M3 Configuring Tactical and Operational Planning

Configuring Tactical and Operational Planning in Cloud Edition

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Table of contents

• Workbook information and course overview.

• Course contents:

  • Tactical and operational planning overview.

  • Master data setup.

  • Forecast and material resource planning.

  • Demand planning.

  • Master production planning.

  • Capacity planning.

  • Active supply chain

Lesson 1: Overview and master data setup

• Estimated time: 4.00 hours.

• Learning objectives:

  • Describe tactical/operational planning and master data setup.

  • Settings for planning parameters.

  • Explain planning.

  • Master data configuration.

  • Shift planning overview.

  • Work center and department creation.

  • CO, MO, DO and PO types creation.

  • Items and product structures creation.

Settings for tactical and operational planning

• Main configuration programs:

  • General planning.

  • Material Resource Planning.

  • Demand planning.

  • Master production planning.

  • Capacity planning.

• Refer to Settings Instructions documents.

General Planning

• Infor M3 provides tools for effective manufacturing and inventory strategies.

• Includes production planning, master scheduling, and MRP functions.

• Integrates with PC-based programs for demand management and supply chain planning.

• Key programs:

  • System Calendar.Open (CRS900)

  • Planning Policy.Open (MMS037)

  • System Calendar.Open Period (CRS910)

  • Manufacturing Order Type.Open (PMS120)

  • Company.Connect Division (MNS100)

  • Purchase Order Type.Open (PPS095)

  • Facility.Open (CRS008)

  • CO Type.Open (OIS010)

  • Period Frame.Open (MMS083)

  • Item.Connect to Warehouse (MMS002)

  • Forecast Method.Open (FCS300)

  • Settings - Warehouse & Planning Control (CRS701)

  • Forecast Logic.Open (FCS305)

Material Resource Planning (MRP)

• MRP is the core of the material planning system.

• It uses bill of material, inventory, and master production schedule data.

• The system reviews demand, providing a time-phased view of supply sufficiency.

• It recommends rescheduling open orders as needed.

• Key programs:

  • Item.Define Sourcing Rules (RPS090)

  • Point of Time Table.Open (RPS080)

  • Production Rate.Open (RPS030)

  • Point of Time Table.Open (Details) (RPS081)

Demand Planning

• Alternative forecast visions via Master Demand Schedule (MDS).

• MDS used to copy forecast data, as source for MRP generation or simulation.

• Key programs:

  • MDS Version.Open (MPS300)

  • MDS.Copy to Forecast (MPS130)

  • MDS.Copy from Forecast (MPS100)

  • MDS.Delete Demand (MPS140)

  • MDS.Copy Between Versions (MPS110)

Master Production Planning

• Process: generating/reviewing master schedule of products.

• Adjust Master Production Schedule (MPS) for consistency with plan.

• Considers forecast, production plan, backlog, material/capacity availability, policies, goals.

• Validated against bottlenecks.

• Exploded to detailed material plan.

• Key programs:

  • Item.Connect to Warehouse (MMS002)

  • Planning Entity.Open (RPS045)

  • Item.Connect to Facility (MMS003)

  • Planning Entity.Connect Item (RPS046)

  • Manual forecast/MDS.Open (FCS350)

  • Forecast Family.Open (FCS400)

  • Material Plan.Open (MMS080)

  • Safety Stock.Open Time Phased (RPS040)

Capacity Planning

• Process of determining the capacity required for future production.

• Performed at aggregate or product-line level or at the master schedule or material requirements planning level.

• Key programs:

  • Department.Open (CRS080)

  • Manufacturing Order Type.Open (PMS120)

  • Planning Area.Open (CRS085)

  • Product Structure.Open (PDS001)

  • Shift.Open (PDS030)

  • Resource Requirements Profile.Create (RCS300)

  • Shift Model.Open (PDS031)

  • Manufacturing Resources Requirmnt.Create (RCS050)

  • Shift Pattern.Open (PDS033)

  • Where-used Analysis.Display (PDS110)

  • Settings - Capacity Requirements Planning (CRS786)

  • Load.Display Total (CPS100)

  • Work Center.Open (PDS010)

  • Work Center.Change Capacity (PDS015)

Planning Dimensions

• Four Dimensions of Planning:

  • Demand: Products requested, including customer orders, sales forecasts, and distribution replenishment.

  • Supply: Resources available, including materials, manpower, machinery, suppliers, and capital.

  • Volume: Total demand on supply operation, expressed in aggregate rates.

  • Mix: Different types of products supplied within a group.

Planning Types/Levels and Process Flow

• Three types of planning:

  • Strategic: Long-term planning for investments and strategies.

