Training Agenda

Planning Overview Master data Planning Parameters Planning Process

Planning Overview
Baan ERP enterprise planning module acts as the core in entire Baan ERP suite and features utilities to plan material requirements based on predefined set of demand and supply constraints. This training document is based on Planning engine assumes the capacity availability as infinite & based on Order based Planning with Master Plan. Infinite Planning (Planning without capacity constraints) : Infinite planning assumes that capacity necessary for the production of an item are available or can easily be made available. Workload control on the other hand, aims at generating a feasible production plan if there are constraints on the availability of critical capacity. Order based Planning : Supply is planned in the form of planned orders. If you make the order horizon equal to the planning horizon, BaanERP will plan all the supply through order-based supply planning. Item Master Plan : An item master plan contains item-specific information by plan period about: - Demand - Supply - Inventory

Planning Overview
Goods Flow RAW MTRL. PRODUCTION
COMPONENTS

PRODUCTION
SUB ASSEMBLY

END PRODUCT

Purchase Dept

Production Dept Sales Dept Warehouse

Co-ordination Planning Dept

Planning Overview
Only Production and Purchase represents the supply part of this configuration, and demand forecasts and Sales orders represent the demand Part.

Planning Overview
The below diagram shows the inputs and outputs of an ideal planning run executed in Enterprise planning module..

Training Agenda
Planning Overview Master data Planning Parameters Planning Process

Master Data
Enterprise planning is configured to rely on certain static data across all packages of Baan like. Warehouse Nettable / non-nettable Business partners Suppliers/customers General item data Type of item, units etc. Item ordering data Plan system, order policy, quantity settings, order interval etc. Plan item data - Default supply source, warehouse, plan level, horizons and time fences, extra lead times Item supplier information various lead times. Supplier priority, Quantity restriction by supplier and item. Item production data Lead time, Phantom. Bill of Materials - Quantities, scrap, yield and warehouses.

Apart from above static various transactional data like open orders (purchase, production and sales), inventory levels.

Master Data
Item Ordering Data
Item Ordering Data : Item Ordering data is used to set defaults for order generation.

Master Data
Item Ordering Data

Order Settings
The order policy for the item can be Make-to-order Anonymous The order system for the item can be SIC Planned Manual The order method for the item can be: Lot-for-lot Economic order quantity Fixed order quantity Replenish to maximum inventory

Master Data
Item Ordering Data

Order Settings
The order policy for the item can be Make-to-order Anonymous The order system for the item can be SIC Planned Manual The order method for the item can be: Lot-for-lot Economic order quantity Fixed order quantity Replenish to maximum inventory

Master Data
Item Ordering Data

Order Settings
Order Qty Multiple of: The recommended order quantity must be a multiple of quantity that you specify as the Order quantity multiple of. This order quantity setting is used if the order method for the item is Lot for Lot, Economic Order Quantity and Replenish to Maximum Inventory. Minimum Order Quantity: Baan always recommends an order quantity greater than or equal to the minimum order quantity, when planned orders are generated. This field is used for all Order methods. Maximum Order Quantity: Baan always recommends an order quantity smaller than or equal to the maximum order quantity, when planned orders are generated. This field is used for all Order methods. Fixed Oder Quantity: If the order method for the item is fixed order quantity then this field value is used by the Baan to create planned orders Economic order Quantity: If the order method for the item is Economic order quantity then this field value is used by the Baan to create planned orders

Master Data
Item Ordering Data
Item Ordering Data : Item Ordering data is used to set defaults for order generation.

Master Data
Item Ordering Data
Safety Stock: The buffer inventory necessary to meet fluctuations in demand and delivery lead time. It is a quantity of stock planned to be in inventory to protect against fluctuations in demand and supply Safety Time: The time you can add to the normal lead time to protect delivery of goods against fluctuation in the lead time so that an order can be completed before its real need date..

Master Data
Item Ordering Data
Order Interval: The minimum number of days between two orders for the same item. Te order interval is used in order to prevent too many planned orders in one time period..

Master Data
Plan Item Data
A Plan Item is an item with a Planned order system. These items are first defined in Item Base Data module. Then we can maintain planning related data for these item in plan item Data. A plan item can also be a product family.

Master Data
Plan Item Data
The most important data that you define in the Plan Item Data (cprpd1500m000) session is : Plan level Plan item type Default warehouse Default supply source Planning horizon Order horizon Maintain Master Plan

Master Data
Plan Item Data
Plan Level & Plan item Type : The plan level is a level within a hierarchical planning structure. If you plan on a higher plan level, plans are general and less detailed. We will do the planning item level. As we set the Plan Item Type field in the Plan Item Data (cprpd1500m000) session to Item. Default Warehouse: The default warehouse is the warehouse from and to which the item is normally delivered. Default Supply Source :The default supply source is either Production, Purchase, or Distribution. This does not necessarily correspond with the item type (Manufactured or Purchased), but generally the for manufactured item the default supply source production and for item type purchase default supply source is purchase. You can overrule the default supply source by defining a sourcing strategy for the plan item.

