This presentation identifies issues with Avantor's supply chain due to inaccurate settings in SAP. Materials were set with planning time fences, lead times, and replenishment times that did not match actual times. This caused customer orders to be set with inaccurate delivery dates, resulting in frequent late deliveries. The presentation recommends updating material master settings to reflect proper time fences and lead times. It also suggests developing long-term procurement strategies and supplier partnerships to improve fulfillment and reduce costs.
SAP ERP 'Shelf Life Expiration Time (SLET) Management' SolutionVijay Pisipaty
IT Sapiens has been a pioneer in building solutions that alleviate GAPs in SAP Core functionalities. IT Sapiens is now the first Solution Provider in the world to bring to bear "Shelf Life Expiration Time (SLET) Management" Functionality in SAP ECC 6.0 and S/4 HANA's "Batch Management Module".
SAP ERP 'Shelf Life Expiration Time (SLET) Management' SolutionVijay Pisipaty
IT Sapiens has been a pioneer in building solutions that alleviate GAPs in SAP Core functionalities. IT Sapiens is now the first Solution Provider in the world to bring to bear "Shelf Life Expiration Time (SLET) Management" Functionality in SAP ECC 6.0 and S/4 HANA's "Batch Management Module".
In this presentation, we will discuss material planning systems and its evolution. Overview on MRP processes, its objectives and types of demands. We will also talk about the various terminologies like bills of material, inventory record, operating logics, MRP explosion process, capacity requirement planning.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
SAP Sales Order Processing With Customer ReservationsVijay Pisipaty
SAP Customer Resrvation
Customer Reservations
ATP with Customer Reservations
This Solution overcomes a core functionality GAP in Sales Order Processing in SAP ECC 6.0 and above, wherein there DOES NOT exist an ability to exclusively Allocate / Reserve Inventory for specific customers in anticipation of Sales Orders.
This Solution has the following features:
For Regular Stock Items:
- Provides ability to designate Material / Products as Customer Specific Product Reservation relevant
- Provides ability to create “Customer Specific” Product Reservation at Material or Material-Batch level
- “Customer Specific” Reservation visible in Stock / Reqts. List
Customer Specific Reservation, though a demand element, DOES NOT IMPACT Planning (MRP/MPS)
- Sales Order Confirmation restricted to the limit of Open Customer Specific Product Reservation quantity
- “Customer Specific” Reservation decremented with Sales Order Confirmations
- Option to control Backorder Processing too, to check for “Customer Specific” Reservation
- NO SOURCE CODE MODIFICATIONS OF ANY KIND
Supply Planning Leadership Exchange: SAP PP/DS What You Need to Know Part 1Plan4Demand
866.P4D.INFO | Plan4Demand.com | Info@plan4demand.com
For More Information email jaime.reints@plan4demand.com or contact Jaime at 412.733.5011
Uncovering the Reality of SAP's Production Planning & Detailed Scheduling Module
Many companies who have invested in SAP ECC/APO are just now starting to deploy at the plant level after heavily focusing on demand and supply network planning. As a part of the SAP journey PP/DS is the next logical solution to deploy or optimize. If you’re considering PP/DS, or already have it implemented but are struggling to harness it’s full potential, you’ll benefit from this webinar.
This presentation will help people better understand;
- What PP/DS really capable of accomplishing
- Where PP/DS interacts with SNP
- How PP/DS differs from SNP
- Ways to enhance Block planning
- Why PP/DS can help manage production resource, specifically related to lead times, setup costs, delays and modes
For even more Supply Planning Leadership join our private linkedin group http://linkd.in/SPLeadershipExchange
In modern supply chain management ERP is used for transactional data while tools like Advanced Planning and Optimization is used for forecasting, planning, scheduling and confirmation. Further, in processes such as production planning there is a technique termed SNP optimizer. This is used for calculation of costs and Total cost is calculated as the sum of Delay cost, Non-delivery cost, storage cost and production cost. An ERP-enabled Supply Chain Process helps the organization to create a supply chain that is reliable, flexible and responsive. It also enables in enhancing the visibility across the supply chain.