  • Tactical: Medium-term planning between operational and strategic planning.

  • Operational: Short-term planning within the factory, including detailed decisions on time, quantities, and priorities.

• Operational planning tools:

  • Material requirements planning (MRP).

  • Capacity requirements planning (CRP).

  • Closed-loop MRP.

  • In-put/out-put capacity control.

  • Dispatch list.

Components of the Three Planning Levels

• Production planning: A time-phased statement of production by product or product family across an extended horizon.

• Resource planning: The capacity companion of the production plan, expressed in aggregate capacity units.

• Master production schedule: Production plans for each finished goods item with a medium-range horizon.

• Rough-cut capacity planning: Ability to view capacity at key work centers affected by the MPS.

• Material requirements planning: Process that explodes requirements from the MPS through bills of material to place demand on subassemblies and components.

• Capacity requirements planning: Tool that determines the amount of labor and machine resources required for production.

• Closed-loop MRP: Ability of the Infor M3 planning system to ensure the production priority plan happens.

• Manufacturing resource planning (MRP II): Utilization of a computerized method for the effective planning of all resources of a manufacturing company.

• Planning characteristics using ERP:

  • Narrowing planning horizon.

  • Narrowing scope of plans.

  • Increasingly detailed plans.

  • Higher-level planning by higher-level managers and lower-level planning by lower-level managers.

Master Data Configuration

• Company.Connect Division (MNS100):

  • Configures division settings for manufacturing planning and forecasting.

  • Key Field: Period type for manufacturing process management (MPM).

    • Selected from options 1-5.

Facility.Open (CRS008)

• Used to create and maintain facilities; facilities tied to a division and warehouses tied to a facility.

• Facility is primary product structure and costing level.

• Reorder point planning can be done at facility level for consolidating warehouses; normally, planning is done at the warehouse level.

• Optional shift planning impacts capacity calculations.

• Key Fields:

  • APS enabled: Activates Infor M3 APS for the facility; enables the APS client application, modifies panel layouts, and places the load on the work center resource level.

  • Shift planning: If selected, capacity and load planning are generated to the minute; if not selected, planning is carried out by the day.

  • Shift patt adj: If selected, the system remembers changes of shift pattern by work center and date interval. Allows temporary shift pattern changes.

System Calendar.Open Period (CRS910)

• Used to define calendar periods.

• Periods can be defined several ways, including monthly, weekly, and other variations.

• Used during MRP output review and for forecasting.

• Special period type (9) that is used for forecasting on the weekly level and consists of a yearly 52-week calendar.

• Critical that this calendar be defined in the Blank division.

• The calendar in this division must extend out as far as the longest division-based calendar if Infor M3 MRP, forecasting, and maintenance are to function smoothly.

• Key fields:

  • Ptp (Period Type): Period type 9 is entered in this field to enable forecasting item numbers per week.

System Calendar.Open (CRS900)

• Used to define the daily system calendar.

• The calendar defines working and non-working days used for all Infor M3 planning functions.

• Found on the division level.

• Important to ensure that the system calendar goes back several years in the past (with capacity/shifts starting then) as well as forward.

• Also, apply the same approach to System Calendar. Open Period (CRS910).

• Key fields:

  • Gen capacity (General capacity): Indicates the general capacity percentage; the portion of a workday that can be load planned, entered as a percentage for each day.

  • Production day: If selected, the date is flagged as a production day in the system calendar.

  • Goods rec day (Goods receiving day): If selected, the actual day should be marked as a feasible goods receiving day in the system calendar.

Period Frame.Open (MMS083)

• Provides the ability to define the planning buckets for viewing MRP output.

• Planning period frames can span anything from daily to yearly buckets.

• When using forecasts, the system uses a smoothing calculation to calculate and distribute forecasts across a planning horizon.

• Depending on the distribution point set up on Forecast Logic.Open (FCS305/F) program, the forecast is due at the beginning, middle, or end of the forecast period.

• In addition, the forecast must be on a day marked as a delivery day in the system calendar (System Calendar.Open [CRS900]).

• A forecast marked on a non-delivery day is placed on the previously defined delivery day date as a separate record.

• Panel B Key field:

  • Frm (Period frame): Template, used to group days.

• Panel E Key fields:

  • Number of buckets: Buckets w/ length & unit w/in current bucket grouping.

  • Bucket length: Length in unit buckets.

  • Bucket unit: Unit of length, options for day, week, period.

  • Time bucket shifting rule: Transition between unit buckets.

Settings - Warehouse & Planning Control (CRS701)

• Defines miscellaneous MRP flags.

