Using Capability Check—Exercises

Basic Data Setup

Purpose: The purpose of this exercise is to enter all necessary data so that you later can run the capability check. You will run the capability check without the CBS.

Windows:
Company/Address
Site
Sites per User
Supplier
Inventory Part
Inventory Locations
Sales Part
Supplier for Purchase Part
Customer
Supply Chain Matrix for Site
Product Structure
Work Center
Routing

1. For company 10, enter three addresses for your three sites (see above).
2. Set the address type to include delivery.
3. On the same tab, enter a value in the Company's Own Address ID field (sometimes referred to as EAN) for the sites XXS and XXM1 (ordering sites). When working with internal transit deliveries, this ID provides a possibility to recognize addresses between sites and companies; i.e., the address is known and will not be marked as single occurrence. When you later will enter data for XXS and XXM1 as internal customers, make sure to use the same ID on the Customer/Address tab. Therefore, write the numbers here:_________________________________________________________________
4. Enter your three sites according to the table above and connect them to company 10 and use the delivery addresses above.
5. Enter 1 day picking lead time for each site.
6. Enter a coordinator group and make sure to define all order numbers and prefixes.
7. Enter a coordinator and connect your coordinator group.
8. Connect your sites and your coordinator to your user.
9. Enter site XXM1 and site XXM2 as internal suppliers.
10. Start by entering the sites as regular suppliers and name the suppliers XXM1 and XXM2. Make sure to link your suppliers to company 10.
11. On the Purchase/Misc Supplier Info tab, indicate XXM1 and XXM2 as internal suppliers.
12. On the Purchase/Message Defaults tab, select the Automatic Approval check box and enter your user ID as approval user.
13. On the Message Setup tab, connect the purchase order EDI messages ORDERS and ORDCHG. Indicate MHS as media code and IFSS as address, and select the Method Default check box.
14. Enter an external supplier XX5000. Make sure to link your supplier to company 10. Also, make sure to enter information on the Address/Purchase Address Info tab.
15. Enter all your inventory parts according to the table above. Make sure the parts are entered for the correct site and that the part type is correct.
16. Enter a purchasing lead time of 5 days for your externally purchased parts and a lead time of 2 days for your internally purchased parts. For your part XX1 at site XXS, enter 2 days purchasing lead time.
17. Enter an appropriate cost for the parts.
18. For all three sites, enter a picking location.
19. Enter part XX1 as a sales part on site XXS and on site XXM1. Enter part XX20 as a sales part on site XXM2.
20. Use sourcing option DOP Order for part XX1 at site XXM1 and for part XX20 at site XXM2. Use sourcing option Primary Supplier Transit for part XX1 at site XXS.
21. Open the Supplier for Purchase Part window, and connect your purchase parts to the correct supplier according to the table above. Make sure to select the Multi-Site Planned Part check box for your internal suppliers. On these internal suppliers, also enter your coordinator ID in the distribution order defaults group box. On the Inspection Info tab, specify Receive into Inventory as the receive case.
22. For part XX1 at site XXS, make sure supplier XXM1 is the primary supplier.
23. Enter site XXS and XXM1 as internal customers.
24. Start by entering the sites as regular customers and name the customers XXS and XXM1. Make sure to link your customers to company 10.
25. Indicate XXS and XXM1 as internal customers.
26. On the Address tab. Enter the same ID, used on the sites' addresses above, in the Customer's Own Address ID field. When working with internal transit deliveries, this ID provides a possibility to recognize addresses between sites and companies; i.e., the address is known and will not be marked as single occurrence.  
27. On the Order/Misc Customer Info tab , enter an order type. Make sure that order type works automatically through the order process.
28. On the Order/Message Defaults tab, enter your user ID as EDI coordinator.
29. On the Message Setup tab, enter the EDI messages for delivery notification (DIRDEL) and order response (ORDRSP). Indicate MHS as media code and IFSC as address, and select the Method Default check box.
30. Enter an external customer XX1000. Make sure to link your customer to company 10. Also, make sure to enter information on the Address/Order Address Info tab.
31. In Supply Chain Matrix for Site enter 1 day external transport lead time between XXM2 and XXM1 and also between XXM1 and XXS. Enter 2 days external transport lead time between site XXS and your external customer XX1000. Enter 5 days external transport lead time between external supplier XX5000 and your sites XXM1 and XXM2.
32. Create product structures for your manufactured parts according to the table above and make the structures buildable. Set the quantity per assembly to 1 for all components.
33. Enter one work center for each of your sites.
34. Create one routing for each of your manufactured parts using the work centers. Make the routings buildable. The setup time for each operation can be set to 1 h and the production time to 4 h/pcs.