Hierarchical planning - process that translates annual business & marketing plans & demand forecasts into a production plan for a product family (products that share similar characteristics) in a plant or facility leading to the Aggregate Production Plan (APP)
Planning horizon of APP is at least one year & is usually rolled forward by three months every quarter
Includes costs relevant to the aggregate planning decision include inventory, setup, machine operation, hiring, firing, training, & overtime costs
SCM-APO-PP/DS-Production Planning and Detailed SchedulingAJAY
APO Production Planning and Detailed Scheduling is a set of functionalities around Inhouse Production Planning, External Procurement Planning, Resource Scheduling and Sequence Optimization.
PPDS is primarily divided in two areas - Production Planning and Detailed Scheduling. This component has the highest amount of integration between APO and the OLTP (R/3 or ERP) system for real-time transaction data transfer back and forth. This is made possible by a standard interface from SAP named Core Interface Function.
PP/DS is more used for finite optimization at a plant level by optimizing the resources, materials and manpower. It considers all the finite constraints in more detail and allows the planners to generate a day-to-day finite schedule, resource loading charts etc.
How to activate SAP ATP check for Sales Order, when you place item in sales order. Getting the material's supply and demand information,then meet customer's request delivery date.
SAP Active Ingredient Management and Dose Calculation for Biologics/Life Scie...Vijay Pisipaty
There now exists an IT Sapiens developed, comprehensive "SAP Active Ingredient Management Solution for Biologics/Life Sciences/Pharmaceuticals", that is cGMP compliant and caters to "Exponential" Conversion of Milliliter, Liters, etc to Doses.
Why to choose APO over ECC for Planning?
APO-DP vs. R3-Flexible Planning
APO-GATP vs. R3-ATP
APO-SNP vs. R3-DRP
APO-PPDS vs. R3-MRP & Capacity Planning
APO-BW vs. R3-LIS
APO-Live cache vs. R3-Application run time memory
APO-OLAP vs. R3-OLTP
APO-TPVS vs. R3-LE
Dassian's GPD PACE is an application that ensures customers can clearly and concisely provide the right data to their government auditors to "Follow the money trail" with standard SAP Manufacturing Grouping Pegging and Distribution (GPD) data. Standard SAP manufacturing with GPD provides great flexibility to manufacturing. Unfortunately, many companies have problems explaining the complexities of GPD cost flow to the government. This application provides the key information needed to bridge this gap. GPD PACE also has many reports to provide better visibility into the complex GPD processes for project-based manufacturing. PACE seamless sits on top of standard SAP GPD to give your company everything they need to successfully "follow the money."
Due to their popularity as a consulting and sourcing company, Amena Capital has spread to the giants of the finance world: Malaysia, New Zealand, Australia and China. Their next expansion will be in the Middle East and Gulf States, as that is where the financial world’s focus is shifting.
Tovacov lakes, and the whole area affected by mining, represents a very important refuge for many rare species of plants and animals that can’t find suitable living conditions in the surrounding intensively farmed landscape. Due to the high level of underground water and the presence of gravel bed, Tovacov lakes can be very important wetlands but also interesting xerotherm habitat in the future. Our aim is not only to identify this biodiversity, but also to support it in the future by targeted interventions.
In the first phase of the project large field survey of different habitats were carried out. These surveys will be focused on characteristic areas that differ in moisture, age and the way they were created. Apart from vascular plants and vegetation, we will be focused on major groups of organisms for which such habitats are essential and at the same time there isn’t enough historical data. These are mainly beetles, butterflies and spiders, but other groups of animals will not be left out.
In the second phase a comparison of diversity of locally rare species with their representation in the various habitats was completed. In this way the mapping of biologically valuable sites and habitats that create appropriate conditions for the occurrence of target species is done.
In the third part, created design principles of management for such areas that will support the best possible future existence of discovered organisms and will create suitable biotopes for other types of communities of plants and animals.
