MRP-TO-PO-DEFINITION & PROCEDURES

The purpose of this module will be to automate, the creation of Purchase Orders, based on the material requirements generated by the MRP module. There will be four phases to the process.

1) The MRP report (PP-20-22) will be run to create the PLANBUY file. The operator should consider what RANGE of dates to be evaluated. Items will be placed in the PlanBuy file based on the date Filter. In other words, if you enter a date range that included the next 30 days, then only those items that had to be purchased in the next 30 days (based on required date minus lead-time) would be written to the planbuy file.

2) PP 51 MRP-PO Planner Screen In this step the PLANNER will determine WHAT (item), WHEN (required date) and HOW MANY minimum quantity required. The PLANBUY file (and operator entered FILTER) will control the items, which are displayed by this program. The planner will review the recommendations made by the MRP program and decide how many of each item will be required to manufacture the finished products listed on the PRODUCTION SCHEDULE. The planner will OK each request by creating a DRAFT P/O (request to purchase). They will indicate the quantity and required delivery date. The DEFAULT vendor (from the ITM file, vendor one) will be assigned to the purchase request. A sticky note relating to each purchase request is available for communication between the planner and the buyer.

3) PP 54 MRP-PO Buyer Screen In this step the BUYER will finalize from WHO (vendor) the purchase should be made, and determine the quantity to purchase, based on quantity pricing. The PURCHASING AGENT will perform this function by reviewing the DRAFT P/O file (that was created by the PLANNER) and determine from what vendor the purchase will be made. The planner will be able to view the prior purchase history for the item, predetermined purchase costs based on quantity, and the recommendation made by the planner. If ANY change is made, an audit transaction will be created which will document the change. They will also have control over what purchase requests will be grouped into a P/O.

4) PP 56 MRP-PO Transfer of draft PO’s A batch program will transfer the Draft P/O’s from the previous steps to the open Purchase Order file. After the transfer, these purchase orders may then be viewed or altered in the existing P/O system.

a) A new program was written to store the quantity-related costs for each Item/Vendor (PP-50 Vendor Item Pricing). This data will be available in step 3 (PP-54).

b) A new vendor history display was written to assist in the analysis of prior purchase orders for an item. This data will be available in step 3 (PP 54).

c) A “sticky note” program will allow notes to be maintained by item, vendor, and for each request to purchase transaction. These can be used to store related information to assist in the purchasing process. The vendor and item notes will be permanent. The request to purchase note will be attached to a purchase request, and will be archived at the time the P/O is created. Sticky notes are intended for on line viewing-no print facility is provided. If you want to include ITEM COMMENTS on the Purchase Order, these are stored in FM-35, and available under OPTIONS as “P/O comment”

d) PP 52 Print Draft PO Register, PP55 Print Buyer PO Register and PP 57 Print PO Transfer Report are now available to audit decisions made in PP 51 MRP-PO Planner Screen and PP54 MRP-PO Buyer Screen .

PP 50 Vendor Item Pricing

This is the file maintenance screen where you will enter the prices you have been quoted for each item you purchase. You can enter prices for any number of vendors for each purchased item. When you are in the PP 54 MRP-PO BUYER SCREEN you will have access to this data, and will be able to select any vendor that you have set up. You will be able to compare any two of these price quote screens so that you can determine who will give you the best price for the quantity for require. Up to 16 ranges per vendor can be added.

PP-51 MRP-PO Planner Screen

Menu options, Planner screen

These are the four SORT sequences that the items can be viewed in.

These RANGES can be used to FILTER what ITEMS will appear on the display.

Normally the ORDER DATE will be selected; this will provide an EXCEPTION list of items. For example you might choose to review only items that should be purchased this week (based on the lead time). This will shorten the list of items that will be presented on the display.

See definition of options below…

Computer generated ordr

Orders created in PP-21 will be included -excess demand from schedule (PP-20), is exploded in PP-21 creating a computer planned order file.

Minimum qty in calc

If selected, the current QUANTITY ON HAND will be reduced by the MINIMUM QUANTITY, before it is used on the display. This would be used when the minimum represents a “safety stock” that should NEVER be allocated to a job.

Planned buy qty * of EOQ

When the balance goes negative, the program will recommend that the replenishment purchase will be in a multiple of the EOQ.

Regenerate file

When selected, the PLANBUY file from the MRP report (PP-22) will be used to recreate the temporary file that is used by this program. You will usually want to regenerate the file after a new MRP report is run. If you don’t, you will be using OLD planned order data.

