Scenario 2- Use MRP and Finite Capacity Scheduling of Asprova

In this scenario, we will use MRP and Finite Capacity Scheduling of Asprova – how to import the manufacturing order for the production and inventory from TSV files and how to auto-replenish the manufacturing order for parts and schedules.

After importing the manufacturing order for the production and inventory of parts, the manufacturing order for “A” will be created automatically by MRP. It is important to input the manufacturing order for Item “A” from ERP. But first, we need to know the inventory of “A” in order to run the MRP.

Open the file “25.04 Scenario 2 – Use MRP and finite capacity scheduling of Asprova” as shown in the figure below.

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The table below shows the data settings for inventory of “A”.

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The contents of the TSV file for planned order is the same as Scenario 1.
The order code is “Inventory 1”. The item code is “A”. The due date is June 3rd. The quantity is 1000.

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Open the Order table and import the TSV file. The inventory order can be seen in the order table. The Order code is “Inventory 1” and the Order type is set as “Inventory (absolute)”.

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The order type can be changed to “Inventory (absolute)” by Import property conversion expression in the Data I/O table.

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You may refer to the Online Help if you want to know the details about expressions.

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In the Item table, switch the Auto-replenish flag of “A” to “Yes”. Then, run the Reschedule button.

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You will then see that a manufacturing order has been auto-created in the Order table. The order quantity for Item “A” is 5000.

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Check the Resource Gantt chart to see the results. This Inventory order is seen in the chart below. 1000 items will be used in Order 2. The shortage of 2000 items will be supplied by an auto-replenished manufacturing order.

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Go to the Inventory Graph – the inventory of Item “A” is displayed.

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It is 1000 at first, and increases to 6000. Then 3000 items will be used and the quantity will be decreased to 3000.

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Please refer to this page to find the details about auto-replenishment.

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To learn more about Asprova specific to this sample demonstration, you may visit Asprova’s online help and its e-Learning videos at http://lib.asprova.com/ (see 25. ERP Interface).

 

Asprova MRP

A manufacturer needs to know how much inventory it has to be able to commit on ordered quantity. It is critical that the company has an accurate record of inventory as any shortage may lead to delays in due dates. In this article, we will show you how materials are scheduled to avoid shortage on orders.

In order to assemble item AX, we need one item each of A and X. These two items should be registered in the Integrated Master Editor table as two input instructions. The first instruction is A with instruction code In and with required amount of one. Create the same setup for item X but with instruction code In2. Please note that having different instruction codes (In and In2) mean that both items A and X are necessary to assemble item AX. If the same instruction code is inputted, this means either item A or X are required to assemble AX.

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Run the reschedule button and view the Resource Gantt chart showing the Inventory graph. In the inventory graph, you can see that the amount of item AX is increased as soon as the orders are completed e.g. AX is increased to 600 after order 2 is completed, then increased further to 900 after order 1 is completed. On the other hand, items A and X are reduced based on the quantity used to assemble item AX e.g. A is decreased to -600, and then to -900 by the beginning of order 1.

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You can also take the inventory you have into account in this graph. Key in Inventory A as the order code, set order type as Inventory (with absolute quantity). Set the item, due date and quantity. Run the Reschedule button and the Inventory A will be displayed in the Resource Gantt chart. By looking at the Inventory graph, you will see that the initial quantity for Inventory A is 1000. By the beginning of order 2, the inventory quantity is decreased to 400, and then down to 100 by the beginning of order 1. With this view, you can easily check when the inventory will run out and do the necessary re-order.

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To learn more about Asprova specific to this sample demonstration, you may visit Asprova’s e-Learning videos from our e-learning website (see 22. How to make a prototype).

Results of Integrating Asprova with ERP

pentelA Japan-based manufacturer, that has been a subscriber to Asprova Production Scheduler for 10 years, thought that they needed to replace Asprova with SAP. This is all due to the fact that other factories had been using SAP, and it was becoming a trend. To keep up with others, the company decided that they should replace their Asprova with SAP/R3. However, this did not happen.

Why?

The company found out that SAP/R3 cannot fully replace Asprova. This is because the scheduling function of Asprova continues to be a big asset to the company – you can try it out too for free. And because of its flexibility, Asprova can be used hand in hand with SAP/R3. With some tweaks, the company found out about a way to use Asprova together with SAP/R3.

How is this possible?

In production scheduling, Asprova was utilized because of its speed and accuracy. Plans created by Asprova are returned to SAP and SAP creates and issues instructions to each production sites.

As a result, they were able to dramatically decrease their inventory—unshipped items are decreased by 1/4~1/2. The accuracy of orders’ due dates went up to 97~98%! The Information Systems officer interviewed by Asprova claimed that “Optimal scheduling brings satisfaction to our clients”.

