Sales & Inventory Operation
Planning (SIOP)
XA tools to assist with Forecasting,
Material Planning & Cash Flow
Analysis
Sales & Operation Planning Data Flow
Forecast – Projection of Future Sales
Feeds Material Planning:
Master Production Schedule Planning
MRP
Advanced Planner
Planning Applications create Planned
MO’s & PO’s
Cash Flow Analysis:
Use Existing AR, COM Orders & Forecast for income
Use Existing AP, PO & Planned Orders for Expenditures
XA Forecasting
• Forecast Code in Item Balance record determines:
– Build forecast for item
– Build forecast and pass to MRP or MPSP
• Codes:
– 0 = No Forecast
– 1 = Forecast, do not pass to planning
– 2 = Forecast, pass to MPSP as requirement and MRP
as reference
– 3 = Forecast, pass to MPSP and MRP as requirement
Forecast Code
Forecasting
• Month End Processing will retrieve booking
information from COM
• Move the periods forward by 1 period
• Calculate the forecast (using experiential
roughing)
• Menu option to pass forecast to MPSP
– Updates Demand Interface (DMDIFF) file
Forecast Master
• Forecast Master holds:
– Sales vs. Forecast for past 12 periods
– Forecast for next 12 periods
– Seasonality Factor for fluctuating sales
– Safety Stock and Reorder Point (option in Tailoring
to update Item Balance record)
• System Calculated forecast can be manually
overridden, either at the ‘Annual’ level or in
individual periods
Forecast Master
Forecast vs. Sales
(past)
Future
Forecast
Forecast in SIOP
• If the Forecast is used as a requirement in the
Material & Capacity Planning Applications:
– Forecast needs to be an accurate representation
of sales (i.e. not a ‘wish list’)
– If there is seasonality within the monthly
forecasts, the Master Schedule will need to be
‘smoothed’
– Need to verify that there is capacity to produce
the forecast prior to running material planning
Other Forecast Options
• 3rd party forecasting applications can ‘feed’
forecast to material planning
– Futurecast
– Customer provided forecasts
– FD6
• MPSP – put forecast in Demand Interface file
(DMDIFF)
• MRP – load forecast to Requirements (REQMTS)
file
• Advanced Planner – put forecast into access table
Forecast Metrics
• Forecast vs. Sales Shipments by Item/Quantity
• Forecast vs. Sales Shipments by dollar
• Customer Order fill rate (actual ship date vs.
manufacturing schedule due date)
• Forecast vs. Master Schedule Production
PLANNING
Master Schedule
• Master Schedule needs to be an accurate
statement of what is to be built
• Master Schedule should be isolated to
Finished Goods (level 0 of the bill of material)
– If lower level items are flagged as MPSP items,
their parent items also need to be MPSP items
• Master Schedule should be reviewed by
Senior Management within the company
– Summarized by Product Family
MPSP
• MPS Source Code in Item Balance determines
what will be treated as a requirement in
MPSP:
– F = Forecast only
– C/E = Customer Orders only
– B/D = Greater of Forecast or CO for the period
(Forecasting Tailoring determines period length
weekly/monthly)
– M = no requirements, master schedule is manually
entered
MPSP Sequence of Events
•
•
•
•
Load Forecast to Demand Interface (DMDIFF)
Set Horizon dates
Generate Master Schedule
Test Master Schedule against capacity
constraints (rough cut capacity test)
• Work/approve the Master Schedule
• Transfer Master Schedule to MRP
Resource Profiles
• Resource Master record needs to specify
hours/day resource is available
• Resource ID is loaded into Production Facility
– ‘Prime Load Code’ determines if resource
constraint is machine or labor time
• ‘Resource Profile Build’ job will go through the
indented BOM for the MPSP item to find load
in constraining facility and time offset
Production Facility Record
Resource Test
• Resource test will compare master schedule
against ‘Resource Profile’ file
• Resource display will show weekly periods
where master schedule has overloaded the
constraining facility
• Use date field to determine which Master
Schedules are contributing to overload
• No report is available, only inquiry
MPSP load to MRP
• When performing an MRP generation
question ‘Transfer new orders from MPSP?’
answered ‘Yes’ will bring the master schedule
planned orders from MPSP to MRP to
generate planned orders through all levels of
the bill of material
Master Schedule Metrics
• MPSP MO Performance
– % of MPSP orders started on time (actual start
date vs. scheduled start date)
– % of MPSP orders completed on time (actual
completion date vs. due date)
– Quantity completed vs. quantity orders
• MPSP order changes within ‘frozen’ zone (i.e.
