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Using Sales Forecasts in NAV with Sales Blankets for MPS

  • 1.  Using Sales Forecasts in NAV with Sales Blankets for MPS

    Posted 25 days ago
    ​Hello NAV community,

    We are trying to expand our usage of NAV for using Sales Forecasts for MPS and MRP in Manufacturing. I'm looking for someone with an in-depth understanding and experience with implementing Sales Forecasts into NAV for use by MPS Planning and Item Availability projections that can help direct us on the best configuration and process. I realize it may be more than can be answered in the Forum, so willing to pay for consulting time if necessary to dig into our setup if someone can provide a reference.

    Some learnings we've had and things we're struggling to understand are:
    1.  Recommendation for feeding forecast by Month or Week or Day (impact on how it's used by PLAN and in Item Availability views of projected inventory). We've tried daily but NAV's forecast consumption logic didn't work well with that. Tried monthly but NAV plans all production right before demand in one big production order. Weekly may also give issues with forecast consumption logic unless we "massage" it outside of NAV before sending it in.
    2.  It appears that NAV considers Sales Order releases from Sales Blankets as incremental demand to the Forecast. We have both Sales Blankets and Sales Forecasts in NAV, but we would like to only use Forecast to drive MPS, but can't find a way to have NAV exclude Sales Blanket demand. Is it possible or need a customization?
    3. Similar to in 2, also notice that NAV Item Availability reports don't subtract Sales Orders derived from Sales Blankets from the forecast when calculating Remaining Forecast. So do we have to subtract sales orders derived from Sales Blankets from that period's forecast before sending it to NAV so it doesn't double count?
    4. Our Sales Blankets may be long (1 year for example) but are not time-phased. We're finding that NAV looks at a Shipment Date (which is meaningless to us on blankets) in the past as past due and generates "Emergency" back orders for today. This is resolved if we remove the Shipment Date from the Blankets but then NAV doesn't let us release orders from it. There is too much maintenance to update the dates on all the Sales Blankets...that's what we use the forecast for. How do people handle the interaction of Sales Blankets with Forecasts?

    Appreciate any specific answers if you have them or a reference to contact for a few hours or days of consulting if too big to handle here. We're anxious to get this dialed in so MPS generates a more meaningful schedule.

    Thank you very much.

    Jim
    #Functional
    #NAV2018
    #Manufacturing
    #SupplyChain
    ​​​​​

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    Jim Magnus
    Clasen Quality Chocolate
    Madison WI
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  • 2.  RE: Using Sales Forecasts in NAV with Sales Blankets for MPS

    Posted 24 days ago
    Just replying so I watch this thread as it develops we have similar interests.   Is there not a way to "bookmark" or set notifications for this thread?

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    John Gaither
    American Art Clay Co
    Indianapolis IN
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  • 3.  RE: Using Sales Forecasts in NAV with Sales Blankets for MPS

    TOP CONTRIBUTOR
    Posted 24 days ago
    ​Some insights...

    1. Monthly forecasts are the norm for most S&OP processes. Forecasted demand will come in with an end of month date on it. But if you have your constrained capacity and production lead times setup correctly, NAV will back schedule using the available capacity each day to ensure that all production is completed before the end of the month deadline. You can also manipulate what you EOM date is, so all demand could be due on the 20th of the month, as an example.
    2. This surprises me. Sales order demand is supposed to consume the forecast, not add to it. We would have to research why this would be happening. Perhaps it has to do with the dates on the sales orders created from blanket orders.
    3. Same surprise. My expectation is that forecast demand would be consumed by sales orders. I've not seen sales orders created from blankets act differently than other sales orders. Do you know if you have a modification?
    4. NAV does use the shipment date to drive demand. It is the most important trigger. If dates are not maintained and sales orders are being created with shipment dates in the past, that would potentially explain points 2 and 3 above. If the shipment date is not in the forecast date range, NAV would not know that the demand is in the same period and would not consume the forecasted demand.

    Hope the above helps but if you would like feel free to reach out kim@dallefeld.com

    ------------------------------
    Kim Dallefeld
    Kim@Dallefeld.com
    Dallefeld Consulting, LLC
    Member of Dynamics Consulting Group
    Ft. Worth, TX
    2019 NAVUG Board of Advisors
    Past NAVUG Board Chairman
    NAVUG Programming Committee
    ------------------------------



  • 4.  RE: Using Sales Forecasts in NAV with Sales Blankets for MPS

    Posted 24 days ago

    ​Thank you for responding Kim. I'll keep my replies on this thread for benefit of others interested.

