Using Just in Time MRP

Just in time manufacturing aligns raw material orders from suppliers directly with production schedules. In DEACOM, the just in time feature in MRP allows companies to schedule purchase orders based on job routing start times. This approach increases efficiency and decreases waste by receiving goods only when needed, which in turn reduces inventory costs.

Configuration

To enable the just in time feature in DEACOM, the following must be configured:

  • The “Schedule MRP POs From Job Routings” flag needs to be checked on the appropriate Vendors.
  • The “Split On Load Size” Combobox must be set, and the "Load Size" and "Load Unit" defined, on the appropriate Ship Via Methods.
  • The item master record of the raw materials or components that will arrive just in time need to be configured as follows:
    • Minimum purchase order quantities and lead times need to be established on the MRP tab.
    • Receiving minutes, for the purchasing unit, need to be established on the Units tab.
    • The appropriate weights must be established on the Calcs tab.
  • The appropriate finished goods need bill of materials containing the necessary raw materials or components.
  • Routings will need to be created and assigned to the appropriate bills of materials.
  • Routing sequences will need to be scheduled on the Master Production Calendar.
  • The "Just In Time Calc" field, in the Inventory > Options > Scheduling tab, must be set for "Receipt Minutes" or "Production Rate."

Process

Once the above configuration has been completed, the process for using the just in time process is detailed below

  1. Navigate to Inventory > MRP
  2. Fill out the pre-filter as necessary.
  3. Hit the “View” button.
  4. Toggle the value in the selected field from "No" to "Yes" for the appropriate items.
  5. Click the “Create PO” button.
  6. Select the appropriate Vendor that has the “Schedule MRP POs From Job Routings” flag checked.
  7. The system will display the “Select a Facility” form. Select an appropriate Facility.
  8. At this point the system will create, and display in list format, multiple purchase orders split by the load size defined and divided by the items unit weight. Each PO will also have delivery times (shown on the dates tab of the PO) staggered by the amount of receiving minutes specified and multiplied by the quantity specified on the purchase order.
  9. Once users are satisfied with the information defined on the purchase orders, they can close out of the Orders form to complete the process.
  10. The purchase orders can follow standard process from this point.

Example: Assume the following setup.

  • An item that weighs 5 lbs for each bag.
  • A load size of 50 lbs specified on the Ship Via Method.
  • A minimum purchase order quantity of 150 as specified on the item's MRP tab.
  • Receiving minutes of 2 for the purchasing unit as specified on the item's Units tab .
  • A routing from a job that is scheduled to start at 10 AM.

When the create PO button is used in MRP, the system will create 15 purchase orders with a quantity of 10 eaches, and a delivery time of 10 AM on the first PO. Subsequent POs will have a delivery time spaced at 20-minute intervals. So the next PO will have a delivery time of 10:20. The 20 minute interval is based on the fact that each PO has a quantity of 10 and the receiving units being set at 2 minutes.

Note: MRP will consolidate demand for multiple parts across multiple jobs into full truck loads when using JIT MRP in DEACOM. Previously, if a job were scheduled, and a 2 hour gap existed until the next job, MRP would set a partial truck to arrive to satisfy the demand for the first job. Now MRP will create full trucks until the last delivery. The number of jobs the demand in MRP represents, depends on the amount of time MRP is run.

FAQs & Diagnostic Tips

Tip: If multiple jobs have the same Receipt Minutes with two different Routings/rates, the system will sum these together and use that as the quantity to split the purchase orders when using the "Split MRP POs On Load Size" option on the Ship Via Method record.