CHAPTER 4: ORDER TRACKING

Chapter 4: Order Tracking CHAPTER 4: ORDER TRACKING Objectives The objectives are: Track all demand types from the planning worksheet Achieve enhanced transparency in planning for better decision making Introduction To support enhanced transparency in the planning process, the order tracking has been expanded to include a listing of the source of the demand stemming from forecast, blanket orders, and planning parameters. In this way it is easier to analyze and track where the demand causing suggested production orders and purchase orders comes from. This section examines how to use the new Microsoft Dynamics NAV feature from the order tracking part of the planning worksheet. This will be shown in two demonstrations: A simpler one based on the demo data, and a more advanced one, based on a small setup of planning parameters and a forecast. Page 91

What s New in Microsoft Dynamics NAV 5.0 Application Part II Track all Demand Types from the Planning Worksheet The order tracking conducted in the planning worksheet has been extended with a new function: Untracked Quantity. This topic shows the demand coming from different sources like planning parameters, forecasts, and blanket orders. The following demonstration shows how the new function is used. Demonstration Tracking Demand The production planner at Cronus detects a suggested production order in the MRP run. The production planner wants to track where the demand comes from by opening the Order Tracking function. Steps The production planner follows these steps to track the demand: 1. Open the Planning Worksheet window. Create a regenerative plan by clicking Functions, Calculate Regenerative Plan. FIGURE 4-1: PLANNING WORKSHEET REGENERATIVE PLAN 2. Select the order in which to track the demand. In the Planning Worksheet in this example, the production planner chooses the production order for item number 1000 with a quantity of 100 due on 09/01/08. Page 92

Chapter 4: Order Tracking 3. Under Functions, Order Tracking, open the Order Tracking window. This window shows the order tracking lines. The current line is for sales order number 109001 with a quantity of 4. The Untracked Quantity field shows an untracked quantity of 96 out of the production order quantity 100. FIGURE 4-2: ORDER TRACKING For each line, you can click the new Untracked Quantity button. You can also drill down to the screen directly from the Untracked Quantity field. 4. Click the Untracked Quantity button, which provides access to a window that shows the Untracked Planning Elements. 5. From the Untracked Planning Elements window, you can view the Source of the demand in addition to the Parameter Value that triggered the demand. It is also possible to view the Untracked Quantity. FIGURE 4-3: UNTRACKED PLANNING ELEMENTS Page 93

What s New in Microsoft Dynamics NAV 5.0 Application Part II 6. The Untracked Planning Elements in this example shows that an untracked quantity of 96 origins from a production forecast (the source). The information that is shown in the Untracked Planning Elements window is important for the production planner. The production planner can now validate with the sales manager that this forecast is correct, before the suggested production order of 100 is released. The sales order in this case was only for a quantity of four. Therefore, there may be a mistake. If the production planner does not detect this forecast error, it can result in expensive surplus inventory. Refer to the online help in the Untracked Planning Elements window for a list of all the different possibilities for untracked demand. Demonstration Tracking Demand from Multiple Sources The production planner wants to go into details with the sources of demand for another specific order in the Planning Worksheet. The production planner thinks that some of the planning parameters for this particular item may be set incorrectly. Prerequisites for the Demonstration These steps must be followed to build up the information in the demo data before demand tracking can be performed. In the demo data for Cronus, the item number 1110 is set up with planning parameters stating a minimum order quantity of 200 and an order multiple of 30. A sales order of 34 and a forecast of 73 exist on the same day (the work date 01/24/08) for Blue location. The item demo data is set up in the following way: 1. From the Item card of item 1110, create a stock keeping unit (SKU) in order to use locations. Click Functions, Create Stockkeeping Unit. 2. Click Item and then Stockkeeping units at the new SKU for 1110 under SKU and then Card. 3. Set the planning parameters as follows at the SKU. Start with the Planning tab. Page 94

Chapter 4: Order Tracking FIGURE 4-4: STOCKKEEPING UNIT CARD 4. Set the Re-ordering Policy to Lot-for-Lot. 5. Set the Minimum Order Quantity to 200. 6. Set the Order Multiple to 30. 7. The rest of the planning parameters are set to 0. FIGURE 4-5: STOCKKEEPING UNIT CARD 8. In the Replenishment tab, set the Replenishment System to Prod. Order. 9. Open the Sales and Marketing Menu and then Orders and create a sales order on customer 10000 (Blue location). 10. The sales order must be of quantity34 of item 1110. 11. There is no inventory at the Blue location so this sales order will create a demand for 34. This results in a production order. Page 95

