.1 - Planning                  Scenario                  Regenerative...
Chapter 4: Planning      Lab 4.2 - Another Regenerative Plan              1. Continue using the information from Lab 4.1 a...
Manufacturing II in Microsoft Dynamics® NAV 2009Quick Interaction: Lessons Learned                  Take a moment and writ...
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  1. 1. Chapter 4: PlanningCHAPTER 4: PLANNINGObjectives The objectives are: • Obtain a general understanding of Planning. • Use Regenerative Planning. • Use Net Change Planning. • Define Order Tracking and Action Messaging.Introduction This course provides an overview of Planning in Microsoft Dynamics® NAV 2009. It explains regenerative planning and net change planning of Material Requirements Planning (MRP). The course also defines the Order tracking and action messaging functionality, which are important parts of MRP planning. Microsoft Official Training Materials for Microsoft Dynamics ® 4-1 Your use of this content is subject to your current services agreement
  2. 2. Manufacturing II in Microsoft Dynamics® NAV 2009Planning Overview In Microsoft Dynamics NAV, "running the planning worksheet" or "running MRP" refers to the calculation of material requirements based on actual demand for components and the production forecast on the component level. The planning engine contains two components: • Master Production Scheduling (MPS) • Materials Requirements Planning (MRP). MRP is a tool that helps manufacturers effectively manage the following functions: • Material planning • Scheduling • Purchasing The overall purpose of MRP is to provide time-phased formal plans, by item, to supply the right item at the right time, in the right place, and in the right quantity. The MRP process explores what is or will be needed (demand) and what it has or is expecting to have (supply). When these quantities are netted against each other, MRP provides this information in the form of Action Messages. Action messages tell the user to: • Create a new order • Change an order (quantity or date) • Cancel an order Orders are both production orders and purchase orders.4-2 Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
  3. 3. Chapter 4: Planning The following figure shows an overview of an enterprise system. FIGURE 4.1 LEVELS IN AN ENTERPRISE SYSTEM Planning in Microsoft Dynamics NAV 2009 Manufacturing II focuses on the MRP section, which includes: • Item structure • Inventory • Open orders • Processes, leading to Action Messages FIGURE 4.2 OVERVIEW OF MRP For each item for which demand is found, a comparison is made to inventory to determine if demand can be met. If demand is not met in inventory, then look to WIP (for manufactured items). If demand is still not met after viewing open orders, then an analysis of the items BOM is made to determine what more is needed. For each component, the process starts over. The result of unmet demand is Action Messages, which explains how to best meet demand. To do this, it is necessary to perform one of the following: Microsoft Official Training Materials for Microsoft Dynamics ® 4-3Your use of this content is subject to your current services agreement
  4. 4. Manufacturing II in Microsoft Dynamics® NAV 2009 • Create a new order • Cancel an order • Change an order NOTE: Action Messages are MRPs method of communication to tell the user what to do to meet demand. The basis of the planning routine is in the gross to net calculation. Net requirements drive planned order releases, which are scheduled based on the following: • Routing information (manufactured items) • Item card lead time (purchased items) Planned order release quantities are based on the MRP calculation, but are modified by the parameters set on the individual item cards. These fields are discussed later. The business process linked to MRP begins with independent demand. Independent demand: • Can be in the form of a production forecast, master production schedule, a sales order, or any combination of these. • Is not reliant upon another item and can be finished goods, repair parts, or separately sold subassemblies. Dependent demand: • Is the demand for parts needed to build an item. • Parts are identified as components on a production bill of material. • Occurs depending on the demand for a higher-level assembly. NOTE: Independent demand is the demand for an item that is unrelated to the demand for other items. Dependent demand is demand that is directly related to, or derived from, the Bill of Materials (BOM) structure for other items or end products. The following is a review of what is meant by higher-level assembly. • Production BOMs are structured in levels. • The finished good is level 0.4-4 Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
  5. 5. Chapte 4: Plann er ning • The compon nents, whethe purchased i er items or subas ssemblies, are e level 1. Lev 1 subassem vel mblies have co omponents. o These components ar level 2 pur re rchase items a subassem and mblies, and so o until the la level, whic is all purch on ast ch hased items, is s reachedd. o Microso Dynamics NAV 2009 c process a production B oft can BOM up to 50 levels deep. 0 FIGURE 4. BILL OF MATERIAL ST .3 TRUCTURE Microsoft D Dynamics NA 2009 calcu AV ulates low-lev codes auto vel omatically wh hen production BOMs attach to an item card are cert hed m tified and Dy ynamic Low-L Level Code is che ecked in set u (Path: Man up nufacturing > Administra ation > Setup > p Manufactu uring Setup > General FaastTab). Microosoft Dynami NAV 2009 ics knows whe to search an when to st searching for items. en nd top Microsoft Official Training Materials for Microsoft Dynamics ® 4-5Your use of this content is subject to your current services agreement
  6. 6. Manufacturing II in Microsoft Dynamics® NAV 2009 NOTE: Low Level Code calculation is required for correct planning. Choose to either check Dynamic Low Level Code in set up or run Product Design > Calculate Low-Level-Code prior to using the planning worksheet. Always run calculate low-level-code after initial setup of the company is complete. A regenerative plan is run. As the plan progresses, the progress bar window shows that the items are not examined in numerical order; instead they are examined based on the low-level code. The process starts with the top level, 0. If low-level codes are not correctly calculated, the action messages may not be correct. In Microsoft Dynamics NAV, manually calculate the low-level code to resolve the problem. If production BOMs are certified before they are associated with an item or if the Dynamic Low Level Code is set to No, run the Calculate Low Level Code process before using the planning worksheet. NOTE: The low-level code must be correct for MRP to provide correct Action Messages. Demonstration 1 The following demonstration shows how to calculate a low-level code: 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Product Design > Tasks > Calculate Low- Level Code. 3. In the dialogue box, click Yes to calculate a low level code. Low-level codes are now calculated for all items in the company. The bill of material explosion controls the flow of net requirements at the parent item, which is level to the corresponding dependent demand at the lower level assemblies and raw materials. The netting process determines the quantities required for all components by considering the existing inventory levels and scheduled receipts for each item. The program continues to net demand and supply descending through all BOM levels. All components at the lowest level of the BOM are purchased items. Planned order releases (both production and purchase orders) are the output of an MRP generation. These are displayed as line items on the planning worksheet upon completion of a planning run. The production planner converts planned order releases for manufactured items to either of the following: • Production orders (planned or firm planned) • Purchase order requisitions for purchased items4-6 Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
