Na2009 enus manii_02

Chapter 2: Sales Order Interface and Order Planning

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CHAPTER 2: SALES ORDER INTERFACE AND ORDER PLANNING Objectives

The objectives are:

• Be able to use the Sales Order Planning Window. • Make Changes to Production and Sales Orders. • Define the Order Planning process.

Introduction The Sales Order Planning Window is used in the sales order planning process and was developed especially for small manufacturers in the make-to-order (MTO) and assemble-to-order (ATO) businesses to help them plan more efficiently.

The chapter also covers how to make changes to sales orders and how the order planning process works from start to finish. Order Planning is a tool used for direct production planning developed as an alternative to the traditional Planning and Requisition worksheets. Users can either choose to use the Order Planning tool or the traditional Planning Worksheets, as they cannot be used in combination.

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Manufacturing II in Microsoft Dynamics® NAV 2009

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Sales Order Planning Window A make-to-order manufacturing company does not usually carry finished goods inventory; each item is produced only when ordered. This is common for products offering a great deal of configuration or customization. It is critical that production personnel are notified promptly of customer requests. The program assists in the transfer of information from sales to production. The following three transfer methods are used:

• On an individual basis, a production order can be automatically generated from a sales order.

• On a group basis, the planning worksheet can generate one or more production orders to satisfy multiple sales orders. This feature is demonstrated in the chapter that discusses Planning.

• Using the Order Planning worksheet, orders can be created for: o Individual items o Whole orders o All orders

Generate a Production Order from a Sales Order

The program offers a sales planning feature from the sales and marketing application area. Click Sales Orders from the navigation pane to view the list of available sales orders. Order Planning is a menu choice for sales and purchasing as well as manufacturing. To access this function, open a sales order and go to Related Information > Order > Planning.

From the Sales Order Planning window, go to Actions > Functions > Create Prod. Order.

The Sales Order Planning window allows for the creation of two types of production orders.

• Item Order - one production order is produced for each individual line of a sales order.

• Project Order - for all lines of a sales order (regardless of the manufacturing policy for the line items), one multi-line production order is produced. It is especially useful in the large project environment, with a relatively long manufacturing lead-time.

NOTE: In Microsoft Dynamics® NAV 2009, it is not possible to create a project production order for multiple lines of the same item. For example, a sales order may be entered with the same line item, but different ship dates (such as a blanket type of order). For these types of sales orders, a separate production order for each line must be created (item production order). This is because the program treats all lines of the same item on a production order as one line for output posting purposes.



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Demonstration 1

The following demonstration shows how to create production orders from sales orders.

1. From the navigation pane, click the Sales Orders button. 2. Click New. 3. Create a new sales order with the following information:

Field Data to use

Sell-to Customer No.

10000 (The Cannon Group PLC)

Type Item

No 1000 (Bicycle)

Quantity 12

Shipment Date Go to the Shipping FastTab and choose a shipment date, such as 01/28/2010

4. Click OK. 5. An inventory stock-out warning is received. Click Yes in response to

the inventory stock-out warning. 6. Go to Related Information > Order > Planning. 7. Make sure that the Needs Replanning field is showing. If it is not,

use Show Column to add the column to the view.

The Sales Order Planning window displays the following information.

FIGURE 2.1 SALES ORDER PLANNING WINDOW

The Planning Status field is None and there is a check mark in the Needs Replanning field.



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A description of the fields in the sales planning window are as follows.

Field Comments

Item No. This field shows the item number of the sales order line.

Variant Code

This field shows the variant code from the sales order line. The program uses this field internally.

Planning Status

This field contains the planning status of the production order, depending on the actual sales order. The options are None, Simulated, Planned, Released, and Inventory.

Description This field shows the description of the item number of the sales order line.

Shipment Date

This field shows the shipment date of the sales order line.

Planned Quantity

This field shows the quantity on the production order that is tracked to the sales order line. It looks up Reservation Entries.

Available This field shows the actual number of items currently available.

Next Planning Date

This field shows the next date the item is scheduled to be planned. The program uses this field internally. The next planning date is determined by the work date and the reorder cycle defined on the item card. For example, if the work date is 06/01/09, and the reorder cycle is one week, then the next planning date is 06/08/09.

