Page 490 - Orlicky's Material Requirements Planning

CHAPTER 27 Highly Visible and Collaborative Execution 467

FIGURE 27-15

Part PPA open supply summary.
Part #: PPA OH Buffer Status: SOWD Today’s Date: 5/20
Order # Quantity Request Promise Status
PO 126-12 350 4/25 5/19 At supplier shipping facility
PO 127-17 300 5/10 6/12 In process at supplier
PO 128-27 275 5/25 6/15 In process at supplier

FIGURE 27-16
OH alert for Part FPJ.

On-Hand Alert: FPJ
On-Hand Open
Part # OH Buffer Status Part Type Location Qty Supply Demand Available Stock Status
FPJ 33% (RED) Distributed Region 1 100 675 25 750 (GREEN)
FPJ 67% (YELLOW) Distributed Region 2 50 175 25 200 (GREEN)
FPJ 33% (RED) Manufactured Plant 1000 7000 500 7500 (RED)

Figure 27-16 is a final example for an OH alert. In this case, the screen displays only
one part. Part FPJ is a buffered part at the manufacturing plant and a distributed part in
the company’s regional warehouses. An additional column, labeled “Location,” has been
added to account for the same part but in different geographic locations.
Planners would use this report to consider expedites of open supply to all locations.
Additionally, in this example, the plant’s buffer position has a red OH alert. Under these
conditions, it is helpful for planners to know which regional locations should get supply
and which can afford to wait.

Projected Buffer Status Alert

Projected buffer status alerts notify planning, manufacturing, and logistics personnel to
situations where projected part consumption could result in an eroded buffer position
prior to receipt of incoming supply orders. This is a radar screen that informs materials
and planning personnel about anticipated projected on-hand alerts (particularly red zone
penetrations) over the ASRLT of the part based on average daily usage, actual demand,
and open supplies. Managing the projected buffer status alerts with a high degree of effi-
ciency reduces the number of current OH alerts.
Figure 27-17 is an example of a projected buffer status alert. This particular example
includes both manufactured and purchased parts. It is sorted by the severity of the alert
(top being the priority). In this example, two parts are projected to stock-out in the near
future. One of those parts will stock-out with demand against it, hence the acronym
SOWD. The two remaining parts are not projected to stock-out, but their deepest pro-
jected on-hand dips over ASRLT are color coded and displayed as a percentage remain-