Re: LINKAGE OF INVENTORY MODULE TO CEA

Dear All:

I'd like to know how inventory module linked with CEA. One of our BPCS
vendor/trainor told us that we have to do the ACCOUNTING ENTRY MANUALLY FOR
LINKAGE with INVENTORY costing aspect. I am quite surprised and alerted by
this statement since for my past experienced in implementing ERP software in
Microsoft Platform, linkage of inventory and accounting are to be of
automatic type and will used manual if in case changes in the journal
entry/posting.  Please enlighten me.
Of course, AP/AR has an effect.

Regards,

Melvin
----- Original Message -----
From: "Al Mac" <macwheel99@sigecom.net>
To: <bpcs-l@midrange.com>
Sent: Friday, December 20, 2002 6:46 PM
Subject: RE: MRP Input (was: MPS - Customer Demand and General ECL Date
Questions)


> Paul
>
> For MRP MPS to work right, there are many ingredients that have to be very
> accurate.
>
> How often do you regenerate MRP MPS?
> We do it daily.
>
> How big are your MRP buckets?
> Ours are 1 week.
>
> How do you know your data is accurate?
> Who is responsible to see that data is kept accurate by area of data?
> Does anyone at your company find it neccessary to lie to the system?
>
> Do you run regular checks to make sure no bad data got into the system in
> combination?
> Some of our checks include:
> List customer orders not on an MRP master scheduled item (should not be
any);
> List customer orders with price missing (inter-facility are the only ones
> that normally should be that way before shipments)
> List negative requirements into MRP (one trip wire for requesting a reorg)
>
> If your BOM has errors, what does that do to MRP math?
> Your BOM had better be at least 98% accurate., or else it is Garbage In
> Garbage Out for your MRP MRS.  Your Routings also need to be pretty
accurate.
> How do you manage engineering changes?
> Is your engineering data managed in a consistent manner?
>
> How accurate is your Inventory, as measured by cycle counts, proportion of
> adjustments needed, and physical inventories?  When you say your physical
> is 90% something accurate, does that mean the grand total is within 90% of
> what the computer had, where many pluses and minuses cancel?
> Are all types of transactions posted in a timely manner?  Is the input
checked?
>
> After JIT600 input, we have a query list of FLT member WORK selecting on
> the work station or other criteria of the person who keyed it in, listing
> the actual fields populated, which is easier to verify reasonable keying,
> than vanilla reports showing what will happen if this is posted.  What do
> you use to make sure the data is correct before it goes into the computer,
> and is correctly transcribed?
>
> Your inventory should be at least 95% accurate by
> item-warehouse-location-combination.
> Do you track what inventory you have that you do not need?
>
> How accurate are the scales you use for figuring out your inventory?
> How well marked are your containers of materials so that people know they
> selecting precisely the correct part?
>
> How much time is spent expediting?
>
> Do you have customers with repetitive orders, like 1000 each week for all
> eternity of the same item?
> Do you use JIT to schedule production for those orders?
>
> Do you have a policy for how to handle customer orders that are in
> violation of lead times?
> Is it enforced?
>
> If some customer order has to be pulled up, does it steal materials from a
> customer that is not as important for you to keep, that placed order in
> ample time to have all their raw materials delivered in time, and are you
> able to replenish the stolen material and capacity in time so that neither
> customer is cheated on delivery times and quality?
>
> Do you use realistic planning dates, or do you use a planning date of a
> year ago so you not have to sweat anything that is past due?
>
> Do you have scrap?  Is it reported properly, or after a production effort,
> does the BPCS system THINK there are bits and pieces left over, that were
> really scrapped, so that next time MRP runs for the same kind of
production
> run, it subtracts the bits and pieces left over from the last time,
because
> it thinks that is inventory you not have to make again?
>
> How do you know your scrap reporting is accurate?
> Here is a tip from stuff we have done ... we have bins to contain scrap at
> various identifiable locations on the factory floor ... that can be
figured
> out from labor reporting where the scrap must have ended up ... we use a
> field for sample weight ... if we have a container of tiny components, we
> know what the empty container weighs, we know how the sample weight system
> works ... by weighing container with a lot of tiny parts in it, we can get
> a pretty good estimate of the quantity in there.
> Well similarly we can do the math on scrap reported by labor ... what is
> the weight of that stuff ... compare that with the weight of the
containers
> with the actual scrap ... do they agree?
>
> Do you monitor causes of scrap and other wastage?
> We track scrap by machine, so as to tip us off which machines in most need
> of maintenance.
>
> There has to be education for the people using BPCS, so they use it
correctly.
> A great system in the hands of people who do not understand the system
> means it won't work.
>
> New people hired, people who were trained for one job get moved to a
> different area of responsiblity - they should also get BPCS briefing for
> the new area.
>
> Do you have regular meetings with staff of manufacturing, production,
> inventory, engineering, marketing, finance, quality control?
>
> Do your factory supervisors decide what to make based on a HOT LIST, a
