Use the Process Material Requirements screen to plan product requirements by comparing the requested quantity of a list of end parts and their components to existing inventory, order, requisition, and reservation information. The process plans material requirements in a top-down fashion, exploding the Manufacturing Bill of Material and determining the requirements for each subassembly and component. For each end part, one BOM level at a time, the system determines the new requirements for the part, adds them to existing requirements (including safety stock and inventory requests, if desired), and subtracts current inventory, on-order, and on-requisition quantities. If a shortage is identified, the process can generate a manufacturing order (for make parts) or a purchase requisition (for buy parts) to cover the shortage quantity.
Use the Process Material Requirements screen to plan products even though their bill of material may not be completed. You can identify, requisition, and reserve long lead-time parts without a released BOM. To generate requisitions and manufacturing orders (you can still generate reports for unreleased BOMs.), an end part's manufacturing BOM status must be released or partially released. If the BOM status is partially released, only the subassemblies and components for which the Comp Rel Flag is "Y" (Yes) in the Maintain MBOM screen in Costpoint Bills of Material will be planned by the system. The function will not plan any part, or any of its components, when that part's Comp Rel Flag is "N" (No).
When planning in-process bills of material and generating purchase requisitions, we suggest that you also create inventory reservations to allocate the inventory you will need later in the manufacturing process. If you run the planning process and generate requisitions without also creating reservations, this material will appear as available inventory to any future job checking the same inventory project. Selecting the Reservations radio button in the Requirement Type group box in the Process Options subtask will create one reservation for each end part listed in the function, and a reservation line for each required purchased part and any make part that does not have a BOM. No reservation lines will be created for subassemblies in the end part BOM.
Once requisitions and MOs/reservations are generated, you should also manually reserve the end parts required quantities using an issue type reservation or an inventory sales order. This will formalize the requirements for these end parts in case another planner runs a new Process Material Requirements function for the same end parts and inventory projects.
As changes are made to the manufacturing BOM, the planning process can be rerun using the saved parameters to capture the newly released components. Before rerunning the Process Material Requirements screen, delete the old reservation(s) generated during the previous run and manually created for the end parts and select the Plan New radio button in the Requirements group box. Any requisition(s) generated from a previous run will be considered available inventory for the new run, and new reservation(s) will be generated to reflect the latest BOM. Note that this process will not identify or cancel requisitions that were created for parts that were subsequently deleted from the BOM (you may want to set the component type to "D" (Deleted) in the manufacturing BOM rather than physically delete the line; go to the Maintain MBOM screen in Costpoint Bills of Material and enter "D" (Deleted) in the Comp Type column for the component). Make sure the As of Date column is changed to reflect the latest version of the BOM and re-add the reservations for the end part requirements.
Creating manufacturing orders will also reserve lower-level components and subassemblies, but once an MO is created, you must manually change requirements using the Enter Manufacturing Orders or Expedite Manufacturing Orders screens for any BOM change processed. We suggest that manufacturing orders be created only when the BOM is relatively stable (or at least near the required manufacturing start time). When generating manufacturing orders, delete any old reservations generated from a previous run of this job to prevent doubling reservation quantities.
After you generate requisitions, manufacturing orders, and/or reservations for a list of end parts, save the run parameters to check the status of a given production job. When checking the status, select the Review Existing radio button in the Requirements group box and enter the date the last time the process was run for this particular job in the Last Planned Date field. This option assumes that the end parts listed do not constitute new requirements and that they have been reserved using a sales order or a standard inventory reservation before this process is run. If the end part As of Date(s) are updated to the current date, the system will identify, in the Indented BOM Explosion report, any BOM changes that occurred between the last plan date and the current date (except when a BOM line is physically deleted from the table).
If you select the Review Existing radio button, the system can also generate requisitions and/or manufacturing orders when it determines that there is a shortage (negative net availability). If BOM changes occur after manufacturing orders have been generated, manually update the appropriate manufacturing order's requirements to reflect the BOM changes before generating any additional manufacturing orders and/or requisitions. Updating the requirements will adjust the inventory reserved quantity and net available quantities for the component; the system will alert you when shortages exist and create a requisition or manufacturing order to correct the shortage.
You can use the Inventory Project Selection group box to select which project(s) will be checked when determining current inventory availability. If you select an individual project (select the Inventory Project radio button and enter the project in the blank field below), that project's Project Planning Option code will be used to determine which other projects' inventory, if any, will be checked. The codes are:
Project-No CS - Only the inventory for the specified project will be checked.
