Shadowing Practice: Introduction to Constrained Planning - Learn English Speaking with Video

Hello.

Now we are going to start learning constraints applied learning.

Thank you.

Let's start with an introduction of it.

So After completing this lesson, You should be able to.

Discuss the key objectives of constraint planning.

describe the hardens of constraints of a constraint supply planning Thank you.

You should be able to explain how to maximize demand satisfaction and minimize overloads.

Constraint planning in Oracle Supply Planning Cloud, Balances material and plan resources.

While meeting customer demand.

It takes into account constraint at the enterprise as well as plant levels.

Thank you.

Constraint supply plan automates decision making by selecting alternates.

to maximize on time demand fulfillment.

and minimizes the manual intervention required to make the plan feasible to execute.

The material and capacity constraints are considered simultaneously.

It provides the global visibility to the effects of planning decision throughout the supply chain.

It also reduces.

Planning cycle time.

and makes better decisions faster.

Thank you.

To use constraint based planning feature, you need to obtain this feature.

You need to enable it in setup and maintenance module.

To create a plan, the first thing is to define the plan options.

To create a constraint supply plan, you need to set the supply planning mode to constraint.

Thank you.

This section discusses the key objectives of constraint planning.

Thank you.

Constraint supply planning respects lead time constraints.

Lead time is respected as a hard constraint.

You have the option of turning purchasing lead time off at the item level using a new item attribute in force,

purchasing lead time.

Manufacturing and transfer lead times are always respected as hard constraints.

Constrained plan respects the capacity constraints and consider alternate soil planning, but.

It prioritizes satisfaction of demand due dates.

Higher than the need to respect resource.

and supply capacity constraints.

Let's look into the hard and soft constraint considered by constraint supply plans.

Lead time constraint determines how soon new material can be available

if there is insufficient on hand and on order inventory within the lead time.

Planning time fences are also included in this category.

A constraint plan will impose lead time as a hard constraint.

within the lead time.

Only on hand inventory.

and scheduled receipts can be used to satisfy demands.

Thank you.

As you can see in this picture, There is a planning time phase defined for an item.

Only existing supplies like on hand or other schedule receipts are considered within planning time, friends.

New plan orders can be treated beyond the lead time or planning time, friends.

Thank you.

Here we have Two more points about constraint planning behavior.

related to the purchase order within are outside of the planning time friends or lifetime.

As it is shown here, purchase orders within the planning time fence or leave time.

can only be rescheduled out and cannot be rescheduled in.

Bye.

If a purchase order is outside the planning time, friends, early time, then it can be rescheduled out.

And in addition to it, it can be rescheduled in only till the planning time, friends, or lead time.

Thank you.

The item attribute enforced purchasing lead time controls, whether purchasing lead time constraints are applied or not.

during the planning process.

If it is said to yes, then all the lead times,

including preprocessing, processing, transit, and post -processing are applied to determine the dates on buy orders.

Thank you.

If it is said to know.

Only post processing lead time is applied.

All other lead times are assumed to be.

Zero.

Thank you.

Constraint planning also respects resource constraint by moving orders to an earlier time bucket.

or offloading to an alternate resource.

Please keep in mind that the constraint supply plan only overloads resource capacity.

If there is no alternative to meet demand on time.

It can improve planar productivity by automating the process of level loading.

and offloading resource capacity.

as well as reduce supply chain cost by.

Minimizing the need to run overtime shifts on bottleneck resources.

As an example, In this case, a frame manufacturer cannot satisfy customer demands.

due to the overloaded labor resource in its cutting department.

Thank you.

To resolve this issue.

They added an additional labor as an alternate in the cutting department.

As a result, the planning system uses the alternate resource when the primary source is overloaded.

And by doing this, it resolves the overload issue.

If you see in this example, The unconstrained plan doesn't consider alternate resource and hence primary resource is overloaded.

While in case of constraint plan.

Thank you.

Alternate sources used to resolve the overloads.

resource constraints are applied.

based on the plan option capacity constraint resources.

Thank you.

If it is set to all resources.

Then the plan treats every resource as a potential constraint resource

and apply and apply capacity constraints on all resources when calculating that plan output.

Thank you.

If it is said to.

bottleneck resources only.

Then the plan only treats the resources.

100

that have bottleneck flags to yes as capacity constraint resources.

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Please also note that the resource attribute bottleneck is not a source attribute.

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It can be specified in the supply chain planning resource page.

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The default value for the bottleneck resource is set to.

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No. Thank you.

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Now the question is, in what order the capacity constraints are applied by the planning system?

106

Thank you.

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So constraints apply planning, apply the capacity constraint in the following order.

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First.

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The planning system uses the capacity.

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to pre -built in earlier time buckets.

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Then, If it is required, it uses alternate resources.

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Finally.

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If there is no more availability, it overloads the capacity.

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Now let's look into an example, consider a demand for 500 units of an item on day three.

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The production rate is.

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10 units and add.

