Solved

Sales and Operations Planning for MTO

  • 15 June 2021
  • 5 replies
  • 698 views
Curious_User
Rank
Userlevel 2
Badge +7

Hello, I am investigating the S&OP module of IFS and noticed something unusual, though it might come from me misunderstanding the data.

Our Business runs mainly on a MTO methodology. So when I Setup a Product Family and create a S&OP Period and run the Calculations I end up seeing negative Backlog numbers which seems rather odd since all our Shop Orders are pegged to the Customer Orders. 

When run for the whole 2021-06 Period i get Negative numbers in the “New Backlog Plan” and “Actual Backlog” columns. The Period calculates with a 18 month Forward planning horizon. and 0 Days for Target Backlog .

Can someone help clarify if this is working as intended? 

Looking forward to some Help.

icon

Best answer by majose 16 June 2021, 13:27

View original
This topic has been closed for comments

5 replies

M
Rank
Userlevel 6
Badge +12

Hello!

Have you defined Forecast and your New Production Plan out in the future?

Always good to run: Calculate Actual S&OP Data

followed by Calculate Backlog Plan.

Basically the New Backlog Plan is calculated like: 

For the current period: => New Backlog Plan = Actual Backlog(prev record) + New Forecast(current) - New Production Plan(current)

Onwards => New Backlog Plan = Backlog Plan (prev record) + New Forecast(current) - New Production Plan(current)

When forecast is greater than production the backlog grows. And vice versa.

I know there was some kind of problem when calculating backlog, but I think we corrected it, but perhaps that was only for the backlog in days.

I hope we can sort out this.

Curious_User
Rank
Userlevel 2
Badge +7

Hmm interesting. I did end up with some positive backlog, but i still don't understand why the Actual backlog shows negative in period 11 year 2020 after adding the forecast and operations plan.

can you help elaborate on why it would be like that a bit more please?

Please see snapshot below.

 

M
Rank
Userlevel 6
Badge +12

Hi again, do you know which update level you are on Apps10? We have done a fix that calculates the Actual Backlog of current period in a correct way on the latest Apps10 version. It looks like you don’t have that fix. But when you get it I guess you need some data repair for the current actual backlog. Or when you create your next period version you can start from scratch and NOT copy from the previous version. Not so fun.

But first thing for you is to try to get hold of that fix. I think you should contact IFS support

Sorry for the problems.

Curious_User
Rank
Userlevel 2
Badge +7

Hi @majose ,

we are currently running on UPD 9 of IFS 10, which Update fixes this version?

M
Rank
Userlevel 6
Badge +12

Hi again,

Actually this fix should be in Upd9! When we calculate actual backlog we do it like this:

Get the previous actual backlog + The Revised Order Quantities that we have on the customer order lines with due date in the period - How much we have shipped in the period

 

In the aruena client we show this: “The Revised Order Quantities that we have on the customer order lines with due date in the period” as a column. In IEE we do not.

 

I really think you should raise a support issue for this so that IFS Support more carefully can look into this and your numbers. And I really think we must add the Sales Qty column (= “The Revised Order Quantities that we have on the customer order lines with due date in the period” in IEE client.

Terms & ConditionsCookie settings