Product overview

Material and Resource Planning is designed specifically for Sage 200, Sage 200 BOM and Sicon Works Orders to provide a manufacturing solution, including suggested works orders, suggested purchase orders, weekly labour and machine capacity planning and forecast sales order import.


1. Import Sales Forecasts

To import forecasts via a csv, select the Forecasts menu option under Utilities in Works Order Processing.  Imported forecasts will overwrite previous forecasts.  Select the forecast csv file and then select the Import button to import the forecasts.

Material and Resource Planning Import Sales Forecasts

To delete all forecasts, select the Delete Forecasts button.


2. Material Planning and Forecasts

The Material Plan uses the forecasts when checking to create suggested works orders and suggested purchase orders.  To generate suggested works orders, make sure to select the Include suggested works orders option on the first screen in Material Planning.  You can filter by warehouse, in which case all the forecasts will be filtered through during the process as well.

Material and Resource Planning Import Sales Forecasts

Select the Next button to generate the suggested works orders that are set as Make or Buy.  Only forecasts for BOM items will be used at this stage.  This will create suggested works orders, not live works orders.  This process may take a while and the progress bar on the left will display how long the process will take.  Obviously the more forecasts there are, the longer the process will take.

Once the suggested works orders set for make or buy have been generated, the following screen will appear:

Material and Resource Planning Import Sales Forecasts

This is step 2 in the material planning process.

Now select which suggested works orders to make and then select the Next button.  The next step will generate suggested works orders set to Make and also suggested purchase orders will be generated.  Once again, these works orders are suggested and not live.  This process may take a while to execute.

Forecasts will be used in this process and where a forecast is a BOM item, a suggested works order may be generated.  Where a forecast is for a normal stock item, a suggested purchase order may be generated depending on stock levels.

The following screen will appear once the previous process is complete:

Material and Resource Planning Import Sales Forecasts

The warnings tab displays any warnings about late suggested works orders or suggested purchase orders.  The suggested works orders displays a full list of works orders suggested during the above processes.  To see why a works order was suggested, select the line and then select the View Details button.  This will display a list of stock movements for the particular BOM item:

Material and Resource Planning Import Sales Forecasts

To generate a suggested works order into a live works order, tick the works order line and then select the Generate Selected Works Order button

NB: Works orders could have sub assemblies depending on the setup of the system and these can be viewed by expanding the lines.  Sub Assemblies do not have to be generated if you have stock for them.

The third tab shows suggested purchase orders:

Material and Resource Planning Import Sales Forecasts

 


3. Material Planning

Background

Material planning is based upon calculations of stock movements on stock items.  The stock movements are basically a timeline of incoming and outgoing stock on a stock item.  When stock levels fall below certain levels or there isn’t enough stock to meet the demand from a sales order/works order, then a suggestion is raised.

The stock movements for a particular stock item can be viewed from a number of places in works order processing.  One place to view these stock movements is on a stock item in stock control.  If a stock item is amended or viewed in Sage, then there will be a button called Stock Movements at the bottom of the screen.

Material and Resource Planning Material Planning

 

The stock movements will start with a free stock figure and then have a running total downwards, by date, displaying the resultant balance.  Each line can be drilled upon by double clicking the line.  Some lines may be works orders, some sales orders and others purchase orders.  There may also be lines for suggestions from material planning or component demands from other works order suggestions.  Having an understanding of stock movements may help when determining and investigating suggestions in material planning.

Step 1 – Options and filters

Step 1 in material planning has a number of options which affect the results of the material plan run.  These options are grouped into a number of sections.

The sales order section allows the filtering of sales order lines by dates.  There are also options to include sales proforma’s, sales quotes and sales orders on hold.

The grouping section will group suggested purchase orders and suggested works orders with the selected period of each other.  This can reduce the number of works orders and purchase orders generated.

The suggested purchase orders section has options to allow over ordering and whether to use minimum or re-order levels when generating suggested purchase orders.  For further information on this, please refer to the Over Ordering section of the Material  Resource and Planning Help and User Guide.

The suggestion works order section has options to included suggested works orders in the material planning run and if suggested, works orders for minimum stock and sales order should be separated.

Material and Resource Planning Material Planning

The warehouse section displays a warehouse drop down when the Warehouses button is selected.  Here the user can select which warehouses to include in the material run.

Once the options have been selected, the Next button can be selected.

The Display previously generated suggestions button will display the previous results generated from the last material plan run.

Step 2 – Make or Buy

In step 2 of the material plan run, suggested works orders with items set to make or buy are displayed with the preferred option pre-selected.  Here there are the options to either make the item, therefore generating a suggested works order, or buy the item, therefore generating a suggested purchase order.  Changing the Make or Buy setting will change the preferred option on the stock item; these are set on the Stock Item in Stock Control in the Material Planning tab.

Material and Resource Planning Material Planning

The View Details button will display the stock movements screen for the selected item.

The Next button will continue the material planning run.

Step 3 – Generating Works Orders and Purchase Orders

The material planning run may take a short while to complete, but the progress will be indicated on the left.  Once completed, a list of warnings are displayed on the Warnings tab.