Incl draft p/o in calc

This should be selected. This will show draft P/Os that were created on previous executions of this program that have not yet been transferred to the P/O active file.

The Setup, will allow you to position the DRAFT DATA window at different locations on the screen

Here you set the line number for the window

This is the window that will move based on your entry (the “FIND” option –instructions pending).

SAMPLE PP 51 MRP-PO PLANNER SCREEN:

DEFINITIONS:

INCOMING

Purchase Beginning balance from the ITM file, plus open purchase orders. The minimum quantity (saftey stock) may be subtracted from this quantity, if the OPTION is selected.

Draft P/O Existing DRAFT P/Os that have not yet been moved to the P/O open order file.

OUTGOING

Planned Req Computer planned order demand, from the Production Schedule (PP-20).

Production Req Production order demand.

Customer Ord Customer order demand.

Balance Actual balance for indicated date (for each column), based on existing orders.

Planbuy This is the programs suggested purchase from the MRP report. The quantity is offset by the lead-time.

Planrec (Planned Received) This is the programs suggested purchase (same as previous line), in the date column when the item should be ORDERED (offset by lead time). This is the line that drives the program. When you SELECT by DATE, the program will display items that contain a quantity in the column RANGE that you entered in the date FILTER. This allows you to review purchase in the order that you need to review then based on the lead time.

Planbal (Plan Balance) This will be the balance for the indicated date, if the recommended purchases are made

PURPOSE

This screen will display the status of ONE item to the production planner. Using this information they will know what purchases are required, in order to meet the production schedule.

The program will recommend a purchase; the buyer will use the FIND button to locate the recommended purchase. This will display a small window, which contains the following fields…

The planner can alter any of these fields. The result will be a draft P/O when selecting OK. The quantity will move from the Plan buy to the Draft P/O line (PP-54) of the display. This process can be repeated as many times as necessary.

PP 51 MRP-PO Planner Screen, showing OPTIONS list

OPTIONS:

Sticky notes, Vendor, Item, Draft p/o

Sticky notes are intended to be used as a place to store related information for future use, by yourself or others in the company, much like you would the small paper notes you stick all over your work area. The vendor and item notes are available here and in the

foundation module. They are intended to be viewed on screen, NOT printed.

Price Level This will display the Vendor pricing that was set up in PP 50 Vendor Item pricing. This pricing will be used by the buyer in PP 54 MRP-PO Buyer Screen (instructions pending).

Where Used Jumps to SC-12 for the displayed item.

Item Supp flds Jumps to FM-7 to view supplemental field(s).

Vend Supp flds Jumps to FM-5 to view supplemental field(s).

P/O comment Jumps to FM-35. These comments are PERMANENT and will PRINT on the purchase order (for this order, and future orders for the same item)

S/C note Jumps to SC-5. These notes are PERMANENT and will PRINT on the production order MAKE SHEET.

Item F/M Jumps to the item’s Master record in FM-7.

PO History Jumps to a screen so the purchase history for the item can be displayed. Any received purchase order that has been PURGED from the active file, can be displayed on this screen.

Display Orders Jumps to the IC-3 display of orders for this item.

Menu Jumps to the Main Menu.

PP 52 Print Draft PO Register Prints an audit listing of all items with Draft PO’s created in PP 51.

MRPO05 7.0.1C DRAFT PO REGISTER REPORT Report Date 11/07/03

Page 1 DEMOFILE Time Of Day 11:26

Buyer Vendor Vendor Name Item Number Description Draft PO Qty Unit Cost PO date

LJ H23540 HARDWARE DISTRIBUTORS, INC. FR26 26"RACING FRAME 200.0000 24.7500 03/25/03

LJ HARDWARE DISTRIBUTORS, INC. B433 AXLE BOLT 21000.0000 0.4900 06/24/03

LJ HARDWARE DISTRIBUTORS, INC. FR26 26"RACING FRAME 1200.0000 24.7500 10/22/03

****** END OF REPORT ******

PP 54 Buyer screen:

MENU OPTIONS

SEARCH - The buyer can display items in order by item number or vendor number. The buyer will normally view the Draft P/Os in order by Item number, then redisplay in order by vendor, in order to consolidate the requests into one or more purchase orders, for each vendor.

FILTER orders by Buyers and required dates.