Expected Delivery Date

Prior to creating a production order for the sales order line, this field shows a theoretical delivery date based on the following formula: The next planning date + lead-time calculation (on the item card) + safety lead-time (on the item card). The program includes all calendar days in the calculation. For example, if the next planning date is 06/08/09, the lead time calculation is zero days (none) and the safety lead time is ten days, therefore, the expected delivery date is 06/18/09.

Needs Replanning

This field indicates if the line on the sales order needs to be rescheduled for any reason. For instance, if the due date for a production order tracked to the sales order line changes. The action to be taken depends on the setting of the order tracking policy on the Planning FastTab of the item card. Another lesson demonstrates the various order tracking policies and their effect on changes to the production order and the sales order.



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NOTE : In an MTO environment, the expected delivery date on a sales order is not meaningful until a production order is generated because the necessary production orders and/or purchases to fulfill the order are not yet planned.

For make-to-stock (MTS) items, the next planning date and expected delivery date (based on the reorder cycle, lead-time calculation, and safety lead-time from the item card) show when an item is produced. The MTS expected delivery date is more meaningful than the MTO expected delivery date example above.

Once a production order is created for the sales order line, the expected delivery date becomes the due date of the production order.

Demonstration 2

To create a production order directly from this sales order:

1. From the Sales Order Planning window, go to Actions > Functions > Create Prod. Order.

Choose between three types of production order status:

• Planned • Firm Planned • Released

This selection depends on the company's business process.

The program's ability to convert sales orders is well suited for MTO companies that allow sales engineers to create released production orders for long complicated projects with multiple configurations. There may be situations where a company does not want to allow sales personnel to create released orders. Microsoft Dynamics NAV 2009 Manufacturing II security has the ability to restrict access to the Sales Order Planning window (or modify the window to exclude released orders).

Choose between two production order types:

• Item Order - created for each line on the sales order. • Project Order - also known as a multi-line production order, a

production order for all lines is created on the sales order. However, a production order cannot be created for multiple lines of the same item from the sales order.

2. From Prod. Order status, select Firm Planned. 3. From Order Type, select Item Order. 4. Click Yes to create a firm planned production order for the item.



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A message screen displays stating that a production order is created showing the production number. Take note of this number.

The Sales Order Planning window shows the following:

• Planning status changed to Firm Planned. • Planned quantity is 12. • Needs Replanning field is inactivated.

FIGURE 2.2 SALES ORDER PLANNING

The sales order is now entered and a production order is created to satisfy the demand. This type of production order generation functionality is useful in make-to-order and assemble-to-order environments.

5. Close the window when you are finished viewing the information.

Soft Commit

If there is an existing sales order for a manufactured item and the item is not in stock, the Production Planner may enter a manual production order to fulfill the demand. The production order is created to satisfy the demand of the sales order.

This may be referred to as a soft commit because there is nothing in the program that prevents the output of the production order from being used to fulfill the demand for a different sales order.

Hard Commit – Order Reservation

If the Production Planner wants to make certain that the production order output is used to fulfill the demand for the first sales order, the production order can be reserved for that sales order. This is referred to as a hard commit-when the user connects a specific sales order to a specific production order.

Likewise, components used in the manufacture of an item are either reserved from inventory stock or from another production order.



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Reservations for sales orders from production orders or for production orders from components (or other production orders) are either:

• Automated • Set up to occur manually

This depends on the setting of the Reserve field on the Planning FastTab of the item card.

Order Tracking

Once reservations are invoked, the order can be tracked to view the connections between sales, production and inventory.

To view order tracking, go to the Lines FastTab of your Sales order. Click the Actions icon (lightning bolt symbol) and go to Functions > Order Tracking. The Order Tracking can always be followed from the Sales Order or the Production Order, regardless of reservation.

The Order Tracking link is controlled in the following way:

• If the item is set to Order Tracking = None: o The Order Tracking link can be removed when calculating

Planning Worksheet

• If the calculation ends up suggesting a change: o A brief explanation is Order Tracking = none is actually dynamic

Order Tracking = none.

The method used to create a production order may dictate whether the items automatically reserve and track. Orders are automatically reserved and tracked to their source when they are:

• Created from the planning worksheet. • Created with the Production Order function in the Sales Order

Planning window. • Using the Replan function in MRP or production orders.

