Page 486 - Orlicky's Material Requirements Planning

CHAPTER 27 Highly Visible and Collaborative Execution 463

the yellow zone from a planning perspective, then it implies that when considering only
an on-hand perspective, this would, in fact, represent the green zone. In this case, the
entire yellow zone has been designated the on-hand green zone.

Current On-Hand Alert
The current on-hand alert is designed to show planning and, in some cases, manufactur-
ing personnel what replenished positions are currently in trouble from an on-hand posi-
tion only. For planning and purchasing personnel, these alerts are meant to identify parts
where open supply may need to be expedited. For manufacturing personnel, they pro-
vide relevant information about which manufacturing orders should take precedence.
Figure 27-8 is an example of an on-hand alert (OH alert) screen sorted by manufactured
parts only.
This report is filtered for stock-out and red and yellow zone on-hand status. Part
FPA is in the OH alert red zone with an on-hand position of 2,000, which is 27 percent of
a total red zone of 7,500. The OH alert is set to 50 percent of red (3,750). The top of green
is 20,000. Available stock is at 95 percent of top of green and is in the green zone [2,000 on
hand 17,000 open supply (no demands) 19,000]. In this case, a planner or manufac-
turing scheduler should consider expediting open supply. Figure 27-9 is a summary of
Part FPA’s current on-hand and available stock situation.
When the planner implodes FPA open supply, he or she will see the information
provided in Figure 27-10. In this case, open supply consists of three different MOs (i.e.,
123-72, 122-11, and 119-10). If today’s date were 5/20, MO 123-72 obviously would be late
with regard to its promise date. Its status shows that it is in progress at paint. Paint is the
last stage in the process. In contacting the paint department, the planner/scheduler
learns that the order is actually complete and is in the process of being put into stock and
will be available as on hand shortly. In this case, no additional expedite needs to be con-
sidered because the addition of 6,000 units will bring the on-hand buffer status out of the
yellow zone because the total of 8,000 will be above the red zone.
Part FPE is in the OH alert red zone with an on-hand position of 250. The top of
green is 2,000. Available stock is at 77.5 percent of the top of the green zone and is in the
green zone (250 on hand 1,550 open supply – 250 demand 1,550). Part FPE also
should be considered for expedited open supply. Figure 27-11 is a summary of Part FPE’s
current on-hand and available stock situation.

FIGURE 27-8
On-hand alert screen example (manufactured parts).

On-Hand Alert
Part # OH Buffer Status Part Type On-Hand Qty Open Supply Demand Available Stock Status
FPA 27% (RED) Manufactured 2000 17,000 0 19,000 (GREEN)
FPE 42% (RED) Manufactured 400 1,550 250 1,550 (GREEN)
SAE 88% (YELLOW) Manufactured 100 0 60 10 (RED)