Zippo Business Case MPS Consumption Scenario

During a recent Plan to Cash Scenario demonstration, a concern was raised about the consumption of lower level components within a forecast for configured finished goods. Epicor demonstrated the scripted process flow, inclusive of Production Yield Recalculation observed from shortages identified during the production process, but did not have a data scenario setup to prove the consumption of pocket ready lighters (MFG-001). Specifically, Epicor has been asked to provide comfort validation that the software can accommodate the Zippo planning and consumption process. Zippo does not forecast FG items due to the extreme variability in the delivered product. Instead, Zippo forecasts common, pocket ready lighters which are consumed in a configured FG item. While line-items on a Sales Order are consumed in a forecast as part of the planning process, the most advantageous approach for Zippo would be to create a Master Production Schedule (MPS) for the pocket ready lighters (identified as MFG-001 in the following scenarios). This approach would satisfy the need to plan ahead for the production of pocket-ready lighters, reduce extreme fluctuations in quantities produced in a day/week/month, and provide for the necessary consumption of quantities produced against the MPS plan. Following is a series of screenshots to provide a scenario-based flow of how Epicor ERP can satisfy the planning and consumption needs of Zippo.

Zippo

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Zippo Business Case MPS Consumption Scenario

Create part CFG-001 & MFG-001 (no supply or demand as shown in Time Phased View)

Zippo

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Zippo Business Case MPS Consumption Scenario

Add MPS demand for 15 pcs MFG-001, due 2/15, 3/15, & 4/15

Run MRP with cut-off date of 4/30

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Zippo Business Case MPS Consumption Scenario

Time Phasing now shows un-firm Jobs (prefix MRP) to create supply to satisfy demand for each of three MPS requirements

Zippo

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Zippo Business Case MPS Consumption Scenario

Review Un-firm Jobs in Job Status Maintenance window (planning workbench) to create firm jobs.

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Zippo Business Case MPS Consumption Scenario

Create firm job by selecting un-firm job and processing.

Right-click on firm job to review details

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Zippo Business Case MPS Consumption Scenario

Release Job, Create POs, Receive & Issue Material, complete ops with shortages per prior demo inclusive of production yield recalculation after each operation, providing a step-down quantity reduction

Receive 5 complete MFG-001 pcs to inventory, complete & close job (per script)

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Zippo Business Case MPS Consumption Scenario

MRP is run in the background to monitor supply & demand, resulting in the following Time-Phased View of MFG-001. Note that the revised suggestion shows a request for a receipt (supply) of 5 pcs to satisfy the MPS requirement of 10 pcs due 2/15.

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Zippo Business Case MPS Consumption Scenario

Additionally, Available To Promise review illustrates that we now have 5 pcs for immediate supply:

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Zippo Business Case MPS Consumption Scenario

A Sales Order is received for 5 pcs CFG-001, with a due date of 2/07, which requires 5 pcs MFG-001 (pocket ready lighters)

MRP creates suggestion for a new firm Job Order, which facilitates the Pack to Order Zippo process, consuming 5pcs MFG-001.

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Zippo Business Case MPS Consumption Scenario

The resulting effect on Time Phasing of MFG-001 is that the new SO demand (Job 2359) will consume the 5 pcs of MFG-001 from inventory, and an un-firm job suggestion remains to create a supply of 5 pcs MFG-001 on 2/15 to satisfy the balance of the remaining MPS requirement, thereby proving that the component demand from Sales Orders are consumed within the MPS, when one is present.

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Zippo Business Case MPS Consumption Scenario

Once the MFG-001 requirement is issued to the Pack to Order job (2359) to produce CFG-001, the following Time Phased view exists for MFG-001, illustrating that inventory has been relieved, and the MPS suggestion remains for a quantity of 5 pcs MFG-001 (MPS for 2/15 = 10pcs, minus 5 produced = 5 pcs remaining).

Once the un-firm job is firmed-up, the Time Phased View for MFG-001 displays the following: Zippo Page 12

Zippo Business Case MPS Consumption Scenario

Upon completion of the MPS job to create the balance of 5 pcs , MFG-001 is received to stock, and the MPS Demand has been satisfied. Note that MPS is consumed by jobs between it and the next MPS, if one exists. The last MPS is consumed by all jobs after its date. If a MPS and Forecast entry exist for the same part, the forecast entry for the part is ignored in favor of the MPS entry.

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Zippo Business Case MPS Consumption Scenario

The primary business benefit of utilizing the MPS approach identified above is that it satisfies a need to create a feasible production plan without extreme variability in quantities produced. Zippo can utilize dashboards (below) to analyze usage history and project future demand in a manner that best utilizes Zippo resources, and Epicor will consume component supplies into jobs created from Sales Order demand. Should Sales Order demand exceed the MPS quantities planned, MRP will automatically create messages to create additional job orders to satisfy the unplanned demand. If desired, population of the MPS can be performed using MS Excel copy/paste features, or Epicor Service Connect to automate the population of an MPS table from a large spreadsheet.

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Zippo Business Case MPS Consumption Scenario

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