Demonstration 3

This demonstration shows how to track to the firm planned production order created previously.

1. From the sales order created earlier, go to the Lines FastTab of your Sales order. Click the Actions icon (lightning bolt symbol) and go to Functions > Order Tracking.

2. Click Show.



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The firm planned production order appears.

3. Check routing and component details by going to the Lines FastTab. Click the Actions icon (lightning bolt symbol) and go to Line > Routing or Line > Components.

The program automatically:

• Sets the due date as shipment date. • Subtracts one day from the ending date • Back schedules to determine a starting date

4. Close all open windows.

The following demonstration shows how to track from the production order to the source sales order.

5. In the navigation pane, click the Firm Planned Production Orders button.

6. Select the production order that was created from the sales order. 7. From the Lines FastTab of the production order, click the Actions

icon (lightning bolt symbol) and go to Functions > Order Tracking.

8. Click Show to view the sales order that generated the production order

From the Lines FastTab, note the automatic reservation (in the reserved quantity column) of 12 pieces for the item.


Update Shipment Dates

From the Sales Order Planning window:

• Use the Update Shipment Dates function to change the shipment date of sales order line(s) to the expected delivery date.

• Use this window as a simple "available to promise" feature for determining delivery dates.

Review the definitions of the two dates:

• Next Planning Date - is determined by the work date and the reorder cycle defined on the item card. o For instance, if the work date is 11/01/2010, and the reorder

cycle is one week, then the next planning date is 11/08/2010.



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• Expected Delivery Date (prior to creating a production order) - is equal to: o The next planning date +. o Lead-time calculation (on the item card) +. o Safety lead-time (on the item card) +. o Default safety lead time. (Default safety lead time is set up in

Manufacturing > Setup > Manufacturing Setup.)

The program includes all calendar days in the calculation. For instance, if the next planning date is 11/08/2010, the lead time calculation is zero days and the safety lead time is ten days, then the expected delivery date is 11/18/2010.

The expected delivery date is more meaningful if:

• The reorder cycles are set correctly. • Accurate lead time calculation and safety lead time amounts are

entered on the item card for production items.

If this is the case, the expected delivery date can assist the Order Processor in:

• Promising a delivery date to a customer. • Changing the shipment date on the sales order line(s) to the expected

delivery date, using the Update Shipment Dates function.

Demonstration 5

The following demonstration shows how to enter another sales order for the same item used in the previous example:

1. In the navigation pane, click the Sales Orders button. 2. Click New. 3. Create a new sales order with the following information.

Field Data to use

Sell-to Customer No.

10000 (The Cannon Group PLC)

Type Item

No 1000 (Bicycle)

Quantity 7

Shipment Date Go to the Shipping FastTab and choose a shipment date, such as 02/28/2010.



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4. Click OK. 5. An inventory stock-out warning is received. Click Yes in response to

the inventory stock-out warning.

The shipment date information from the header is transferred to each sales line automatically. Verify this by viewing the Shipment Date field on the sales lines and update the shipment date.

6. From the sales order, go to Related Information > Order > Planning.

7. From the Sales Order Planning window, go to Actions > Functions > Update Shipment Dates.

8. Select Each line own Shipment Date. 9. Click OK.

The shipment date has changed to the expected delivery date in the Sales Order Planning window and on the sales order line.


Changes to Production and Sales Orders This lesson identifies the various messages generated by the system when making immediate changes to due dates and quantities on sales orders and production orders.

Some of these changes are carried out silently by the system while others generate certain messages. In some cases, the Needs Replanning field in the Sales Order Planning window needs to be activated.

The following table summarizes the results of changes made to dependent entities.

Type of Change Message Generated

Production order due date moved to sooner than sales order shipment date.

No Message

Production order due date moved to later than sales order shipment date.

"The tracking entries for this line have a date conflict." The Sales Order Planning window indicates that replanning is required.

Sales order shipment date moved to sooner than production order due date.

"The tracking entries for this line have a date conflict." The Sales Order Planning window indicates that replanning is required.

Sales order shipment date moved to later than production order due date.

No message



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Type of Change Message Generated

Sales order quantity changed to less than the original quantity.