The project won the International contest of the Quarry Life Award 2014 in the category “Biodiversity Enhancement”
Read more: http://www.quarrylifeaward.com/project/research-biodiversity-tovacov-lakes
In this presentation, we will discuss material planning systems and its evolution. Overview on MRP processes, its objectives and types of demands. We will also talk about the various terminologies like bills of material, inventory record, operating logics, MRP explosion process, capacity requirement planning.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
SAP Sales Order Processing With Customer ReservationsVijay Pisipaty
SAP Customer Resrvation
Customer Reservations
ATP with Customer Reservations
This Solution overcomes a core functionality GAP in Sales Order Processing in SAP ECC 6.0 and above, wherein there DOES NOT exist an ability to exclusively Allocate / Reserve Inventory for specific customers in anticipation of Sales Orders.
This Solution has the following features:
For Regular Stock Items:
- Provides ability to designate Material / Products as Customer Specific Product Reservation relevant
- Provides ability to create “Customer Specific” Product Reservation at Material or Material-Batch level
- “Customer Specific” Reservation visible in Stock / Reqts. List
Customer Specific Reservation, though a demand element, DOES NOT IMPACT Planning (MRP/MPS)
- Sales Order Confirmation restricted to the limit of Open Customer Specific Product Reservation quantity
- “Customer Specific” Reservation decremented with Sales Order Confirmations
- Option to control Backorder Processing too, to check for “Customer Specific” Reservation
- NO SOURCE CODE MODIFICATIONS OF ANY KIND
Supply Planning Leadership Exchange: SAP PP/DS What You Need to Know Part 1Plan4Demand
866.P4D.INFO | Plan4Demand.com | Info@plan4demand.com
For More Information email jaime.reints@plan4demand.com or contact Jaime at 412.733.5011
Uncovering the Reality of SAP's Production Planning & Detailed Scheduling Module
Many companies who have invested in SAP ECC/APO are just now starting to deploy at the plant level after heavily focusing on demand and supply network planning. As a part of the SAP journey PP/DS is the next logical solution to deploy or optimize. If you’re considering PP/DS, or already have it implemented but are struggling to harness it’s full potential, you’ll benefit from this webinar.
This presentation will help people better understand;
- What PP/DS really capable of accomplishing
- Where PP/DS interacts with SNP
- How PP/DS differs from SNP
- Ways to enhance Block planning
- Why PP/DS can help manage production resource, specifically related to lead times, setup costs, delays and modes
For even more Supply Planning Leadership join our private linkedin group http://linkd.in/SPLeadershipExchange
In modern supply chain management ERP is used for transactional data while tools like Advanced Planning and Optimization is used for forecasting, planning, scheduling and confirmation. Further, in processes such as production planning there is a technique termed SNP optimizer. This is used for calculation of costs and Total cost is calculated as the sum of Delay cost, Non-delivery cost, storage cost and production cost. An ERP-enabled Supply Chain Process helps the organization to create a supply chain that is reliable, flexible and responsive. It also enables in enhancing the visibility across the supply chain.
Hierarchical planning - process that translates annual business & marketing plans & demand forecasts into a production plan for a product family (products that share similar characteristics) in a plant or facility leading to the Aggregate Production Plan (APP)
Planning horizon of APP is at least one year & is usually rolled forward by three months every quarter
Includes costs relevant to the aggregate planning decision include inventory, setup, machine operation, hiring, firing, training, & overtime costs
SCM-APO-PP/DS-Production Planning and Detailed SchedulingAJAY
APO Production Planning and Detailed Scheduling is a set of functionalities around Inhouse Production Planning, External Procurement Planning, Resource Scheduling and Sequence Optimization.
PPDS is primarily divided in two areas - Production Planning and Detailed Scheduling. This component has the highest amount of integration between APO and the OLTP (R/3 or ERP) system for real-time transaction data transfer back and forth. This is made possible by a standard interface from SAP named Core Interface Function.
PP/DS is more used for finite optimization at a plant level by optimizing the resources, materials and manpower. It considers all the finite constraints in more detail and allows the planners to generate a day-to-day finite schedule, resource loading charts etc.
How to activate SAP ATP check for Sales Order, when you place item in sales order. Getting the material's supply and demand information,then meet customer's request delivery date.
SAP Active Ingredient Management and Dose Calculation for Biologics/Life Scie...Vijay Pisipaty
There now exists an IT Sapiens developed, comprehensive "SAP Active Ingredient Management Solution for Biologics/Life Sciences/Pharmaceuticals", that is cGMP compliant and caters to "Exponential" Conversion of Milliliter, Liters, etc to Doses.