OPTIONS Allows the buyer to filter all orders, Ok’d orders or not Ok’d orders. (Further explanation of OK’d orders pending)

1^st PP 54 MRP-PO Buyer Screen by selecting ‘Item number” or “Vendor number” under the SEARCH pull down. This is the selection screen where the USER will choose which Vendor or Item they wish to review. The information displayed on this screen will be from the DRAFT P/O file. The buyer would select the order by double clicking the line.

2^nd MRP-PO Buyer Screen

This screen will display the Draft P/Os recommended by the PLANNER.

The PURPOSE of this screen is to allow the BUYER to review the DRAFT P/O requests made by the PLANNER. The operator of this program will have access to previously set up pricing for each item (PP 50 Vendor Item Pricing) so purchase quantities, and vendor selection can be finalized.

The P/O date for each line can be changed if desired.

In the “Ok’D” column, the operator will enter a code for those lines that they want transferred to the purchase order. Lines with the same code will be combined on the same purchase order. If several lines are displayed, the operator can separate the lines into two or more purchase orders by entering DIFFERENT codes in the "Oked" column.

The same OPTIONS list is available on this screen as the Planner Screen.

It is usually best to select the P/O when reviewing in VENDOR sequence, so the buyer can see all of the requests for a vendor, and determine if they want to create one P/O with requests, or split them into multiple P/O’s.

By selecting OPTIONS ,than “Price Level” the Vendor Pricing screen appears. Two pricing records can be display at a time.

If you select the MORE button, a list of other vendors that have been set up for this item will be displayed. The selected vendor will replace the vendor on the right side of the window.

The buyer will use the MOUSE to highlight the vendor, and quantity they want, and then press the SELECT button; the selected quantity, vendor and cost will be transferred back to the BUYER screen. If the quantity in the draft P/O was within the range of the selected cost, it will NOT be changed. If the quantity in the Draft P/O was less that the selected cost, the quantity will be changed to the value in the TO column of the active line. If the quantity in the Draft P/O was greater, it will use the quantity in the FROM column of the selected line.

Note: If only cost should be transferred (without quantity) highlight the cost field only, then press “Select”.

Example of PP 54 –both lines were Ok’d and coded the same to generate one purchase order. Requisition numbers were added that will transfer to the PO 1 “Requisition # “ field once orders are transferred in PP 56 MRP-PO Transfer of Draft PO’s.

Note: Changes can be made to any line after initial entry by reselecting the line.

PP 55 Print Buyer PO Register Prints an audit listing of all items that are ready for transfer in PP 56 MRP-PO Transfer of Draft PO’s..

MRPO06 7.0.1B BUYER PO REGISTER REPORT Report Date 11/07/03

Page 1 DEMOFILE Time Of Day 11:24

XFR Vendor Vendor Name Item Number Description Draft PO Qty Unit Cost PO date

A A4500 AUTOMOTIVE PARTS DISTRIBUTORS FR26 26"RACING FRAME 301.0000 24.6800 03/25/03

A H23540 HARDWARE DISTRIBUTORS, INC. FR26 26"RACING FRAME 1200.0000 24.7500 10/22/03

****** END OF REPORT ******

PP 56 MRP-PO Transfer of Draft PO’s

Select the “filter” to enter a range by vendor and buyer code.

Under the “File” pull down select “run program” to transfer your draft purchase orders to PO-1.

PP 57 Print PO Transfer Report Print an audit listing PO’s created in PO 1 as a result of running the transfer in PP 56.

MRPO04 7.0.1B Purchase Order Transfer Report Report Date 11/07/03

Page 1 DEMOFILE Time Of Day 11:38

Vendor P/O # Ord Date Item Number Description Quantity U. Price Req Date Buyer

H23540 000208-00 06/24/03 B433 AXLE BOLT 50 0.49 04/18/03 LJ

A4500 000229-00 11/07/03 FR26 26"RACING FRAME 301 24.68 03/25/03 DJ

H23540 000230-00 11/07/03 FR26 26"RACING FRAME 1200 24.75 10/22/03 LJ

****** END OF REPORT ******

System Set Up 3A Material Requirements Plan#2 Activate this set up to activate option PP 53 Validate Planner Requests

Purpose of PP 53 is to have the buyer manager release Draft PO’s that were generated in PP 51 MRP-PO Planner Screen to PP 54 MRP-PO Buyer Screen. If this set up is active, Draft PO’s will not display in PP 54 unless the manager OK’s them by adding an “X” in the OK’d field and selecting “Update”.

Back to Myte Myke “ What’s New”