The Material Requirements feature in Fusion Operations has the main objective of showing the supply and demand on a given date interval, for the different products. It allows you to see, not only the different material needs - to be produced or purchased - but also the expected inventory on each date.
Available Filters
There are several filters available to help you understand in more detail the materials needs, throughout time.
Sales Orders: Only the products mentioned on the identified sales order will be presented on the table.
Production Orders: Only the products on the production orders and materials needed to produce them will be presented on the table.
Products: Only the products on the filter will be presented.
Product Family: Only the products belonging to the identified product families will be presented.
Purchase Orders: Only the products belonging to the identified purchase order will be presented.
Product Suppliers: Only the products that have the identified supplier associated on the product menu (suppliers tab) will be presented.
Purchase Order Suppliers: Only the products associated with purchase orders that have the identified supplier will be presented.
Only show Raw Materials: Only raw materials (products without operations) will be presented.
Only Show products consumed on production orders: When applied it will exclude products that are on production orders (final products).
Scale (day/week/month): Presents the different information per day, week or month, considering the selected option.
Description of fields and tables:
Available: Quantity available on inventory on a certain date, considering the planned consumptions, sales orders, purchase orders and production orders that will take place.
To Receive: Quantities planned to be received via purchase orders on a given date.
To Produce: Quantities planned to be produced via production orders on a given date.
To Ship: Quantities planned to be shipped via sales orders on a given date.
To Consume: Quantities planned to be consumed, considering the existing production orders, on a given date.
Excess/Need: Inventory levels at the end of the day/week/month to be transferred to the “Available” value of the following day/week/month. If the quantity is positive it will be displayed in green (Excess), if negative displayed in red (Need).
Practical Example
A company has received orders for 25 strawberry cakes to be delivered on two dates.
Two production orders were created to produce them.
We need to know what materials we have in stock, and what materials will be received from Purchase Orders, so we can plan our needs and create additional Purchase Orders if needed.
Analyzing this specific example we have the following board:
Product Column: Product Code with respective product name, lead time, and UoM (Unit of Measurement). Beware that if your product code is too long to be displayed on the square, you can have the complete information by hovering over it.
Current Inventory Column: Corresponds to the inventory levels on the moment of the analysis. It's the exact same value as the one presented on the inventory tab.
Prior to "..."Column: Corresponds to values from all open sales orders and purchase orders unfulfilled in the past and open production orders that weren't completed (both in terms of production of finished goods and consumptions of raw materials).
Displays the different days/weeks/months, depending on the option selected on the filters.
Analyzing the "Sugar" product (Raw Material):
There are 5 units in inventory today (3rd of July);
300 units missing to be received prior to 7/3/2024;
No consumptions will take place between the 3rd of July and the receiving date (To consume = 0)
On the 5th of July there will be 305 units available in inventory (if the receiving was fulfilled);
On the 5th of July, there's a need to consume 10 units (in order to produce the "strawberry cake" for the 5th of July)
On the 5th of July, there will be an excess of 305-10= 295 units
On the 7th of July, there will be 295 units available in inventory
On the 7th of July, there is a need to consume 15 units
On the 7th of July, there will be an excess of 295-15 = 280 units.
Analyzing the "Strawberry Cake" product (Finished Good):
There are 5 units in inventory today (3rd of July);
On the 5th of July, there's a need to produce 10 units (Production Order).
On the 5th of July, there's a need to ship 10 units (Sales Order).
On the 5th of July, there will be an excess of: 5 (inventory) +10 (produced) -10 (shipped) = 5 units.
On the 7th of July, there will be 5 units available in inventory.
On the 7th of July, there will be 15 units to produce (Production Order).
On the 7th of July, there will be an excess of 5(inventory) + 15(production) = 20 units.
On the 8th of July, there will be 20 units available in inventory.
On the 8th of July, there's a need to ship 15 units (Sales Order).
On the 8th of July, there will be an excess of 20 - 15(shipped) = 5 units.
Additional Capabilities
1. Create purchase Orders: If you have the Need field with a specific value, you can click on this button and create a Purchase Order to meet that Need.
It's possible to create a purchase order per product (1) or to create a purchase order for all products (2).
2. Check detailed information for a specific product: By selecting a product tile, you have more details about the orders where that product will be consumed/produced/shipped.
Final products: Both the production order (quantity to produce) and sales order (quantity to ship), with respective due dates, are listed. By selecting the blue arrow next to the order's code, you are re-directed to the order itself. It also presents how many units have already been produced/shipped.
Raw Materials:
The production order codes where that product will be consumed are listed.
The purchase order codes where that product will be received are listed:
3. Create Purchase Orders/Production Order for specific products: Considering the displayed values you can also make the decision to create a production order or a purchase order.
If there's "Excess", the suggested value is 0. For the products with "Need" the suggested value will be that one.
4. Export all Material Requirement planning information to excel: It's possible to extract the previously analyzed information to an excel sheet.
FAQ:
1. Will the Need/Excess value consider the individual values for each day?
When using a weekly view, the Need/Excess value will not consider the individual values for each day, but the value at the end of the week. This must be taken into consideration, and the need/excess values for each particular day should be monitored, to ensure that you don’t run out of stock. The same applies when using a monthly view.
2. Do the Material requirements consider sales orders for quantities to be consumed?
For Material requirements calculations, the Bill of Materials from sales orders is not considered for the quantities to be consumed, as it only becomes a need once you schedule your production, not when planning it.
3. Does the system consider all purchase orders for the quantity to be received?
The system considers only open purchase orders when calculating quantities to be received. Moreover, it excludes the quantity that has been delivered. For example, if 5000 units were ordered and 2000 were received, the quantity to be received would be 3000.
If after reading this article you still have some doubts, feel free to reach out to us through our Live-chat feature, or directly to your CSM.
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