Why to choose APO over ECC for Planning?
APO-DP vs. R3-Flexible Planning
APO-GATP vs. R3-ATP
APO-SNP vs. R3-DRP
APO-PPDS vs. R3-MRP & Capacity Planning
APO-BW vs. R3-LIS
APO-Live cache vs. R3-Application run time memory
APO-OLAP vs. R3-OLTP
APO-TPVS vs. R3-LE
Dassian's GPD PACE is an application that ensures customers can clearly and concisely provide the right data to their government auditors to "Follow the money trail" with standard SAP Manufacturing Grouping Pegging and Distribution (GPD) data. Standard SAP manufacturing with GPD provides great flexibility to manufacturing. Unfortunately, many companies have problems explaining the complexities of GPD cost flow to the government. This application provides the key information needed to bridge this gap. GPD PACE also has many reports to provide better visibility into the complex GPD processes for project-based manufacturing. PACE seamless sits on top of standard SAP GPD to give your company everything they need to successfully "follow the money."
Due to their popularity as a consulting and sourcing company, Amena Capital has spread to the giants of the finance world: Malaysia, New Zealand, Australia and China. Their next expansion will be in the Middle East and Gulf States, as that is where the financial world’s focus is shifting.
Tovacov lakes, and the whole area affected by mining, represents a very important refuge for many rare species of plants and animals that can’t find suitable living conditions in the surrounding intensively farmed landscape. Due to the high level of underground water and the presence of gravel bed, Tovacov lakes can be very important wetlands but also interesting xerotherm habitat in the future. Our aim is not only to identify this biodiversity, but also to support it in the future by targeted interventions.
In the first phase of the project large field survey of different habitats were carried out. These surveys will be focused on characteristic areas that differ in moisture, age and the way they were created. Apart from vascular plants and vegetation, we will be focused on major groups of organisms for which such habitats are essential and at the same time there isn’t enough historical data. These are mainly beetles, butterflies and spiders, but other groups of animals will not be left out.
In the second phase a comparison of diversity of locally rare species with their representation in the various habitats was completed. In this way the mapping of biologically valuable sites and habitats that create appropriate conditions for the occurrence of target species is done.
In the third part, created design principles of management for such areas that will support the best possible future existence of discovered organisms and will create suitable biotopes for other types of communities of plants and animals.
The project won the International contest of the Quarry Life Award 2014 in the category “Biodiversity Enhancement”
Read more: http://www.quarrylifeaward.com/project/research-biodiversity-tovacov-lakes
Our proposal – the project of nature educational trail draws attention to the low level of the environmental invasion during the aggregate mining which results in the relative preservation of the environmental balance.
Besides the mentioned aspects, our project shows the potential environmental and touristic profits in the anthropogenic transformed environment. It presents the conservation way of the natural monuments of special value such as the oak tree avenue, isolated trees. The project shows the representative ecosystem in the area, emphasizes the natural – environmental heritage of the former inhabitants in the relation to the creation of the architecture of the rural greenery (ruraristics), mainly by planting the trees along the roads.
The instigated action affects widely the understood development of commune, enriches the tourist and recreation offer for local people, creates a possibility to extend the educational offers for pupils and emphasizes the commitment of HeidelbergCement Group to the protection of nature. The return to nature is possible!
Read more about the project: http://www.quarrylifeaward.com/project/valorization-natural-environment-educational-and-pro-ecological-activities-area-nowogrod
Diferentes consejos para utilizar correctamente un vestido de Coktail para asistir a un evento tan importante , una reunión ya sea de trabajo, de amigos etc.
