The three planning levels
1
Demand planning
Estimate future sales by article and period. Compare several plan versions to include updated sales forecasts.
2
Production planning
Convert demand into quantities to manufacture. Account for available stock, expected receipts, committed orders and
safety stock.
3
Procurement planning
Derive the components and articles to buy from the production plan and bills of materials. Account for stock and
expected purchase orders.
Understand the cascade
A sales forecast creates demand for a finished product. The production plan determines the quantity to manufacture to cover that demand. Bills of materials then turn this quantity into component requirements. The procurement plan finally determines the quantities to buy. When an upstream plan changes, recalculate requirements before launching downstream actions. This prevents production or purchasing from using an outdated forecast.Bonx intelligence prepares a proposal. Business rules and the planner’s validation remain decisive before any launch.
Launch production
Material requirements planning projects stock from expected inbound and outbound movements. It includes current stock and safety stock to propose a quantity to manufacture and a requirement date. Bonx then applies the article’s launch rules:- the minimum launch quantity raises a proposal that is too low;
- the launch increment rounds the quantity up to the next multiple;
- the process batch size keeps manufacturing batches whole; and
- the maximum launch quantity splits the requirement between several manufacturing orders.
Launch purchases
For purchased articles, Bonx calculates the remaining requirement after accounting for stock and expected receipts. The proposal uses the main supplier when one is configured. Bonx applies two quantity rules:- the minimum order quantity raises a proposal that is too low; and
- the order increment rounds the quantity up to the next multiple.
Data to maintain
Plan quality depends on the following data in particular:- forecasts and their versions;
- dates of expected orders and movements;
- current stock, reservations and safety stock;
- bills of materials and manufacturing processes;
- launch and purchasing rules; and
- main suppliers.
Planning selects the requirements to cover. Scheduling then places production operations on specific machines and time
slots.
Continue to scheduling
Organize manufacturing-order operations in the workshop.