Production Scheduling Through Oracle Ascp and Wip Wave 2

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Production Scheduling through Oracle ASCP and WIP - Wave 2

Introduction: This post is in continuation to my earlier post "Pragmatic Approach to Production Scheduling Wave 1"
An effective and reliable production scheduling system is must for a manufacturing organization to achieve true operations
excellence. Many organizations often struggle to implement an effective production planning system which often leads to
shop-floor inefficiencies, large Inventory and WIP levels. Lack of accurate Production Scheduling also affects timely
delivery and quality of goods thus impacting overall customer satisfaction.
Based on my experience I've tried to present a pragmatic approach to production planning and scheduling through this
series comprising of five Articles. The series primarily focuses on Production Scheduling and Capacity Planning utilizing
Oracle Inventory, Bills of Material (BOM), Work in Process (WIP), Advanced Supply Chain Planning (ASCP) and
Production Scheduling (PS) modules.
I've described five waves of implementing an effective production scheduling system taking into view the complexities,
pre-requisites and business maturity required for each wave.

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This article is the second post of the series "Pragmatic Approach to Production Scheduling" and describes the "Wave 2"
of the above discussed approach. Please refer "Pragmatic Approach to Production Scheduling Wave 1" for the previous
post of this series.
Wave 2: Production Scheduling through Oracle ASCP
Once we have ensured the correctness of master data, the next step is to achieve an accurate production plan in near as
well long term. Let's discuss a simple business case of Production Scheduling using Oracle ASCP in following sections.
Assumption: Unconstrained material availability and production scheduling can be carried out on the basis of available
machine and manpower resources (Hours), single organization level production scheduling
Master Data: I've used three assemblies TA0001, TA0002, TA0003 and two sub-assemblies towards this business case.
Following are the BOM and Routing details.

Bill of Materials (BOM)


Assembly

Component

Item Seq

TA0001

MN_SA1
MN_SA2
MN_SA1
MN_SA2
MN_SA1
MN_SA2
MN_C1
MN_C2

10
20
10
20
10
20
10
10

TA0002
TA0003
MN_SA1
MN_SA2

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Operation
Seq
5
20
5
20
5
20
1
1

UOM

Basis

Quantity

Ea
Ea
Ea
Ea
Ea
Ea
Ea
Ea

Item
Item
Item
Item
Item
Item
Item
Item

1
1
2
2
3
3
1
1

Routing
Assembly

Operation
Seq
5
10

Department
MACHINING
ASSEMBLY

Lead
Time %
0
18.18

TA0002

20
5
10

FINISHING
MACHINING
ASSEMBLY

72.73
0
18.18

TA0001

20
5
10

FINISHING
MACHINING
ASSEMBLY

72.73
0
18.18

20

FINISHING

72.73

TA0001

Resource
R001
R002
R003
R004
R001
R002
R003
R004
R001
R002
R003
R004

Usage
(Hr)
12
12
24
36
24
24
48
72
36
36
72
108

Assigned
Units
1
1
1
2
1
1
1
2
1
1
1
2

Schedule

Offset %

Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes

0
18.18
36.36
72.72
0
18.18
36.36
72.73
0
18.18
36.36
72.72

Total Manufacturing Lead Time (Days) are computed as follows:


Assembly
TA0001
TA0002
TA0003
MN_SA1
MN_SA2

Fixed Lead
Time (F)
0
0
0
0
0

Variable Lead
Time (V)
2.75
5.5
8.25
0.33
0.33

Processing
Time (F + V)
2.75
5.5
8.25
0.33
0.33

1) Demand Schedule Creation Lets create a Master Demand Schedule (MDS) to register the demand for these three
assemblies.(Navigation: Material Planning MDS Names)
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MDS Name: ASCP MDS is created with three lines


Assembly
TA0001
TA0002
TA0003

Demand Date
30-05-2014
20-06-2014
12-06-2014

Quantity
5
5
1

2) Run Collections Run Collections to import MDS demand as well as master data to ASCP planning instance with
collection method as "Complete Refresh" (Navigation: Advanced Supply Chain Planning Collections Standard
Collection). This Process will launch "Planning Data Pull" and "Planning ODS Load" requests. Planning Data Pull will
bring the transactional system data into staging tables whereas "Planning ODS Load" loads the data to ASCP planning
instance. This will launch several concurrent requests to execute the collection process.
Note: Standard collection with "Complete Refresh" collection method is used towards this demonstration as fresh data is being imported into
ASCP planning server. Continuous collection method is used in case of incremental load.