No message

Sales order quantity changed to greater than the original quantity.

The Sales Order Planning window indicates that replanning is required.

Without Supply Planning, there is an opportunity for the consultant to develop a report or multiple reports, indicating which sales orders and/or production orders are uncoordinated. However, the Order Planning feature also finds and resolves the unplanned sales orders and production orders.

Order Planning Order Planning is a simple supply planning tool for manufacturing companies. The Production Planner must periodically handle new demand, both from sales and production, to create the necessary supply orders.

You can access Order Planning by going to: Departments > Manufacturing > Planning > Tasks > Order Planning. It allows users to find unplanned demand and make decisions order by order. The order planning window includes features to:

• Coordinate supply from alternative sources. • Create different supply orders. • Recalculate new demand.

Order Planning is used as a simple tool for production planning instead of the more complex tools: the Planning Worksheet and the Requisition Worksheet.

NOTE: Order planning is used instead of the Planning Worksheet and the Requisition Worksheet. The two different methods cannot be combined.

WARNING: If the Planning Worksheet is run after Order Planning, all supply orders created by Order Planning is recalculated by the Planning Worksheet.

The goal of Order Planning, also referred to as direct planning, is to give the user the ability to establish a plan for a specific sales order that comprises all lines of the order, and for the user to establish a plan for each production order to ensure all components are available in time to be used on the production order.

Order Planning is accessed from Purchasing, Sales and Marketing, and from Manufacturing providing users with access from different areas.

Within manufacturing, Order Planning can be accessed for all demand through the planning menu, and can focus on one production order when accessed through the production order.



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An unplanned sales order means that the sales order is released and one or more of the sales lines are not planned. Production orders are shown when there is unmet demand for components.

NOTE: Order Planning views one layer of the BOM structure in production orders when it is calculated. When users create the orders suggested in the order planning worksheet, it results in the next layer of the BOM structure to be seen the next time order planning is calculated.

To simplify the form and planning, demand is grouped by order.

For sales orders, priority is given to the sales order with an unplanned sales line with the earliest shipment date.

Sales order view includes sales lines for return orders where a replacement is needed.

Transfer orders, service orders, drop shipments, and special orders are not considered in the demand calculation at this time.

Order planning parallels the planning engine used in the planning worksheet, but does not duplicate it. (The planning worksheet and MRP/MPS are discussed in the chapters covering Forecasting, MPS and Planning.) Order Planning differs from the planning engine used in the planning worksheet in the following ways:

• Order parameters from item cards or SKUs are not considered. • Forecasts are not considered. • Planning is done level by level, so one level of the BOM structure is

examined at a time.

The goal is to allow the user to determine which orders need to be affected, determine how much to get from where, create supply orders for them, advise the user the orders are created, and then provide a reference to the orders .

Order Planning is accomplished as follows:

• It finds and displays which orders (sales and production) need to be planned.

• The user chooses an order to examine and it calculates and displays how the demand from a selected order can be met.

• The user can modify the suggestions then create supply orders within the worksheet to cover the demand.



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Demonstration 6

The following demonstration shows how to plan for demand created by a sales order. For this example:

• Choose a produced item with at least two BOM levels, at least one component that is manufactured, such as a bicycle with subassemblies for the chain assembly and the front and back wheels.

• Ensure that the item has no inventory available and no production orders. If production orders exist for the item, delete or complete them.

Start by creating a sales order for an item to create demand.

1. In the navigation pane, click the Sales Orders button. 2. Click New. 3. Press Enter to automatically insert the next number in the default

number series for sales orders. 4. Go to the Sell-to Customer No. field and select customer number

10000, The Cannon Group PLC. 5. On the sales line, select Item in the Type field. 6. Go to the No. field and select item number 1001, Touring Bicycle. 7. In the Quantity field, type 10. 8. In the Location Code field, select BLUE. 9. Click Yes for the inventory stock-out warnings to continue. 10. Click OK to close the Sales Order window. 11. Find the unfulfilled demand through the Order Planning window. 12. In the navigation pane, click the Departments button. 13. Go to Manufacturing > Planning > Tasks > Order Planning to

open the Order Planning window. 14. Set the Show Demand As field to All Demand. 15. Go to Actions > Functions > Calculate Plan.