Project-CS - For non-common stock parts (identified in the Planning Part Data screen in Costpoint Product Definition), only the inventory for the specified project will be checked. For common stock parts, inventory in common inventory projects will also be included in the inventory availability calculation.
Top-Level Project-No CS - Only the inventory for the projects sharing the same top-level project ID as the entered project will be checked.
Top-Level Project-CS - For non-common stock parts, only the inventory for the projects sharing the same top-level project ID as the entered project will be checked. For common stock parts, inventory in common inventory projects will also be included in the inventory availability calculation.
Netting Group-No CS - Only the inventory for the projects sharing the same netting group will be checked.
Netting Group-CS - For non-common stock parts, only the inventory for the projects sharing the same netting group will be checked. For common stock parts, inventory in common inventory projects will also be included in the inventory availability calculation.
If you select the All Inventory Projects radio button, all projects inventory will be included when checking inventory availability.
If you select the Netting Group radio button, only the inventory projects belonging to the selected netting group will be checked.
If you select the Include Common Inventory Projects checkbox, inventory projects flagged as being common inventory projects in the Inventory Project screen in Costpoint Inventory will be included.
On new jobs, you might want to run the process against all projects first, selecting the Break Out Supply/Rqmts by Project checkbox without generating requisitions, MOs, or reservations. This can identify other projects that have surplus material that may be usable in the job's planning project. Once the surplus material is transferred, or a transfer reservation is created, the process can be rerun for the specific project or netting group to generate the necessary requisitions and MOs for material that cannot be pulled from other sources.
Below are listed the key part and BOM key characteristics and how they affect the explosion and planning process. End parts, the part type, and part make/buy code will be checked during processing. For subassemblies and components of the end parts, the BOM component type and make/buy code will be used. It is possible that the same part might be in multiple BOM lines for the selected end parts with different BOM characteristics. If that happens, you can have the same part planned in different ways in the same process. You designate Part Type in the Basic Part Data screen in Costpoint Product Definition. All parts excluded from make/buy list reporting will still be included on the indented BOM report with zero quantity per.
If one of the listed end parts is a buy part but does not have a Part Type of "Buy with Components" (as designated in the Basic Part Data screen in Costpoint Product Definition), any components under that part will be ignored for make/buy list reporting (but not indented BOM reporting), requisition and MO generation, and reservation generation.
Reference and tooling components/parts will be ignored for make/buy list reporting (but not indented BOM reporting), requisition, MO, and reservation generation (but can be included as a non-inventory MO requirement). Any components of these parts will also be ignored.
Deleted components (components for which the Comp Type column in the Maintain MBOM screen in Costpoint Bills of Material is set to "D" (Deleted)) will be ignored for make/buy list/indented BOM reporting, requisition, MO, and reservation generation. Any components of these parts will also be ignored.
Phantom components/parts will be ignored for make/buy list reporting (but not indented BOM reporting), requisition, MO, and reservation generation, but any components of phantoms will be eligible for reporting/processing. If a MO is generated for an assembly calling out a phantom, any next level components of that phantom on the MO requirements are included (if there is a phantom in the next level components, its components are included as well until no phantoms are found).
Components with the Omit Requirement checkbox selected (in the Component subtask of the Maintain MBOM screen in Costpoint Bills of Material) will be ignored for make/buy list/indented BOM reporting, requisition, MO and reservation generation (but can be included as a non-inventory MO requirement). Any components of these parts will also be ignored for all purposes.
The components with the Stop Explosion checkbox selected (in the Component subtask of the Maintain MBOM screen in Costpoint Bills of Material) will be treated as a normal component for make/buy list/indented BOM reporting, requisition, MO, and reservation generation purposes, but any their components will be ignored for reporting, requisition, MO, and reservation generation purposes. If generating requirements from an MBOM or subassembly whose Stop Explosion checkbox is selected, the requirements generation process will stop at that particular level. If the part is an "M" (Make) part, or "B" (Buy with components) part type, the requirements generation process will continue through all levels of explosion.
If the part's Inventory Part checkbox is not selected in the Planning Part Data screen in Costpoint Product Definition, the part will be ignored for make/buy list reporting (but not indented BOM reporting), requisition, MO, and reservation generation (but can be included as a non-inventory MO requirement). Any components of the part will also be ignored for all purposes.
