Supercharged Supply Chains

CHAPTER 5Routings: Accuracy Required for Valid Plans

Companies with many Supply Chain Nodes (Supply Points) and/or multiple steps in the manufacture of their products typically need some very important additional data or information and system capabilities beyond just materials requirements. Those capabilities and related data/information within the planning system include, for example:

FIGURE 5.1 Business Excellence Planning

• Detailed Capacity Planning: by work location (rated and/or demonstrated capacity)
• Scheduling: by Supply Chain
• Appraisal: Financial appraisal, such as cost optimization
• Evaluation: Financial evaluation by operation
• Performance: Performance reporting and improvement activities

This chapter focuses on Routing Master Data, which support these capabilities as shown in Business Excellence Planning (BEP), Figure 5.1. To successfully utilize Detail Capacity Planning and/or the internal scheduling step and much of the financial information in the system, the basic data must be accurate. The Routing contains the production steps (there could be only one) required to produce the product. The work location (often referred to as a work center) identifies where the work is performed and provides information about the machine, group of machines, and/or skill sets required to perform the operation. For a process industry, this would be the production line or production ...