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Successful completion of all requests ensures data transfer has successfully taken place from transaction instance into
ASCP planning instance. It may take quite a while to complete all requests depending on the data volume.
3) Define ASCP Production Plan: Define Master Production Schedule MPS_PLAN of plan type "Production Plan"
(Navigation : Advanced Supply Chain Planning Supply Chain Plan Names)

Different types of plans are used to enable subset planning as per the business requirements. Following are general
guidelines / recommendations related to using different plan types:

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Master Plan: Master Plan is used for global planning of multiple orgs together; Items will be planned in accordance with
the Item planning type parameter Item Master level.
Production Plan: Production Plan is generally used as MPS; this is often restricted to few or one organization towards
detailed production scheduling. Master Plan act as demand plan for Production plans.
Manufacturing Plan: Manufacturing Plan is generally used towards MRP planning; this is often restricted to few or one
organization towards detailed material requirements planning. Production plan act as demand schedule for Manufacturing
plans.
You may use a different kind of subset planning depending on the exact requirements. Oracle provides very good
flexibility to design your own kind of subset planning using plan types and Item Planning type attributes.
Plan types used towards this case study are described below. BOM structure has intentionally been kept simple to
highlight the planning logic. Though this simple scenario with one organization does not necessitate Master Plan
creation, I've used it for demonstration purpose.

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Similar planning scheme is used for TA0002 and TA0003 for demonstration.
Plan Options need to be set after defining the plan name. Following screenshots demonstrate the plan options setup for
different plans. (Navigation: Advanced Supply Chain Planner Supply Chain Plan Names Plan Options)
Plan options for Master Plan ( MPP_Plan )

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Same planning options are set for MPS_PLAN as well as MRP_PLAN except the "Organizations" tab.

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Organizations planning options for MPS_PLAN:

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Organizations planning options for MRP_PLAN:

Note: You may refer Oracle user guides for details of planning option attributes; I've not repeated the definitions in this
article.

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Let's

now launch the plan and analyze their outputs.

1) Master Plan Launch

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2) Review Plan Results


Once the launching process is complete, Plan results can be analyzed in planner workbench (Navigation: Advance Supply
Chain Planner Supply Chain Plan Workbench)

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Supply/Demand lines for the Master Plan (MPP_PLAN) are shown below:

Planned Orders are suggested against each MDS demand line. Please note that "Suggested Start Date" is computed as
per the manufacturing lead time of TA0001, TA0002 and TA0002 respectively. Following is the calculation logic adopted
by ASCP to suggest the start dates for each planned order.
Demand details:
Assembly
TA0001
TA0002

MDS Demand
Date (X)
30-05-2014
20-06-2014

Sugg. Due Date


(D)
30-05-2014; 00:00:00
20-06-2014; 00:00:00

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Quantity
(Q)
5
5

Processing
Time (T)
2.75
5.5

Sugg. Start Date (S)


12-05-2014; 00:00:00
13-05-2014; 00:00:00

TA0003

12-06-2014

13-06-2014;00:00:00

8.25

02-06-2014; 00:00:00

Suggested Start Date (S) is estimated using below mentioned logic:


S = D Q*T

Note: There is a difference between D and X as D is computed based on the planning options set at "Aggregation" tab:

Day level planning is conducted for no. of days specified in Days Buckets (30), subsequent to which all demand is
clubbed at last day of the corresponding week of the demand dates for specified no. of weeks (4). Finally all demand is
clubbed at last day of the corresponding period of the demand dates for specified no. of periods (5) i.e. until the end of
planning horizon
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ASCP unconstrained planning estimates the scheduled start date in aggregate manner and does not provide up-to-minute
detailed scheduling. This is the reason why planned order is scheduled to start at 00:00:00 hours of the day production
should begin to meet the specified demand. Planning logic only considers the work days as per defined workday calendar
and ignores all holidays and weekends.
3) Release Planned Orders
Planned Orders are selected and released as WIP Discrete Jobs from planning workbench.

Once released, planned order lines change color to pink.

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Detailed up-to-minute scheduling is done in WIP module as explained in Wave 1 article "Pragmatic Approach to
Production Scheduling Wave 1".
Scheduled Start Dates estimated by WIP will be slightly differ as compared to start dates estimated by ASCP since WIP
executes the detailed up-to-minute scheduling and suggests exact start time as well. WIP based detailed schedule is
displayed on the following page.
Please note this is an unconstrained detailed productions schedule and resource overload is highlighted wherever
applicable.

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Exactly similar Scheduling logic is applied for Master Production Schedule (MPS_PLAN) which plans the production for
sub-assemblies MN_SA1 and MN_SA2 as per the demand generated from MPP_PLAN towards the production of end
assemblies TA0001, TA0002 and TA0003.
Note(s):
i.

ii.

This article was based on a single organization level planning to demonstrate the scheduling logic adopted by
unconstrained ASCP planning. I shall be demonstrating multi-organization level production and distribution
planning in a separate post.
The next article in this series (Pragmatic Approach to Production Scheduling through constrained ASCP
planning) will discuss the constrained scheduling methodology followed by ASCP.

References: Oracle User Guides, Oracle EBS R12.1.3 Vision Instance

Hope you found this Post interesting. Your valued comments and feedback are most welcome.
Best Wishes
Manu Singhal
The Oracle Manufacturing Blog
Email: [email protected]

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