Master Data Accuracy
Correctness of master data is imperative for effective supply chain planning. Incorrect master data can lead to incorrect production, purchase and ineffective use of resources
This product:
- helps you define criteria for optimal value of each master data relevant for the planning.
- compares your existing master data with actuals and (a) highlights possible inaccuracies (b) Proposes right value (wherever possible… it depends on of level of details available in actuals data )
- highlights the positive impact the proposed change can bring with complete justification
Master Data in scope are:
- Safety days
- Reorder point based planned materials vs. demand based planned materials
- Reorder point (for reorder based planned materials)
- Minimum lot size
- Rounding value
- Procurement Lead Time
- GR processing Time
- Total Shelf Life
- Minimum Required Shelf Life
- BOM (component materials, base qty, component qty)
- Recipe (sequence of operations, resources, run time)
DRP - Distribution Requirements Planning
Purpose:
- To propagate demand from market warehouse to plant by netting off supplies in the network
- To do deployment (dispatch planning) from plant to central warehouse and/or from central warehouse to next level warehouse (say C&F)
Inputs:
- Consensus forecast
- Master data such as frozen supply period, transport lead time, total shelf life, min-req. shelf life, safety days, min lot size , rounding value, product interchangeability, campaign duration
- Allowed delays
- Transaction data: stock, goods in transit, commit (or plan/process order) at each node in supply network
Considerations:
- All input data (stated in Inputs section)
- Forecast consumption by sales order
- Demand and supply priorities can be defined
- Minimum required shelf life, expiry dates
- Air vs sea decision based on business rules
- Allowed delay in meeting demand
- Fair-share rules (in case of deployment) such as even target days on hand
- Frozen supply period, transport lead time, total shelf life, min-req. shelf life, safety days, min lot size , rounding value, Product Interchangeability
Output:
- Dispatch Plan
- Demand at plant with right demand priority, demand date and means of transport
Supply Planning
Purpose:
- To use existing supplies and available capacity judiciously and plan new supplies (plan orders and purchase requisitions) to meet the demand
- To create as less excess supply as possible
Inputs:
- Demand at plant with priority key (output of DRP)
- Existing firm supplies (purchase orders, process orders, firm plan orders, firm PRs) and firm demand (order reservations)
- Available resource (machines) hours
- Master data - RM safety days, reorder point, procurement type (inhouse produced vs. procured), RM min lot size, rounding values, product interchangeability, BOM, Recipe (sequence of operations, alternate resources for each operations, set up/run/minor cleaning/major cleaning time)
- Allowed delays
Considerations:
- All input data
- Capacity constraints (available resource hours)
- Material constraints
- Selection of right batch size
- Selection of right BOM (BOM with available materials)
- Batch Sizing rules
- Maximize demand fulfillment
- Minimize over production/purchase plan (to avoid excess stock generation)
- Business specific nuances
Output:
- Plan orders
- Purchase requisitions
- Reasons of unmet demand - specific resource, specific RM, batch sizing drop, missing BOM/recipe
- Excess supply
- If excess supply is not from existing supplies then reason of excess supply plan (examples - lot size, vendor specificity, common blend allocation rules)
Supply Chain Analytics
These are high business impact reports. These analytics can be developed on your existing supply chain planning solution also.
1. Potential Backorder Report
- Shows potential backorder or at low coverage
- Details action items for QA, Logistics, Production, SCM, and Purchase to fulfill the demand.
- Details of days on Hand calculation
- Details of demand and supply
2. Action Item Report
- Details action items for QA, Logistics, Production, SCM, and Purchase
- Shows details of actions such as action date, Product, quantity
- Shows Impact of the required action. E.g. impact of converting a PR into PO
- Shows details of impact such as market demand date, location, demand priority
- Shows means of transport (air vs sea)
3. Supply Expedite/de-expedite report. This report recommends which purchase orders/process orders to expedite/de-expedite to ensure that demand is not unmet and there is no excess supply created in future
- Shows first pegging, last pegging, and monthly usage of the supply
- Shows opening/closing inventory, days on hand for the avail supply date
- Shows how this supply was created - system plan vs. manual plan
- Shows excess supply
4. Root Cause of OTIF miss. Root cause why a sales order was not fulfilled
- No dispatch from Demand Loc (even though supply was there)
- Or No supply at demand loc
- Or No dispatch as per Commit
- Or No commit from Plant /Or no supply from supplier
- Or No demand propagation to plant
- Or incorrect forecast
- Or incorrect safety days
- Or high forecast infidelity
5. Root cause of under commit: Root cause of why commit from plant could not be given
- No Capacity Available
- Or No BOM available
- Or No Recipe available
- Or No Capacity available (which resource was bottleneck)
- Or No RM/PM available
- Planning PR was not created
- Or PO was not created
- Or Vendor didn’t supply material on time
- Or RM/PM was rejected or was on hold
- Or high demand infidelity
6. Root cause of high-inventory for both FG and RM/PM/WIP
- Procurement higher than planning PR
- Or Consumption not as per strategic procurement
- Or Incorrect master data such as min lot size, rounding value
- Or Incorrect planning and hence incorrect PR
- Or high demand infidelity
- Or high safety norms (i.e. incorrect inventory planning)
- Or FEFO (First expiry first out) rule was not adhered
- Or Vendor specific consumption rules not adhered
- Or Common blend allocation rules
7. RM/PM sufficiency w.r.t. Demand at plant or w.r.t. Commit given
- For next month demand at plant, it is expected that RM/PM with long lead time items are sufficient at plant. This report shows - of total demand at plant, for how much demand RM/PM is sufficient
- Using this report – for the sufficient commit - production can start, and for insufficient cases purchase can try to expedite the procurement
8. Many more. Examples:
- Forecast accuracy
- Demand at Plant Vs. Commit from Plant Vs. Supply Report
- Forecast Fidelity
- Demand at Plant Fidelity
- Effectiveness of Air –shipments: Air shipped batches, after reaching destination, after how long were used