  7. 7. Chapter 4: Planning This is referred to as the production plan. MRP does not automatically create production orders. It suggests releases for manufactured and purchased items, which are converted into production or purchase orders. This output becomes the production plan for the enterprise. Driving and Steering the Planning Engine The planning process is initiated by independent demand. Examples of independent demand are: • Finished goods • Spare parts and repair • Overhaul requirements Independent demand can be in the form of: • Sales orders • Production forecasts • A master production schedule, or • A combination of all three In a make-to-order (MTO) environment: • Independent demand may not be recognized until a customer order is received. • The production planner creates an associated firm planned production order to drive the planning process. • Some MTO clients may desire to plan for future production by entering a production forecast or a master production schedule, only for those items that receive bookings. • Alternatively, MTO clients may forecast or master schedule at the component or sub-assembly level. This allows clients the flexibility of producing a wide variety of final products from the relatively few standard items that make up the forecast or master production schedule. Make-to-stock environments are characterized by the requirement to: • Deliver products in a short time span, typically from finished goods inventory. This approach requires the use of a: o Production forecast o Master production schedule to drive the manufacturing company to produce items to replenish inventory based upon anticipated sales volumes of products. Microsoft Official Training Materials for Microsoft Dynamics ® 4-7Your use of this content is subject to your current services agreement
  8. 8. Manufacturing II in Microsoft Dynamics® NAV 2009 Methods for Generating a Plan Most companies have a specific process for generating a production plan, including the periodic requirements for plan generation; that is, how often, what method, and so on. These processes must be considered during the setup and implementation stage. Plans may be calculated using these methods: • Calculate Regenerative Plan - Calculates all selected items, whether it is necessary or not. This function processes a fully regenerative plan. All items in the database are replanned. The system generates worksheet entries assuming infinite capacity. Capacity in work or machine centers is not considered when developing schedules. This calculation automatically deletes all planned orders that are currently loaded. • Calculate Net Change Plan - Calculates only those selected items that have had some change in their demand-supply pattern and, therefore, have been assigned for planning. This function processes a net change plan. Items participate in net change planning as a result of two types of changes: o Demand/supply changes: Modifications to quantities on sales orders or production forecasts. o Planning parameter changes: o Safety stock o Reorder point o Routing o Bill of material o Unplanned consumption o Changes in purchase order quantities • Get Action Messages - This function serves as a short-term planning tool by issuing action messages to alert the user of any modifications made since the last regenerative or net change plan is calculated. NOTE: Calculating a plan uses a significant amount of system resources and locks some tables. It is strongly recommended that the planning functions be processed during periods when users are not accessing inventory or bill of material records. It is not necessary to recalculate the entire plan every time the planning routines are run, although it is often done, especially if it can be run before or after work hours. If you are choosing only those items that have experienced changes in their demand stream, or changes in an item definition that consequently impact the material, the plan must be recalculated. This reduces the load on system processing, which significantly shortens the amount of time required to calculate a plan.4-8 Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
  9. 9. Chapter 4: Planning Reorder Point A reorder point represents demand during lead time. When the projected inventory passes below the inventory level defined by the reorder point, it is time to order more quantity. Meanwhile, the inventory is expected to decrease gradually and possibly reach zero (or the safety stock level), until the replenishment arrives. Accordingly, the planning system will suggest a forward-scheduled supply order at the point when the projected inventory passes below the reorder point. The reorder point reflects a certain inventory level. However, inventory levels can move significantly during the reorder cycle and, therefore, the planning system must constantly monitor the projected available inventory. To include an item in the planning process, it must have a reordering policy. Otherwise, it must be planned manually. You can select the following kinds of reordering policies for an item.Reordering DescriptionPolicy TypeFixed Reorder The Fixed Reorder Qty. policy is related to inventory planning of typical C-itemsQty. (low inventory cost, low risk of obsolescence, and/or many items). This policy is usually used in connection with a reorder point reflecting the anticipated demand during the lead time of the item.Maximum Qty. The Maximum Quantity policy is a way to maintain inventory using a reorder point. Everything regarding the Fixed Reorder Qty. policy also applies to this policy. The only difference is the quantity of the suggested supply. When using the maximum quantity policy, the reorder quantity will be defined dynamically based on the projected inventory level and will therefore usually differ from order to order. Microsoft Official Training Materials for Microsoft Dynamics ® 4-9 Your use of this content is subject to your current services agreement
  10. 10. Manufacturing II in Microsoft Dynamics® NAV 2009 Reordering Description Policy Type Order In a make-to-order environment, an item is purchased or produced to exclusively cover a specific demand. Typically it relates to A-items, and the motivation for choosing the Order reordering policy can be that the demand is infrequent, the lead-time is insignificant, or the required attributes vary. The program creates an order-to-order link, which acts as a preliminary connection between the supply, a supply order or inventory, and the demand that it is going to fulfill. Apart from using the Order policy, the order-to-order link can be applied during planning in the following ways: • When using the make-to-order manufacturing policy to create multi-level or project type production orders (producing needed components on the same production order). • When using the Sales Order Planning feature to create a production order from a sales order. Even if a manufacturing company considers itself as a make-to-order environment, it might be best to use a lot-for-lot reordering policy if the items are pure standard without variation in attributes. As a result, the system will use unplanned inventory and only accumulates sales orders with the same shipment date or within a defined reorder cycle. Lot-for-Lot The lot-for-lot policy is the most flexible because the system only reacts on actual demand, plus it acts on anticipated demand from forecast and blanket orders and then settles the order quantity based on the demand. The lot-for-lot policy is aimed at A- and B-items where inventory can be accepted but should be avoided. In some ways, the lot-for-lot policy looks like the Order policy, but it has a generic approach to items; it can accept quantities in inventory, and it bundles demand and corresponding supply in time buckets defined by the user. The time bucket is defined by the reorder cycle. The system works with a minimum time bucket of one day, since this is the smallest time unit of measure on demand and supply events in the system (although, in practice, the time unit of measure on production orders and component needs can be seconds). The reorder cycle also sets limits on when an existing supply order should be rescheduled to meet a given demand. If the supply lies within the reorder cycle, it will be rescheduled in or out to meet the demand. Otherwise, if it lies earlier, it will cause unnecessary build-up of inventory and should be canceled. If it lies later, a new supply order will be created instead. With this policy, it is also possible to define a safety stock to compensate for possible fluctuations in supply, or to meet sudden demand. Because the supply order quantity is based on the actual demand it can make sense to use the order modifiers: round the order quantity up to meet a specified order multiple (or purchase unit of measure), increase the order to a specified minimum order quantity, or decrease the quantity to the specified maximum quantity (and thus create two or more supplies to reach the total needed quantity).4-10 Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