list
> of promises to customers, or some reports generated off the MRP?
>
> Are you more interested in making parts in quantities appropriate to
> getting good labor rates, or in delivering what is needed to meet customer
> orders?
>
> How do you figure what needs to be purchased?  Shortage lists scribbled
out
> by people on shop floor identifying what they have run out of, some kind
of
> BOM report or SFC350 variant where you run customer requirements through
> components, or place customer orders in ample time to get the job done,
and
> get your POs from the MRP?
>
> And how good is your vendor delivery performance?  If it is worse than
95%,
> you better have a small fortune invested in safety stock.
>
> And how good is your performance delivering to your customers?  Let's hope
> it is better than 95%.
> When you are unable to ship on schedule to meet promises to customers,
does
> it come as a big surprise on the day it supposed to go out, or do you see
> the problem coming in time to try to do something about it?
>
> Is your forecast based on historical sales records or on customer
estimated
> annual usage?
> How good of a job is that input relative to what actually happened?
>
> Can your customers access your web site to check that you are producing to
> correct revision level, check on order status and delivery info?
>
> Are you working on continuous improvement in major areas such as:
> inventory; productivity; customer service; quality?  After you have made a
> major improvement, do you transfer focus to another area, and ignore where
> you earlier made improvements?
>
> When you change things, do you implement one modification at a time to
> learn what its effects are before you mess with something else?
>
> When you try out some brand new scheme, do you test it to death before
> having your company depend on the notion that it is working swell?
>
> Do you have ISO 9000?
> When things go wrong, do you experience finger pointing exercises at where
> the blame falls?
>
> Do you have good quality manuals on MRP and other aspects of BPCS?
> Are they sitting in someone office looking nice on a book shelf, or are
> they in the hands of people who actually use them occasionally?
> When someone keeps swiping your MRP manual, can you find it when you need
> it, or do you get extra copies for people who obviously getting use out of
> them?
>
> Al Macintyre
> BPCS/400 Computer Janitor at http://www.globalwiretechnologies.com/
> See Al http://www.ryze.com/view.php?who=Al9Mac
> Find BPCS Documentation Suppliers
> http://radio.weblogs.com/0107846/stories/2002/11/08/bpcsDocSources.html
>
> -----Original Message-----
> From: Paul LaFlamme
>
> >This may be a chicken or the egg question....How do you have MRP first
> >without a good MPS? I'm thinking that your demand must be in line before
the
> >system can suggest what you need to order and when.
> >
> >
> >-----Original Message-----
> >From: Rob Stagis
> >
> >Yep - that problem is ours.  We currently generate shop orders, then use
> >that demand to create the PO.....we're starting MRP first with MPS as a
> >secondary 'benefit'.
> >
> >-----Original Message-----
> >From: Paul LaFlamme
> >
> >Hi Rob,
> >
> >We're going to use the MRP240 for MPS. MRP is secondary to us right now,
but
> >we'll probably try to run with MRP200. Our MRP240, exception only is
about
> >200 pages!
> >
> >Are you having a problem with MPS suggesting you move shop order due
dates
> >to be the same day as the Request Date?
> >
> >
> >-----Original Message-----
> >From: Rob Stagis
> >
> >No solutions, Paul - sorry.  I'll watch this thread with interest.  I'm
> >turning on MPS/MRP as we speak.....my exception reports are hundreds of
> >pages as I clean data up.  What reports do your scheduling people use?
The
> >'detail' and 'exception' reports are hugemongous. (MRP200 and -240)
> >
> >-----Original Message-----
> >From:  Paul LaFlamme
> >
> >We're using BPCS V405CD(ptf2) and getting ready to begin using MPS/MRP.
> >We're a discrete order job shop Die Cast manufacturer (Order Policy H on
MPS
> >items) and will rely on Customer Orders to drive the MPS.
> >
> >I see that it is the LRDTE field (Request Date) in ECL (Order line file)
> >that feeds to the MPS.  The order entry department will back the transit
> >(shipping) time from our shipping dock to the customer's location and
enter
> >that date in the LRDTE field.
> >
> >The challenge I have is that Shop order due dates, and planned order due
> >dates as they appear in the MPS system are the same date as the REQDATE.
> >This means that the system won't plan the shop orders to be finished till
> >some time during the day that the order is supposed to ship out.
> >
> >Is the REQDATE really meant to be a "Request to complete manufacturing"
or a
> >"Request to Ship?"
> >
> >If it is in fact, a request to complete manufacturing, would I simply
back
> >the date up by one day. I'd love to hear from other BPCS users as to how
> >their system is communicating customer requirements to manufacturing's
MPS.
> >
> >Another way I thought I could handle it is by adding a 1 day std move
time
> >to the last operation. But this would mean changing the router of EVERY
Item
> >and every alternate router as well.
> >
> >Lead time is for purchase order items, correct?
> >
> >Also, how are the Schedule Ship Date LSDTE & Schedule Receive Dates LSCDT
> >used by the system? Should these be updated after an MPS committment? If
so,
> >by whom?
> >
> >Thank You!
> >
> >Paul LaFlamme
> >Manager of MIS
> >Kennedy Die Castings, Inc.
> >508-752-5234 X3044
>
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