End-to-end supply planning and execution with O8 DDMRPII™Ben Bradley
Get a copy of the deck today. Download the deck. https://o8supplychain.com/ddmrp-vs-mrp/
Learn the difference between O8's DDMRPII™ and DRP/ MRP. Learn how improved supply planning can help you achieve key inventory management objectives:
*To deliver 99% fill rate and service level with minimal stocks at minimal cost
*Reduce the number of stock-outs
*Minimise excess stocks & obsolescence
*Minimise administration, handling & transport costs
*Reduce number of exception messages that drive non-value added activity
*Allow business to focus on high value add processes and decision making
*Minimise the reliance on inaccurate forecasts
*Allow the supply chain to cope with uncertainty
10 Critical Steps Small and Medium Manufacturers should undertake TodayOmegaCube Technologies
Read our latest Whitepaper to know the top 10 critical steps that Small & Medium manufacturers should undertake immediately. These 10 critical steps will help them to automate their workflows, improve their day to day operations, control operational and overhead costs, increase machine, material and manpower utilization, improve supplier and customer relationships, and increase profitability.
Visit www.omegacube.com for more information on OmegaCube ERP.
CENTRE FOR CONTINUING EDUCATION EXECUTIVE MBA (OIL & .docxarnit1
CENTRE FOR CONTINUING EDUCATION
EXECUTIVE MBA
(OIL & GAS MANAGEMENT)
BATCH: _______________________
SEMESTER: _______________________
NAME: _______________________
SAP NO/REGN NO: _______________________
ASSIGNMENT – 1
FOR
Operations and Materials Management
MBCQ -722
UNIVERSITY OF PETROLEUM & ENERGY STUDIES
Last Date of Submission:-15th April 2012
Section‐A
(Short Answer Questions) Marks: 4×5=20
1. For the following organizations, explain how their operations functions can support business
strategy, implement business strategy and drive business strategy:
‐ a fast‐food restaurant
‐ a film‐processing service
‐ an oil refinery.
2. Why is operations management relevant to managers in other organization functions?
3. Using an example of your own choice, describe how the cost of the operation might be affected by
changing the levels of performance of quality, speed, dependability and flexibility.
4. Draw the hierarchy of operations for a small manufacturing company.
Section‐B
(Long Answer Questions) Marks: 3×10=30
1. A company which specializes in fabricating large lathes inspects every lathe before it is shipped to
the customer’s site. Given below are the defects found on a sample of 10 lathes.
Sample
No.
1 2 3 4 5 6 7 8 9 10
No.
Defects
2 1 0 3 4 2 2 3 4 1
Find whether the processes are under the control for 99 percent defects. Justify your answer
2. A firm is planning to set up a production line to assemble 300 units per hour, and 50 minutes
per hour are productive. The time to perform each task and the tasks that must precede each
task are:
=======================================================================
Task That Time to Tasks That Time to
Immediately Perform Task Immediately Perform Task
Task Precedes (Minutes) Task Precede (Minutes)
‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐
A ‐‐ .69 F B 1.10
B A .55 G C,D,E .75
C B .21 H G,F .43
D B .59 I H .29
E B .70
=======================================================================
a. Draw a diagram of precedence relationships.
b. Compute the cycle time per unit in minutes.
c. Compute the minimum number of work stations required to produce 300 units per hour
and find the efficiency of the balance line
3. What is statistical process control (SPC)? Explain why x and R charts are used together?
Section‐C
(Caselets/Situational Questions) Marks: 2×25=50
1. Inventory management in some operations is more than just a part of their responsibility; it is their
very reason for bein ...
Material and capacity requirements planning (mrp and crp) part 2Dr. Mahmoud Al-Naimi
Lectures on Production Planning and Control for B.Sc. Students - Industrial Engineering Branch -Department of Production Engineering and Metallurgy- University of Technology - Baghdad -Iraq
Prepare for your interview with these top 20 SAP MM interview questions. For more IT Profiles, Sample Resumes, Practice exams, Interview Questions, Live Training and more…visit ITLearnMore – Most Trusted Website for all Learning Needs by Students, Graduates and Working Professionals.
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1. CONFIDENTIAL AND PROPRIETARY – For internal use only, not for external distribution.
Supply Chain 2013Supply Chain 2013
2. CONFIDENTIAL AND PROPRIETARY – For internal use only, not for external distribution.
This presentation will clearly show some of the issues with
settings in the Material Master (MM02) in SAP. The volatility
Avantor is experiencing with requirements dropping in and
out, the short falls in materials to produce products for
customers in a timely manner. This will also include the
suggestions of what changes can be made to bring the
Supply Chain process back in to line to allow for a smooth
flow from customer order entry to delivery of products
through the Supply Chain.
