Allocate Material by Order, Program or Inventory

Posted Fri, 11/19/2010 - 16:19 by Anonymous

Background:
1. The early allocation of material to order will lead to the hand-off in production and vice versa.
2. User can not view the receive date and the material require date in executing Material Plan, consequently, user can not figure out if the material can arrive on time even after allocation.
3. User can not do allocation in case there is no Job order existed, it may create problem in production for the material with longer lead time.

Case Solution:
Material can be allocated by three methods, namely Order, Program and Inventory. User can adjust the allocation arbitrarily within the same program. Allocate by Program can also realize the pre-purchase, though there is no Job Order, the record still can be allocate to Program and wait until the Job Order is being created. At last, user can execute the allocation respectively.

Design Solution:
1. Plan Level
1.1 How to select the Plan Level
Open [System Foundation], select [Material Code Maintenance] in [Others], select a specific material and you can find the [Plan Level]:
Allocate to Job: This selection will result in that material can neither be allocated to Program nor auto-allocation via inventory.
Allocate to Program: This selection will result in the allocation by Program
Allocate to Stock: This selection is that if the BOM is being confirmed, auto-allocation will result if the inventory has this material.

1.2 The application of Plan Level
The Plan Level can be explored in both allocation directory of the Purchase Order and Inventory, if the user select the [Allocate to Program], the Program will enable in Job allocation alternative selection. If the other two Plan Levels is selected, the Job allocation directory will not enable the Program selection. The application of Program included:
1) It allows the pre-purchase of material, without needs of the generation of a specific Job Order, and only the Program code is required.
2) Can delay the allocation, the quantity will be deducted from Program once the user is allocating to Job Order.

In response to the quick move item, such as sewing thread etc, user no need to start purchase from the Job Order. In this case, user can select the [Allocate to Stock] setting in Inventory to auto-allocate the material. If there is a balance in inventory, the system will auto-allocate the material to the confirmed BOM during the current mid night. The current issue is:
(1) The specific material location in warehouse [Inventory] must be corresponding to the [Manufacturer] in Material Planning. Thus the [Manufactory] in [Production Location] in system foundation and the [Manufacturer] in [Material Planning] must be matched.
(2) The material color and size must be totally identical in order to execute the auto-allocation.

User can also manually execute the auto allocate stock material, this function can be explored in both Material Planning and Purchase Order directory.

The auto allocate stock material in selecting purchase request directory

2. Plan by Program
We will start to introduce the Plan by Program function:

Introduction of the directory: In this directory, user can rearrange the allocation according to Material require date, as a result, the flexibility of rearrange the material requirement within the Program enhanced. User can view the full picture about the material information within the same Program, the outstanding of the material in each Order, can it be arrived on time. User can also view the availability of resources and the requirement of each material in (Purchase Order and Inventory), with the auto or manual allocate stock material function.

2.1 How to enter the Plan by Program directory
In the Job requirement management directory of material planning, select several orders and click [Plan], select [Plan by Program]

Or click the [Plan], select [By Program] in the Material Requirement Management directory.

2.2 Introduction of the main directory
After processing, user will enter the [Index] directory, the information display in here is the Job Orders and material status of that particular Program. The Orders is rank in chorological order with reference to the Material require date, Plan Date and Transaction Date.

In this directory, a symbol is shown behind the material: represent the Plan Level of this material is allocated to Program, represent the Plan Level of this material is allocated to Stock, the record without any symbol represent the Plan Level of that material is allocated to Job Order.

Relevant vocabulary explanation:
1) Require Date: the [Material Require Date] in Material Planning
2) Plan Date: the [Production Date] in Capacity Planning
3) Ship Date: the [Ship Date] in the shipment of sales order, in case there is multi-shipment date, the earliest one will be retrieved.
4) Quantity: [-] that material is not required in the order, [OK] the allocation fulfilled the material requirement. [number] negative number is the remaining balance of the material requirement after deducting the allocated amount, positive number represent excess allocation.
5) (+d): Sales Order expected arrival date earlier than the material requirement date, the value will be positive, and vice versa. If the display is [?], when you click on this question mark, the system will warn the relevant error: [No Require Date] or [No Purchase Order estimate arrival date].

2.3 Introduction of the function on index directory
1) Apply filter
The material class display in here is the entire material record in system foundation. User can apply the filter to select the material that you want to display on the right directory.

2) View
Material filter: user can select the activation of the [Apply Filter] directory.
Band Fixed: If the band fixed is selected, the [Order Number] and the prior band will also be fixed and the following order still can be rolled.
Expand all/ Collapse all: Expand or Collapse the color and size of the material.

3) Program setting
User can add job order to the current Program via this function, or delete the order with no allocation needs within the Program. The important points is that after adding a particular order, the Program code of that order will automatically change to current selected Program. If we delete an order from the selected Program, the Program code of that order will turn blank.

4) Job
When the user double click on the [quantity] or [+d] filed of a specific order, or place the mouse curser within this two rows and click , the system will enter the material requirement directory of that material. User can view the material requirement status of that order, including the Purchase Order, Inventory status. This directory will be the material planning requirement, for details please refer to the introduction in [Material Planning] module.

5) Material
Select a specific material and click to enter the auto adjust directory.

2.4 Program Material Distribution Plan
This directory shows the allocation status of a specific material in that Program. The directory divided into two parts, the top is the allocate directory and the bottom is the available resources. The bottom part of the directory can switch the index main directory and Material/ Job directory.