The Order Planning window finds all unmet demand and shows one bold line for each order, both sales and production orders. Orders without availability problems are not shown.

16. Go to the Show Demand As field and select Sales Demand. 17. Click on Actions > Functions > Calculate Plan to view the demand

from sales orders.



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View the fields in the form, which is based on the requisition worksheet. Note that not all fields are displayed. Use the Choose columns functionality to view other fields. The Order Planning form includes the following fields:

Field Description

Demand Date This field shows the demanded date for the demand the planning line represents. The date is either the shipment date of a sales order line or the due date of a component line. It is always the earliest date of all demand in the order. The calculation of new demand occurs every time the window is opened or Calculate Plan is clicked; it is done order-by-order. This means the order that includes the demand line with the earliest due or shipment date is considered first, and all other demand lines in that order, regardless of their individual due or shipment dates, are also calculated for that order. Therefore, all planning lines under one order header line have the same demand date.

Status This field shows the status of the demand order and is only filled for passive planning lines representing order headers. The field is copied from the order header. Sales demand - shows a status of Open or Released. Production demand - shows a status of Planned, Firm Planned, or Released.

Demand Type This field shows for which type of demand order the planning line is created, and is only filled for passive planning lines representing order headers. The field can show two different demand types: Sales - representing a sales order (or negative return order). This expands to show one or more sales lines on the sales order with insufficient availability. Production - representing a production order. This expands to show one or more component lines on the production order with insufficient availability.

Demand Subtype Based on the demand type, this field shows the status of the order. It is copied from the order header.

Replenishment System

This field shows which kind of order the program must use when it creates replenishment orders and order proposals. The program creates a purchase order, a production order, or a transfer order. This field is automatically filled with the contents of the Replenishment System field on the item card if the No. field is filled in; however, it can be changed.

Supply From This field must contain a value according to the selected replenishment system before the system can create a supply order for the line. Note: This is not the case if the replenishment system is a Prod. Order.

Reserve This field contains a check mark if the item on the planning line has a setting of Always in the Reserve field on its item card. If necessary, select this field to reserve the needed quantity against the supply order that is created from the planning line. To do this, the Reserve field on the item card must be set to either Optional or Always.



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Field Description

Qty to Order The needed quantity is proposed on the planning line as the quantity to order. This quantity relates to the demand line only. It does not consider any planning parameters defined on the item card.

Unit of Measure Code

This field shows the unit of measure code the program uses when it determines the unit price. If the Sales Unit of Measure field on the item card is filled in, the value is automatically copied from that field when the requisition line is populated. Otherwise, the value is copied from the Base Unit of Measure field on the item card.

Order Date The Order date flows from the order lines. Enter the order date that applies to the requisition worksheet line. If the field is filled in, the Due Date field is calculated from this date.

Order No. The sales or production order number.

Description Based on the demand type, this field fills in with the customer name for sales and the item description for production orders.

Demand Line No. The line number from the sales order or component.

Item No. Item number from the sales line or production order is copied here.

Location Code Location is copied from the sales line or component line.

Description Description from the item.

Demand Quantity

This field shows the quantity on the demand that the planning line represents. If the demand is a sales line, then it is the value in the Quantity field (of that sales line). If the demand is a component line, then it is the value in the Expected Quantity field (of that component line). This field is used in the calculation of the needed quantity as follows: Demand Quantity - Demand Qty. Available = Needed Quantity

Demand Qty Available

This field shows how many of the demand quantity are available. It is used in the calculation of the needed quantity as follows: Demand Quantity - Demand Qty. Available = Needed Quantity

Needed Quantity This field shows the quantity of the demand quantity that is not available and must be ordered to meet the demand the planning line represents. It is calculated as: Demand Quantity - Demand Qty. Available = Needed Quantity Another way to state this is Needed Quantity = Outstanding or Remaining Quantity - Reserved Quantity.

Starting Date This field contains the starting date of the manufacturing process.

Due Date This field shows the date when the items are expected to be received.



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The bottom of the Order Planning window shows the following information for each line.

• Available for Transfer - If there is a location on the line, drill-down in this field to view the Get Alternative Supply form.

• Substitutes Exists - If this is set to Yes, drill down to the substitution list. This is only available for components. Sales line substitution must be done from the sales order.

