Sample Sales Forecast Report by jxi12892

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									Sales & Inventory Operation
      Planning (SIOP)
 XA tools to assist with Forecasting,
   Material Planning & Cash Flow
Sales & Operation Planning Data Flow
           Forecast – Projection of Future Sales

               Feeds Material Planning:
          Master Production Schedule Planning
                   Advanced Planner

           Planning Applications create Planned
                      MO’s & PO’s

                         Cash Flow Analysis:
        Use Existing AR, COM Orders & Forecast for income
       Use Existing AP, PO & Planned Orders for Expenditures
               XA Forecasting
• Forecast Code in Item Balance record determines:
  – Build forecast for item
  – Build forecast and pass to MRP or MPSP
• Codes:
  – 0 = No Forecast
  – 1 = Forecast, do not pass to planning
  – 2 = Forecast, pass to MPSP as requirement and MRP
    as reference
  – 3 = Forecast, pass to MPSP and MRP as requirement
Forecast Code
• Month End Processing will retrieve booking
  information from COM
• Move the periods forward by 1 period
• Calculate the forecast (using experiential
• Menu option to pass forecast to MPSP
  – Updates Demand Interface (DMDIFF) file
              Forecast Master
• Forecast Master holds:
  – Sales vs. Forecast for past 12 periods
  – Forecast for next 12 periods
  – Seasonality Factor for fluctuating sales
  – Safety Stock and Reorder Point (option in Tailoring
    to update Item Balance record)
• System Calculated forecast can be manually
  overridden, either at the ‘Annual’ level or in
  individual periods
                     Forecast Master

Forecast vs. Sales

              Forecast in SIOP
• If the Forecast is used as a requirement in the
  Material & Capacity Planning Applications:
  – Forecast needs to be an accurate representation
    of sales (i.e. not a ‘wish list’)
  – If there is seasonality within the monthly
    forecasts, the Master Schedule will need to be
  – Need to verify that there is capacity to produce
    the forecast prior to running material planning
         Other Forecast Options
• 3rd party forecasting applications can ‘feed’
  forecast to material planning
   – Futurecast
   – Customer provided forecasts
   – FD6
• MPSP – put forecast in Demand Interface file
• MRP – load forecast to Requirements (REQMTS)
• Advanced Planner – put forecast into access table
            Forecast Metrics
• Forecast vs. Sales Shipments by Item/Quantity
• Forecast vs. Sales Shipments by dollar
• Customer Order fill rate (actual ship date vs.
  manufacturing schedule due date)
• Forecast vs. Master Schedule Production
             Master Schedule
• Master Schedule needs to be an accurate
  statement of what is to be built
• Master Schedule should be isolated to
  Finished Goods (level 0 of the bill of material)
  – If lower level items are flagged as MPSP items,
    their parent items also need to be MPSP items
• Master Schedule should be reviewed by
  Senior Management within the company
  – Summarized by Product Family
• MPS Source Code in Item Balance determines
  what will be treated as a requirement in
  – F = Forecast only
  – C/E = Customer Orders only
  – B/D = Greater of Forecast or CO for the period
    (Forecasting Tailoring determines period length
  – M = no requirements, master schedule is manually
      MPSP Sequence of Events
• Load Forecast to Demand Interface (DMDIFF)
• Set Horizon dates
• Generate Master Schedule
• Test Master Schedule against capacity
  constraints (rough cut capacity test)
• Work/approve the Master Schedule
• Transfer Master Schedule to MRP
            Resource Profiles
• Resource Master record needs to specify
  hours/day resource is available
• Resource ID is loaded into Production Facility
  – ‘Prime Load Code’ determines if resource
    constraint is machine or labor time
• ‘Resource Profile Build’ job will go through the
  indented BOM for the MPSP item to find load
  in constraining facility and time offset
Production Facility Record
              Resource Test
• Resource test will compare master schedule
  against ‘Resource Profile’ file
• Resource display will show weekly periods
  where master schedule has overloaded the
  constraining facility
• Use date field to determine which Master
  Schedules are contributing to overload
• No report is available, only inquiry
           MPSP load to MRP
• When performing an MRP generation
  question ‘Transfer new orders from MPSP?’
  answered ‘Yes’ will bring the master schedule
  planned orders from MPSP to MRP to
  generate planned orders through all levels of
  the bill of material
       Master Schedule Metrics
• MPSP MO Performance
  – % of MPSP orders started on time (actual start
    date vs. scheduled start date)
  – % of MPSP orders completed on time (actual
    completion date vs. due date)
  – Quantity completed vs. quantity orders
• MPSP order changes within ‘frozen’ zone (i.e.
  ‘X’ number of days from start and/or due
           Advanced Planner
• ‘Next Generation’ of material and capacity
• Download planning information from XA into
  an Access database
• Planning performed on a PC or Server,
  eliminating job conflicts
Advanced Planner Sequence of Events
• Download data to Access
• Load the plan
• Review Load to Capacity for work centers (color
  coding shows level of capacity problems)
• Work daily plans to eliminate capacity overloads
• Review Supply vs. Demand (MRP) plan
• Upload plan to AS400 (updates PLNORD and
  REQMTS files)
• Release orders same as MRP
Load to Capacity
              Load to Capacity
• Separate line for each facility
  – Red – Facility over capacity (total)
  – Yellow – Facility over capacity for multiple periods
  – Blue – Facility over capacity for one period
  – Green – Facility under capacity
  – Black – Set up time
• Can ‘drill down’ to daily load
Daily Load
                   Daily Load
• Use ‘Drop & Drag’ to move order
  – Will reschedule other operations and, if
    ‘Operation Where Used’ in BOM is completed, will
    reschedule material
• Other options available:
  – Outsource: Have vendor perform operation
  – Alternate Route: use different process (EPDM)
  – Offload: move to different facility (only released
  – Level load: let AVP move load
   AVP New Functionality vs. MRP
• Customer Orders consume forecast
• Unlimited number of calendars, can associate
  multiple facilities to a single calendar
• Uses routing times (instead of lead time) to
  calculate MO start date
• Schedules load for each operation based on
  operation start/due date; can plan to the minute
• Uses Maximum Order Quantity to limit order size
• Planned Orders due the day before the
Supply/Demand for Item
                  Save Plan
• Uploads AVP plan to the AS400:
  – Saves Planned Orders in the PLNORD file
  – Saves requirements to the REQMTS file
• Use MRP recommendations (PowerLink) or
  MRP Order Release and Review to create MO’s
  and PO’s
• Same metrics as MPSP/MRP apply
Save Plan
            Cash Flow Overview
• The Cistech Cash Flow application was created to
  provide a future view of income and expenditures
  for a company
• Cash Flow is written with XA Integrator and runs
  exclusively in Browser (R6) and PowerLink (R7)
• Works with both AM and IFM financials
• Provides both summary data and detail to
  support the summary
• This application is especially important these days
  when cash management is essential to your
  company’s overall health
        Sample Screen

