Re: Re: Minimum balance for children

Jim,

Have you tried FAS  (Final assembly schedule) for this?
With FAS you can flag the shared components as MPS items, and put a safety
stock on them. They would have to be at level 1 in the BOM structure for
this to work, i.e. they are the top of the BOM structure.

Daniel Warthold P. eng CPIM



----- Original Message ----- 
From: <zzbpcs@xxxxxxxxxxx>
To: "SSA's BPCS ERP System" <bpcs-l@xxxxxxxxxxxx>
Sent: Thursday, October 27, 2005 3:22 PM
Subject: Re: Re: [BPCS-L] Minimum balance for children


> Interesting comments, all.......
>
> Here's another viewpoint:
>
> If many finished goods share a common child
> and those finished goods all have a minimum balance
> then MRP will have you order PLENTY of that child
> and make the finished goods & store them.
> Some of my clients feel it is better to not have
> too much minimum balance / safety stock of the finishd goods. Rather they
have minimum balance of common components then make whatever finished goods
they really
> need Just In Time ( remember that one ? ).
> Thus they don't have money tied up in finished goods
> but rather have less money tied up in common components
>
> But
> different solutions for different problems
> in different situations.
>
> Have Fun !!
>
> Jim Barry
> Belchertown, MA
>
> ==============
> >
> > From: Frederick C Davy <fcdavy@xxxxxxxxxxxx>
> > Date: 2005/10/27 Thu AM 11:17:21 EDT
> > To: "SSA's BPCS ERP System" <bpcs-l@xxxxxxxxxxxx>
> > Subject: Re: [BPCS-L] Minimum balance for children
> >
> > Daniel,
> >
> > Good answer, but I believe the saying is "Don't forecast what you can
> > calculate", The one other point I would make to pd is to be aware of
> > inserting multiple variables to your MRP logic. By that I mean if you
are
> > planning requirements for end items (finished goods) in LOT QUANTITIES
> > (Order Policy code H, I, J), you have already affected your inventory
> > levels at replenishment to be greater than zero if your customers are
not
> > required to order full lot quantities. To add a minimum balance variable
> > on top of that, you can further distort both the timing and the
> > replenishment balances (Minimum balance of 1000, lot quantity of 2500,
as
> > soon as the projected balance is 999 or less, a planned order for 2500
> > will be created by BPCS. If you have no further movement on this item
> > before the replenishment order is received, you could conceivably have
> > 3499 in stock. Remember that you have over-planned all components to
> > support that level of inventory, and the timing of their re-order. This
> > could have a dramatic affect on cash flow and inventory cost/turns.) As
> > another saying goes, "do all things in moderation".
> >
> > Frederick C. Davy, CPIM, PMP
> > Business Systems Analyst
> > Interface Solution, Inc.
> > Phone: (315) 592-8101
> > Fax: (315) 592-8481
> > e-mail: fcdavy@xxxxxxxxxxxx
> >
> >
> >
> >
> > "Daniel Warthold" <daniel.warthold@xxxxxxxxxxxx>
> > Sent by: bpcs-l-bounces+fcdavy=sealinfo.com@xxxxxxxxxxxx
> > 10/27/2005 09:56 AM
> > Please respond to
> > "SSA's BPCS ERP System" <bpcs-l@xxxxxxxxxxxx>
> >
> >
> > To
> > "SSA's BPCS ERP System" <bpcs-l@xxxxxxxxxxxx>
> > cc
> >
> > Subject
> > Re: [BPCS-L] Minimum balance for children
> >
> >
> >
> >
> >
> >
> > Good answer Al.
> >
> > I'd like to add, there is a principle in materials management that reads
> > "do not guess what you can calculate", (or something like that). This
> > means
> > put the safety stock where you have uncertainty of the demand, (on the
> > finished item in this case), and let MRP calculate the requirements on
the
> > components.
> >
> > If you also had uncertainty on the components, like if they were also
sold
> > as spare parts, then you might want to cover this uncertainty with
> > additionnal safety stocks on these components as  well.
> >
> > Daniel Warthold P. eng CPIM
> >
> >
> >
> > ----- Original Message ----- 
> > From: "Al Mac" <macwheel99@xxxxxxxxxxx>
> > To: "SSA's BPCS ERP System" <bpcs-l@xxxxxxxxxxxx>
> > Sent: Thursday, October 27, 2005 5:13 AM
> > Subject: Re: [BPCS-L] Minimum balance for children
> >
> >
> > > Minimum balance on a parent does not cause any components to also have
> > > minimum balance.  All it causes is for MRP to tell you to make to fill
> > the
> > > minimum balance, like it is a special kind of order.
> > >
> > > Fact that you have a minimum balance on the parent means the MRP tells
> > you
> > > to make or order enough stuff to fill that minimum balance, plus any
> > other
> > > requirements.  If you do as MRP says, you will end up with on-hand for
> > the
> > > parent item equal to the minimum balance, and zero on all the
children,
> > > because you met the requirements.
> > >
> > > We have minimum balance on end customer items where they can order
from
> > us
> > > with very short lead time.  So customer orders, we ship them out of
the
> > > safety stock, then manufacture to replenish it.
> > >
> > > We have minimum balance on some raw materials that are in heavy
demand.
> > >
> > > We have considered minimum balance for the output from factory
> > bottlenecks,
> > > and where high setup involved.
> > >
> > > >   Hi, Can anybody tell whether it is required to maintain Minimum
> > Balance
> > > > for children when it is maintained for End Item (Master Scheduled) ?
> > > > Because, child are already taken care through this topmost parent's
> > min.
> > > > balance. regards, Prashanth
> > >
> > >
> > > -- 
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> >
> > -- 
> > This is the SSA's BPCS ERP System (BPCS-L) mailing list
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>
> Peace
> JimB
> -- 
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