How planning works

The first step in planning is to create the demands.

Demands can be created in the following ways.

• Entering sales ordersDocuments that state the quantity, description and price of goods and services ordered. They also specify agreed payment terms and discounts, delivery details and other agreements pertinent to the sale and its supply. .
• Entering and releasing estimatesForecast project costs, based on expected costs of labour, machinery and operation times. In Manufacturing, estimates are produced for one-off items or non-repetitive batches., planned by stage.
• Entering and releasing sales forecastsThe best estimate of future requirements. This is used as input to the MPS (Master Production Schedule). Forecast orders received should be subtracted from the forecast to leave a residual forecast in the master schedule. Total demands can then be calculated as orders plus residual forecast for each time period..
• Entering and releasing make to stock items, for which there are no specific demands.

MPS reads demands and creates a Master Production ScheduleMaster Production Schedule (MPS). The planning of production (usually end item production), to satisfy current and forecast sales orders. The sum of MPS items must equal the agreed sales and operations plan for the items over each planning period. Planning periods are normally a month or a four week period. Items planned within MPS are exploded by MRP (Materials Requirements Planning) to produce the material and capacity requirements..

Estimates, make to stock items and sales forecasts must be released in order to be included in the Master Production Schedule.

Time Fences, set on Planning settings MPS tab are used to set the points where the planning rules change that determine how MPS will read sales ordersDocuments that state the quantity, description and price of goods and services ordered. They also specify agreed payment terms and discounts, delivery details and other agreements pertinent to the sale and its supply. and sales forecastsThe best estimate of future requirements. This is used as input to the MPS (Master Production Schedule). Forecast orders received should be subtracted from the forecast to leave a residual forecast in the master schedule. Total demands can then be calculated as orders plus residual forecast for each time period..

Once demands are read, they are included in the Master Production Schedule or in a list of excluded demands. Demands may be excluded for various reasons.

MPS facilitates back-to-back ordering (the generation of purchase orders to satisfy sales orders) for non-manufactured items.

Sales orders can be linked with batch works orders that are created specifically to meet the demands in the sales orders.

When you have a Master Production ScheduleMaster Production Schedule (MPS). The planning of production (usually end item production), to satisfy current and forecast sales orders. The sum of MPS items must equal the agreed sales and operations plan for the items over each planning period. Planning periods are normally a month or a four week period. Items planned within MPS are exploded by MRP (Materials Requirements Planning) to produce the material and capacity requirements., you can run MRP to produce the material requirements schedule. For most items, this considers stock levels and looks at items where stock is below the reorder point. The list of demands is exploded through BOMA stock assembly and process costing system, which provides facilities to specify the structure of finished items in terms of sub-assemblies and components. structures, taking into account the current and projected stock levels. From this, a series of recommendations is generated. Recommendations may be to make other items (raise a works orderThe authority to produce a part using the components specified on a BOM and the process specified on the routing.) or buy them (raise a purchase order).

Note: Buy recommendations are not made if the POP order generation option in POP settings Order Generation tab is set to Use Generate Orders. In this case MRPMaterials Requirements Planning (MRP). MRP recommends purchase orders, transfers and work orders to balance supply and demand. will also not suggest any existing purchase orders are cancelled. We recommend you select either Use MRP or Use Both for the POP order generation option, if you are using MRP.

Items can be linked so that a purchase order meets the demands for a specific works order. If so, the demands for the specific works order are not included with the demands for other items.

Items can also be linked so that a raised batch works order fulfils the demands from a specific sales order. This can be set up in Sales Order Processing. It can also be set up in MPS. If it is set up in MPSMaster Production Schedule (MPS). The planning of production (usually end item production), to satisfy current and forecast sales orders. The sum of MPS items must equal the agreed sales and operations plan for the items over each planning period. Planning periods are normally a month or a four week period. Items planned within MPS are exploded by MRP (Materials Requirements Planning) to produce the material and capacity requirements. then when MRP is run, the sales order is linked to the MRP Recommendation number for raising the works order.

You can modify recommendations in MRP, or you can export data to Graphical Planner and use it. You must import data into MRPMaterials Requirements Planning (MRP). MRP recommends purchase orders, transfers and work orders to balance supply and demand. after you have modified it in Graphical Planner. This updates the works orders and recommendations as if they had been modified in MRP.

Actioning recommendations raised in MRP creates a number of purchase and works orders.

You can action individual recommendations, a range of recommendations (by product, supplier, date, product family), or all recommendations.

Purchase recommendations are consolidated by supplier automatically. If you select multiple recommendations with the same supplier, and click Action, they are combined in one purchase order. If the due dates are the same, the recommendations are combined in one line on the order. If the due dates are different, multiple order lines are created.