Re: BPCS-L Digest, Vol 17, Issue 40

Thanks Les,
Wow.....embarrassing that the solution has been right in our face for 
years and we haven't seen it.  I do have a few questions.

We ran a test yesterday and was able to see the due/release dates back up 
when lead time was entered for the FG number.  However, we also included 
lead times for the level 1, 2, 3 items so we experienced excessive back 
dating because we used lead time values that exceeded the lead time for 
those processes.  If we want there to be one day additional backward 
scheduling through out each level in the BOM, will MRP default to a one 
day value between each level in the BOM or should we enter LT days of 1 at 
the level 1, 2, 3, etc. items?

 Jeffrey D Holder
Chief Financial Officer


P.O. Box 349  I 160 Commerce Drive  I Bay Springs, MS 39422
Phone - 601.764.4121



From:   [email protected]
To:     [email protected]
Date:   07/12/2019 12:00 PM
Subject:        BPCS-L Digest, Vol 17, Issue 40
Sent by:        "BPCS-L" <[email protected]>



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Today's Topics:

   1. Re: Move/Queue Day exclusion from  forecast requirements
      (Les Mittman)


----------------------------------------------------------------------

message: 1
date: Fri, 12 Jul 2019 04:34:02 +0000 (UTC)
from: Les Mittman <[email protected]>
subject: Re: [BPCS-L] Move/Queue Day exclusion from  forecast
                 requirements

Hi Jeffrey,
It appears to me from your explanation that there is something incorrectly 
setup with your MRP parameters.If I correctly understand the process that 
you described, here is what I would expect should be happening.
1.? A Forecast is created in MPS/MRP from the Customer's EDI transmission. 
It appears from what you said that the Start Date and the End Date of the 
Forecast are the same value which is the Date on which the Customer wants 
you to ship the Order from your Plant.
2.? When MPS/MRP runs, I would expect that a Planned Order for the 
Finished Good Item will be created for the Forecast.? The Due Date of the 
Planned Order will be the Need Date of the Forecast which is the Start 
Date of the Forecast.? In this way, MRP is planning for you to have the 
manufacturing process complete by the Ship Date which is the Start Date of 
the Forecast.
3.? For this F.G. Planned Order, MRP will calculate the Release Date of 
the Planned Order using the Lead Time that is defined for the F.G. Item 
Number.? It will subtract these Days from the Due Date in order to 
determine the Release Date for the Planned Order.? So, if the Lead Time is 
2 weeks, then the Planned Order Release Date will be 2 weeks before the 
Due Date.? This Release Date is when the S.O. that will be created must 
start in order for the F.G. Item to be completed by the Due Date.
4.? For all of the 1st Level BOM Components of the F.G., MRP will set 
their Need Dates to be the Day before the F.G. Release Date.? In this way, 
MRP will be planning Demands for the Components to be in-house before the 
F.G. is to be started.? This Need Date will be the Due Date for the 
Components.? Then, MRP will use each Component's Lead Time in order to 
determine its Release Date.
5.? If any of the 1st Level BOM Components are themselves manufactured, 
then MRP will perform the same process to determine the Release Date/Due 
Date for the next lower Level BOM Components.? This process continues 
through all BOM Levels.

6.? With the process described above, all of the Item Numbers from F.G. 
Item down through all Components will have the correct Planning 
Release/Due Dates.? So, if you execute to these Dates, you should be able 
to successfully complete the F.G. by the Ship Date.? 

7.? When it is time to create the S.O., its Release Date should be the 
Planned Order Release Date.? Therefore, the Need Dates of any Components 
should still be the MRP Planned Need Dates.? You should not see the S.O. 
Need Dates being pushed back as to describe.CAVEAT:? The S.O. Dates should 
be close to the MRP Dates if the Elapsed Time of the S.O. (i.e. Setup Time 
+ Run Time + Machine Time + Queue Days + Move Days) through the Router is 
equal to the MRP Lead Time that you have defined for the F.G. Item.? If 
there is a significant difference between Lead Time and Router Time, then 
you will see the S.O. Need Dates move relative to the Planned Order Dates.
I suspect that you do not have Lead Time defined for the F.G. Item.? If 
this is true, then I would expect the MRP Planned Order Release Date for 
the F.G. Item to be the same as the Due Date.? That is, MRP will plan to 
have the Components available on the Day that the S.O. is to be completed 
which is way too late.? This sounds like what you are experiencing.? Then, 
when the S.O. is created, the Need Dates of the Components will be pushed 
back because of the Routing Elapsed Time which will be used for the S.O.
So, first thing, please check the F.G. Lead Time.
An additional technique that you could use if you want to push back the 
Dates for the Components is to set the Forecast Start Date to be before 
the Forecast End Date.? That is, currently the End Date is the Ship Date.? 
Set the Start Date to be 2 weeks before the End Date.? Then, MRP will 
create the Planned Order to be Due on the Start Date.? HOWEVER, I DO NOT 
RECOMMEND this approach.? You really should be using the MRP Lead Time to 
properly manage the Requirements. ? 

Please let me know if you have any questions.? Feel free to contact me 
offline to discuss these issues further.? I am a BPCS/ERP LX Consultant 
and I work extensively with MPS/MRP education, training, and consulting.? 
I would be happy to assist you further.
 
Thanks.?
Les Mittman 
Cell: 847-858-5235 

    On Thursday, July 11, 2019, 8:59:20 AM CDT, [email protected] 
<[email protected]> wrote: 
 
 I'm a user/trainer/liaison for development of BPCS for 20+ years.? We 
have 
attempted many times to resolve this issue with no success.? Just 
wondering if anybody has seen this issue and been successful in coming to 
a solution.

The problem......

We received forecast demand from our customers via EDI and is entered into 

our BPCS MRP system in an automated process.? When MRP runs and plans 
requirements for a forecast order, the requirements have a need date that 
is equal to the date the customer requests the shipment.? This does not 
allow for receipt of material early enough to allow for processing time. 
When the order firms up, we enter an order (ORD500) and shop load the work 

orders to produce the order.? When the work orders are created, the 
backward scheduling parameters kick in and move the requirement date from 
the date the customer want the order shipped back to a date that allows 
for the process time represented by the values in Move & Queue days.? For 
a product with a two week process time, the act of shop loading the order 
(which takes the Move & Queue days into account) changes the need date for 

the materials by two weeks.? We commonly firm the order and create the 
work orders between two and four weeks before shipment.? This creates a 
substantial change in need date close to the end of the life cycle of the 
order.


The question.....

Has anyone experienced this problem?? If so, have you reached a solution 
and what was done to resolve the issue?
 
Jeffrey D Holder
Chief Financial Officer


P.O. Box 349? I 160 Commerce Drive? I Bay Springs, MS 39422
Phone - 601.764.4121
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