Original Date: 07/10/2006
Revision Date: / /
Information : Enhanced Production, Planning, and Control
In December 2006 Tobyhanna Army Depot plans to go live with a series of new Enterprise Resource Planning tools that will give the depot the ability to see customer demand schedules and adjust the workforce accordingly, reducing inventory levels and production stoppages.
In December 2006, Tobyhanna Army Depot (TYAD) plans to go live with a series of new Enterprise Resource Planning (ERP) tools to increase the functionality and usefulness of the Logistics Modernization Program. The current scheduling system at TYAD is an informal and reactive process that typically results in high inventory levels and production stoppages. A project is often accepted when the capacity and resources available to meet project requirements are unknown and delivery dates are inaccurate, resulting in the need for employees to work overtime or for extra shifts to be added to ensure timely project completion. Delivery dates may be delayed further if TYAD does not have the required parts or supplies on hand to meet project needs and has to order them, which may take several weeks.
The new ERP functionalities will give TYAD the ability to see its customer demand schedules and to adjust the workforce accordingly, while reducing inventory levels and production stoppages. The new tools include: The Demand Planning tool determines what assets are needed and when. Instead of waiting for an asset to enter the shop floor to determine what material or capacity is available to support it, the needs will be forecasted. There are three types of demands/customer orders: 1) Funded, in which the customer has identified and funded the project; 2) Planned/Unfunded, in which the customer has expressed a need but has not funded the effort; and 3) Unplanned.
The Material Requirements Planning (MRP) tool is a forecasting system that determines what material is needed, in what quantity, and when the materials are to ordered. Customer demand schedules drive the MRP and allows materials to be available just in time when the production floor needs them, reducing inventory levels and production stoppages typical in the legacy scheduling system. MRP data requirements include accurate bills of material, accurate production routings, allocation of materials to different parts of the production route, sound material order policies (reorder point, period of supply), and use of unrestricted stock policy in the Automated Storage Retrieval System.
Customer demand schedules also drive the Capacity Requirements Planning (CRP) portion of the system. CRP forecasts work center requirements by determining what type of labor skills and equipment are required on the shop floor at a given time. CRP allows the depot to see the location of potential overloads in the various work centers on the production floor. The scheduler can use CRP to adjust capacity levels in the problem work centers by increasing capacity or moving a workload to another work center with similar capabilities.
The Master Production Scheduling (MPS) system is a new function at TYAD that uses data from the Demand Planning, MRP, and CRP tools to determine if project schedules can be met. MPS uses operation data, machine data, and skill set requirements from CRP and inventory and purchasing data from MRP to develop a delivery plan. The delivery plan is a realistic plan of what the business intends to deliver/produce and is expressed in specific configurations, dates, and location. The delivery plan goes to the work centers for execution.
The new ERP tools that TYAD plans to implement will have a significant impact on project schedules, inventory, and capacity. MRP will promote on-time delivery of material, increased inventory turns, excess inventory reductions, and inventory cost reductions. CRP benefits will include reduced repair cycle times, capitalization on resource allocation to meet schedules, increased production throughput, and production cost reductions. The MPS will develop a realistic plan of what TYAD intends to deliver/produce. Successful implementation of these tools will result in their implementation across all Army depots.
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