  11. 11. Chapter 4: Planning The four reordering policies have the following effect on the quantity being reordered:Reordering DescriptionPolicy TypeFixed Reorder The order quantity will, at minimum, be equal to the reorder quantity. It can beQty. increased to meet the demand or the desired inventory level. This reordering policy is usually used with a reorder point.Maximum Qty. The order quantity will be calculated to meet the maximum inventory. If quantity modifiers are used, then maximum inventory can be violated. It is not recommended to use reorder cycle together with maximum quantity, and in most cases the reorder cycle will be overruled. This reordering policy is usually used with a reorder point.Order The order quantity will be calculated to meet each single demand event and the demand-supply set will remain linked until execution. No planning parameters are considered.Lot-for-Lot The quantity is calculated to meet the sum of the demand that comes due within the reorder cycle. NOTE: Changing from one reordering policy to another policy may result in the program disabling some planning parameter fields that were previously active and still contain the most recently used values. Setting Planning Parameters The following demonstration shows the calculation of a materials plan. 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Planning > Tasks > Planning Worksheets. 3. Delete the lines in the planning worksheet, if any are displayed. 4. Click Calculate Regenerative Plan. Review the form to determine how a user can customize a planning run to meet his or her business requirements. The Calculate Plan window has two FastTabs: • Options • Item The following table describes the options available on the FastTabs. After the worksheet is filled in, the user can optionally employ filters to view only those lines within a specific date range. The planner can control which planning lines are made into orders or requisitions by controlling the Accept Action Message field. Using the Carry Out Action Messages function, the Microsoft Official Training Materials for Microsoft Dynamics ® 4-11 Your use of this content is subject to your current services agreement
  12. 12. Manufacturing II in Microsoft Dynamics® NAV 2009 Production Planner can release all orders with a starting or due date within the specified range. FastTab Name Description Item The Item FastTab filters and runs the planning routines based on item, item description, or location. Filters restrict the number of items planned, for example, if a filter is set for item 1000, only item 1000 is planned for. Filtering by any other field on the item card is also possible. One option for clients is to use an unused field as a filter for planning. This field can be equivalent to a product family or a buyers planning code. The user can then filter on a particular code and run the planning routine for that product family only.4-12 Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
  13. 13. Chapter 4: PlanningFastTab Name DescriptionOptions The Options FastTab specifies the type and horizon of the planning run. MPS - Placing a check mark in this field initiates the calculation of a master production schedule. Items with open sales orders and/or production forecasts participate in this run. MRP - Placing a check mark in this field initiates the calculation of material requirements planning. Items with dependent requirements participate in this run. A check mark in the Combined MPS/MRP Calculation field in manufacturing setup (Path: Departments > Manufacturing > Administration > Setup > Manufacturing Setup > Planning FastTab) permits calculation of both MPS and MRP in one run. The majority of users choose this method. Starting Date - To avoid a supply plan that incorporates open orders in the past and suggests potentially impossible actions, the planning system treats all dates before the planning starting date as a frozen zone where the following special rule applies: All supply and demand before the starting date of the planning period will be considered a part of inventory or shipped. In other words, it assumes that the plan for the past is executed according to the given plan. Frozen zone means that future supplies and order dates before the planning starting date are excluded - except those tied by order-to-order links or serial/lot numbers. Any back-dated supply-demand sets are consolidated in one Emergency order on the planning starting date. Refer to the section on Dealing with Orders before the Planning Starting Date for more Information. Ending Date - This is the ending date of the planning horizon. Neither demand nor supply is considered after this date. If the reorder cycle for an item extends beyond the ending date, the effective planning horizon for that item is equal to the order date and the reorder cycle. Stop and Show First Error - The user can select this to have the planning run stop when it encounters the first error. At the same time, a message is displayed with information about the error. If an error exists, only the successful planning lines that were made before the error was encountered, will be presented in the planning worksheet. If the field is not selected, the Calculate Plan batch job will continue until it has completed. Errors will not interrupt the batch job. If one or more errors exist, the program will display a message after completion saying how many items are affected by errors. The Planning Error Log window then opens to provide more details about the error and to provide links to the affected documents or setup cards. Use Forecast - Select a forecast that must be included as demand when running the planning batch job. Exclude Forecast Before - Define how much of the selected forecast to include in the planning run by entering a date before which forecast demand is not included. This excludes old information. Microsoft Official Training Materials for Microsoft Dynamics ® 4-13 Your use of this content is subject to your current services agreement
  14. 14. Manufacturing II in Microsoft Dynamics® NAV 2009 The planning horizon (the amount of time the plan is extended to) is sometimes difficult for non-planners to decide upon and is the basis for many discussions. • If the horizon is too short, items with a longer lead time are not ordered on time. • If the horizon is too long, too much time is spent reviewing and processing information that changes before it is needed. It is possible to set one planning horizon for production and a longer one for purchases, although it is not required. A planning horizon for purchases and production must be set to cover the cumulative lead time for components. To avoid having a supply plan show impossible and therefore useless suggestions, the planning system regards the period up until the planning starting date a frozen zone where nothing is planned for. The following rule applies to the frozen zone: All supply and demand before the starting date of the planning period will be considered a part of inventory or shipped. Accordingly, the planning system will not, with a few exceptions, suggest any changes to supply orders in the frozen zone, and no order tracking links are created or maintained for that period. The exceptions to this rule are as follows: • If the projected available inventory, including the sum of supply and demand in the frozen zone, is below zero. • If serial/lot numbers are required on the backdated order(s). • If the supply-demand set is linked by an order-to-order policy. If the initial available inventory is below zero, the planning system suggests an emergency supply order on the day before the planning period to cover the missing quantity. Consequently, the projected and available inventory will always be at least zero when planning for the future period begins. The planning line for this supply order will display an Emergency warning type and additional information is provided upon lookup. Demand Stream Demand stream will be used to demonstrate the planning routines. Before creating the sales orders, create a simple production item with its bill of materials, which helps to view the results of the input. Create demand and then examine the related demand for the item and its components. NOTE: To understand how the Action Messages are reacting to the changes, create new items to use in the examples throughout the course.4-14 Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