    1. We don't currently have constrained planning set up, although we do have capacities defined on machine centers and work centers. Any links to additional resources on how to configure capacity planning? I assume it might be using the "Capacity Constrained Resources" page or somewhere else? We will be installing PlannerOne soon, so perhaps we wait for that to handle it, otherwise it may be redundant.
         1a. We loaded our forecast on the first of every month but you suggest end of month. That may make more sense. However, I find it interesting that NAV "PLAN" generates production orders prior to the shipment date of the forecast, but when you view the Item Availability it uses the closest forecast in the past as the current forecast until the next period. Seems contradictory so not sure which is more appropriate. Do you agree?

    2&3. Regarding Sales Orders (SOs) from Sales Blanket (SBs), I don't think we don't have any modifications here.  I think the logic makes sense if NAV truly looks at SBs plus Forecast as total demand (I've read this in some white papers). So it should exclude SB SOs from Forecast deductions. But I'm wondering why you're not seeing this if you have SOs released from SBs as well???  If it is what it is, then I guess we'll just put in a workaround on the inbound forecast feed (subtracting SB SOs from monthly forecast before feeding it to NAV), unless you have another idea on how to get them to come out of Forecast in the Item Availability view?

    4. We experimented and changed the Shipment Date to 5 years in the future and this pushed the emergency order out until then. We also changed the date to a month in the future and it treats that as a forecast. It still seems like there should be a way to tell NAV to ignore Sales Blankets altogether, including SOs from SBs, and only use the forecast, but I haven't found a way.

    We did some reconfiguring and are testing now.  Appreciate any other thoughts or suggestions.

    Thank you,

    Jim



    ------------------------------
    Jim Magnus
    Clasen Quality Chocolate, Inc.
    Madison WI
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  • 5.  RE: Using Sales Forecasts in NAV with Sales Blankets for MPS

    TOP CONTRIBUTOR
    Posted 23 days ago
    Jim,

    First, I would strongly encourage you to reach out to your Partner.  They should have experience implementing Forecasts and MPS/MRP strategies for their clients, which will help in your discussions and decisions.

    Second, Sales Blankets are a maintenance headache and you are making the right decision to utilize Forecasts.

    Lastly, in regards to your first point on the lump production order, you can control this on the Item's Planning Tab.  For example, if an Item suggestion is to produce 1000 units, and I have a Max Order Qty of 100, then I will get 10 Production Orders each with a Quantity of 100.  This allows you to schedule the Orders on several machines or time phase in the Production.​

    MPS/MRP is a huge topic with a lot of flexibility.  Once it is setup correctly, it is a huge value-add for the business.  That being said you need to work with someone (your Partner) on the setup or you'll frustrate yourself and likely abandon the project.

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    Ben Baxter
    Consultant
    Accent Software, Inc.
    Carmel IN
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  • 6.  RE: Using Sales Forecasts in NAV with Sales Blankets for MPS

    TOP CONTRIBUTOR
    Posted 23 days ago
    Jim - Couple of things to consider
    • I recommend weekly forecasts in order to not have an unplanned large order consume the Forecast for the whole month.- would only impact the week forecast
    • Blanket Sales Orders will be ignored by Planning if you do not fill in the shipment date on the Blanket line
    • Also PlannerOne will use  'Forward' scheduling which is basically how constraint scheduling in NAV works best

    Best Regards

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    John Grant
    Senior Application Consultant
    Innovia Consulting
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  • 7.  RE: Using Sales Forecasts in NAV with Sales Blankets for MPS

    Posted 23 days ago
    ​John, thank you for responding:

    - Regarding weekly forecasts, I agree with you for production spreading. However, I don't like the way it will handle forecast consumption since we forecast in monthly buckets and need to reconcile to that total, not the weekly totals. We're doing a test where we'll send 2 forecasts to NAV. The total demand for the month will be the same in each, but one will be in either daily or weekly buckets for Production Planning and running PLAN. The second will be in monthly buckets for viewing in the Item Availability view so the sales orders get consumed from the monthly forecast. We'll see how this works.
    - Regarding removing the Shipment Date from the Blanket Line, you gave us this advice in the NAVUG Manufacturing class that we attended in Phoenix. This worked for us in Planning, however if that date is blank Customer Service wasn't able to create sales orders off of the blanket. They got an error. So if we make the date 1/1/2025 as a workaround, they can create sales orders and we don't get emergency backorders. However, we do still get a lump of production in 2025, but it's outside our concern. Any thoughts on how to remove the date and still allow sales orders to be created from the blankets?


