Metals Industry Production Planning Solution

Order Book Management

The purpose of Order Book Management is to provide delivery quotes to customers, monitor order receipts and continuously adjust the booking plan and order load to match the available product supply.

This is the point at which customer orders start to arrive, marking the transition from product level planning to order based planning. Managing the inflow of orders and the composition of the order load is a critical business process. In order to ship planned product volumes each month, the right volume of orders must be booked for each product. To manage product margins, the composition of the order book must be actively managed. And to deliver orders on time, realistic promise dates must be quoted.

The Order Book Management process actively manages bookings to assure product volumes, protect planned margins, and promise deliveries accurately.

Goals of Order Book Management

LOGIS Metals Solution is a group of industry-specific products for advanced planning and scheduling of metallurgical companies.

Allocation Management

The purpose of Allocation Management is to distribute customer orders on the given time horizon to the related manufacturing resources.

Allocation Management is a key compenent of Order Book Management. The Allocation Plan is set during the Sales and Operations Management process, typically once a month when the demand forecast is refreshed. The plan reflects both commercial priorities and available product supply, and describes the desired order book profile over the booking horizon. As actual orders are booked, there will inevitably be allocations that are under-booked, and allocations that are over-booked. Each week, the Planner must make judgements about if or when to intervene in the order entry process.

Goals of Allocation Management

The goal is always to fill the allocations with order volumes as close to plan as possible, while giving Sales as much commercial flexibility as is practical to achieve overall volumes and prices. Week by week, however, demand and supply reality tends to diverge from the plan. This means that the allocation plan, and sometimes the current order load, must be adjusted to accommodate new commercial situations and updated production plans. This course correction typically takes place weekly.

Allocation Planning gives the Planner clear visibility into the sales plan and current order load, and enables and supports active management of the order book.

Order Promising

Order Promising is the process that commits a delivery date for the order.

The Sales Allocation Plan forms the basis for promising. It describes which products can be available in each time period (ATP or Available to Promise), the amount of each product that has been reserved for customers or markets (AATP or Allocated Available to Promise), and the booking space that remains in each category, net of order receipts.

Goals of Order Promising

Rolling, coating or other campaigns can also be modeled, as CTP, or Capable to Promise. In certain circumstances, this can be a very useful feature. Many products are normally booked to a rolling or coating campaign.

The Order Promising solution includes integration with Caster Scheduling, Material Allocation, and Production Planning. When an inquiry is received, the current caster schedule can be checked for unallocated material in a planned heat, unassigned inventories can be checked for material that can satisfy the order, and the production plan can be checked for appropriate campaigns or other constraints that should be recognized to improve promising accuracy.

In actual practice, the selected components are combined to create unique workflows for almost every Metals company, based on their business model, commercial environment, and plant layout. The template also includes a comprehensive Metals KPI structure that supports supply chain performance management.

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