  15. 15. Chapter 4: Planning Demonstration 3 The following demonstration shows you how to create an item with the following parameters. 1. In the navigation pane, click the Items button. 2. Click New. 3. In the No. field, type Z. 4. In the Description field, type Finished Good. 5. In the Base Unit of Measure field, select PCS. 6. In the Invoicing FastTab, go to the Gen Prod. Posting Group field and select RETAIL. 7. In the Inventory Posting Group field, select FINISHED. 8. In the Replenishment FastTab, go to the Replenishment System field and select Prod. Order. 9. In the Manufacturing Policy field, select Make-to-Order. 10. In the Planning FastTab, go to the Reordering Policy field and select Order. Return to this card later to add the Prod BOM and Routing. 11. Click OK. Make two components: 1. In the navigation pane, click the Items button. 2. Click New. 3. In the No. field, type Y. 4. In the Description field, type Component 1. 5. In the Base Unit of Measure field, select PCS. 6. In the Invoicing FastTab, go to the Gen Prod. Posting Group field and select RETAIL. 7. In the Inventory Posting Group field, select FINISHED. 8. In the Replenishment FastTab, go to the Replenishment System field and select Purchase. 9. In the Manufacturing Policy field, select Make-to-Order. 10. In the Planning FastTab, go to the Reordering Policy field and select Lot-for-Lot. 11. Select the Include Inventory check box. 12. Enter a reorder cycle of 1W for one week. 13. Click OK. Microsoft Official Training Materials for Microsoft Dynamics ® 4-15Your use of this content is subject to your current services agreement
  16. 16. Manufacturing II in Microsoft Dynamics® NAV 2009 Make the second component, X. 1. In the navigation pane, click the Items button. 2. Click New. 3. In the No. field, type X. 4. In the Description field, type Component 2. 5. In the Base Unit of Measure field, select PCS. 6. In the Invoicing FastTab, go to the Gen Prod. Posting Group field and select RETAIL. 7. In the Inventory Posting Group field, select FINISHED. 8. In the Replenishment FastTab, go to the Replenishment System field and select Purchase. 9. In the Manufacturing Policy field, select Make-to-Order. 10. In the Planning FastTab, go to the Reordering Policy field and select Lot-for-Lot. 11. Select the Include Inventory check box. 12. Enter a reorder cycle of 1W for one week. 13. Click OK. Create the Production BOM. 1. In the navigation pane, click the Production BOMs button. 2. Click New. 3. In the No. field, type Z. 4. In the Description field, type Finished Good. 5. In the Unit of Measure field, select PCS. 6. Enter the following on the first production BOM line: Type: Item No.: Y Quantity per: 1 7. Enter the following on the second line: Type: Item No.: X Quantity per: 24-16 Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
  17. 17. Chapter 4: Planning 8. Select a status of Certified on the header. 9. Click OK. FIGURE 4.4 PRODUCTION BOM Link the production BOM to the item. 10. In the navigation pane, click the Items button. 11. Double-click Z to open it. 12. Go to the Replenishment FastTab and type Z in the Production BOM No field. 13. In the Routing No. field, select 1000 (Bicycle). If a production BOM is certified before it is connected to an item, the low-level codes are not correct. 14. Click OK. 15. Click the Departments button. 16. Go to Manufacturing > Product Design > Tasks > Calculate Low- Level Code. 17. Select Yes at the option screen when asked to calculate low level code. To establish demand for Item Z, create new demand by creating two new sales orders. Dates are suggested. 18. In the navigation pane, click the Sales Orders button. 19. Click New. Microsoft Official Training Materials for Microsoft Dynamics ® 4-17Your use of this content is subject to your current services agreement
  18. 18. Manufacturing II in Microsoft Dynamics® NAV 2009 20. In the Sell-to Customer field, select 10000 (The Cannon Group PLC). 21. In the Shipping FastTab, go to the Shipment Date field and enter 1/28/2010 and a Location Code of <blank>. 22. Enter a sales quantity of 10 for Item Z on the sales order lines. 23. Click OK and ignore any stock-out warnings. 24. Create a second sales order for the same customer with a shipping date of 02/24/2010, Location Code of <blank>, and a quantity of 7 for Item Z. 25. Click OK and ignore any stock-out warnings. Use this information for planning.Regenerative Planning Regenerative planning calculates a new plan for all items. This process ensures all changes in item planning parameters are considered in the planning process, such as minimum and maximum order quantity, order multiple, and other scheduling related changes, such as modifications to the shop calendars. Demonstration 4 The following demonstration shows you how to initiate a regenerative plan: 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Planning > Tasks > Planning Worksheets. 3. Delete the lines in the planning worksheet, if any are displayed. 4. Click Calculate Regenerative Plan. This displays the Calculate Plan request form, which is used for Regenerative/Net change Planning and MPS/MRP. The form contains two FastTabs: Item and Options. On the Item FastTab, define the criteria for calculation of the requirements. For example, choose to calculate only for a specific item number or location. Establish parameters for the run. 5. Enter the following on the Options FastTab: o Calculate MPS o Starting Date: 01/01/2010 o Ending Date: 02/28/2010 o Use Forecast <blank> 6. In the Item FastTab, go to the No. field, and enter X..Z to choose items from X through Z. 7. Click OK.4-18 Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
  19. 19. Chapter 4: Planning The program generates net requirements only for the MPS item Z. Review the most important fields on the planning worksheet. Review the most important fields on the planning worksheet. More columns are available than is covered in this section.Field DescriptionNo Indicates the item number being planned.Warning: Any planning line created for an unusual situation will display a warning type in thisEmergency field, which the user can click for additional information. The following warning types exist: Emergency, Exception and Attention. The emergency warning is displayed in two situations: • When the inventory is negative on the planning start date. • When back-dated supply or demand events exist. If an items inventory is negative on the planning starting date, the planning system suggests an emergency supply for the negative quantity to arrive on the planning starting date. The warning text states the starting date and the quantity of the emergency order. Any document lines with due dates before the planning start date are consolidated into one emergency supply order for the item to arrive on the planning start date.Warning: The exception warning is displayed in two situations:Exception • The initial available inventory does not meet the safety stock level. • The projected inventory is below the reorder point. If the safety stock quantity is violated, the planning system will suggest an exception supply order to replenish the safety stock quantity on the planning start date. The warning text states the items safety stock quantity, and the date on which it was violated.Warning: The attention warning is displayed in two situations:Attention • The planning start date is earlier than the work date. In that case, the value in the Starting Date-Time field is in red text. • The planning line suggests changing a released purchase or production order. In that case, the value in the Ref. Order No. field is in red text.Action Indicates the type of Action message: New, Change Qty, Reschedule, Reschedule andMessage Change Qty, or Cancel.Accept If this field is selected and the function Carry Out Action Messages is chosen, theAction change is implemented.MessageOriginal This field shows the due date of the original order when the Action Message ofDue Date Reschedule or Reschedule and Change Qty is suggested.Due Date Due Date Proposed. Use with Starting and Ending date and time information to show proposed schedule. Microsoft Official Training Materials for Microsoft Dynamics ® 4-19 Your use of this content is subject to your current services agreement