‘X’ number of days from start and/or due
date)
ADVANCED PLANNER
Advanced Planner
• ‘Next Generation’ of material and capacity
planning
• Download planning information from XA into
an Access database
• Planning performed on a PC or Server,
eliminating job conflicts
Advanced Planner Sequence of Events
• Download data to Access
• Load the plan
• Review Load to Capacity for work centers (color
coding shows level of capacity problems)
• Work daily plans to eliminate capacity overloads
• Review Supply vs. Demand (MRP) plan
• Upload plan to AS400 (updates PLNORD and
REQMTS files)
• Release orders same as MRP
Load to Capacity
Load to Capacity
• Separate line for each facility
– Red – Facility over capacity (total)
– Yellow – Facility over capacity for multiple periods
– Blue – Facility over capacity for one period
– Green – Facility under capacity
– Black – Set up time
• Can ‘drill down’ to daily load
Daily Load
Daily Load
• Use ‘Drop & Drag’ to move order
– Will reschedule other operations and, if
‘Operation Where Used’ in BOM is completed, will
reschedule material
• Other options available:
– Outsource: Have vendor perform operation
– Alternate Route: use different process (EPDM)
– Offload: move to different facility (only released
MO’s)
– Level load: let AVP move load
AVP New Functionality vs. MRP
• Customer Orders consume forecast
• Unlimited number of calendars, can associate
multiple facilities to a single calendar
• Uses routing times (instead of lead time) to
calculate MO start date
• Schedules load for each operation based on
operation start/due date; can plan to the minute
• Uses Maximum Order Quantity to limit order size
• Planned Orders due the day before the
requirement
Supply/Demand for Item
Save Plan
• Uploads AVP plan to the AS400:
– Saves Planned Orders in the PLNORD file
– Saves requirements to the REQMTS file
• Use MRP recommendations (PowerLink) or
MRP Order Release and Review to create MO’s
and PO’s
• Same metrics as MPSP/MRP apply
Save Plan
CASH FLOW
Cash Flow Overview
• The Cistech Cash Flow application was created to
provide a future view of income and expenditures
for a company
• Cash Flow is written with XA Integrator and runs
exclusively in Browser (R6) and PowerLink (R7)
• Works with both AM and IFM financials
• Provides both summary data and detail to
support the summary
• This application is especially important these days
when cash management is essential to your
company’s overall health
Sample Screen
Time periods are user defined and can be:
• Daily
• Weekly
• Monthly
• Quarterly
Income – Existing AR
• Uses the existing invoices in Accounts
Receivable (either AM or IFM financials)
• Uses the invoice due date to determine the
period for cash receipt
• Past Due invoices will display in a ‘Past Due’
period column
Income – Future AR
• ‘Future AR’ is time phased Customer Orders in
COM
• Uses the Manufacturing Scheduled Ship Date
for each item plus the Customer’s payment
days (based on the terms code in the
customer master record) to determine date of
cash receipt
• Assumes shipment/invoice will occur on the
Manufacturing Scheduled Ship Date
Income - Forecast
• Forecast needs to be by Customer and Item
for most accurate cash flow
• Cistech will provide a custom forecast file/file
layout to allow you to populate a forecast file
for Cash Flow
• Uses the Customer’s ‘Payment Terms Days’ to
age the forecast
Income
• Sum of:
– Existing Invoices in Accounts Receivable
– Aged Customer Orders
– Aged Forecast
Payments – Existing AP
• Uses the Existing Vendor Invoices in Accounts
Payable (either AM or IFM Financials)
• Uses the Payment Due Date on the invoice to
determine payment date/period
Payments – Future AP
• Ages the existing Purchase Orders to
determine payment date
• Takes the ‘Due to Stock Date’ plus the
vendor’s Payment Days from the Terms Code
specified on the Purchase Order
– Uses the ‘Offset Days’
• For Blanket Items, uses the Due to Stock Date
for each release
Payment – MRP Plan
• P-Plan orders from MRP planned order
(PLNORD) file are used to calculate future
payments
• Vendor specified as ‘Primary Vendor’ in Item
Balance record will be the Vendor whose
terms are used to calculate offset payment
days
• Vendor Master record holds Terms Code
Sample Screen
Summary and detail
are both provided
and can easily be
copied to Excel
SIOP Summary
• Use Sales Forecast as the beginning point for
developing Master Schedule
• Use Planning applications to create material
and capacity plan
• Use Cash Flow analysis to determine
company’s cash requirements based on
existing orders and plan
• Use Metrics to determine success of SIOP plan
CISTECH SIOP OFFERINGS
– Education (Forecasting, COM, MRP, MPSP, AVP)
– Upcoming “AVP JumpStart” Engagements
• Free Webinars on AVP functionality
• Classroom Education opportunities
• On-site AVP “JumpStart” Consulting Engagements
– CISTECH’s Cash Flow Analysis Tool
– QuickLook consulting program for SIOP
• 1-2 day review of your current SIOP Process
• Executive wrap up session to provide vision and implementation
plan for SIOP improvements
CONTACT INFORMATION
Brock Miller
brock.miller@cistech.net
704-814-0010
Ben McCormick
Ben.mccormick@cistech.net
704-814-0016
THANK YOU FOR
ATTENDING!