• Panel E Key fields:

  • Alloc tm fence (Allocation time fence): Allocation time fence stated in days for automatic allocation.

  • Dmd tm fence tp (Demand time fence type): How the demand time fence is specified.

    • Options: 0-Calendar days or 1-Shipment days

  • Recpts day prio (Receipts day priority): Determines the sequence stock transaction and receiving by the time.

    • Options: 0-Keep time blank or 1-Set time 23.59

  • Upd on ord/res (Update on order/reserved): How firm planned orders are managed in relation to accumulated ordered quantity and reserved quantity.

    • Options: 0-No update, 1-Ordered qty, 2-Ord tot, qty

  • Allow sharing: If inventory sharing is allowed and under which conditions.

    • Options: 1-No, 2-Yes only temporary and exhaust, 3-Yes, selected items

  • Log events: If events are logged.

  • Additional info: If additional fields should be added.

Planning Policy.Open (MMS037)

• Controls planned order behavior after generation.

• Minimum recommended policies:

  • Planned orders to remain at status 10.

  • Planned orders firmed at status 20.

  • Items to automatically release at status 60.

  • Any reorder point items.

Panel E

Key fields:

• 005 Default status - PO

• 010 Default status - MO

• 015 Default status - DO

• 020 Default status - WO

• 022 Default status planned orders when AM=A1

• 023 Reschedule date to use when automatically released

• 025 Default status - planned orders when AM=A2

• 030 Firm qty if the planned order is within PTF

• 035 Explode pln orders for master sched items with AMs

• 040 Automatic firm up horizon

• 045 Re-explode planned MO in status 20

• 048 Update materials on MO

Panel F

Key fields:

• 100 Time filter - AM to reschedule earlier date

• 105 Time filter - AM to reschedule to later date

• 110 Amount filter - AM to reschedule to later date

• 120 Create AM (C1) for delayed orders

• 125 Time filter - AM order delayed

• 130 Create AM for potential delays

• 135 Time filter - AM potential delay

• 140 Release date “X” days prior to start date

• 145 Recalculate qty for order policy 15

Panel G

Key fields:

• 200 Compare SS and projected OHB at planning fence

• 205 Compare RoP and available total

• 210 Compare RoP and projected ohb at planning fence

• 212 Should (RoP - avail at LT) > EOQ create proposal?

• 215 Add shortage to proposed order quantity

• 220 Subtract non-repr reserv within lt from ohb

• 225 Gen plan order for item w/ priority ratio <= zero

• 230 Create return DO for excess

• 235 Treat RoP items as MRP during simulation

• 240 Fixed reorder cycle

Panel H

Key fields:

• 300 Amount limit - Auto release planned orders

• 305 Check forecast alarm when creating planned orders

• 310 Stop items with manual planning values

• 315 File released planned orders

Panel I

Key fields:

• 400 ATP calculation horizon adjustment

• 405 Sum planned orders within PTF for order policy 12

• 415 Re-calculate run- out time for material plan change

• 420 Delete planned orders outside planning horizon

• 425 Proposed time for order policy 15

• 430 Consider shelf life in MRP

• 435 Integrate APS planning

• 440 Planning level

Shift Planning Overview

• Infor M3 work center management allows specifying when a work center works.

• Users can specify whether a work center contains multiple shifts and what is the content of those shifts.

• Shift configuration includes:

  • Number of shifts.

  • Beginning and end times per shift.

  • Number of units (labor or machine).

  • Capacity utilization rate per shift.

  • Total capacity per shift.

  • Total cumulative capacity per work center.

• Facility record must have shift enabled.

• Programs used:

  • Shift.Open (PDS030)

  • Shift Model.Open (PDS031)

  • Shift Model.Open Lines (PDS032)

  • Shift Pattern.Open (PDS033)

  • Shift Pattern.Open Lines (PDS034)

Create Work Centers and Departments

• Work Center.Open (PDS010):

  • Used to create work centers; information separated into categories:

    • E & F (Holds information about production planning)

    • G (Holds information to be proposed in connection with entering operations for which the work center is used)

    • H (Holds information regarding how each field can be processed when entering operations for which the work center is used)

• Department.Open (CRS080):

  • is used to create a department and to define the top level of the work center structure.

  • Departments are linked to work centers in Work Center. Open (PDS010).

  • Departments are used as selection criteria in the work management elements of M3 Maintenance.

    • For example, work orders and workload can be viewed by department.

Create CO, MO, DO, and PO Types

• CO Type.Open (OIS010):

  • Regulates processing of customer orders, including regulatory checks, and information retrieval.