  20. 20. Manufacturing II in Microsoft Dynamics® NAV 2009 Field Description Original Similar to Original Due Date; shows the quantity on the existing order. Quantity Quantity Similar to Due Date; this field shows the suggested quantity for an order. MPS Order This field is selected when running MPS alone and indicates this planning line is linked to a sales order or production forecast. Ref. Order This field shows if the order is a purchase, production, or transfer order. Type Ref. Order This field shows the number of the relevant production or purchase order. If the line Number is New, this is the number the order is when the Action Message is carried out. Ref. Order This field shows the status of the production order. The options are: Planned, Firm Status Planned, or Released. If the field is blank, this indicates either a purchase order or a transfer order. Item Description and Routing Description are provided in the lower section of the planning worksheet. Use the following steps to fill in the worksheet with the requirements for dependent demanded items, run MRP. 1. Delete the lines in the planning worksheet. 2. Click Calculate Regenerative Plan. 3. Use the following information: o Item FastTab: o Remove the filter from the No. field. o Options FastTab: o Calculate MRP/MPS o Order Date 01/01/2010 o Ending Date 02/28/2010 o Use Forecast <blank> 4. Click OK.4-20 Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
  21. 21. Chapter 4: Planning The worksheet now includes the requirements for the lower level subassemblies and raw materials required to produce the master production schedule. The worksheet displays, as shown in the following figure. FIGURE 4.5 PLANNING WORKSHEET The rows for the components show a Ref Order Type of Purchase and no Ref Order No. or Status. The top two rows show that production orders are suggested to fulfill the demand created by the sales orders. The remaining rows show the quantity of the purchased components to produce the finished good. For example, a quantity of 14 for Item X is created because the production BOM defines that for every one of Item Z, there must be two of Item X. Track two of the lines. 1. With the cursor on the top row, click Order Tracking. 2. Observe that the order for ten of Item Z is tracked to a sales order. 3. Click Show to access the original sales order. 4. Continue to Press Esc until you go back to the planning worksheet. 5. With the cursor on the row for 14 of Item X, click Order Tracking. Microsoft Official Training Materials for Microsoft Dynamics ® 4-21Your use of this content is subject to your current services agreement
  22. 22. Manufacturing II in Microsoft Dynamics® NAV 2009 This row tracks to another planning line. The indented line shows what the planning line is tracked to. FIGURE 4.6 ORDER TRACKING This tracking form shows that the component is tracked to another planning line. The indented row shows the line that the planning line is tracked to. The Item No. field on the right side shows which item number is being discussed. Press Esc to return to the planning worksheet.4-22 Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
  23. 23. Chapter 4: Planning Planning Parameters for Items X & and Y The reorder policy is lot-for-lot, meaning the net requirement is calculated as the exact amount needed (as opposed to a fixed reorder quantity) to supply the source of demand over the entire order cycle. The replenishment order is scheduled at the date of the initial net requirement across the reorder cycle. The following is a graphical display of replenishments for items X, Y, and Z. FIGURE 4.7 REPLENISHMENTS FOR ITEM X, Y, AND Z The due date for the purchased items is based on the start time for routing of the finished good. Times can be modified based on time buffers entered on the item card and locations. The following demonstration shows you how to change some parameters and view the affect on ordering. Demonstration 5 1. In the navigation pane, click the Items button. 2. Double-click item Y to open it. 3. On the Planning FastTab, go to the Safety Stock Quantity field and type 5. 4. In the Order Multiple field, type 2. 5. Click OK. Return to the planning worksheet to view the affect. 6. In the navigation pane, click the Departments button. 7. Go to Manufacturing > Planning > Tasks > Planning Worksheets. 8. Delete the lines in the planning worksheet, if any are displayed. 9. Click Calculate Regenerative Plan. Microsoft Official Training Materials for Microsoft Dynamics ® 4-23Your use of this content is subject to your current services agreement
  24. 24. Manufacturing II in Microsoft Dynamics® NAV 2009 10. Leave the same filters used before, except select both MPS and MRP. 11. Select OK. NOTE: In most industries, an inverse relationship exists between reorder cycle and item cost (the higher the cost, the shorter the reorder cycle). One common application: fasteners (screws, bolts, and nuts) that have a reorder cycle of one month. The final assembly they are used in might have a reorder cycle of as low as one day. This is driven by inventory investment (carrying costs). Companies want to produce smaller lots of subassemblies and finished goods with schedules that mirror demand. The program provides the flexibility for users to determine how they want to manage their reorder cycles and ultimately their inventory investment. Modifying the Planning Horizon Users have the capability of adjusting the planning horizon to modify the results and limit the length of the planning run. Demonstration 6 The following demonstration shows you how to study the impact of the order date on the planning horizon. Create an item card and define the following parameters: 1. In the navigation pane, click the Items button. 2. Click New. 3. In the No. field, type W. 4. In the Description field, type Component 3. 5. In the Base Unit of Measure field, select PCS. 6. In the Invoicing FastTab, go to the Gen Prod. Posting Group field and select RETAIL. 7. In the Inventory Posting Group field, select RESALE. 8. In the Replenishment FastTab, go to the Replenishment System field and select Purchase. 9. In the Manufacturing Policy field, select Make-to-Stock. 10. In the Planning FastTab, go to the Reordering Policy field and select Fixed Reorder Qty. 11. In the Reorder Point field, type 50. 12. In the Reorder Quantity field, type 100. 13. Click OK. Create a new sales order to create demand for this item. 1. In the navigation pane, click the Sales Orders button. 2. Click New.4-24 Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
  25. 25. Chapter 4: Planning 3. In the Sell-to Customer field, select 10000 (The Cannon Group PLC). 4. In the Shipping FastTab, go to the Shipment Date field and enter 2/24/2010 and a Location Code of <blank>. 5. Enter a sales quantity of 10 for Component 3 on the sales order lines. 6. Click Release and ignore any stock-out warnings. 7. Click OK. 8. In the navigation pane, click the Departments button. 9. Go to Manufacturing > Planning > Tasks > Planning Worksheets. 10. Delete the lines in the planning worksheet, if any are displayed. 11. Click Calculate Regenerative Plan. 12. Enter the following on the Options FastTab: Calculate: MPS and MRP Starting Date: 01/01/2010 Ending Date: 02/28/2010 Use Forecast <blank> 13. In the Item FastTab, go to the No. field, and type W..Z to choose items from W through Z. 14. Click OK. A line is added to the worksheet for item W. The item falls below the reorder point, which is 50. Therefore, MRP suggests an order with a starting date equivalent to the order date of the planning period, and then forward schedules the item. Because the Reorder Quantity is 100, the 50 is rounded to 100 for ordering. NOTE: The reorder point is only triggered if there is demand for an item. If the inventory for item W was negative during the planning period, then MRP will have back-scheduled the order instead. The planning lines only include independent and dependent demand through the ending date. Modifying the ending date allows a user to only create plans for a defined period. Typically, this may be set equal to the products cumulative lead time (user-calculated) plus some additional time for generating capacity planning information for future periods. Before continuing, make the following adjustments: 1. Delete the sales order for item W. 2. Locate Item W and change the reordering policy to Lot-for-lot (The Reorder Point and Reorder Quantity fields are disabled). Microsoft Official Training Materials for Microsoft Dynamics ® 4-25Your use of this content is subject to your current services agreement