• Quantity Available - This field shows the total availability of the item on the active planning line, regardless of quantities calculated for the line. The quantity in this field is copied from the Projected Available Balance field. This field can also be accessed from the Order Planning window by clicking Item, Item Availability by.

• Earliest Date Available - This field shows the arrival date of an inbound supply order that can cover the needed quantity on a date later than the demand date. Note: If the inbound order only covers parts of the needed quantity, it is not considered available and the field does not contain a date.

1. From the order Planning window, find the sales order that you have created and place the cursor on the row.

2. Go to Related Information > Line > Show Document to view the sales order.

3. Click on the Shipping FastTab and note the shipment date. 4. Escape back to the order planning window. 5. From the sales order, click the plus sign to expand the header to

show the demand lines, which shows the actual demand. 6. Notice the Order Date is related to the shipping date. 7. The Needed Quantity field contains the quantity of the item from

the sales line. 8. View the Quantity Available field found at the bottom. This field

shows the total availability of the item and is the same quantity displayed in the Projected Available Balance field in the Item Availability By window.

9. Go to Related Information > Item > Item Availability By > Period to verify.

10. Close the Item Availability by Periods window. 11. Ensure that the production order of your sales order is highlighted.

View the Available for Transfer field at the bottom. Although it is zero, click in the field. The icon that appears allows users to view the Get Alternate Supply window.

12. Escape back to the Order Planning window. In the Replenishment System column, notice that the selection is Production Order. Manually change the components.



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13. With the cursor on the line for the item, go to Related Information > Line > Components to view the components from the production BOM.

14. Make a change to the components, such as changing the quantity of the front wheel to 500. This is obviously a mistake. So that planners can examine different scenarios, there is an option to bring the original component information back to the item. Use the Refresh Planning Line option.

15. Click OK to close the Planning Components window. 16. From the Order Planning window, go to Actions > Functions >

Refresh Planning Line. 17. Accept the default information and click OK. 18. Ensure that the production order of your sales order is highlighted.

Go back to Related Information > Line > Components. Note that the quantity of the changed component is changed back to the original quantity, which is based from the production BOM.

19. Make a change to the components, with the change carried to the production order. For example, change the quantity of Bell component to two pieces.

20. Click OK. 21. From the Order Planning window, click the Reserve field to make a

reservation between the supply order being created and the demand line (sales line or component line) that it is created for. It is empty by default.

22. Click Make Orders.



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The make supply order screen offers choices on both the Order Planning FastTab and the Options FastTab. A message on the Order Planning FastTab states "Multi-level production orders made with this function may generate new demand, which you can only see after you have recalculated a plan in the Order Planning window." This indicates Order Planning functions are on a level by level basis.

FIGURE 2.3 MAKE SUPPLY ORDERS WINDOW

• The Active Line - makes the selected supply order only for the line where the cursor is placed.

• The Active Order - makes the selected supply order(s) for all of the planning lines in the selected order.

• All lines - makes the selected supply orders for all planning lines in the window.

NOTE: The Reserve field can only be selected if Optional or Always is in the Reserve field on its item card.

23. From the Makes Orders for field, select the Active Order.

On the Options FastTab, the following choices are available:

• Create Purchase Orders: o Make Purchase Orders o Make Purchase Orders and Print o Copy to Req Worksheet



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• Create Production Orders: o Planned o Firm Planned o Firm Planned and Print o Copy to Req Worksheet

• Create Transfer Orders:

o Make Transfer Orders o Make Transfer Orders and Print o Copy to Req Worksheet.

When Copy to Req Worksheet is chosen, fill in the requisition worksheet template and name. These fields are not accessible if any other choice is made.

24. Select Firm Planned in the Create Production Orders field. 25. Click OK.

The sales order is now no longer shown on the order planning form. The sales order no longer appears in the order planning window because the demand is met.

26. Click OK to close the Order Planning window.

View the production order.

27. In the navigation pane, click the Firm Planned Prod. Orders button.

28. Open your production order (Touring Bicycle). 29. To view the change to the components made earlier, go to the Lines

FastTab. Click the Actions icon (lightning bolt symbol), and go to Line > Components. The change can now be viewed.