General exercise for Company Setup
General exercise for Enter Site
General exercise for Enter Supplier
General exercise for Enter Inventory Part
General exercise for Enter Inventory Location
General exercise for Enter Sales Part
General exercise for Supplier for Purchase Part
General exercise for Enter Customer
General exercise for Product Structure
General exercise for Work Center
General exercise for Routing
 

Main Exercises

Run the Capability Check for a Sales Site

Windows:
Customer Order
Sales Part

1. Enter a customer order for your customer XX1000 and site XXS. Enter a delivery date 4 weeks ahead.
2. Enter a customer order line for part XX1 of 5 pcs.
3. Run the capability check.
4. Note that the only allocation and reservation option is Neither Reserve nor Allocate. It is not possible with other allocation and reservation options for supply code Internal Purchase Transit/Direct or Inventory Order. In these cases, the capability check should be seen as a simulation.
5. The delivery date can be fulfilled.
6. Change the sourcing option for sales part XX1 at site XXM1 to Not Decided.
7. Note that the capability check is not enabled anymore on the customer order line. This is because the sales part at the supplying site must have a valid supply code.
8. Change the sourcing option back to DOP Order.
9. On the order line, change the quantity to 20 pcs and run the capability check again.
10. The delivery date is moved forwards.
11. If you want to, you can do exactly the same steps for a sales quotation.
12. If you want to, you can set the supply code on the customer order line to Not Decided and go to the manual sourcing. In there, for each sourcing alternative, you can run the capability check.

Run the Capability Check for a Manufacturing Site

Windows:
Customer Order
Receive Inventory Parts
Issue Inventory Part
Inventory Part In Stock Reservations
Purchase Order
Supplier for Purchase Part
Inventory Part
Inventory Part Availability Planning
Product Structure