  26. 26. Manufacturing II in Microsoft Dynamics® NAV 2009Net Change Planning Net Change Planning monitors changes in master data, planned supply, and direct changes in demand requirements. These include the following: • Changes to the safety stock. • Changes in BOMs where this item is used. • Changes in routings where this item is used. • Demand-type changes in master data of the item (reorder point or safety stock). • Unplanned consumption, deviations in stocktaking, and any unplanned change of inventory. • Receiving quantities other than planned. Net change: • Calculations are much faster because the program only considers supply and demand or item definition changes (BOM and routing) since the last plan generation. • Only deletes planned orders not required due to changes in demand. Even though a single action of the previously listed actions, for instance a change in routing, might involve several items, this is not a reason to calculate all items in a regenerative plan. It is more appropriate to let those items participate in the next net change planning.4-26 Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
  27. 27. Chapter 4: Planning The following figure shows the principle in net change planning. FIGURE 4.8 NET CHANGE PLANNING EXAMPLE First, a sales order (or another type of demand) causes planning assignment for item A to join the next net change planning. So far, none of the other 50 items join the next planning. • When the net change planning runs, it causes a changed (or new) production order for item A. • As the components for the changed production order are changed according to the new requirements, items B, C, and D are assigned for planning. • The planning system works by the order of the low-level code; therefore, it must examine plans for item B, then C, and then D. • Since item B does not have a BOM, the planning for that branch of the product structure ends here. • In this example, the changed requirement for item C causes a new production order. Since item C has a BOM, it is exploded, which causes a new requirement for item E. Simultaneously, item E is assigned for planning. • Like item B, item D does not have a BOM, so changes in the plan for item D do not cause any further planning. Microsoft Official Training Materials for Microsoft Dynamics ® 4-27Your use of this content is subject to your current services agreement
  28. 28. Manufacturing II in Microsoft Dynamics® NAV 2009 • Now only item E is assigned for planning. The process goes on, and when exploding the BOM, items F, G, and L are assigned to join the planning. • In this example, there is plenty of item F in stock. Consequently, there is no reason to create any replenishment order. And, as a result, items of production BOM F receive no planning assignments. The net change planning is then completed. Some other changes of master data are more infrequent and may influence a mass of items, such as to change the following: • Replenishment system to longer take inventory into consideration • Entire shop calendar Therefore, you must then carry out Planning for all items involved by using regenerative planning. Changes of the other planning parameters leads to changes in the future supply. However, the influence on demand is not sufficient to force the item to join the next net change planning. Demonstration 7 This demonstration explores the net change planning. Begin by entering a new sales order for a manufactured item using the following steps: 1. Create a sales order for a manufactured item of your own choice for a quantity of ten. 2. Choose a date that is within the planning dates of 11/10/2010 through 02/24/2011. Use the following steps to process a net change planning run, and note the impact. 1. From the Manufacturing > Planning > Planning Worksheet, click Functions > Calculate Net Change Plan. 2. Enter the following settings on the Options FastTab: o Calculate MPS and MRP o Order Date 11-10-08 o Ending Date 02-24-09 3. Click OK.4-28 Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
  29. 29. Chapter 4: Planning The worksheet is populated with only the lines required to manufacture your item. This includes a combination of a new order and changes to existing orders. Since net change planning requires less time and resources to process, it can be run during those periods when a full regeneration is not needed.Order Tracking and Action Messaging Use the order tracking functionality to make the linkage visible between supply and demand. Tracking entries are created by the planning routines every time they are performed. The following are true of action messages: • They are generated by the order tracking system when balance is not obtainable within the existing supply or demand order network. • They identify the need for user intervention to correct a current or potential problem. • They are created as an appendix to a tracking record, holding information about the modifications needed to obtain a new balance in the order network. • They are generated and occur one level at a time, in respect of each items low-level code. This ensures all items that experience or will experience changes in supply or demand are considered. • Changes are processed that reestablishes equilibrium between supply and demand. To avoid unimportant action messages, dampeners can be established. The dampeners serve to restrict the generation of action messages to only those changes that exceed the defined quantity or number of days. To "freeze" a particular supply order so that it does not participate in action messaging, you can change the planning flexibility to None. This can be done on the following: • Production order line • Purchase order line • Planning worksheet line However, setting the planning flexibility to None may result in action messages requesting that you create new orders to meet demand. This occurs because the user stated that the existing order cannot be moved, therefore a new order is required to meet the change in demand. In response to any supply or demand imbalances, the system generates the following action messages: • New • Change Quantity • Reschedule Microsoft Official Training Materials for Microsoft Dynamics ® 4-29 Your use of this content is subject to your current services agreement
  30. 30. Manufacturing II in Microsoft Dynamics® NAV 2009 • Resched. and Change Qty. • Cancel NOTE: Action Messages say to create a new order, cancel an order, or change an order (quantity or date). An order is a purchase, transfer, or production order. The following is a review of the action messages. Message Description New If a demand cannot be fulfilled by suggesting action messages to Change Qty., Reschedule, or Reschedule and Change on existing orders, the system generates Action Message = New, which suggests a new order. In addition, the system issues the action message New if there are no existing supply orders within the reorder cycle of the item in question. This parameter determines the number of periods forward and backward in the availability profile when you are searching for an order to reschedule. Change When demand tracked to a supply order(s) experiences a quantity Qty. change, the system generates an action message Change Qty. to indicate that the related supply must be changed relative to the change in demand. If a new demand emerges, the system searches for the nearest existing unreserved supply order within the reorder cycle and issues a Change action message for that order. Reschedule When a supply or demand order experiences a date modification causing an imbalance in the order network, the system issues a Reschedule action message. If there is a one-to-one relationship between demand and supply, the system issues an action message suggesting that the supply order be moved accordingly. If the supply- order covers demand from more than one sales order, the supply order is rescheduled equal to the date of the first demand. Resched. If both the dates and quantities of an order are modified, it is necessary and Chg. to change plans for both circumstances. Action messaging gathers both Qty. actions in one message Resched. and Chg. Qty., to ensure the order network returns to balance. Cancel If a demand for an order-to-order basis is deleted, the system issues an action message to Cancel the related supply order(s). If the relationship is not order-to-order, the system generates an action message requesting a Change to reduce the supply. If through other factors, such as inventory adjustments, a supply order is not required at the time the action messages are generated by the user, the system suggests the action message Cancel in the worksheet.4-30 Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
