Creative BI: Manufacturing Requirement Planning

January 4, 2014

Many of our manufacturing customers use Builds of Materials in their ERP to aid in the manufacturing process: configuring recipes, managing inputs, planning for requirement and managing projected profits.

Although these are very useful for a manufacturing environment, for a system to truly be useful to its owner, it must incorporate business information from Sales Orders, Purchase Orders, Component QOH and Unfinished Builds. And finally, what the business manager cares most about is the delivery of this information on an interactive reporting platform.

In this article I wish to share the concept of reporting on shared components between Builds….

One of our customers recently requested that we add the 2 fields below with the red borders to the ‘BOM Requirements Planning’ solution that we had built for them. I thought this was a great idea due to the following considerations…..

When planning requirements in a manufacturing environment, it often happens that component items are assessed and ordered in the context of a particular Assembly. As an example, if Assembly A and B each require 10 components of item Y and both A and B need to be built, then in the context of A and B alone, only 10 of item Y are required when the reality is that 20 of item Y are required.

Hence, the field below named ‘OrderQtyAll’ is one that discloses the total number of components required, including those that are required for builds other than the current build being reported on and analyzed. Consequently the field named ‘RequiredAll’ now reflects the true quantity required by considering QOH, All component items indirectly on order across all builds, Sales Orders and Purchase Orders.



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