1 Overview to Manufacturing and Distribution Planning

This chapter contains these topics:

Manufacturing and Distribution Planning consists of the following systems, as well as the execution of those plans.

The Manufacturing and Distribution Planning system is a part of Enterprise Resources Planning and Execution (ERPx). ERPx allows you to coordinate your inventory, raw materials, and labor resources to deliver products according to a managed schedule. This closed-loop manufacturing system helps manage your data and optimize resources across your entire manufacturing and distribution logistics environment. ERPx formalizes the activities of company and operations planning.

1.1 Resource and Capacity Planning

Resource and Capacity Planning allows you to prepare a feasible production schedule that reflects your demand forecasts and production capability. Resource and Capacity Planning consists of:

Component Description
Resource Requirements Planning (RRP) Uses a summary forecast to estimate the time and resources that are needed to make a product family.
Rough Cut Capacity Planning (RCCP) Compares the master production scheduling resource requirements to the capacity available in critical work centers.

You use RCCP to determine if you should revise the master schedule to create feasible work loads or improve utilization of limited resources.
Capacity Requirements Planning (CRP) Compares the material requirements plans to the capacity available in all work centers.

You use CRP to determine if you should revise the material requirements plan to create feasible work loads or improve utilization of limited resources.

1.2 Material Planning Operations

Material Planning Operations provides a short-range plan to cover material requirements that are needed to make a product. Material Planning Operations analyzes demand from all your operations, including:

  • Central and satellite distribution centers and warehouses

  • Rate-based repetitive manufactured items

  • Process and discrete manufactured items

  • Engineer-to-order contracted items

  • Maintenance, repair, and operational items for plant and equipment maintenance

  • Supplier-managed inventory

Material Planning Operations consists of:

Component Description
Distribution Requirements Planning (DRP) Plans and controls the distribution of finished goods based upon demand. In addition, DRP provides centralized control of distribution inventories and creates a coordinated replenishment plan.
Master Production Scheduling (MPS) A schedule of items and quantities that a company expects to manufacture.
Material Requirements Planning (MRP) Uses the master production schedule, open orders, the bill of materials, and inventory records to calculate time-phased net requirements for every item, and creates a plan for covering material requirements.

1.3 System Integration

The Manufacturing and Distribution Planning system integrates with the following systems:

System Description
Inventory Management Supplies the basic information about each item (or ingredient), such as part number, description, unit of measure, stocking type, and location.
Configuration Management Supplies information for assemble-to-order and make-to-order items.
Forecasting Generates sales projections that are used to develop the master production schedule.
Shop Floor Control Uses bills of material and routings to schedule work activity within the plant.
Product Costing Uses bill of material, routing, and work center information to calculate the standard cost of an item.
Manufacturing Accounting Calculates costs for labor, overhead, and material for each primary unit of the parent using routing and work center information.
Sales Order Management Uses bills of material for kit processing and acts as a source of demand for purchased or manufactured items.
Purchase Management Uses expected delivery dates and recommends replenishment actions.

The following graphic illustrates the Manufacturing and Distribution Planning work flow.

Figure 1-1 Manufacturing and Distribution Planning Work Flow

Description of Figure 1-1 follows
Description of "Figure 1-1 Manufacturing and Distribution Planning Work Flow"

The following graphic illustrates how Manufacturing and Distribution Planning integrates with other JD Edwards World systems.

Figure 1-2 Integration of Manufacturing and Distribution Planning

Description of Figure 1-2 follows
Description of "Figure 1-2 Integration of Manufacturing and Distribution Planning"

1.4 Terms and Concepts

Manufacturing and Distribution Planning encompasses:

Component Description
Bills of material The components and relationships required to produce a parent item. Use bills of material to:

  • Maintain many configurations for an item without creating additional part numbers

  • Define quantities of intermediate products in any unit of measure as they progress through the manufacturing process

  • Enter similar items by copying bills of material, routings, and processes
Routings The operations required to produce the parent item. Use routings to:

  • Define each step of the manufacturing process with allowances for anticipated yield and scrap

  • Add alternate operations to routings
Work centers The facilities on the shop floor where the routing operations occur. Use work centers to:

  • Define work center number and description

  • Define the number of operators or machines

  • Define setup, labor, machine, and overhead rates

  • Define information for Capacity Planning
Engineering change orders (ECOs) The document that you use to define and implement changes to your products structure. Use engineering change orders to:

  • Control item changes from a single source

  • Incorporate approved changes to bills of material

1.5 Planning and Production Environments

Successful planning leads to customer satisfaction. Depending upon when you meet your customer in the production process, the planning systems provide business solutions. As illustrated by arrows in the following graphic, customers impact the product development at different points in the various environments.

Figure 1-3 Customer Impact on Product Development

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Description of "Figure 1-3 Customer Impact on Product Development"

Option Description
Make-to-stock You meet your customer after the product is completed. This environment generally involves retail items. Forecasting of end items is a crucial factor.
Assemble-to-order You meet your customer after options are fabricated, but before final assembly of the product. The customer specifies the options in the final end product. Some factors to consider in this environment are:

  • Items are configured according to formally set rules

  • Items are forecasted and master schedules are created at the option level
Make-to-order You meet your customer before you begin production at any level in the product structure. This includes the following factors:

  • Products are customized for specific needs

  • Capacity needs are forecasted

  • Production requires longer lead times
Engineer-to-order You add engineering design time into the lead time. This might use a job cost business solution.