  31. 31. Chapter 4: Planning When a demand is changed, the order tracking system seeks to re-establish balance in the order network. This can be done by either: • Automatically changing the tracking without involving the user (dynamic tracking). • Creating action messages as a means of urging the user to make some specific changes to the order network. The creation of dynamic tracking entries is not dependent on the planning routines. The planning system automatically creates appropriate order tracking entries each time a new requirement is entered into the database. Dynamic tracking and action messages are discussed later. Demonstration 8 To demonstrate action messaging, assume a customer called and made several modifications to their order base. To reflect these changes in the demand stream, change sales order shipment dates and quantities for the bicycle and the mountain bike: 1. In the navigation pane, click the Sales Orders button. 2. Select the sales order for Item Z with a quantity of 10 pieces. 3. Change the order quantity to 8. 4. Ignore any stock-out warnings and click OK. 5. Select the other order, with the quantity of 7 pieces. 6. Change the shipment date to 01/30/2010. 7. Click Yes to modify the shipment date. 8. Click OK. Use net change planning to generate the action messages. 1. In the navigation pane, click the Departments button. 2. Go to Manufacturing > Planning > Tasks > Planning Worksheets. 3. Delete the lines in the planning worksheet, if any are displayed. 4. Click Calculate Regenerative Plan. Establish parameters for the run. 5. Enter the following on the Options FastTab: o Calculate MPS and MRP o Starting Date: 01/01/2010 o Ending Date: 02/28/2010 o Use Forecast <blank> 6. In the Item FastTab, go to the No. field, and type X..Z to select items from X through Z. Microsoft Official Training Materials for Microsoft Dynamics ® 4-31Your use of this content is subject to your current services agreement
  32. 32. Manufacturing II in Microsoft Dynamics® NAV 2009 The planning worksheet shows the system-generated action messages that recommend modifications to production and purchase orders to facilitate the changes in the demand stream of item Z. Investigate some of the action messages on the planning worksheet. Review the changes to Item Z. The system uses action message Reschedule to move the parent order forward. At the same time, new orders are created for the underlying components. NOTE: Action messages are mainly controlled by two fields on the item card: Reordering Policy and Reorder Cycle. If the reorder policy is Order, then the reorder cycle-and most other planning parameters-is irrelevant. When the shipment date or quantity is changed, the system tries to reschedule any supply in response to the new situation. The planning line for item X reflects the changed quantity in the planning lines. Review the following fields on the planning worksheet used in action messaging. Field Description Action This field displays the type of action message. Choices are: New, Message Change Qty., Reschedule, Resched. and Chg. Qty., and Cancel. Accept A check mark in this field indicates the planner accepts the Action suggested action. These actions are implemented when using the Message Carry Out Action Messages function. Original For action messages Reschedule or Resched. and Chg. Qty., this Due Date field displays the current date for the production or purchase order. Original For action message Change, this field indicates the current quantity Quantity for this receipt. Quantity This field indicates the new or revised quantity for this receipt, if the action message is implemented. Implementing Actions Once the Production Planner reviews the action messages and determines whether to accept some or all of the suggested changes, the Production Planner updates the schedules. By default, the system places a check mark in the Accept Action Message field. If the Production Planner determines not to implement a particular action(s), then the check mark must be removed.4-32 Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
  33. 33. Chapter 4: Planning Dynamic Order Tracking and Action Messaging When demand increases, the system seeks to maintain the balance in the supply and demand profile. This is done by the Dynamic Tracking feature, which automatically attempts to satisfy the increased demand by tracking against existing supply orders or unreserved inventory. Dynamic order tracking is not dependent on the planning routines; order tracking entries are created automatically as required. This is accomplished in order of priority based on the following table. Priority Dynamic Tracking Priorities - Tracking to: 1 Any excess supply within the existing order. 2 Planned and scheduled receipts in order of receipt date. 3 Available inventory. 4 If supply order exists within current order tracking, issue action message Change. 5 If none of the above, generate action message New. NOTE: Dynamic order tracking only tracks against items that occupy identical dimensions, that is, location and bin code. The inventory location and bin code must match the demand (sales order or production forecast) exactly. If they do not, the inventory is ignored by the planning routines. Order Tracking Policy Participation in dynamic tracking and action messaging is determined by setting the Order Tracking Policy field on an item card. This field is located in the Planning FastTab. Microsoft Official Training Materials for Microsoft Dynamics ® 4-33Your use of this content is subject to your current services agreement
  34. 34. Manufacturing II in Microsoft Dynamics® NAV 2009 The following table shows the possible settings for the Order Tracking Policy field. None Neither dynamic order tracking nor action messages are generated. Action messages continue to be generated when you process net change or regenerative planning. Tracking Only dynamic order tracking entries are created. Only To generate action messages, run regenerative or net change planning. Tracking Both dynamic order tracking and action messages are created. and Action Mesg. Get Action Messages It is highly recommended that you only process regenerative or net change planning during periods when users are not accessing records used by the planning system (such as Inventory and Bill of Materials). For some companies, this may be only at night or on weekends. The Get Action Messages function allows the Production Planner, or other personnel, to get an immediate answer of the impact of schedule changes processed between net change or regenerative planning runs. An example of this is when new sales orders are entered in the morning and the Production Planner wants to start them before the next full planning run. Get Action Messages is not intended to be a substitute for the more robust planning routines employed by net change and regenerative planning. It does, however, allow users to quickly gauge the impact to the plan for a particular item that results from changes between planning runs. NOTE: There is a tradeoff of accuracy for speed and convenience when you use the Get Action Messages function. Note that it is not intended as a replacement of net change or regenerative planning. Setting Dampeners APICS defines dampeners as: "User-input parameters to suppress the reporting of insignificant or unimportant action messages created through the computer processing of MRP." Users can specify both the period of time and a percentage of the lot size in which to suppress action messages.4-34 Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