Items will include:
•Definitions of Supply Chain terms
•Example of the Supply Chain Settings
•Analysis of MRP Codes 502-601
•Analysis of Display of Purchase requisitions (ME5A)
•Suggested Changes
3. CONFIDENTIAL AND PROPRIETARY – For internal use only, not for external distribution.
MRP Definitions:MRP Definitions:
Planning Time Fence (PTF) (several examples)
You can protect the master plan from any automatic changes to master
schedule items in the near future by using a planning time fence. During the
planning run, the system makes no automatic changes to order proposals
within the planning time fence (which is specifically determined for every
master schedule item). The system always dynamically calculates the end date
of the planning time fence starting from the planning date.
http://help.sap.com/saphelp_40b/helpdata/en/92/bf029544bd11d182b40000e829fbfe/content.htm
Time Fences for Items (PTF)
You can define planning, demand, and release time fence days for an item
based on the cumulative manufacturing lead time, cumulative total lead time,
total lead time, or a user-defined value.
http://docs.oracle.com/cd/A60725_05/html/comnls/us/mrp/tfover.htm
Planning Time Fence (PTF):
a period of time in the planning horizon that is used for planning purposes.
MRP runs will create planned orders just outside of the planning time fence. If
an order was placed within the planning time fence it would adversely effect
component schedules, capacity plans and other orders.
http://www.supplychaindefinitions.com/planning.htm
4. CONFIDENTIAL AND PROPRIETARY – For internal use only, not for external distribution.
MRP Definitions: continuedMRP Definitions: continued
Lead Time: (LT)
The time between the need for goods and the receipt of the goods. This
time can be made up of order prep time, manufacturing time, transportation
time, receiving time and quality check time.
Lead Time: (LT)
The total lead time required to obtain a purchased item. Included here are
order preparation and release time; supplier lead time; transportation time;
and receiving, inspection, and put-away time.
APICS.com
Total Replenishment Lead Time: (TRLT)
The time required for procuring raw materials and producing assemblies or
finished products. The total replenishment lead time is calculated by
adding all planned delivery times or the times required for in-plant
production of the longest production process.
http://help.sap.com/saphelp_scm50/helpdata/EN/35/26beecafab52b9e10000009b38f974/content.htm
5. CONFIDENTIAL AND PROPRIETARY – For internal use only, not for external distribution.
MRP Definitions: continuedMRP Definitions: continued
Safety Stock: (SSL)
(also called buffer stock) is a term used by logisticians to
describe a level of extra stock that is maintained to mitigate
risk of stockouts (shortfall in raw material or packaging) due
to uncertainties in supply and demand. Adequate safety
stock levels permit business operations to proceed according
to their plans.Safety stock is held when there is uncertainty
in the demand level or lead time for the product; it serves as
an insurance against stockouts.
6. CONFIDENTIAL AND PROPRIETARY – For internal use only, not for external distribution.
Slide 7 shows Potassium Chloride procured from (DSW).
The original settings of the Planning Time Fence were set at 10 days.
(Planning Time Fences for all materials have been set to 10 or 20 days)
The lead time is 126 days to receive material from DSW. While discussing this issue
with the team about the fulfillment of customer orders for part number X, we
discovered the Total Replenishment time was set at 40 days (MM02). This is the
data that is driving the dates on the sales orders for customer delivery.
In review with a PDT of 10 days, a customer order can drop in on the 11th
day with a
delivery date set by the system at 40 days. With a lead time of 126 days Avantor will
always be late by an average of 86 days or more. This is based on the settings in the
material master (MM02). (now updated)
Updating the material master to reflect accurate Planning Time Fences, accurate
Lead Times, and accurate Total Replenishment lead times will provide customer
services with accurate information for the customer. The supply chain can now work
to a more proactive approach instead of being in a total reactive mode.
Customer Orders will now be set outside the Planning Time Fence with a delivery
date of 140 days from receipt of order. (This does not mean a customer order cannot
be moved in then utilize Safety Stock to satisfy the order) This will drive the more
accurate information to satisfy Avantor customers needs.