What s New in Microsoft Dynamics NAV 5.0 Application Part II 12. Open the Manufacturing Menu and then Planning and then Production Forecast. Change the view to months and create a forecast of 73 for January 2008 for Blue location. FIGURE 4-6: PRODUCTION FORECAST Now the prerequisites for this demonstration are set up and the production planner can start the investigation. Steps The production planner follows these steps to track the demand. 1. In the Planning Worksheet, open the Order Tracking window. 2. Run a regenerative planning for item 1110, the Rim, by clicking Functions and then Calculate Regenerative Plan. Page 96

Chapter 4: Order Tracking FIGURE 4-7: CALCULATE PLAN PLANNING WORKSHEET ITEM TAB 3. The planning is run for item number 1110 on the Blue location. FIGURE 4-8: CALCULATE PLAN PLANNING WORKSHEET OPTIONS TAB 4. The planning is run on the work date 01/24/08. This generates one planning line of 210 in the Planning Worksheet. Page 97

What s New in Microsoft Dynamics NAV 5.0 Application Part II FIGURE 4-9: PLANNING WORKSHEET PLANNING LINE 5. The production planner starts the Order Tracking function by clicking Functions and then Order Tracking. FIGURE 4-10: ORDER TRACKING FUNCTION The Order Tracking window shows a total quantity of 210. There is a link to a sales order of 34, but there is still a remaining untracked quantity of 176. Page 98

Chapter 4: Order Tracking 6. Click the new Untracked Quantity button. FIGURE 4-11: UNTRACKED PLANNING ELEMENTS The new untracked quantity function breaks the untracked quantity of 176 down to its elements: A contribution from a production forecast of 39. (The forecast is 73 but is consumed by the sales order of 34: 73-34=39.) A Minimum Order Quantity with the parameter value of 200. This counts for the next 127. The remaining untracked quantity of 10 comes from a rounding due to an Order Multiple parameter value of 30. In this way, it is possible for the production planner to validate each parameter separately, where the production planner can check if the: Planning parameter is correctly set to a minimum order quantity of 200. This results in extra inventory, because 127 more of item 1110 is ordered than what is needed. Order Multiple parameter of 30 (causing extra 10) is still valid. Forecast of 73 is correct. Page 99

What s New in Microsoft Dynamics NAV 5.0 Application Part II Overview of Fields The following table provides an overview of the most important fields in the new Untracked Planning Elements screen. Right-click the header and select other columns if it is required. Field Source Source ID Parameter Value Track Quantity From Untracked Quantity Track Quantity To Explanation The source of the untracked demand, for example a Forecast. The identification code for the particular source of the untracked demand quantity. In the first demonstration, Tracking Demand, the source ID refers to the forecast number. In other cases, it may be a blanket order name or an item number. Shows the value of the parameter in case the demand origins form a planning parameter. For example, if the source for this entry is Minimum order quantity, this field shows the quantity of the Minimum Order Quantity on the item/sku card. This is important information when you are validating the planning parameters. Shows the amount of untracked quantity that has not been accounted for before taking this parameter into account. Shows the contribution to total untracked quantity on the supply from this parameter. Shows the amount of untracked quantity that is left to account for after this parameter. NOTE: Refer to the online help for extended field help. Page 100

Chapter 4: Order Tracking Conclusion The enhanced feature for tracking all demand sources in planning is a comprehensive tool for the production planner to help achieve better overview and transparency in the planning process. In the end this provides better decision making and results in a better bottom line. Page 101

What s New in Microsoft Dynamics NAV 5.0 Application Part II Lab 4.1 Tracking Demand Scenario: You are the production planner of a middle size production company and you want to track a demand causing a suggested production order to its origin. Challenge Yourself! 1. Start the Order Tracking in the Planning Worksheet, and then pick an order. 2. Track the demand to its origin, and then note the sources of the demand. 3. As a production planner, define the planning parameters that have to be questioned in this particular case. Check if the forecast seams reasonable. Need a Little Help? Perform the following steps: 1. In the Planning Worksheet, open the Order Tracking window. 2. Run a Regenerative planning. Remember to filter on the correct location and date. 3. Start the Order Tracking function by clicking Functions and then Order Tracking. 4. Click the new Untracked Quantity button. The new untracked quantity function breaks the untracked quantity down to its elements. 5. Check the demand sources in the Untracked Planning Elements window that appears. There may be a contribution from a production forecast or there can be several contributions from the planning parameters. Page 102

Chapter 4: Order Tracking Quick Interaction: Lessons Learned Take a moment and write down three Key Points you have learned from this chapter: 1. 2. 3. Page 103

What s New in Microsoft Dynamics NAV 5.0 Application Part II Page 104