Asprova’s scheduling capacity remains undisputed. If you’re thinking of replacing Asprova, you should think twice before you do it because you might be able integrate it with the product that you want to use, for example, ERP. And, with proper systemization, you will be able to achieve outstanding results.

Five Good Reasons Why You Need Backward Scheduling

Scheduling in Reverse

Both Material Requirements Planning (MRP/MRP-I) and Manufacturing Resources Planning (MRP-II), for example, are forms of backward scheduling systems. You might have encountered those terms in our previous posts, and those are examples of backward scheduling.

Asprova can easily design a backward plan. A Japanese manufacturer of marine fresh water generators for ships experienced Asprova’s assistance on this topic. (See case study 17) It is often hard to understand the importance of coming up with a plan based on deadlines (backward) and practice. But, enough understanding on Asprova can easily help us with this.

Here are five advantages of Backward Scheduling:

  1. Process change-over reductionquick changeovers are an integral part of the JIT philosophy. The benefits of quick changeovers can be realised by simply changing the way in which we go about changeovers.
  2. Inventory reduction, leveling production leveling, also known as production smoothing or – by its Japanese original term – heijunka is a technique for reducing the muda (waste).
  3. Reduced scheduling effort -with backward scheduling, you don’t really need to put a lot of effort in the process.
  4. Increased production efficiency -unlike forward scheduling which schedules into the future, backward scheduling could potentially schedule into the past because the resources where not available to complete the job.
  5. Accurate delivery date quotes – backwards scheduling then may turn around and actually forward schedule the job to tell the customer the earliest delivery time.

Lead time reduction: what are its effects?

Reducing Lead Time

Lead time reduction, was previously discussed in the article Lead Time Reduction and the Limits of MRP published under the umbrella of Production Scheduling Lessons in this site. It is generally known as reducing the latency (or delay) between the initiation and execution of a process. This is a very important feat in production.

A world renowned manufacturer, who launched the first facsimiles for office use,  that was in the expanding phase in their sales, experienced an increase in the high- mix and low-volume production. As demand increases, the need for production processes goes up along with it. The company needed to increase their machines and make production more efficient. They needed a production scheduler to make the processes smoother, and they called for Asprova.

To be more efficient in production, they needed to reduce lead time. If a company needs to reduce inventory, it would be better if they would rather reduce lead time than directly reducing inventory itself. Asprova gave them just the help they needed.

After implementation of this production scheduler, they were able to witness a great reduction in lead time—it was actually cut in half. WIP (Work-in-process) inventory was also reduced by 50%. They improved the efficiency of the whole production process. They even experienced a reduction in delivery delay.

How a Synchronized MRP and Finite Capacity Scheduler Helped a Cosmetic Company?

MTO Manufacturer Still Using Excel

In a Make-To-Order cosmetic product manufacturing, checking material availability usually takes a long time, sometimes it takes too long, that customers would rather cancel the order instead. It is very hard to keep up with order changes and respond to when this happens often. A Japan-based company specializing in: powders, lip sticks, and cream—experienced this setback.

The company utilized an Enterprise Resource Planning (ERP) software as the core system  in the past. This proved to be incompatible with their production setting because it took them a long time to complete all their processes and it was simply unstable. They even  had  to manually schedule using MS Excel for their scheduling because of this issue.

Finite Capacity Scheduling

However, these matters were resolved through the installation of a Finite Capacity Scheduler (FCS) software called Asprova. The company wanted to combine the two concepts to form a process that would utilize both MRP and FCS. And they succeeded by overcoming many challenges in conceptualizing how this would work (for a more detailed explanation click here—case study 14).

After switching from ERP to FCS, the company experienced a considerable reduction in manual workload, precision in scheduling, realized functionality of MRP, and  realized the computation of synchronized MRP and FCS in only 6 minutes—now that’s a quick (and also accurate) response to frequent order changes.

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What are the Benefits of Synchronizing Sales Production Orders?

Manual Scheduling

We’re now going to focus on an international company which does Make-To-Stock (MTS) manufacturing. This company is known for supplying disks to aircraft engines. Like other companies, this one had problems in scheduling because of their manual approach. This often caused delay in production operations. They also had to respond to frequent order changes.

The company needed a high-speed production scheduling tool that can function well in a fast-paced production environment—and also promise results. They tried a lot of schedulers to solve this issue before, but among all the production schedulers they tried, there was  one who could perform better than others.

It was Asprova.

Synchronizing Sales and Production Orders

According to the manager of this company’s production department, they chose this production scheduling software because it has large parameters that can be assigned by the user. “There are particular conditions and requirements here that are unique to us. Asprova’s flexibility fills the bill in that regard,” he adds.

The software helped the company synchronize their sales orders as well as their production orders. With Asprova, they were able to attain a uniform production planning and created precise production plans. Another noticeable achievement after the installation of Asprova is the automation of the previously manual scheduling operations.