30. Return to the production order.

Now plan the production order.

31. Go to Related Information > Order > Planning.

Observe that the same Order Planning window displayed earlier and the Show Demand As field cannot be edited now and are set to Production Demand. The plan needs to be recalculated because the production order is created since the last planning.

32. Go to Actions > Functions > Calculate Plan.

If all demand is met for the production order, a message appears indicating all items are available and no planning line is created for it.

33. Click the plus sign (+) from your production order to view the components.



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34. View the Replenishment field. Notice that some items are set to production order and others are set to purchase.

35. View the components for each subassembly. For example, select item 1100 (Front Wheel) and go to Related Information > Line > Components to view its components. Close the window when you are finished viewing the information.

Assume for this example that the parts for a subassembly, such as the brake, takes too long to order and receive, and the customer cannot wait that long.

36. Change the Replenishment System for item 1700 (Brake), to Purchase. The Production Planner realizes the need to have more brakes on hand and changes the quantity to order.

37. Increase the quantity to order. For example, in the Qty. to Order field, change the quantity to 20.

38. In the Supply From field, enter 01587796. 39. Click Make Orders.

Make the production and purchase orders by using the following data:

40. In the Make Order for field, select the Active Order. 41. In the Create Purchase Order field, select Make Purch. Orders. 42. In the Create Production Order field, select Firm Planned. 43. Click OK.

Because the order planning is done one level at a time, run the order planning worksheet again to determine if more demand is created.

44. Close the Order Planning window. 45. In the navigation pane, click the Departments button. 46. Go to Manufacturing > Planning > Tasks > Order Planning. 47. From the Order Planning window, go to Actions > Functions >

Calculate Plan. 48. Select Production Demand in the Show Demand As field. 49. There are new Firm Planned Production Orders for each of the

subassemblies. Review the Order Date and Due Date. 50. Delete all rows, except your production order (Touring Bicycle).

Because this is a worksheet, the demand is not affected and the demand lines are calculated the next time planning is run.

51. In the Supply From field, enter 01587796. 52. Click Make Orders and in the Make Order for field, select All

Lines. 53. Click OK. 54. Close all open windows.



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Overview of Order Planning

The following is a review of how the system helps the Production Planner meet demand. Remember, it is designed to help the Production Planner perform the task, not to replace the Production Planner.

The order planning system:

• Provides information to help the Production Planner make decisions about supply.

• Shows if the demand is already covered by inventory or current plans by verifying if there are inbound or planned orders.

• Shows if a supply order needs to be created and if the item card information flows to the Order Planning window to show if the item must be purchased (and from whom) or produced (and the components and routings).

• Suggests when demand can be taken care of by substitution or transfers. The rescheduling performed may mean the quantity on an already planned and created purchase order is no longer sufficient.

• After calculating a plan, the Order Planning window suggests to create an additional purchase order for the same item, and it does not delete or change the old purchase order (as does the automatic planning run). Therefore, check existing supply orders and manually modify them according to new demand created through fine scheduling.

• Calculates a tremendous amount of data and a puts the demand information, along with supply options, into the Order Planning worksheet.

The Role of the Production Planner

The Production Planner must review the information and be able to override the suggestions when appropriate.

The Production Planner:

• Has the freedom to create a supply order even though the quantity is available.

• Can change the replenishment system (purchase, production order, or transfer) and the vendor or transfer from location.

• Can change the quantity to better suit the business needs. As shown, the user can modify the components to a production order.



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NOTE: As mentioned at the beginning of this lesson, Order Planning is used instead of the planning and requisition worksheets. The two different methods cannot be used together. Order Planning is a simple supply planning feature intended for small to mid-size manufacturing companies with Make-To-Order or Assemble-To-Order production.

Summary This chapter explains the use of the Sales Order Planning Window. It provides a detailed description of how to create and make changes to production and sales orders, as well as the Order Planning process and the difference between Order Planning and the Planning and Requisition Worksheet. Order Planning can be seen as an efficient supply chain planning tool for small to mid-size manufacturers that operate in a Make-To-Order or Assemble-To-Order environment.



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Lab 2.1 - Sales Order Interface Scenario

Use Sales Order Planning to create Production Orders.

