Master Planning & Material Requirements Planning (MRP) 2-Day Course

Improve the key processes that enable effective inventory management and higher levels of customer service.

KEY BENEFITS OF ATTENDING

In this workshop, you will find out how to:

• IMPROVE individual processes & link them effectively to the relevant internal or external process
• ANALYSE the development of Integrated Business Planning
• DEVELOP an effective 5 step IBP process supported by the MPS and key IBP performance measure to ensure accountability throughout the organisation
• IDENTIFY the purpose of MPS & DRP (Distribution Resource Planning)
• IMPLEMENT safety stock strategies using simple pareto, complex pareto & statistically derived safety stocks for improved customer service
• REINVIGORATE your product range, “is that business really worth it?”
• UNDERSTAND forecast consumption & abnormal demand and apply effective forecasting performance measures
• CREATE a simple safety stock/inventory level simulator
• UNDERSTAND the links to Sales, DRP, S&OP, MRP & Purchasing and the critical role that RCCP (Rough Cut Capacity Planning) plays in a valid company schedule
• DISCUSS“next practice” checklists to assist you on your journey of continuous improvement and the concept of “Flowcasting”, implementing DRP at the Retail level of the supply chain. This concept is outlined in Andre Martin’s (inventor of DRP) latest book and will be the way of the future for forward looking companies wanting to eliminate forecasting for supply chain partners

WORKSHOP OVERVIEW

This Two-Day Master Class will focus on the Master Planning processes of Sales & Operations Planning, Master Scheduling, Distribution Requirements Planning, Rough Cut Capacity Planning as well as Material Requirements Planning and Purchasing using Vendor Scheduling. These processes are the key to effective inventory management and high levels of customer service.

Accountabilities and cross functional links will be discussed to enable you to assess the quality of your current processes against world class checklists.

Options on “where to meet the customer” will also be addressed, including the strategies associated with setting safety stocks, your product offering and a simple approach to simulating stock levels.

Our instructor will show you, how to get the best of your ERP software system, manage inventories and capacity effectively, and ensure your senior management team is utilising the best data to drive their decision making at the S&OP meeting.

Many real-life examples, and the most recent checklists will be discussed, including different safety stock approaches and a sales forecasting method you can use to hit the inventory investment level that your M.D. wants.

WHO SHOULD ATTEND?

The Managing Director of small firms and his/her direct reports, S&OP/ERP project team members, personnel from: Demand Management, Order Entry, Customer Service, IT staff, Master Schedulers, Production Planners, Inventory Controllers, Distributions Planners, Capacity Planners, Purchasing Personnel and key middle managers involved in the pre-S&OP meetings, ie. Demand, Supply and Partnership/Integrated Reconciliation/Pre-S&OP steps.

Course Dates & Duration

18 - 19 June 2024

Classes are conducted daily, 9 am to 5 pm Sydney Time, totaling 16 training hours. Participants will join the training via ZOOM. Participants will earn 16 CPD points for certification maintenance.

Prices

ASCI Member: $1,950
Non Member: $2,350

Programme

DAY 1: DEMAND PLANNING & S&OP INTEGRATION

Overview and Development of Planning.

Master Planning, Demand Planning, and Integrated Business Planning. This section of the class gives a brief overview of the development of the Master Planning philosophy and the role that IBP, MPS, DRP, RCCP, MRP & Purchasing/Vendor scheduling, must play to be successful in an integrated company planning and control methodology. The difference between Tactical Planning & IBP will also be defined.

The Purpose of the Master (Supply or Production) Schedule.

Most organisations have outlaid large sums of money on an “automated” finished item (master scheduling or distribution requirements planning) planning process, and yet personnel override the “system” and create manual methods to control inventory levels. This creates dysfunctional plans, ineffective schedules, and destroys the justification of approving the “system” in the first place. This session provides an insight into world class planning and control processes, why the MPS & DRP “grids” replaced MRP, and the key role that the Master Schedule/Distribution Requirements Plan, now play.

Demand Management and the Relationship to the Master schedule.

Forecasts drive the Planning process. However, it is how you manage demand that will determine your customer service levels. This section of the class covers the logical steps involved in ensuring accurate forecasts, and in addition, the strategies you can use to overcome inaccurate forecasts. Key forecast accuracy measures will also be addressed.

Executive Sales & Operations Planning/IBP.

IBP can either be the driver of the Master Schedule (popular in America) or a check on the aggregation of MPS/DRP each month (popular in Australia). This part of the class covers the critical steps in an effective IBP process, the latest books, videos and checklists on the subject, including the latest checklist by the person who invented S&OP Richard Ling, and the person who pioneered IBP in Australia, Andy Coldrick. Key company performance measures will be presented and templates will be made available for you to utilise in your own organisation. Bob Stahl’s latest book on IBP will also be discussed (available now/soon on Amazon: S&OP- An Executive Update).

DAY 2: DEMAND PLANNING PROCESS, PEOPLE & TOOLS

Capacity Planning and MPS/DRP.

In most organisations there are three capacity planning processes with advanced approaches also now surfacing. Using the correct approaches ensures the capacity equation is addressed, not just the material side which is driven by Material Requirements Planning. Resource Requirements Planning, Rough Cut Capacity Planning (incredibly simple and effective), Capacity Requirements Planning, are all addressed and the emphasis of each process discussed.

The Changing Master Scheduling Environment.

Due to advanced planning and scheduling systems and constraint based methodologies, more advanced approaches are now available to companies both within their internal and external supply chain environments. In fact, Andre Martin the inventor of Distribution Requirements Planning is now helping companies in America forecast and plan at the Retail level within supply chains using a process called “Flowcasting”. This method as well as other advanced methods will be discussed in this section of the class including the challenges organisations face when integrating these new concepts into current processes and technologies. The Flowcasting text will also be discussed.

Implementation Tips and Performance Measures.

There are some real dangers for unsuspecting organisations being “guided” by people who have never achieved “Class A” levels of performance verified by internationally renowned experts. Key implementation steps for both Executive and Operational S&OP are outlined in this section of the class including what major benefits should be achieved. Critical performance measures will also be addressed. A “Cost Benefit Analysis” (CBA White Paper), by the most prolific author on S&OP can be viewed at www.heenan.com.au under the “Articles” section and you are free to use this in your own organisation to drive interest if you are still to get S&OP up and running.