    Ben, thank you for responding:
    - We did try our Partner first, however Manufacturing isn't their area of expertise to the level we're looking for. Thus the reason I'm reaching out. I agree that there have to be additional untapped features in NAV Manufacturing that we can utilize, but need help getting there quickly.
    - Agree on the Max Order Qty, but I think it will still create 10 production orders of 100 all on the same day (in your example). Unless you can capacity constrain it and tell it to pull-ahead and level out, it'll be unconstrained. Correct? As John states, I think we'll be able to accomplish this with PlannerOne, maybe with your help. :)

    Thanks all,
    Jim

    ------------------------------
    Jim Magnus
    Clasen Quality Chocolate, Inc.
    Madison WI
    ------------------------------



  • 8.  RE: Using Sales Forecasts in NAV with Sales Blankets for MPS

    SILVER CONTRIBUTOR
    Posted 23 days ago
    ​Hi Jim,

    We are on NAV 2015.   I'm also just adding my "2 cents" here so I can be on this thread and hopefully learn anything you may discover.

    We too have been struggling with implementing MRP/MPS while utilizing a Forecast, but have made progress.    We have spent the last year learning and playing on our own.     We learned it helped with the planning worksheet suggestions to utilize the min/max as well as the Time Bucket and Overflow Level fields depending on which Reorder Policy we picked.    This did help reduce the messages in the planning worksheet.    But to your point, when NAV see's the forecast demand, it suggest all the replenishment to be done on the same day even if you have min/max quantity set.    We have not setup capacity parameters on our machine centers/work centers and have resolved that if we did, then some of these messages would get spread out more.  (plan to look more into capacity settings in the next few months)  We are also playing with a Monthly forecast populating on the 15th of the month and a second forecast that is Weekly.

    We do not use Blanket Orders.   When we look at the event log from the planning worksheet, we can see open sales orders get deducted on the event log Projected Forecast column, which in turn affects the calculations for replenishment.


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    Catherine Collins
    Business System Analyst
    San Francisco Bay Coffee Company
    Lincoln CA
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  • 9.  RE: Using Sales Forecasts in NAV with Sales Blankets for MPS

    SILVER CONTRIBUTOR
    Posted 23 days ago
    Jim
    I just had a few more thoughts and questions.     We are planning 90 days out.   So, we are attempting to release firm work orders from the planning worksheet 90 days out so we can have visibility to the demand in MRP for our packaging.   Because of the calculations based on Forecast and parameters on the item card, we sometimes don't see a suggestion in the planning worksheet because NAV say's you don't need it.     However, we know from history, that we always produce certain items once a week.    So, we are still trying to figure out how to tweak things so we will get messages to create a firm work order.    For now, we are creating them manually, as well as accepting messages in the planning worksheet.

    I am curious -  how far out you guys are planning and creating work orders​?

    We are currently running the planning worksheet for both MRP/MPS combined  on a nightly schedule.

    How frequently are you running yours or are you familiar with what a best business practice would be?

    ------------------------------
    Catherine Collins
    Business System Analyst
    San Francisco Bay Coffee Company
    Lincoln CA
    ------------------------------



  • 10.  RE: Using Sales Forecasts in NAV with Sales Blankets for MPS

    TOP CONTRIBUTOR
    Posted 22 days ago
    Catherine, great comments, thank you!

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    Mark Rhodes
    General Manager, BCUG/NAVUG
    Dynamic Communities
    Windsor CO
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  • 11.  RE: Using Sales Forecasts in NAV with Sales Blankets for MPS

    Posted 18 days ago

    ​H Catherine,

    Thank you for the reply. It sounds like we're doing a lot of the same things and going down a similar path. That's reassuring! to answer your questions, we're rolling out an S&OP process so trying to generate planned orders 12-18 months out. We're trying to use these rules:
    - Released Production orders: 1 day before production.
    - Firm Planned orders: Everything inside the frozen schedule (~2-3 weeks). Some items in 3-8 week window depending on certainty. Also further out if "fixed" due to campaigning, prebuild or special timing (i.e. new product launch, etc).
    - Planned Orders: Outside of 3 week window. Some items in 3-8 week window if still some uncertainty (I.e. forecast by no contract or orders), most items weeks 8+. These orders still may change and are potentially refreshed weekly/monthly, but represent placeholders for capacity, inventory, labor and material planning.

    We are doing weekly master scheduling (2-3 months out) and monthly long range planning (12-18 months) using the Planning Worksheet. We're doing weekly MRP using the Requisition Worksheet. I was an IBP Supply Lead in a past career at a large global food company and this was similar to the cadence we were taught and used there and I found it to work quite well. I haven't found a reason yet that this won't work with our business model or with NAV.

    Thanks again for all the feedback everyone. We learned a lot in the past 2 weeks!

    Jim



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    Jim Magnus
    Clasen Quality Chocolate, Inc.
    Madison WI
    ------------------------------