Master Data
Plan Item Data
Planning Horizon: The planning horizon is the number of days in the future for which BaanERP Enterprise Planning plans supply. You must make the planning horizon no longer than necessary. Short planning horizons improve system performance. Order Horizon: The order horizon is a very important parameter. Together with the planning horizon, it determines which method is used for supply planning in a particular plan period. The use of the order horizon and the planning horizon is illustrated is figure below. If you make the order horizon equal to the planning horizon, BaanERP plans all supply through order-based supply planning.

Master Data
Plan Item Data
Item Master Plan : If you select the Maintain Master Plan check box, BaanERP maintains an item master-plan for the item. The advantage of defining Item Master Plan for an item is that we can manually enter the demand forecasting and can see the consumption of forecast by actual demand. Item master plan for an item shows the demand and supply for a plan item by plan period.

Master Data
Plan Item Data
Item Master Plan : The disadvantage of maintaining an item master-plan is that it has an adverse effect on system performance. Therefore, you must only maintain an item master plan if you need specific master-plan functionality.

Master Data
Plan Item Data
Time Fence :The date until which an item's supply plan and planned orders are frozen. The time fence is expressed as a number of working days from the date Planning is carried out. Enterprise Planning does not regenerate the planned orders within the time fence. However, this can be overruled through simulate orders. So The time fence is meant to prevent: Disturbance of orders that have already started (at the shop-floor level). Generation of planned orders with start dates in the past (that is, orders that are late). Usually, the lead time of an item's production process is a reasonable value for the time fence. Forecast Time fence: The date until which ERP Enterprise Planning ignores the demand forecast when generating planned orders. The forecast time fence is expressed as a number of working days from the date Planning is carried out. Within the forecast time fence, Enterprise Planning only considers actual customer orders. Beyond the forecast time fence, total demand is a combination of actual orders and forecasts. A reasonable value for the forecast time fence is the minimum time period between the receipt of customer orders and the requested delivery dates.

Master Data
Plan Item Data
Lead Time : Order planning contains the simulation of orders to meet demand. Part of the simulation is the calculation of orders dates, the simulation determines requirement for an item and generates planned orders with start and finish date. The calculation of these start and finish dates depends on the requirement. Calculation of start and finish date is in fact the planning of lead times. For Manufactured item the EP takes Lead time from Item Production data and for the Purchased item the Lead time is taken from Item supplier information.

Master Data
Item Supplier Information
Item Supplier Information : The Item supplier Information Contains following main information : Approved / Blocked Priority Sourcing percentage Lead Time Components (calculated)

Training Agenda
Planning Overview Master data Planning Parameters Planning Process

Planning Parameters
Scenarios:
A scenario is an umbrella for a specific set of planned orders that were planned according to scenario dependent parameter settings. In this way a user can simulate several situations. - Plan Start date: Determines the start date of the time frame in which EP is capable of planning. It does not determine the date from where the goods flow is read. Also the goods flow transactions before plan start date are considered and put on the start date of the scenario. Note that it is strongly advised to define a start date in the past. Preferably so far in the past that all open transactions (like unfinished sales orders) are within the scenario start and finish date. Plan Finish date: determines the end of the range where EP is capable of planning. In contrast to the start date, it determines until which date the goods flow is read. Rolling Plan: this determines the whether the plan is rolled yes or no. This means that the plan periods are rolled when time goes by. Rolling is done when running the session .Roll, Initialize, Update Scenario.

Since the planning process is an iterative process that is subject to many changes before releasing the final planning to execution level takes place, it should be possible to edit and evaluate the planning easily. The simulation and evaluation capabilities are supported via simulation scenarios.

Planning Parameters
Scenarios:
Only one scenario can be the actual. Actual means that the scenario represents the plan that would be are really going for execution. Only from the actual scenario it is possible to transfer the planned orders to execution level. To determine which scenario is actual, the user should define the scenario in the EP parameters session.

Planning Parameters
Plan Periods & Rolling :
Planning is performed in buckets. A bucket is a plan period of predefined length for which a separate forecast and production schedule is determined. Often the plan periods are small (days/weeks) in the near future and long (months) far into the future, because it is harder to forecast in detail far into the future. So the plan periods become longer further into the future, which means that as time progress , the division of periods in front is changing. This is not desired, because the detail of forecasting and planning must be the same every time the master planner generates, evaluates, and delivers a new planning. This is supported by rolling, which is controlled by data Rolling Plan, Reference Date, and Rolling Frequency at the scenario.

Planning Parameters
Plan Periods & Rolling :
Refer the picture to understand the idea of Rolling. In the picture it is depicted that the division of plan periods changes in time from 7 days, to 14 days, and finally 28 day periods. The reference date defines the date on which the scenario can be rolled for the first time. The rolling frequency determines the cycle of rolling the scenario after the reference date. So, when the rolling frequency is 7 days and the reference date falls on a specific Sunday, the scenario can be rolled every Sunday. Note that it is not mandatory to roll every week when the frequency is 7 days. When it is rolled after 17 days, the scenario is rolled 2 weeks in time (multiple of 7).

