There are times when businesses are faced with technological down times or issues that cause major operational disruptions.
This is particularly frustrating for companies because if they come across supply chain disruptions, the challenges of uncertainty and lead-time become problematic.
The key to avoiding any unforeseen issues is to implement proper tools within the supply chain, such as time fence and schedule data, two powerful applications leveraged within part planning and material requirements planning (MRP) to keep organizations in full control of their business processes.
Let’s break down what these tools are, how they function, and why they’re crucial elements in systems like Epicor ERP.
Complex supply chains are developed to include real-time data thanks to part planning and material requirements planning. Both are necessary to reduce costs, manage inventory, and ensure finished goods are on time.
Part planning is a necessary aspect of supply chain that comprises of forecasting, sourcing, and the management of the flow of materials and components needed in the production line.
This application guarantees that all parts are available at the right time, in the right amount, and at the right cost in order to meet customer demand. Inventory management, demand planning, and supplier management all work together to support the manufacturing lifecycle.
Another aspect that improves productivity within the manufacturing process is MRP the acronym for material requirements planning.
This particular planning process manages the procurement of materials and components needed for production. For example, it is used to determine how much material is needed, when it’s needed, and that they’re on a timely schedule in order to meet production times and customer demand.
Essentially, it makes part planning much more efficient within for companies with extensive inventory and production.
Within any production schedule, there are specific limitations placed on orders that determine whether changes can be made in the order. These are known as time fences.
For example, a time fence is a framed structure within MRP that suggests how far into the future changes to an existing order or supply can be made.
There are three types of time fences that offer a range of flexibility:
This is the most restrictive type of time fence. Typically used by made-to-order companies, this time fence has a strict schedule that results in extra costs and heavy delays if any changes are made after purchase or order.
This time fence is slightly more flexible than a frozen zone with changes being allowed but on a simpler level. In other words, a customer can make changes to sizing or color of a specific order but would be limited in adding or taking away a product.
Depending on what your product is, this time fence is the least restrictive of all other time fences. Customers can easily make changes to orders and the production plan is quite flexible and inexpensive if updates are created after the purchase order (PO) is implemented.
To certify that production is on schedule and orders are being delivered on time, companies with complex supply chains should consider adding schedule delta to their MRP.
Defined as a critical metric within the supply chain, it refers to the difference between the order date and the suggested date.
For example, if a purchase order is due on June 1 and the MRP calculates that it will in fact be due on June 2, the MRP won’t update the date because the schedule delta falls within the threshold of + 2 days.
Implementing schedule delta enables businesses to identify, analyze, and address abnormalities within the planned timeline and adjust for stronger, more resilient operations.
Companies with long lead times, complex supply chains, high demand, and large order volumes should consider implementing both time fence and schedule data within their part planning configuration.
Organizations can now cut out the excessive messages from MRP about short delays that don’t impact the long-term production cycle. With schedule delta takes on scheduling deviations so teams can no focus on high-value decisions, leaving low-impact and time-consuming tasks to the system.
It’s a well-known fact that last-minute changes are extremely costly for organizations in manufacturing and distribution industries. Implementing a time fence puts a lock on certain supplies and materials to keep expectations realistic and within the timeframe for suppliers and shop floor operations.
Businesses manage more than customer orders; they also need to nurture supplier relationships. When a company frequently changes orders – with short lead times – suppliers can’t always answer demand, leading to inefficient management and strained relationships.
Time fence keeps business functions running smoothly but ensuring that once an order is placed and enters the schedule time fence, no changes can be updated or modified.
Epicor is an enterprise resource planning (ERP) software designed for businesses in the distribution and manufacturing industry. Its features include the ability to effectively provide businesses with core infrastructure that extends well beyond information technology and into supply chain management.
An ERP platform ensures that an effective supply chain isn’t purely focused on demanding forecasting, but also about the little details that drive execution.
Time fences and schedule delta may appear to be minor add-ons, but they play a major role in reducing waste, control productivity, and keeping business efficient with their production plans.
At Teccweb, our seasoned consultants have years of experience in mastering and navigating intricate aspects of Epicor. Our knowledge of proper supply chain management ensures businesses stay competitive in ever-changing economic markets.