Warnings such as purchase orders not arriving on time or suggestions that may not be completed on time, are displayed in this list.

Make or buy setting are set on the stock item in stock control in the material planning tab

To drill down on a warning item, the user can select the Details button or double click on an item to display the Stock Movements screen.

The Suggested Works Orders tab displays a list of suggested works orders to meet demand from live works orders and sales orders.  This list can be filtered to display the suggested sub assemblies.  We can also filter this list by warehouse.

Make or buy setting are set on the stock item in stock control in the material planning tab

The reason for generating the suggested works order is shown in the last column to the right.  This reason can be a sales order, works order or to meet the minimum stock requirements (or re-order levels based on options selected in step 1).

There are a number of options to find out more details about the suggested works orders raised.  By selecting the suggested works order line and then selecting theView Details button, the stock movements screen can be accessed.  Also, stock item details can be obtained by selecting the Stock Item Details or Stock Item Balances buttons.  The structure button will display the tree structure of the suggested works orders including sub assemblies.

To generate the works order, select the suggested works order(s) and click on the Generate Selected Works Orders button.  A summary screen will appear displaying which works orders will be created.  Clicking the Create button will create the works orders.

Make or buy setting are set on the stock item in stock control in the material planning tab

The Suggested Purchase Orders tab displays suggested purchase orders raised to meet demand from sales orders, live works order component lines, suggested works order demand component lines and minimum stock levels.  This list can be filtered using the filters at the top of the screen.

Make or buy setting are set on the stock item in stock control in the material planning tab

The user has the ability to change certain values in the list against each suggested purchase order, before generating the purchase order.  These can be date requested, quantity, warehouse, supplier and/or unit price.  The reason for the suggestion is in the last column.

Like with the suggested works order tab, there are a number of buttons to investigate suggested purchase order lines further.  For example, the View Details button will display the stock movements screen, while the Stock Item Details and Stock Item Balances buttons will provide further details about the stock item.

Purchase orders can be generated by ticking the suggested purchase order line(s) and then selecting the Generate Selected Purchase Orders button.  A summary screen will appear displaying the purchase orders that will be created.  Suggested purchase orders for the same supplier will be grouped together onto the same purchase order.

Make or buy setting are set on the stock item in stock control in the material planning tab

To view the purchase order after creating them, select the lines on the summary screen before generating them.

Sorting Suggestion Lists

Lists for suggestions in material planning can be sorted by clicking on the column header and then selecting the Sort button.  When clicking on the column header, a ‘<1+> or ‘<1->‘ will appear.  The ‘+’ represents sorting in ascending order, while the ‘‘ sorts in descending order.

Make or buy setting are set on the stock item in stock control in the material planning tab

The second column header selected with display a ‘<2+>‘ symbol, specifying this is the second column to be sorted.  To apply the sort, select the Sort button below the list or to clear the sort, select the Clear button.

Stock Item Settings

There are default stock item settings on the Material Planning tab when amending a Stock Item in Stock Control.  These settings can relate to material planning and override options set on in Step 1 of material planning.

Make or buy setting are set on the stock item in stock control in the material planning tab

 


4. Over Ordering

Introduction

The Allow over ordering option is available on the first screen during the material planning process.  These options are used when generating suggested purchase orders and suggested works orders.

Material and Resource Planning Over Ordering

The following examples are for suggested purchase orders.  However, the theory is the same for suggested works orders.

  • If the allow over ordering option is selected, suggested purchase orders will be generated even if there is future purchase orders still coming that will fulfil stock demand.  Suggested purchase orders are generated to keep the stock level above the minimum stock level.
  • If the allow over ordering option is not selected, suggested purchase orders will not be generated if there is a future purchase order still coming to fulfil the stock demand.  However, this purchase order may arrive late and a warning will then be generated.

The default selection for this option is Off.

Example of Over Ordering turned On

In the following screenshot, a suggested purchase order is generated on the 01/03/2011 to meet the demand of sales order 0000005142.  However, there is a purchase order on the 10/03/2011, which increases the stock level above the minimum stock level.  This purchase order is after the due date of the sales order, as such, the suggested purchase order is generated in order to keep the stock level above minimum.

Material and Resource Planning Over Ordering

Example 1 of Order Ordering turned Off

In the following example, no suggested purchase order is generated for sales order 0000005142, because purchase order 0000003290 will push the stock level back above the minimum stock level; even though the purchase order is after the due date of the sales order.

Material and Resource Planning Over Ordering

A warning will be generated on the Warning tab stating that the purchase order may not arrive on time.

Material and Resource Planning Over Ordering

NB: If the stock item is required for a works order, the item will show in the expediting report and will show in red or amber if stock may not arrive on time to fulfil the demand.

Example 2 of Over Ordering turned Off

In the following example, a suggested purchase order is generated for sales order 0000005142, because purchase order 0000003290 will not meet minimum stock levels on its own.  The quantity of the suggested purchase order will be just enough to push the final result of stock up to minimum stock levels.

