A typical planning cycle would start by loading the sales orders, forecast and other demand such internal orders into the master demand schedule (MDS). That demand statement would then be used as the schedule that drives the Master Production Schedule (MPS) . Take a note in regular MRP implementations the MPS is used as the schedule for ATP. Once the MPS is reviewed and updated is used as the schedule to drive the MRP process. The result of the MRP process is planned orders and exception messages. When released from MRP the planned orders for "buy" items become requisitions or purchase orders in the purchasing module and the "make" items become discrete jobs in the Work In Process Module. Once the finished goods are received into inventory it is shipped to satisfy customer orders.
Scenario I :Sales Order - Forecast Planning Cycle
This is the scenario where normally we are building to stock and satisfying sales order demand from stock. Here you will see the difference as planned orders are released to become purchase requisitions for components and work orders for sub assemblies and finished goods. The finished goods are then shipped to satisfy the sales orders.
Scenario II : Planning - Procurement Cycle
In the Planning-Procurement cycle we normally start where the first part of the planning cycle is complete and we have a planned order for a buy item from MRP. The planned order is released and becomes a requisition or purchase order in the purchasing module. A purchase order is then created from the requisition and sent to the vendor. The vendor would supply the materials. The materials would be received into inventory and the purchase order would be closed.Scenario III :Planning - Drop Ship Cycle
In the Drop Ship cycle the process is as follows:
- A sales order is received from the customer.
- After the sales order is entered a process is run that creates a purchase order that matches the sales orders
- The item, quantity and required date information on purchase order matches that information on the sales order.
- The ship to address on the purchase order is the ship to address of the customer.
- The vendor ships the product directly to your customer. Once the vendor ships the product you receive" the purchase order and that creates the shipping transaction to satisfy the sales order.
- Matching accounting transactions complete the process
You can also see technical details for drop ship cycle in my earlier post.
Scenario IV :Planning - WIP Cycle
In the Work In Process cycle after the planning cycle is complete a planned order is released to create a discrete job. Material/components is issued the job or back flushed from inventory. The job is completed from Work In Process to Inventory.
Scenario V : Planning - Outside Processing Cycle
With Outside Processing you could be buying a service, an item or capacity from an outside vendor. The setup for each of these scenarios will be described in the training sessions to follow, however they all follow a similar process. A routing with an outside processing operation is setup.
After the planning cycle is complete a planned order is released to create a discrete job. Once the Discrete job is moved to a outside processing operation, a purchase requisition is triggered. The requisition is imported to Purchasing and a purchase order is created. The details of the discrete job such as job number, assembly number and quantity is tied to the purchase order. The purchase order is sent to the vendor. When the purchase order is received its destination will be shop floor and the assembly will be returned to the next operation on the work order.
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