1.6 Planning a Total Business Solution

Figure 1-4 Elements of a Total Business Solution

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Description of "Figure 1-4 Elements of a Total Business Solution"

A total business solution integrates three important elements:

Element Description
People For the most important element in your solution, you must provide education and management commitment.
Process To develop the policies and practices to manage effectively, you can employ:

  • Business process re-engineering

  • Best manufacturing practices

  • Formal documentation of the process that is approved by management
Technology To acquire the best tools to do the job, you should use:

  • JD Edwards World software

  • Complementary products

  • AS/400 or open systems platforms

1.6.1 People

People are the keys to success. Involving and empowering people to get the job done are important steps in ensuring the success of your enterprise.

Key Components Description
Management commitment Implementing a successful business solution requires a management involvement that includes:

  • Committing the time and financial resources to do it right the first time

  • Empowering the implementation team with the authority, responsibility, and accountability to do the job
Implementation team Effective and thorough work on the front-end ensures good performance in the future. To promote integrated solutions at implementation time and during use, the future owners of the process should participate in the implementation process. In addition, the team should be cross-functional.
Education and training For knowledge of the broader business issues that are associated with Manufacturing and Distribution implementation, participants in the process should be educated in the American Production and Inventory Control Society (APICS) (or an equivalent). Ideally, this education should precede training in specific JD Edwards World training courses. Understanding Best Practices in the industry ensures quality solutions.
Managing change Implementing a broad-scale business solution entails great change in the way that people accomplish their work. To make this paradigm shift without disruption of product deliverance requires skills in helping employees cope with change in the workplace.
Partnership JD Edwards World Response Line and consulting, provides continued support. Our relationship is ongoing for your long-term future success. Business partners broaden this relationship through additional worldwide assistance.

1.6.2 Process

Costs, schedule, and quality are the direct outputs of the business process. Quality processes result in a quality product. The product meets customer specifications of design, schedule, and price.

JD Edwards World supports your business process re-engineering through flexibility. The software can be tailored to reflect new processes as they evolve. Multiple plants can be at different stages of the re-engineering effort, depending upon their maturity or schedule for implementation. Some of the features that JD Edwards World software provides are:

  • User defined codes

  • Processing options

  • Branch/plant constants

  • Manufacturing constants

  • Customized menus

JD Edwards World strongly supports Best Practices as documented by industry experts. As new practices are presented and recommended, JD Edwards World has made a commitment to evolve the software functionality to support these findings.

1.6.3 Technology

Seamless integration between all the JD Edwards World systems provides a unified solution to your enterprise planning. JD Edwards World Inventory, Sales, and Purchasing systems are fully integrated distribution systems that support the Manufacturing and Distribution Planning system.

1.7 Tables for Manufacturing and Distribution Planning

The following is a list of the tables that are used throughout Manufacturing and Distribution Planning.

Table Description
Item Master (F4101) Stores basic information about each defined inventory item, such as item numbers, description, category codes, and units of measure.
Branch/Plant Master (F4102) Defines and maintains warehouse or plant level information, such as costs, quantities, physical locations, and branch level category codes.
Bill of Materials Master (F3002) Contains information at the business unit level about bills of material, such as quantities of components.
Capacity Messages (F3311) Contains the action messages that are generated by the Resource Requirements Planning regeneration.
Detail Forecast (F3460) Contains the forecast data that RRP validates. It is also used as input to DRP/MPS/MRP.
Routing (F3003) Stores routing information, including operator sequence, work center, run, setup, and machine time.
Resource Units (F3007) Contains the available capacity for each work center by day, month, and year.
Work Center Master (F30006) Contains detail data about all defined work centers.
Resource Profile (F3303) Contains all resource profiles used in Resource Requirements Planning.

1.8 Menu Overview

JD Edwards World systems are menu-driven. System functions are organized according to their function and frequency of use.

Manufacturing and Distribution Planning encompasses two systems:

  • Resource and Capacity Planning

  • Material Planning Operations

1.8.1 Fast Path Commands for Resource and Capacity Planning

The following table illustrates the fast path commands you can use to move among the Resource and Capacity Planning menus. From any menu, enter the fast path command at the command line.

Fast Path Menu Title
DRRP G3311 Daily Resource Requirements Planning
RCCP G3312 Daily Rough Cut Capacity Planning
DCRP G3313 Daily Capacity Requirements Planning
PCAP G3321 Periodic Resource/Capacity Planning
CAPS G3341 Resource/Capacity Planning Setup

1.8.2 Fast Path Commands for Material Planning Operations

The following table illustrates the fast path commands you can use to move among the Material Planning Operations menus. From any menu, enter the fast path command at the command line.

Fast Path Menu Title
MAT G34 Material Planning Operations
DDRP G3411 Daily DRP
DMP G3414 Daily Multi-Plant Planning
DMPS G3412 Daily Master Production Schedule
DMRP G3413 Daily MRP
DRP G3411 Distribution Requirements Planning
MATS G3442 Set Up Single Site Material Planning
MPS G3412 Master Scheduling
MRP G3413 Material Requirements Planning
MULTI G3414 Multi-Plant Planning
PMP G3423 Periodic Multi-Plant
PSS G3422 Periodic Single Site Planning
SMAT G3440 Set Up Material Planning
SMP G3443 Set Up Multi-Plant Material Planning