Specialize in Value Chain Planning Solutions
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1 Specialize in Value Chain Planning Solutions
2 Enterprise Value Chain Planning Capacity Management A Business Perspective
3 Agenda Capacity Management - A Perspective What does it look like? Resource and RCCP Planning Capacity Requirements Planning Scheduling (Dispatching load and balance) Summary / Questions
4 Oracle Value Chain Planning Solution Service Parts Planning Demand Signal Management Order Promising Plant Scheduling and Monitoring Performance Management Risk Management Sales and Operations Planning Demand Management Organization Collaboration Internal and External Trade Promotion Management Supply and Distribution Planning e-business planning process platform.
5 Capacity Management The function of establishing, measuring, monitoring, and adjusting limits or levels of capacity (capabilities) in order to execute all plans; i. e., the production plan, master production schedule, supply chain, material plan, and dispatch list, etc. Capacity management is executed at four levels: 1) Resource Requirements Planning 2) Rough-Cut Capacity Planning 3) Capacity Requirements Planning 4) Input/Output Control (Finite Load and Balance)
6 Planning and Control in Perspective Synchronous / Closed Loop Plan Schedule Execute Control Feedback Validate / Verify - Know before you go Planning only what we can and will produce not what we wish we could Evaluate Re - Plan Re-initiate and re-synch the process Feed back for corrective action
7 Plan Re - Plan Service Parts Planning Demand Signal Management Schedule Order Promising Evaluate Plant Scheduling and Monitoring Performance Management Risk Management Sales and Operations Planning Demand Management Execute Organization Collaboration Internal and External Trade Promotion Management Supply and Distribution Planning Feedback Control
8 A Control Model Set objectives Plan actions Perform activities Measure results Revise objectives Revise plans Adjust performance Compare achievement to objectives Feedback
9 Activity Control Built upon Environment Characteristics and Strategies Demonstrated Capacity, Utilization, Efficiency Balancing Requirements and Capabilities Cycle Time Priority Rules External Relationships Variances
10 Capacity / Priority Interrelationship Priority Planning Validates Capacity Planning Tools / Technique Sales and Operations Resource Planning ASCP / Demantra Operations Planning Rough-Cut Capacity Planning ASCP / Demantra Supply Chain Planning Capacity requirements Planning ASCP Priority Control Feedback Capacity Control Finite Scheduling Finite Capacity Planning ASCP, EBS, PS Dispatching Execution SFS, MES, EBS, PS Source: Adapted from Bihun and Musolf, Capacity Management
11 Total E-Business Planning Process Model Sales and Marketing Demand Planning Product Development Business plan S&OP Supply Chain Planning Master Production Scheduling Resource plan Rough-cut capacity plan Material Plan Executing the Material Plan Inbound Logistics EAM Plan Capacity Requirements Plan Executing the Resource plan Outbound Logistics
12 Cumulative Overload Balanced Load Capacity
13 Cumulative Underload Balanced Capacity Load
14 Cumulative Overload Unbalanced Load Capacity
15 Skewed Load Profiles
16 Advantages and Limitations Advantages Provides time-phased visibility of capabilities Confirms adequate cumulative capacity Considers specific lot sizes and routings Estimates lead times more precisely Contributes to the elimination of erratic lead times Foundation for consistent and reliable information
17 Advantages and Limitations - Continued Limitations Requires a great deal of computation Unconstrained performs only a backward schedule Requires extensive amount of input data Planned computational preciseness is somewhat illusory Must be compared to demonstrated for validation Unable to give precise level of detail The effect of revisions not always clear without simulation
18 Effects of Not Doing Bottlenecks Low Productivity Higher work-in-process inventory Late deliveries and shortages Extended lead times Higher costs Loss of competitive stance