  35. 35. Chapter 4: Planning The dampener for time makes it possible to change the shipment date for a sales order to a future date (and only a future date), controlled by the time specified in the Dampener (Time) field without needing to change the corresponding production order. This increases the stockkeeping but it makes the system less "nervous." (Nervous is an APICS term. It means that there are less changes to orders, making the planning process more stable .) The dampener for quantity makes it possible to reduce (and only reduce) the quantity of a sales order without needing to change the corresponding production order. There is also an increased inventory level; however, the system does not react to every minor change in the supply and demand chain. Demonstration 9 The following demonstration shows you how to use dampeners. 1. From the Manufacturing Menu, go to Setup > Manufacturing Setup > Planning FastTab. 2. Set the following dampeners: Dampener (Time) 3D Dampener (% of Lot Size) 20 3. Select the sales order for 8 of item Z. 4. Change the order quantity to 5 and the shipment date to 2/15/2010. 5. Select the sales order for 7. 6. Change the order quantity to 6 and the shipment date to 1/30/2010. 7. From a planning worksheet, calculate a net change plan with these options: o Calculate MPS o Order Date 01/01/2010 o Ending Date 02/28/2010 Only one suggestion is received for the sales order with a quantity of 5. The other order, with a changed shipment date of two days and a changed quantity of 1 (7-6 = 1 is less than 20 percent of 7), is not part of the net change planning, because there is a time dampener of three days and a quantity dampener of 20. The system does not react to the changes in that particular sales order, thereby making the system less "nervous" or sensitive to changes. In this case, the dampener makes the Planning procedure more efficient. Microsoft Official Training Materials for Microsoft Dynamics ® 4-35Your use of this content is subject to your current services agreement
  36. 36. Manufacturing II in Microsoft Dynamics® NAV 2009 Logging Planning Errors The planning batch jobs, Calculate Plan and Carry Out Action Msg., require that a series of item setup and data relations are intact to successfully plan or create supply for every item demand. Typical setup problems that may cause the batch jobs to fail include: • Uncertified routings and BOMs • Blocked items • Missing transfer routes To avoid searching for errors after a lengthy planning is finished, the Production Planner can select the Stop and Show First Error field on the Options FastTab of both batch job request forms during and after the batch jobs. Calculate Plan – Plan Worksheet If the Production Planner selects the Stop and Show First Error field, the Calculate Plan batch job stops as soon as it encounters an error. At the same time, a message appears with information about the (first) error. If an error exists, only the successful planning lines made before the encountered error are presented in the Panning Worksheet. If the field is not selected, the Calculate Plan batch job continues until it is completed, that is, errors do not interrupt the batch job. If one or more errors exist, the program displays a message after completion saying how many items are affected. The Planning Error Log window then opens to provide more details about the error and links to the affected item card, BOM, or other source of the error. Carry Out Action Message – Plan If the Production Planner selects the Stop and Show First Error field, the Carry Out Action Msg. batch job stops as soon as it encounters an error. At the same time, a message appears with information about the (first) error. If an error exists, only the planning lines processed before the encountered error result in supply orders. If the field is not selected, the Carry Out Action Msg. batch job continues until it is completed, that is, errors do not interrupt the batch job. If one or more errors exist, the program displays a message after completion saying how many items are affected.4-36 Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
  37. 37. Chapter 4: Planning Red Font Indicates Critical Planning Lines The planning system may sometimes suggest planning lines that need extra attention by the planner before they can be accepted. On such lines, the Accept Action Message field is not checked by default and the critical element is highlighted with red font: • If a planning line suggests a starting time earlier than the work date, the value in the Starting Date - Time field is red. • If a planning line suggests that you change a released purchase or production order, the value in Ref. Order No. field is red.Summary This course examines the Materials Requirements Planning process in Microsoft Dynamics NAV 2009. This includes detailed explanations and demonstrations in concepts such as net change planning, regenerative planning, order tracking, action messages, and dampeners. The planning features in Microsoft Dynamics NAV 2009 are advanced and require some practice and experience. The APICS organization offers additional resources in this special field. Microsoft Official Training Materials for Microsoft Dynamics ® 4-37 Your use of this content is subject to your current services agreement
  38. 38. Manufacturing II in Microsoft Dynamics® NAV 2009Lab 4.1 - Planning Scenario Regenerative Plan Create a sequence of four sales orders for item W (component 3). Each order is for customer 10000 and for a quantity of 10 pcs. with a shipment date of: 1/28/2010, 2/4/2010, 2/11/2010 and 2/18/2010. Calculate a regenerative plan using the planning period 1/1/2010 through 2/28/2010. Step by Step 1. In the navigation pane, click the Sales Orders button. 2. Click New. 3. In the Sell-to Customer field, select 10000 (The Cannon Group PLC). 4. In the Shipping FastTab, go to the Shipment Date field and enter 1/28/2010 and a Location Code of <blank>. 5. Under Type, select Item and under No., select W. Quantity is 10 pieces 6. Click Release and ignore any stock-out warnings. 7. Click OK. 8. Open the item card and verify that the quantity in the Qty on Sales Order field is 40. 9. In the Planning FastTab, verify that the Reorder policy is Lot-for-lot Verify that the Include Inventory field is not selected. 10. Verify that the Reorder Cycle is set to 1W . 11. In the navigation pane, click the Departments button. 12. Delete the lines in the planning worksheet, if any are displayed. 13. Click Calculate Regenerative Plan. 14. Set a filter on the Item FastTab for item W. 15. Make sure MPS is selected on the Options FastTab. 16. Set the order date for 1/1/2010 and the end date for 2/28/2010. 17. Click OK.4-38 Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
  39. 39. Chapter 4: Planning Lab 4.2 - Another Regenerative Plan 1. Continue using the information from Lab 4.1 and change the reorder cycle on item number W, to 2W. 2. Run another regenerative plan. 3. Note how the grouping of the suggested orders changes. Step by Step Lab 4.1 must be completed to successfully complete this exercise. 1. In the navigation pane, click the Items button. 2. Open item W (component 3). 3. In the Planning FastTab, go to the Reorder Cycle field and change the entry to 2w (two weeks). 4. Click OK. 5. In the navigation pane, click the Departments button. 6. Go to Manufacturing > Planning > Tasks > Planning Worksheets. 7. Delete the lines in the planning worksheet, if any are displayed. 8. Click Calculate Regenerative Plan. 9. Set a filter on the Item tab for item W 10. Make sure MPS is selected on the Options tab. 11. Set the order date for 1/1/2010 and the end date for 2/28/2010. 12. Click OK. 13. Select one of the lines and click Order Tracking to see the demand that created the planning suggestions. Microsoft Official Training Materials for Microsoft Dynamics ® 4-39Your use of this content is subject to your current services agreement
  40. 40. Manufacturing II in Microsoft Dynamics® NAV 2009Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1. 2. 3.4-40 Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement

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