7. CONFIDENTIAL AND PROPRIETARY – For internal use only, not for external distribution.
Original Setup of PN X
0 10 40 126
Planning
Time Fence
(PDT)
Total
Replenishment
Lead time
Updated Setup of PN X
0 126 140
PDT/Lead
Time
Total
Replenishment
Example of Lead times:
8. CONFIDENTIAL AND PROPRIETARY – For internal use only, not for external distribution.
Analysis MRP Codes :
601 Packaging (295 Part numbers, codes, SKU’s)
502 Pre Pack materials ( 696 Part numbers, codes, SKU’s)
Weekly the MD07 screens are exported to an excel format to review the replenishment needs.
The weekly numbers show a schedule attainment for both codes between 80 and 92%.
Developing a long term procurement strategy that allows for a steady flow of material based on
the MRP settings in SAP is the process being utilized. Working towards a just in time
philosophy.
The previous discussion in this presentation shows why this analysis takes 6 to 8 hours. The
fact the process of supply will always be behind demand, because the times in SAP are setup
to fail. One of the common themes are repeat orders for the same items, as an example items
set as make to order. These make to order part numbers range with a cost of $7 to $25 dollars
each. None of these items have a Safety Stock Level set, with this example Avantor is
spending more money placing repetitive orders over and over just in 2013. Attached to the
email with this presentation is the analysis out of MD07 for MRP codes 601/502. All red listed
codes are at 91.5% schedule attainment, the yellow highlighted at 91.5% attainment. (2/17/13)
Achieving 100% is not realistic but with setting the data in the material master accurately will
greatly improve the move to 100%. But this also means making a shift to a different business
strategy, providing suppliers with long term purchasing plans. As an example with packaging,
improved SSL, along with a regular monthly delivery based on usage will improve turns and
reduce costs
9. CONFIDENTIAL AND PROPRIETARY – For internal use only, not for external distribution.
Analysis of Display of Purchase requisitions (ME5A)
This screen was discussed at the meeting on Friday May 15th
that procurement was
to use going forward. This is a total shift from the direction that procurement has
been directed previously to use MD07 since SAP went live. Hopefully this will clearly
show why at this time this screen cannot be utilized. After reviewing the output of
the ME5A screen the only requisitions in the ME5A screen were requisitions that
were created after running MRP (MD02) screen dating out through 2014. Based on
the conversations with TEAM the settings now only allow requisitions to be created
in the opening period. Unless the user runs MD02 to create requisitions. Based on
the red lights of the 601/502 analysis of MD07 77% (planned orders not
requisitions) of the part numbers would be missed when using the ME5A screen.
Long term if the modifications to the material master are implemented then this
would be the preferred method to release requisitions.
Note: opening period is predetermined by settings in the
configuration and the material master, when a requisition is
converted from a planned order.
10. CONFIDENTIAL AND PROPRIETARY – For internal use only, not for external distribution.
Suggested Changes:Suggested Changes:
1. Setup Planning Time Fences for all Part Numbers.
(based on lead times not a standard number for all items.)
2. Align the Planning Time Fences, Lead times and the Replenishment Lead time.
3. Setup all buy parts to generate requisitions, not planned orders. All make items
are planned orders, all buy items are requisitions.
4. Reduce the number of variances among the part number setups.
5. Enhance the process of material issue involving process orders. Making
inventory more accurate, up to date. (lag time between physical material pull
and SAP issuing is causing inaccurate MRP numbers)
6. Review all Safety Stock Levels
7. Align suppliers with one procurement agent.
8. Define roles and responsibilities between procurement and strategic
purchasing.
9. Develop business strategy across the organizations for a structured supply
chain.
10. Develop a better strategy involving logistics with suppliers. (some suppliers
handle logistics, others Avantor has to coordinate logistics.)
11. CONFIDENTIAL AND PROPRIETARY – For internal use only, not for external distribution.
Summary:
Based on the review of the MRP codes 601/502 along with
the Material Master data making the changes will aid all of
the supply chain to work forward instead of constantly
working in a recovery/reactive mode.