Bonjour,

When implementing ERP, we often observe how hard it can be to deploy an effective production planning strategy. Planning software is made up of powerful but delicate tools.

ERP systems that support production planning normally offer a Master Production Schedule, a Materials Requirement Plan as well as a Finite Scheduler.

The MPS anticipates demand for your intermediate products and finished goods based on sales orders, inventory levels and sales forecasts. It will plan production based on delivery dates without any consideration for actual production capacity.

The MRP suggests purchases and raw material transfers based on the MPS. It evaluates lead times, open purchase orders and inventory levels.

The Finite Scheduler, often a Gantt type visual tool, will account for your real production capacity. Its horizon is often short term.

The main advantage of these solutions is that they can perform multiple calculations on a large volume of data. The challenge, however, is to ensure that the data that is being fed into them is accurate. Inventory levels, stocking parameters, lead times, bills of materials, routings, etc. is information that must be precise and reflective of reality.

This precision can be obtained, in part, through the quality of your business processes and the discipline with which your users perform transactions. You must also rely on a strong, highly analytical, and meticulous planning team. If your tools are akin to Formula 1, then your planning team are your engineers.

Please don’t hesitate to write if you have questions or comments.

Cordially,

Sylvain.

 

Last updated: June, 2023