Time periods are user defined and can be:
• Daily
• Weekly
• Monthly
• Quarterly
          Income – Existing AR
• Uses the existing invoices in Accounts
  Receivable (either AM or IFM financials)
• Uses the invoice due date to determine the
  period for cash receipt
• Past Due invoices will display in a ‘Past Due’
  period column
          Income – Future AR
• ‘Future AR’ is time phased Customer Orders in
• Uses the Manufacturing Scheduled Ship Date
  for each item plus the Customer’s payment
  days (based on the terms code in the
  customer master record) to determine date of
  cash receipt
• Assumes shipment/invoice will occur on the
  Manufacturing Scheduled Ship Date
            Income - Forecast
• Forecast needs to be by Customer and Item
  for most accurate cash flow
• Cistech will provide a custom forecast file/file
  layout to allow you to populate a forecast file
  for Cash Flow
• Uses the Customer’s ‘Payment Terms Days’ to
  age the forecast
• Sum of:
  – Existing Invoices in Accounts Receivable
  – Aged Customer Orders
  – Aged Forecast
        Payments – Existing AP
• Uses the Existing Vendor Invoices in Accounts
  Payable (either AM or IFM Financials)
• Uses the Payment Due Date on the invoice to
  determine payment date/period
         Payments – Future AP
• Ages the existing Purchase Orders to
  determine payment date
• Takes the ‘Due to Stock Date’ plus the
  vendor’s Payment Days from the Terms Code
  specified on the Purchase Order
  – Uses the ‘Offset Days’
• For Blanket Items, uses the Due to Stock Date
  for each release
          Payment – MRP Plan
• P-Plan orders from MRP planned order
  (PLNORD) file are used to calculate future
• Vendor specified as ‘Primary Vendor’ in Item
  Balance record will be the Vendor whose
  terms are used to calculate offset payment
• Vendor Master record holds Terms Code
           Sample Screen

Summary and detail
are both provided
and can easily be
copied to Excel
             SIOP Summary
• Use Sales Forecast as the beginning point for
  developing Master Schedule
• Use Planning applications to create material
  and capacity plan
• Use Cash Flow analysis to determine
  company’s cash requirements based on
  existing orders and plan
• Use Metrics to determine success of SIOP plan
– Education (Forecasting, COM, MRP, MPSP, AVP)
– Upcoming “AVP JumpStart” Engagements
   • Free Webinars on AVP functionality
   • Classroom Education opportunities
   • On-site AVP “JumpStart” Consulting Engagements
– CISTECH’s Cash Flow Analysis Tool
– QuickLook consulting program for SIOP
   • 1-2 day review of your current SIOP Process
   • Executive wrap up session to provide vision and implementation
     plan for SIOP improvements

                         CONTACT INFORMATION
         Brock Miller                         Ben McCormick    
          704-814-0010                         704-814-0016

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