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the plan will first use them primary resource in day one,

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two and three to produce 80 units per day for a total of 240 units.

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The plan will then use the alternate resource in days one, two and three to produce.

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It units per day.

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for a total of 240 units.

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Finally, the plan will overload the primary resource on day three to produce 20 units.

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Thank you.

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here we have some more points regarding resource utilization and resource efficiency Thank you.

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Resource efficiency percentage.

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And resource utilization percentages are used to calculate.

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adjusted resource hours Resources are calculated.

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based on supply start quantity.

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And the resource usage is specified in the work definition.

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adjusted resource hours are calculated as resource hours divided by efficiency into utilization percentages.

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And adjusted resource hours consumes.

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resource capacity.

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You can review.

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The resource utilization information in resource plan.

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a bill plan or you can use custom pivot tables that include resource related measures.

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Okay.

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Thank you.

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Now let's talk about supplier capacity constraints.

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Supplier capacity is applied as a soft constraint when planning supplies for buy items.

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And applying a supply capacity constraint can result in the selection of an alternate supplier if primary supplier is overloaded.

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Supply capacity is consumed on the suggested date of by others.

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In this example, the daily supply capacity of rank one and rank two supply is 50 units per day.

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for a demand for 200 units of an item on day three in an unconstrained plan results in overload of primary supply.

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While in case of constraints apply plan.

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It results in two planned orders split across.

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to suppliers based on supplier capacity constraints.

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And as you can see, there are no overloads.

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- In this section, we'll discuss about demand due dates.

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Guys.

150

Thank you.

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As we have discussed earlier, Constrained supply planning.

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prioritizes satisfaction of demand due dates higher than the need to respect resource and supply capacity constraints.

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when a capacity constraint exists Constraint supply planning.

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First, Pre builds in an earlier time bucket using the primary source of supply.

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Then it selects alternate sources of supply.

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And if no other option is available to fulfill demand on time, then it overloads the capacity.

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All right.

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Okay now let's look into some overview of constraint planning Here we can see an unconstrained plan.

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Thank you.

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Now, if you look into...

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in the plants and we can see demand at risk over 18 .8.

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Emilien.

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And if I see that the source overloaded, they are.

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multiple resources that are overloaded in this unconstrained plan.

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And if I go to the utilization percentage of resources to look how the resources are loaded, Thank you.

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Thank you.

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In this case, we can see the blue bars represent the resource requirements and the green bar represents the resource availability picture.

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So you could see that the resources are overloaded.

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In this particular.

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unconstrained plan.

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And now if I move.

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or re -run the same plan as in.

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constraint plan.

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Thank you.

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Now, if you see, in a constraint plan.

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The demand at risk value reduced from over 18 .8 million to only around 8 million.

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and If I look into the exceptions part, In this case, constraint plan has used.

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Alternate resources.

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It has also used substitute components as well as the source overloaded are reduced as compared to unconstrained plans.

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So we could see the total demand at risk value is

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gone down just by using that constraint plan with alternate resources and substitute components.

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If I go and look into the utilization percentages in case of constraint plan.

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Thank you.

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Now you can see that resources are not overloaded.

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So blue bars again represent the resource requirement and green is availability.

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And you can see that the green bars are higher than the resource requirements.

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Now, if I go back and look into some of the causes for the demand at risk, Thank you.

188

Thank you.

189

so now i can see the green bar represents Now, most of the cases where demands are late.

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So to look into that,

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I can either go to exceptions Thank you.

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Okay.

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Here I can see there are multiple exceptions raised for the constraint planning and it shows their demands.

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are at risk due to insufficient lead time.

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There are some demand as risk due to resource shortages.

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There.

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plan orders, which has used alternate resources in the plan order, use a substitute components.

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And if I look at the.

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demand at risk due to insufficient lead time, I can see there are sales orders.

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which is using some components like CM six six five one zero one and

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their demand at risk due to insufficient lead time.

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and they started is.

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3122. It means this is the current date of the plan run.

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which is run on a fixed rate environment.

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So if you try to look into that, why it has been satisfied late.

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So let's look into the bill plan of this particular item.

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So if I go to the build plan of this particular item, we can see that The PAB is negative on this particular week.

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So if I look, the Plan orders, how it has been satisfied.

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Thank you.

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I can see the demands on the first day.

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or the first bucket it satisfied using the on end quantities.

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If I look into the projected available balance or the total demand over here how it has been satisfied

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You can see the demand in the second bucket is satisfied late.

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Due to the.

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lead times of these components.

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These components are having 10 days processing lead time.

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And because of this, planned orders are created.

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Lit.

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And as if we have learned earlier that Constraint planning uses lead time as a hard constraint, so it cannot violate it.

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Hence, the supplies will be meeting late.

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on the next packet.

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So in this lesson, you should have learned how to discuss the key objectives of constraint planning,

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describe the hard and soft constraint of a constraint supply planning and explain how to maximize demand satisfaction.

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and minimize overloads.

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Thank you.

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Thank you.

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