Planning Parameters
Plan Periods & Rolling :
In the following situations, you must use the Initialize, Roll, and Update Scenario (cprpd4200m000) session to initialize or roll a scenario: . When you create a new scenario, you must run this session to initialize it. When you change a scenarios plan-period definition, you must run this session to reinitialize the scenario. If a scenario is defined as a rolling plan, you must regularly run this session to roll the scenario (that is, shift it forward in time).

Planning Parameters
Phase numbers & Re-compute Phase numbers :
Plan items must be planned in a specific order because the material requirements for the manufacturing or supply of one plan item influence the logistic plans of other plan items. As most items are planned based on dependent demand coming from parent items, it is important that the items are planned in the correct order, so no demand is missed. To determine the order in which items must be planned, the planning engine uses phase numbers. The order planning engine uses phase numbers and it is based on the Bill of Materials. The higher the phase number, the lower the planning order, it means items with phase number 0 will be planned first. Each plan item receives a phase number, which is stored in the Plan Item Data session.

Planning Parameters
Signals by Planner:
Planning process generates signals. Signals are basically messages, warnings and suggestions to implement or take note of. Cancel Order: Part of the order or part of the supply plan can be canceled, because there is no demand for it (for example, because a sales order has been canceled). The signal includes an indication of the quantity that is superfluous. This signal is also generated for redundant orders within the time fence. Lot size parameters (e.g. minimum order quantity) are not taken into account when creating this signal.

Planning Parameters
Signals by Planner:
Planning process generates signals. Signals are basically messages, warnings and suggestions to implement or take note of. Reschedule In: Part of the order must be delivered earlier. The quantity attached to the signal indicates the quantity to be rescheduled; the signal itself states to which date this quantity must be rescheduled. The reschedule in signal is only generated for firm orders outside the time fence.

Planning Parameters
Signals by Planner:
Planning process generates signals. Signals are basically messages, warnings and suggestions to implement or take note of. Reschedule Out: Part of the order can be delivered later (for example, because of postponed customer orders). The quantity attached to the signal indicates the quantity to be rescheduled; the signal itself states to which date this quantity must be rescheduled. The reschedule out signal is only generated for firm orders outside the time fence.

Training Agenda
Planning Overview Master data Planning Parameters Planning Process

Planning Process
MRP Execution:
Planning process actually involves the following three activities. Re-compute phase numbers. Initialize, update and Roll scenario if needed. Simulate orders. The above three steps constitute the actual planning process, in which the exact planning is carried out in Simulate Order Process.

Planning Process
MRP Execution:
Initialize, Roll and update scenario will make sure new plan items are also initialized into the scenario with master plans (i.e make an entry in Item master Plan session as per plan item data default) and also gets the scenario rolled based on rolling frequency and reference date.

Planning Process
MRP Execution:
Simulate Orders is the actual planning process, It determines demand for every plan item based on the forecast, customer orders and generates Planned Purchase and Planned Production orders based on all the master data configured for items. A Planned order has a start date, finish date requirement date and quantity of the item. This process also updates the Time phased planning overview table, which can be seen through Time Phased planning overview session. Also simulate orders updates signals by item and planner on case to case basis.

Planning Process
Post - MRP activities:
On completion of MRP, based on generated signals the planner/buyer has to decide on implementing the signals. The generated planned orders needs to be transferred for execution, that has to be done as follows. 1. Confirmation of Planned orders 2. Transfer of Planned orders Confirmation of planned orders has to be executes session Confirm Planned orders This process updates the status of a planned order to Confirmed, hence making it ready for transferring to execution. Transfer of planned orders has to be executed by session Transfer Planned orders . This process transfers the planned orders to execution, which means Planned purchase orders will get moved to Purchase control module as Purchase orders and Planned Production orders will be moved to Shop floor control module as Production orders with Planned status. On transferring Planned orders are deleted from system automatically.

Planning Process
Post - MRP activities:
1. Confirmation of Planned orders Confirmation of planned orders has to be executes session Confirm Planned orders This process updates the status of a planned order to Confirmed, hence making it ready for transferring to execution.

Planning Process
Post - MRP activities:
2. Transfer of Planned orders Transfer of planned orders has to be executed by session Transfer Planned orders . This process transfers the planned orders to execution, which means Planned purchase orders will get moved to Purchase control module as Purchase orders and Planned Production orders will be moved to Shop floor control module as Production orders with Planned status. On transferring Planned orders are deleted from system automatically.

Planning Process
Post - MRP activities:
2. Transfer of Planned orders (Form 1)

Planning Process
Post - MRP activities:
2. Transfer of Planned orders (Form 2)

Planning Process
Post - MRP activities:
2. Transfer of Planned orders (Form 3)