Generate Material Plan

Explanation

The creation of a complete material plan can be done in two steps, by first generating material plans and later on, calculation gross requirements. Or, the other way around, by first generating gross requirements and later on calculating gross requirements. Both operations can be run in one go. A recommendation is to consider the complexity of the structure, before deciding if the material plan should be generated in one or two steps.

Options for generating material plans and calculating gross requirements, are found here:

Material Plans option in the Project Deliverables Materials and Services/Materials Requirements.
Calculate Gross Requirement option in the header.

Use the Generate Material Plans option to create material plans without calculating the gross requirements for the project deliverable structure. The gross requirement calculation is optional but can also be run, as part of the creation of material plans, if the Gross Requirement Calculation option is enabled. Material plans can also be generated without calculating gross requirement. A recommendation is to review the Warning field in Material Requirements, before the generating material plan.

Use the Calculate Gross Requirements menu option to perform the required quantity and required date calculation, which analyzes the item structure and determines when the items must be available, for the assembling of the project deliverable structure. If the Generate Material Plan option is enabled, it will generate material plans after calculating the gross requirements. A recommendation is to review the GRC Indicator. The information in the GRC Indicator, will indicate if the material plan is up-to-date or if a recalculation is needed.

Project connections on items and early finished dates on project activities, might have been modified during a project's planning phase. This affects material requirements and already generated material plans. The early finished date is used as an input for the gross requirement to calculate required date, and the required date is also passed to respective orders during the execution phase. So, it's important to keep material requirements updated with any modifications done on project connections and project activities early finished date. With the Update Project Connection option enabled, it will update those material requirements and already generated material plans. Project activities are also updated with planned cost information from already generated material plans.

The following are not included in the above operations:

Items without an activity.
Items marked as non-material.
Items with parts where the part status flag in inventory, is set to Demand Not Allowed.

You can send the above operations into a background job. The status of the background job can be further monitored in the Background Jobs window.

Prerequisites

Item structure should exist with the values for quantity per assembly.
Items should have inventory parts and project connections, prior to the calculation.

System Effects

A material plan record is generated by using information in the Supply Option field. The Supply Option field is found in Material Requirements and can have one of the following values:

Supply option Shop Order creates a material plan item Shop Order Plan.
Supply option Purchase will creates a material plan item Purchase Order Plan.
Supply option Project MRP creates a material plan item Project MRP plan.
Supply option MRP creates a material plan item MRP plan.

Gross requirement calculates required quantities and required dates, starting with the top item and then moving down in the structure. The following is valid during the calculation of required quantities and dates:

The total required quantity per assembly for each item is calculated (items quantity per assembly multiplied by the quantity per assembly of the parent item).
The required date is set for material requirements based on the early finish date of the nearest connected activity upwards in the structure and the lead time in workdays for each part/item on the different levels accumulated. The lead time is fetched from either manufacturing standard or inventory part on the material site. The project's calendar is also taken into consideration when calculating the demand date.

The calculated required quantity values can be reviewed:

On the item in the Project Deliverables Materials and Services /General tab and Project Deliverables Design/Components.
On the material requirement in the Project Deliverables Materials and Services/Materials Requirements.
On material plans, once those plans are generated, in the Project Deliverables Materials and Services/Materials Requirements .

The calculated required date values can be reviewed:

On the material requirement in the Project Deliverables Materials and Services/Materials Requirements.
On material plans, once those plans are generated, in the Project Deliverables Materials and Services/Materials Plans .

Generate Material Plan

Explanation

Prerequisites

System Effects

Pages

Activity Diagrams