1. Enter a customer order for your customer XX1000 and site XXM1. Enter a delivery date 4 weeks ahead.
2. Enter a customer order line for part XX1 of 5 pcs.
3. Run the capability check for allocation and reservation option Reserve and Allocate.
4. The delivery date can be fulfilled.
5. When the capability check is run for allocation and reservation option Reserve and Allocate or Allocate Only, interim orders are saved. Therefore, view your interim orders. Choose Expand Descendents to see the whole structure. You can see that you need 5 pcs of each part in the whole structure (net qty).
6. Receive 10 pcs of part XX1 at site XXM1 into stock.
7. Run the capability check again for allocation and reservation option Reserve and Allocate.
8. You will receive a message telling that there is available supply to meet the demand and you are therefore recommended to change the supply code of the order line.
9. Issue the 10 pcs.
10. Receive 3 pcs of part XX20 at site XXM1 into stock.
11. Run the capability check again for allocation and reservation option Reserve and Allocate.
12. View your interim orders. Now you will see that 3 pcs of part XX20 is reserved, therefore only 2 pcs are needed for that part and the parts below.
13. You can view the reservations in Inventory Part In Stock Reservations.
14. Run the capability check again, but now for allocation and reservation option Allocate Only.
15. View your interim orders. You will see that you will still only need 2 pcs of part XX20 and the parts below.
16. Query for reservations in Inventory Part In Stock Reservations. You will not find any, that is because the capability check has not made actual reservations, only considered the stock as available.
17. Enter a purchase order for of 1 pcs of part XX10 at site XXM1 for supplier XX5000. Set the receipt date to 1 week ahead. Confirm the order.
18. Run the capability check again for allocation and reservation option Reserve and Allocate.
19. View your interim orders. Now you will see that only 4 pcs are needed of part XX10 since there is an incoming purchase order of 1 pcs.
20. Cancel the purchase order.
21. Change part XX20 for site XXM1 in Supplier for Purchase Part so that it is no longer a multi-site planned part.
22. Run the capability check again for allocation and reservation option Reserve and Allocate.
23. View your interim orders. Since part XX20 is no longer a multi-site planned part, the capability check will not calculate further down than site XXM1; i.e., it will not continue down to site XXM2.
24. Change part XX20 back to a multi-site planned part.
25. In Inventory Part, change the parameter DOP Netting to No Netting for part XX20 at site XXM1.
26. Run the capability check again for allocation and reservation option Reserve and Allocate.
27. View your interim orders. Since part XX20 is not netted anymore, the capability check will consider the full demand of 5 pcs; i.e., the capability check will not net the stock of 3 pcs. Note, for the capability check, the DOP Netting parameter is only considered if the supply code of the line is DOP Order.
28. Query for part XX10 in the Inventory Part Availability Planning window and then click the Availability Check tab. There you will find an interim order demand as well as a supply. The task of the capability check is to make sure the customer order can be delivered in time. Therefore the capability check creates supplies when the availability is not sufficient; i.e., when the sum of existing supplies and parts in stock is not sufficient.
29. In the product structure for part XX1 at site XXM1, for the component XX10, change the component from promised planned to not promised planned. This means that the capability check will not create a supply for this part. Instead this will be taken care of by the MRP.
30. Run the capability check again for allocation and reservation option Reserve and Allocate.
31. Query for part XX10 in the Inventory Part Availability Planning window again. There you will find and interim order demand but no supply.
32. Change part XX10 back to promised planned.
33. Run the capability check again for allocation and reservation option Reserve and Allocate.
34. View the interim orders. View the critical path. The critical path is down to part XX21 and XX22, these two parts has the same purchasing lead time. To look at the critical path helps you to find which part of the product structure you should focus on, to shorten your lead time to your customer.
35. In Inventory Part, change the purchasing lead time of part XX10 to 60 days.
36. Run the capability check again for allocation and reservation option Reserve and Allocate.
37. The delivery date is moved forwards.
38. View the interim orders. View the critical path. The critical path is now down to part XX10.
39. Change the purchasing lead time for part XX10 back to 5 days.
40. As you have probably already figured out, each time the capability check is run, old interim orders are deleted and new ones created. This means that you can run the capability check over and over again.
41. Change the supply code on your line to Shop Order and run the capability check again for allocation and reservation option Reserve and Allocate.
42. View the interim orders. You will see that only a single-level analysis has been made.
43. Delete your customer order line.
44. In Inventory Part, for part XX1 at site XXM1, change the automatic capability check parameter to Reserve and Allocate.
45. Enter a new customer order line for part XX1. The capability check happens automatically.
46. View the interim order. Make sure the whole multi-site, multi-level structure of interim orders are there. Also make sure 5 pcs are needed for each part of the structure.
47. On the customer order line you can see that the capability check box is selected. You can also view the interim order number. The latest release date tells at what latest date you must release your customer order to be able to delivery the goods in time to your customer.
48. Release your customer order.
49. Since the supply code of your line is DOP Order, a DOP order structure with DOP orders are created and released for site XXM1 and also for site XXM2. All necessary supply orders, such as purchase orders and shop orders are created. For the delivery between the two internal sites, a distribution order is created. Since the distribution order is automatically released, a purchase order and a customer order is created for the inter-site delivery.
50. Starting at the bottom of your structure, you can, step by step, receive your purchase orders, perform and receive your shop orders, handle your DOP orders, pick and deliver your customer orders. Note that there is no difference in the handling of these orders because they are created based on interim orders.
51. Remember that the capability check functionality works basically the same for sales quotation. You can also run the capability check for configured parts.