Implementing MRP with Advanced Repetitive

1. Implementing MRP with Advanced Repetitive Sean Donahue – RFBPNadia Truxell – Logan Consulting

2. Introduction – Sean Donahue • 15 years experience in the MFG/PRO & QAD environment in the food industry.  Activities included purchasing, logistics, inventory management, advanced repetitive scheduling, MRP and master scheduling.  • Have also assisted with MRP implementations/training, software and policy upgrades, MRP support, development support of custom programs within QAD as well as integration support of third party software with QAD.  • Positions held:  Shipping and Receiving , S&R leader, Plant Scheduler and Master Scheduler. • Education: Grand Valley State University APICS

3. Introduction – Nadia Truxell • Operations/Materials Manager – Scherdel Sales & Technology Automotive Supplier of Springs and Stampings Implemented QAD • Project Manager – Logan Consulting QAD Implementations and Business Process Consulting Automotive Food & Beverage Consumer Goods Industrial Products • Education: Grand Valley State University APICS

4. MRP– Introduction • Introduction • MRP Implementation Approach at RFBP • Elements of MRP Process • Advanced Repetitive Aspects • Lessons Learned • Questions

5. Introduction – RFBP Bread, Griddle, and Cookie products for Industrial, Foodservice, and Retail markets 11 Manufacturing plants across the US and Canada Advanced Repetitive processing

6. Implementation Approach • Prerequisites to MRP: • Accurate BOMS • Accurate Inventory • Accurate Demand

7. Implementation Approach 1) Define Goals and Benefits of Project

8. Implementation Approach • A common understanding of planning processes and a common set of terms and definitions used in planning throughout the division

9. Implementation Approach • A single, repeatable process throughout the organization

10. Implementation Approach • Easier transfer of planning methodology to new planners and new plants.

11. Implementation Approach • Better decisions on what SKU’s to produce and in what quantities to fulfill customer orders and meet forecast demand.

12. Implementation Approach • Reduction possibilities in overall inventory with minimal shortages and expedites

13. Implementation Approach • Improvement in Customer Service (reduction in SO leadtime and improvement in fill rate, on-time delivery)

14. Implementation Approach • Reduction opportunities in obsolescence (both FG and Ingredient SKUs)

15. Implementation Approach • Reduction in overtime, improvement in direct labor productivity

16. Implementation Approach • Accountability throughout the organization based on a single set of criteria

17. Implementation Approach 2) Organize Team Define Roles and ResponsibilitiesProject SponsorProject ManagerSubject Matter ExpertCore Team (from Plant)End Users

18. Implementation Approach 3) Conduct Kickoff Meeting, Current State Assessment and Gap Analysis at each plant site

19. Implementation Approach Gap Analysis

20. Implementation Approach 4) Core Team TrainingOnsite Training with Core Team membersTrain the Trainer approach

21. Implementation Approach 5) Process DesignWork with SME and Core Team to resolve identified gaps to evolve the end state processes.

22. Elements of MRP Process 6) Data Cleansing Work with core team to update static data (master data, planning parameters) and clean up dynamic data (PO, DO, SO, WO).

23. Elements of MRP Process 7) User Acceptance Testing Execute processes in a test database environment to gain approval from the users that the process meets the expected goals

24. Elements of MRP Process 8) End User Training Core Team trains End Users with support from SME and Project Manager

25. Elements of MRP Process • 9) Data Conversion and Go Live Conduct upload of master data changes and finalize static data cleansing

26. Elements of MRP Process 10) Support Plant during live processing

27. Elements of MRP Process Supply Planning Model

28. Elements of MRP Process Forecast Feedback Process

29. Elements of MRP Process Master Scheduling Process

30. Elements of MRP Process Plant Scheduling Process

31. Elements of MRP Process • ABC StratificationItem Sales Ranking80/20 Rule Applied to determine Period Order Quantity A= POQ 7 B= POQ 14 C= POQ 28

32. Elements of MRP Process Item Site Planning

33. Elements of MRP Process MRP Control File

34. Elements of MRP Process MRP Net Change/RegenSet to run through batch process MRP Regen – Weekly MRP Net Change – Nightly End User Access restricted – Master Schedulers can execute upon request

35. Elements of MRP Process • MRP Planned Order Browse

36. Elements of MRP Process • MRP Action Message Browse

37. Advanced Repetitive 32Soft Schedule Upload Tool

38. Advanced Repetitive Line Schedule Workbench

39. Advanced Repetitive Line Schedule Workbench

40. Advanced Repetitive Line Schedule Workbench

41. KPI-Results

42. Lessons Learned MRP Implementation Challenges • Mindset that “MRP Doesn’t Work” • Data integrity • Plants “have always done it this way” and fall back into old habits • Major struggles with Operational vs Production Forecast accuracy

43. Questions Questions?