• Create a sales order for customer 10000, The Cannon Group PLC. • This order is for 12 touring bicycles (item number 1001) and seven

bicycles (item number 1000). The shipment date for the order is 02/15/2010.

• Using the Sales Order Planning window, turn the new sales order into a firm planned production order. The Sales Order Planning window is accessed from the Order button on the sales order.

Observe the order tracking created by the production order.

Step by Step

1. In the navigation pane, click the Sales Orders button. 2. Click New. 3. Press Enter to automatically insert the next number in the default

number series for sales orders. 4. Go to the Sell-to Customer No. field and select customer number

10000, The Cannon Group PLC. 5. On the sales line, select Item in the Type field. 6. Go to the No. field and select item number 1001, Touring Bicycle. 7. In the Quantity field, type 12. 8. Click Yes, if the Check Availability window appears. 9. Go to the next sales line and select Item in the Type field. 10. Go to the No. field and select item number 1000, Bicycle. 11. In the Quantity field, type 7. 12. Click on the Shipping FastTab. 13. Enter 02/15/2010 in the Shipment Date. 14. Delete any information in the Location code field. 15. Go to Related Information > Order > Planning. 16. Go to Actions>Functions > Create Prod. Order. 17. Accept the defaults of firm planned order and item order by selecting

Yes. 18. A confirmation message appears, stating that a Firm Planned order

has been created. Note the production order number and click OK. 19. Put the cursor on the top row. 20. Select Functions > Order Tracking. The order tracking window for

the selected line appears. 21. Close the order tracking window and all open windows.



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Track from Lab 2.2: Firm Planned Production Order to Sales Order

Locate the Firmed Planned Production Orders just created and track back to the sales order.

Step by Step

1. In the navigation pane, click the Firm Production Planned Orders button.

2. Open the first production order created (Touring Bicycle). 3. Go to the Lines FastTab of your production order. Click the Actions

icon (lightning bolt symbol) and go to Functions > Order Tracking.

4. Click Show. The sales order appears. 5. Close all open windows. 6. Open the second production order created (Bicycle). 7. Repeat steps 3 to 5.

Lab 2.3: Use the Sales Order Planning Window to View Updates

• Change the due date of the production order just created. • What happens in the Sales Order Planning window?

Step by Step


2. Open the first production order created (Touring Bicycle). 3. Change the due date to a date that is earlier, such as 02/10/2010. 4. Click Refresh. 5. Accept all default settings and click OK. Ignore any warning

messages. 6. Click OK to close the production order. 7. In the navigation pane, click the Sales Orders button. 8. Open the sales order created. 9. Go to Related Information > Order > Planning. 10. There must be a change to the Expected Delivery Date field and no

check mark in the Needs Replanning field. 11. Close all open windows. 12. Repeat steps 1 through 2. 13. Change the due date to 02/28/2010.



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14. Repeat steps 4 through 9. 15. The Next Planning Date must be filled in and a check mark must be

in the Needs Replanning field. 16. Close all open windows.

Lab 2.4: Use Order Planning to Create Orders

• Delete the production orders just created. • Use the Order Planning window to create production orders.

Step by Step


2. Select one of the production orders created (Touring Bicycle). 3. Right-click and select Delete to delete the production order. 4. Click Yes to confirm. 5. Find the other production order created (Bicycle). 6. Right-click and select Delete to delete the production order. 7. Click Yes to confirm. 8. In the navigation pane, click the Departments button. 9. Go to Manufacturing > Planning > Tasks > Order Planning. 10. Change the Show Demand As field to Sales Demand. 11. Go to Actions >Functions > Calculate Plan. 12. Find the sales order. (Demand is determined by sales order line ship

date.) 13. From the sales order, click the plus sign to expand the header to

show the demand lines. 14. Put the cursor on any of the rows for the sales order (the sales order

header or the demand lines). 15. Click Make Orders. 16. In the Make Orders for field, select the Active Line and click OK. 17. Close the Order Planning window. 18. In the navigation pane, click the Firm Production Planned Orders

button. 19. View the new order created.



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Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter

1.

2.

3.


Na2009 enus manii_02

Technology

sales order line

new sales order

thestatusactual sales

item order

sales order planning

order planning worksheet

order planningchapter

order planningdemonstration