Material and Resource Planning Over Ordering

A warning will be generated on the Warning tab stating that the purchase order may not arrive on time.

NB: If the stock item is required for a works order, the item will show in the expediting report and will show in red or amber if stock may not arrive on time to fulfil the demand.

Notes

  • There is an option to allow over ordering for suggested works orders as well.  This is a separate option on the first screen in material planning in the suggested works order section.  The theory for allowing over ordering for suggested works orders is the same as over ordering for suggested purchase orders.
  • The minimum reorder level and/or usual order quantity may affect the quantity on the suggested purchase order if set on the preferred supplier, thus increasing stock levels even if ‘allow over ordering’ is turned off.

 


5. Suggestion Quantities

Settings that Affect the Quantity of a Suggested Purchase Order

The rules below are applied to suggested purchase orders when running material plan:

  • Usual order quantity on preferred supplier: The quantity of a suggested purchase order will be a multiple of the usual order quantity of the preferred supplier.
  • Minimum order quantity on preferred supplier: The quantity of a suggested purchase order will be above the minimum order quantity set on the preferred supplier.

NB: If no preferred supplier is set on the stock item, then the above two rules will be ignored.

  • Re-order level on the warehouse on the stock item: If material planning is set to use re-order stock levels when generating suggested purchase orders, suggested purchase orders will be raised if the quantity of the stock item falls below the re-order level on the warehouse.  The quantity for the raised suggested purchase order will bring the stock level back up to the re-order level.
  • Minimum level on the warehouse on the stock item: If material planning is set to use minimum stock levels when generating suggested purchase orders, then suggested purchase orders will be raised if the quantity of the stock item falls below the minimum stock level on the warehouse.  The quantity for the raised suggested purchase order will bring the stock level back up to the minimum stock level.

NB: If stock levels are ignored for suggested purchase orders, then the above two rules are ignored.

Warehouse Selection

If multiple warehouses are selected when running material planning, then the minimum/re-order stock levels on the warehouses for a stock item are added together.  Therefore, suggested purchase orders will be raised to bring stock levels up to the combined minimum/re-order stock level.

Settings that Affect the Quantity of a Suggested Works Order

Minimum level on the warehouse: If suggested works orders are generated for meet minimum stock requirements, then raised suggested works orders will bring the stock level of the BOM stock item back up to the minimum stock level.

Economical batch size: The quantity of a suggested works order will always be a multiple of the economical batch size if the economical batch size is set.

Round quantity up to: This affects the component demand from a suggested works order.   Component demand lines from suggested works orders could be rounded up if the Round quantity up to settings is set on the relevant stock item.

Add extra quantity setting: This affects the component demand from a suggested works order.  The quantity of component demand lines from suggested works orders could be increased if the Add extra quantity setting is set on the stock item.  The amount of increase depends on the AddExtraQuantityWhenBuildAmount setting inWorks Order Processing Settings.

 


6. Rough Cut Capacity

Examining the Rough Cut Capacity Plan

Rough cut capacity will show the available hours against the actual or estimate if there is no actual hours.

The chart can be filtered using a start date and end date filter.  The results can also be further filtered by department or cost item.

Material and Resource Planning Rough Cut Capacity

Labour demand and availability is shown in blue.  Machine demand and availability are shown in green.

To drill down for a demand column on a particular day, double click on the Demand column.  A list of works orders will be shown, which relate to the demand on that particular day.

The results can be moved a week forward or back by using the ‘<<‘ or ‘>>‘ buttons.

Known Issues: Default daily available hours are not used yet. Therefore, all days for cost items have to have available hours set using the availabilities screen.

 


7. Maintenance Availabilities

Setting Available Hours for Cost Items

On the availabilities screen, we can set the available hours for each labour and machine item on a day by day basis.  Availabilities are used to calculate the available hours on a works order and is used in Rough Cut Capacity.

Material and Resource Planning Maintenance Availabilities

To set the available hours for a cost item, select the date criteria and then enter the hours available against the cost item in the grid.  The default daily availability can also be set and will be used if no hours are set.

Hours can be copied to all selected dates by selecting the cost item and then selecting the Copy defaults to all visible work days for selected cost item button at the bottom of the screen.  This will copy the default daily availability to all working days for the dates selected.

Areas can also be set against the cost item.  This is used when entering actual hours on work lists and also on Rough Cut Capacity planning.


8. Enable Module


9. Release Notes

The Release Notes document below shows which release of the Manufacturing & Distribution Manger system includes which new features and for which version of Sage these will work.

The version number indicated in the Distribution Manager Release Notes includes a full release number and a sub version number; e.g. ’6.1′ indicates the full release version number of the software.  Pre-release version builds of the software are available to certain clients requiring new or enhanced features being developed from the wish list.  If these versions are installed on your system, you will see an additional number e.g. 39.113 making up a specific database version and interim build number of 6.1.39.113.

It is unlikely that these features will be documented in this help and user guide until the end of the development phase.

Manufacturing & Distribution Manager Release Notes


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