Master Planner Working Examples for BOM- Non Phantom
There is an existing BOM- Non Phantom item “RED_SHIRT”. Let’s have a look of its item details and BOM details.
Please focus on the highlighted lines. Estimated Production Time= 0.1 means that it takes 0.1 days to make one single RED_SHIRT. If you have an sales order requesting 100 RED_SHIRTs, your total estimated production time will be 10 days. The Quantity on Hand is 70. The Coverage Code for RED_SHIRT is “Requirement”, which means Master Planner will follow the rule for “Requirement” and gives you action message whenever there is a sales order or a high level BOM item production worker order requests this item and your Qty on Hand cannot satisfy that requirement. Since the coverage code is “Requirement”, we don’t need to care about minimum on hand. The Standared order quantity is blank, which means there is no minimum order quantity.
The BOM for RED_SHIRT has two line details: POLYBLEND_RED_BOLD and WHITE_BUTTONS.
Let’s also have a look of these two components item details.
PO Lead Time for POLYBLEND_RED_BOLT is 7 days. Please keep in mind all the coverage constraints.
Again, PO Lead Time for WHITE_BUTTONS is 15 days. Also please pay attention to the Qty on Hand. It is 0, much lower than Min on hand=300. Master Planner already delivered a PO action message at the moment.
Hit “Create PO” for WHITE_BUTTONS. (It is a good habit that following what Master Planner suggests and keep inventory in control.) Master Planner generated a PO for you.
You can open the new generated PO and receive materials/components when they come in.
Now, let’s create a sales order for RED_SHIRT. On the sales order header, set “Ship Date”= 9/30/2013.
In the Sales Order Lines View, add Item “RED_SHIRT” and enter Qty. Needed= 100.
You can check the Sales Order Lines list. It shows the Estimated Ship Date for RED-SHIRT is the same to Sales Order Ship Date.
Certainly, you can change the Estimated Ship Date for sales order line to a new date for some reason. Most likely, you can have multiple sales order lines with different Estimated Ship Dates. Please note that Master Planner only considers the “Estimated Ship Date” on sales order lines, no matter it equals to the sales order Ship Date or not.
Then, Master Planner is ready to show you action messages for this Sales Order.
Remember that the Qty on Hand= 70 and Qty Needed on Sales Order Line = 100. To fulfill this sales order, Master Planner delivered a action message that “Create PWO” with Req. qty= 30. Also, Master Planner shows the latest Requested Date=9/27/2013. To finish producing 30 RED_SHIRTs, the total estimated production time=3 days, and the Delivery Date was equal to sales order ship date (9/30/2013), then Master Planner figured out that production on this order should start no later than 9/27/2013.
Let’s click “Create PWO”.
Master Planner generated a PWO for RED_SHIRT automatically. You can go to that PWO page and edit some fields manually if your manufacturing strategy has a better plan. Again, we recommend you to let generated PWO/PO stay the way they were.
Once you hit the “Create PWO” link, that action massage in Master Planner will disappear.
As shown, the above example is how Master Planner handles Coverage Code= “Requirement”. You may also like to see how Master Planner deals with Coverage Code= “Min/Max”.
Let’s conduct another example for BOM-NonPhantom item with Coverage Code= Min/Max.
There is an BOM-Non Phantom item “Chai Pudding”, which is made of Chai Tea. Let’s review the item details and BOM details.
The Estimated Producion Time= 0.01. Qty on Hand= 0. Coverage Code= Min/Max. Minimum on Hand= 400 and Standard Order Qty= 100.
The BOM line detals showed basic information for Chai Tea.
Now, let’s create a SO.
Please keep in mind that the sales order ship date is 9/20/2013.
Add sales order lines for Chai Pudding with Qty Needed= 800.
Here, let’s calculate how many Chai Pudding we should plan to make. We have 0 on hand, so first we need to produce 800 as requested from the sales order. Secondly, we need to satisfy the minimum on hand Qty, so we need to make another 400. In total, we need to make 1200.
Let’s see what Master Planner suggested us to do.
Beautiful! Just as we calculated, Master Planner delivered an “Create PWO” action message with Req. Quantity=1200. Please pay attention to the Source. For this particular situation, the source is “Min/Max + Order”, which was the fact. You would also like to see the Requested Date=9/18/2013, which is 9/30/2013 backed up 12days (which came from 1200 *0.01).
Click the “Create PWO” link and we will get the second Master Planner page:
There is a PO for Chai Tea for the newly generate PWO. The Start Date for this PO is 9/8/2013, which is 9/18/2013 backed up 10 days (Chai Tea PO lead time). Important Note: lower level item’s PO delivery date= higher level item’s PWO start date.
Click “Create PO/PWO for selected Items &Back to M.P” button, then Master Planner’s job is done.