The following categories can be viewed in the allocation directory:
Lot row, the sequence number is the lot number.
Purchase Order row, the sequence number is the Purchase Order Number.
Order row, the sequence number is the Order number.
Program row, the sequence number is the Program Code.
Balance row, that record is the demand quantity and the available allocation quantity.

User can view the directory theme work by clicking collapse all.
Lot row and the Purchase Order row shows the amount, Purchase Order Number and Lot number of the Program or Order being allocated.
Balance row, it show excess amount of the material in Purchase and Inventory or the outstanding quantity.
The point need to remind is the balance in this field is not the sum of the above record, user need to click collapse all in order to explain the actual calculation method.
Click collapse all to view the allocation status of the Lot No. or Purchase Order. If there is free quantity in that particular Lot No. or Orders, there will be a grey row to represent the free quantity.

For the second row of the Lot, OPN-002 allocated 7000YD to current program. The allocate to Program can be treated as pre-allocation, in return, the free quantity is 7000YD for the entire orders in that Program. On the grey row, we can see that the free quantity of that Lot No. is 7000YD. If the current Program reserved 1000YD, it represents the free quantity of that Lot is 7000YD, however, only 1000YD can be allocated to the current Program, and can not be further distribute to other Program.

In contrast, we can see that for the first row of Lot OPN-001, in which the entire quantity has already been allocated to SC1009/0003:YM013, so the free quantity of that Lot No. is zero, and the grey area of free quantity will not existed.

As a result, if is not difficult to trace the Balance row calculation method: The free quantity on the first Lot row + the free quantity on the second Lot row 7000 + the free quantity on Purchase Order – The outstanding quantity on Order27810 - The outstanding quantity on Order15248 - The outstanding quantity on Order 16686 - The outstanding quantity on Order 22248= 72992

Additional reminder is the Purchase Order neither has been allocated to any order nor allocated to any Program. As a result, after the save action, that Purchase Order will automatically disappear, and the relevant variation will take place on Balance row.

2.4.2 How to manually execute the distribution
1) User can via the drag action on the Order row to adjust the Order allocation. If we select a specific Order row, and drop away from the current Purchase Order, it represents that Purchase Order is released from the Order Allocation, thus the free quantity will be auto-incremented.

If we drag a specific Job Order without any allocation to a Lot No. or Purchase Order row, it represents that we allocate the Lot No./Purchase Order to that Job Order, the free quantity is retrieve the smallest value in the outstanding quantity and free quantity, in return it can fulfill the outstanding quantity and no excess allocation will result. If the free quantity is less than the outstanding quantity, additional row of outstanding quantity will be appeared.

The Order Require Date, free quantity can also be manually adjusted. If the Order Require Date is being modified, the system will automatically update to the [Material Require Date] in Material
Planning.

Warning, The color and size on the Lot No./Purchase Order must be corresponding to the material color and size on the Material Planning in order to complete the allocation.

2) If a specific row of Purchase Order/ Lot No. has the Program code listed below, it represents that Purchase Order or Lot No. is allocated to that Program. In executing the allocation in this directory, in drag the Order to that particular Purchase Order/Lot No. row, the system will reduce the quantity in Program to allocate. The quantity allocate to Program will have brackets, and it is to pre-allocation. It refers a certain amount of the material in that Purchase Order/Lot No. is reserved by that Program, and these quantities can not be further allocated to other order program.

3) The default value in the allocation directory is the recent Program and the corresponding order in the Purchase Order Module and the Inventory Module, if there is [Available resource], it represent there orders in the Purchase and Inventory Module that match with the requirement, thus with the same material color and size. User can drag the record to the above directory to start allocation. For instance, user can also drop a specific Purchase Order or Lot No. to the bottom to cancel allocation.

2.4.3 Other function in the distribution directory
Lock Allocation
User can click [Lock Allocation] once they finish confirmed the material allocation method. Modification can be taken after Lock, however, no further auto allocation and release allocation can be made.
Users can also [Unlock Allocation] to cancel the previous Lock action, or simply click [Unlock Below Allocation] to cancel the Order Lock of the mouse pointing Program group.

Release Allocation
To increase the flexibility in re-allocation of Order, user can click that button to release all the Order allocation without Lock. There will be no effect on the Orders that already activated the Lock function.

Auto Adjust
Auto adjust can be applied to allocate the material according to the chorological order of material require date, for the record with Lock status can not be adjusted.

Check Mark
User can save the current allocation status, if the allocation fail to meet the requirement, user can click the Check Mark in order to return to the previous allocation status, this function is similar to the book mark function.

2.4.4 Relevant meaning
Location: Manufacturer is correspond to Order, Purchase Oder is correspond to the final destination of that material, Lot No. is correspond to warehouse
The small red triangle: The red triangle on the ETA/ Require Date represents the Require Date is earlier than the P/O date, the red triangle on the Order Ship Date represents the Require Date is later than the P/O date

The color information in the directory:
1) Select a specific row, the light blue color in one or several rows represents these are the same order.

2) The grey color row represent the remaining free quantity of the PO/LO.

3) The required quantity of order is marked as red and it represents there is outstanding amount in that particular order. If it is marked as blue, it represents there is excess allocation.

2.5 Compatible with the old version of Material Plan
User can define the version application of Material Plan in Admin Desk. In order to compatible with the behaviour of existing user, the default application setting is both the old and new version, for new user, the default application setting will be new version.

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