• Manufacturing Order Type.Open (PMS120):

  • Defines the manufacturing order (MO) type used on Item. Connect Warehouse (MMS002).

  • Provides default information controlling dispatch and allocation, capacity planning, and operations reporting.

• Purchase Order Type.Open (PPS095):

  • Defines the purchase order type used on Item. Open Toolbox (MMS200/E).

  • Provides default information used to control goods receiving and purchase order processing.

• Req/Distr Order Type.Open (CRS200):

  • Used to create user-defined requisition or distribution order types.

  • Sets default values and order flow.

Create Items and Product Structures

• Items.Open (MMS001)

  • Used to create items containing information about item type, inventory accounting, lot handling, whether the item is manufactured or purchased, basic unit of measurement, sales, or purchase price and so on.

• Item.Connect Warehouse (MMS002)

  • Used to connect an item to one or several selected warehouses.

  • Item warehouse record and is the primary setting that controls all the planning activities for a given item.

• Item.Connect Facility (MMS003)

  • Used to enter the manufacturing settings for the items produced in a facility.

• Product Structure.Open (PDS001)

  • For a manufactured product, the bill of material and the routing are linked to the product via a product structure.

  • Used mainly for planning, product costing, and manufacturing.

Lesson 2 Forecast and material resource planning

Forecast Method.Open (FCS300)

• Used to create forecast methods attached to item/warehouse records.

• Panel Description

  • F/C formula (Forecast formula): indicates method to use when forecasts are calculated

    • Options: 0-manual forecast , 1-moving average , 2-Smooth 2 per, - Exponential smoothing of two period values, 3-Exp smoothing, 4-Trigg & Leach - Trigg & Leach model - exponential smoothing, 10-Formula 10 - Next period's forecast equal to the average of the three latest periods' actual demand 11-Formula 11 - Next periods' forecast equal to the average of the three last periods actual demand increased or decreased by the expected trend from the item group, 12-Formula 12 - Next period's forecast equal to the average of the three last periods’ actual demand, multiplied by the relationship between the sum of the three periods' actual demand for this year and the sum of the three periods actual demand last year,13-Formula 13 - Next period's forecast equal to the average of the actual demand during the previous year for the period before, the current period, and the subsequent period 14-Formula 14 - Next period's forecast equal to the average of the actual demand during the previous year for the period before, the current period, and the subsequent period increased or decreased by the expected season from the item group, 15-Formula 15 - Next period's forecast equal to relationship between the previous four periods and the same periods one year ago multiplied by the average demand for the current and next period for the previous year 16-Formula 16 - Next period's forecast equal to actual demand for the same period previous year

  • Demand types: Indicates demand types to use in forecasting.

  • Std seas infl (Standard seasonal influence): Indicates the standard seasonal index.

    • Options 1. Item group, 2. Product Grouping, 3. Gamma Factor, 4. Alpha factor

  • F/C error logic (Forecast error logic): Indicates the forecast error logic.

    • Options 0. No Used, 1 not changed, 2 . Previous period, 3. Extrapol F/C

Panel F

Key Field

• MAD and Me mtd (MAD and mean error method) to be used. Options are 0. Not Used, 1. Exp Smoothing, 2. Mean F/C DEV. 3, Mean Demand Dev

Forecast Logic.Open (FCS305)

Panel F the Demand Logic is applied. Options are from 0 No History to high values such as 59 History

Material resource planning(MRP)

MRP Key Design Considerations
* Assemblies, components, and needed to make the build plan materials needed
* Current Inventory data needed, what's on order and how much to be ordered
* When order releases are needed
* Lead times and on hand material balances
Program Description

1. Item Define sourcing Rules (RPS090)

This program is used to define sourcing Rules for an item. The data is populated from panels E and F

2. Production Rate Open (RPS030)

This program is used to create regular production increased or decreased product during a specified period. For example a special discount on a product would increase the volume required to be on hand prior to promotion or special event the code is specified as part of MRP generation. The data is populated from the various fields and are linked to RPS030.

3. Point of Time Table Open (RPS080)

This program is used to establish all planning around specific points of time. Example If the business needs a part delivered at 8:00 AM every day set the time point to deliver at each. The Data is populated from Table and is linked to Table Type 10 or Table Style 20

4 Point of Time Table Open (RPS081)

This program Is used to manually create Replenishment dates for material requirements. Date is manually entered and the link is established between the master record and the time which requires the delivery of product

Lesson - 3 Demand Planning

M3 master demand schedule overview

 * entering in a forecasted demand without using forecasting products
 * copy an existing forecast into an MDS version
 * simulation

Considerations:

• whether planners work with MRP simulation.

  • Whether to have multiple versions of the demand plan.