If the part's Active checkbox is not selected in the Basic Part Data screen in Costpoint Product Definition, the part will be ignored for make/buy/indented BOM list reporting, requisition, MO, and reservation generation. Any components of the part will also be ignored for all purposes.
If the part's Floor Stock checkbox is selected in the Planning Part Data screen in Costpoint Product Definition, the part will be ignored for make/buy list reporting (but not indented BOM reporting), requisition, and reservation generation (but can be included as a non-inventory MO requirement). Any components of the part will also be ignored for all purposes.
If the part's Planning Type is "Reorder" (as designated in the Planning Part Data screen in Costpoint Product Definition), the part will be included for make/buy list/indented BOM reporting, but not for requisition or MO generation (but can be included as a non-inventory MO requirement). Any components of the part will also be ignored for all purposes. The part will be included as an inventory requirement on the parent MO; however, requisitions and orders will not be created for the part or its components.
If the part's status is "Estimating" or "Pre-Release," the part will be included in all reports, but no requisitions, MOs or reservations will be generated for it. If the part's BOM status is "Unreleased," the part's components will be included on reports, but no requisitions, MOs or reservations will be generated for them.
This section describes the different quantity fields found in the Material Requirements Report (MRR) and how they are calculated. When creating purchase requisitions from this application, transaction amounts in both transactional and functional currencies will be populated for the appropriate columns in the purchase requisition header, purchase requisition line, purchase requisition line account, and purchase requisition line PO tables. Transactional and functional currencies are assumed to be the same for the generated purchase requisitions except if a purchase requisition line PO is generated using an existing purchase order, in which case the PO's transaction currency and exchange rate information will be loaded. Otherwise all currency related columns will be populated with default values and the exchange rate will be "1." Amount columns will therefore have the same values for transactional and functional currencies. You cannot enter a different transaction currency or exchange rate after requisitions are generated.
This represents the additional number of parts required to meet the listed end part requirements. For the end parts, this represents the value entered in the Quantity column in the Process Material Requirements screen. For components and subassemblies with a BOM Qty Type of "A" (Per Assembly) as determined in the Maintain MBOM screen in Costpoint Bills of Material, the gross required quantity represents the order/requisition quantity of the parent part multiplied by the BOM quantity for that component. If the BOM Qty Type is per "O" (Per Order), the BOM quantity is used. Both quantities can be adjusted by the component's scrap percentage and its yield percentage, if scrap and yield are to be included in planning quantities (if the Incl Scrap / Yield % in Planning Process checkbox is selected in the Production Control Settings screen).
This quantity represents the sum of all inventory supplies minus all the current excluding the current run's gross required quantity (if creating a new plan). The quantity equals the on-hand quantity + in-inspection quantity + in-shipping quantity + on-order quantity + on-requisition quantity + owed quantity - reserved quantity. If you selected the Incl MRB as Available Inventory checkbox in the Production Control Settings screen, also add the inventory MRB quantity. If you selected the Add Safety Stock to Requirements checkbox in the Process Material Requirements screen, the safety stock quantity for the included projects is subtracted. If you selected the Include Pending Inventory Requests checkbox, planned owed quantities will be added and planned reserved quantities will be subtracted.
This represents the current shortage quantity of the Gross Required Quantity. This is the Gross Required Quantity minus the Net Available Quantity. If the result is negative, it is displayed as zero.
This is the quantity that will be ordered to meet the current net requirements. This represents the net required quantity adjusted by any lot sizing rules in effect for this part. It is set to zero if this part is not to be ordered/requisitioned because of its part/BOM characteristics.
Part lead times, defined in the Planning Part Data screen in Costpoint Product Definition, are used to determine the need and order start dates of any requisitions and orders generated by the system. These days can be represented in terms of operation shop days or in standard calendar days, depending on your selection in the Lead Time Calculation group box in the Production Control Settings screen. Order-by dates are calculated by subtracting the lead-time of the part from its need date. The need dates for all end parts are user-entered; all other need dates are the planned order-by date of the next-level parent part, adding back any lead time offset days identified in that part's BOM.
If a given component/subassembly is used by more than one BOM line across the given end parts, the earliest calculated need and order by date is used for all requisitions, MOs, and reservations. The Order By Date that is calculated by the system is used as the requisition line's Target Place Date. The requisition header's Target Place Date is set to the earliest target place date populated on the requisition lines for that Requisition ID.