19 Agenda Capacity Management - A Perspective What does it look like? Resource and RCCP Planning Capacity Requirements Planning Scheduling (Dispatching load and balance) Summary / Questions
20 What does it look like? Resource / RCCP Example Pre-Requisites Valid Resource and Routing Details Family Structure and/ Hierarchy Demand Management Data Series / Adjustment Demand Scenario Driven
21
22 ASCP Load
23
24
25 Base-Line Forecast Constraint Forecast
26 Demantra Series Budget Line
27 Agenda Capacity Management - A Perspective What does it look like? Resource and RCCP Planning Capacity Requirements Planning Scheduling (Dispatching load and balance) Summary / Questions
28 What does it look like? Capacity Requirements Planning Pre-Requisites Valid Resource and Routing Details Resource set as Engineered / Cost Basis Capacity Planning Demonstrated Planned Capacity Planning Proccess Must be Easy
29 Demonstrated Capacity Average Historical Output Rate for a Resource It takes into consideration: Historical product mix & lot sizes Planned & unplanned down times The Oops factors It is what a Resource has demonstrated it can achieve over time
30 Demonstrated Capacity Why Do We Care? Are you using Capable to Promise for order Promise Dates OR, Are you are just guessing about when you can deliver? Plan or schedule is not valid if it is not realistic and achievable
31 Setup to Arrive at Demonstrated Capacity Resource Capacity Reduce Resource Efficiency % Operation Run Rate Setup (Engineered Capacity) Resource Demonstrated Capacity (Target) Time
32 ASCP Planning Engine Rounding ASCP Planning Engine Rounds in Three Places 1. When calculating Resource Rate per Primary Unit it is rounded to the nearest 6 decimal places 2. When calculating the time required at the Resource for the batch it rounds up to the next highest minute 3. When returning the resource requirement time in the unit of measure used at the Operation the result is rounded to the nearest 6 decimal places Affects Operation Rates greater than 99,000 units/hr
33 Demonstrated Capacity EBS / OPM
34 Planned Capacity Planned Output Rate for a Resource It takes into consideration: Current product mix & lot sizes Planned down times Current Resource constraints This is the Rate the Scheduler Plans for Resource over the short-term horizon Based on what they know today.
35 Planned Capacity Management Resource Capacity Setup Resource Capacity Change Scheduled Resource Capacity Planned Capacity Adjustment Resource Demonstrated Capacity Tim e Planning Time Fence Trading Time Zone Future
36 Planned Capacity in ASCP
37 Planned Capacity & Collections
38 Planned Capacity Requirements It s Got to be Easy It s Got to be simple Leverage ASCP Functionality Simulation is a must Data must be current Need to Retain history of what we have done Need to do a small customization
39 Planned Capacity Made Easy Resource Capacity Maintenance Spreadsheet
40 Planned Capacity Made Easy
41 Agenda Capacity Management - A Perspective What does it look like? Resource and RCCP Planning Capacity Requirements Planning Scheduling (Dispatching load and balance) Summary / Questions
42 What does it look like? Scheduling (Dispatching Load and Balance) Pre-Requisites Valid Resource and Routing Details Resource set as Engineered / Cost Basis Planned Capacity Set Time Fence Definitions Business / Priority Rules MES Integration MRP / CRP, Rev. 4.1
43 Navigation Slides for Scheduling Resource Horizontal (Capacity Preferences) Resource Requirements Order View / Resource View (Bottom) Sequence and Validate within business rules Create Schedule and release / Dispatch
44 Agenda Capacity Management - A Perspective What does it look like? Resource and RCCP Planning Capacity Requirements Planning Scheduling (Dispatching load and balance) Summary / Questions
45 Summary / Questions Capacity Management Summary Multi Tiered Resource set as Engineered / Cost Basis Planning Capacity Set Time Fence Definitions Business / Priority Rules MES Integration A Pre-requisite to CTP, S&OP Mandate for Constraint or Optimized Planning MRP / CRP, Rev. 4.1
46 Contact Information Dean Steiger: Mike Herald:
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