Methods, devices and systems for splitting an integrated manufacturing and distribution plan for use by separate manufacturing and distribution execution systems6850809Abstract A consolidated plan splitting methodology sends distribution orders to a distribution execution system and planned production to a manufacturing execution system. Instructions from the planning system involving only movements of inventory within the distribution s system (e.g., warehouse to warehouse transfers) are passed directly to the distribution execution system. Instructions from the planning system involving movements of inventory where either the source or destination is in the manufacturing system causes a splitter located between the planning system and the distribution and manufacturing execution systems to carry out a decisional process wherein the movement of inventory is broken down into a selected number of distinct intermediate legs. Control of inventory balances is passed between the distribution and manufacturing execution systems as appropriate as the inventory moves from one execution system to another. Claims We claim: Description BACKGROUND OF THE INVENTION
Glossary
Warehouse A physical or logical storage area that maintains inven-
tory balances. Warehouses which store inventory only
for distribution purposes (as opposed to for consumption
purposes in a batch) are set up in the distribution
execution system only. Warehouses that store inventory
only for manufacturing purposes are set up in the
manufacturing execution system only.
Plant An entity in which production activities (batches) are
executed. Defined in the manufacturing execution system
as an organization that has no ownership of inventory.
Also defined as a planning system location.
Consumption A warehouse from which a specific item is consumed by
and a specific plant is known as a consumption warehouse;
Replenishment A warehouse to which a specific item is replenished into
Warehouses from a specific plant is known as a replenishment
warehouse. Consumption and replenishment are not
attributes of a warehouse; they are defined by
the relationship between a plant, an item and; warehouse.
For planning purposes a single default consumption and
replenishment warehouse must be defined for each item
included in a batch; during execution of batch trans-
actions the defaults maybe overridden.
Demand A requirement for purchase, distribution or production of
a quantity of a particular kind of inventory in response to
a customer request or other production or distribution
demand.
Dependent Demand for a particular item is said to be dependent
Demand when the cause of the demand is a distribution or
manufacturing event that requires the item.
Independent Demand for a particular item is said to be independent
Demand when the cause of the demand is an external source, such
as customer order.
Replenishment A recommendation for distribution in satisfaction
Order of some given demand.
Critical Item A raw material, intermediate product or finished good
of limited availability which is therefore appropriate to be
considered as part of the manufacturing and distribution
plans.
FUNCTIONAL OVERVIEW According to an embodiment of the present invention, the manufacturing execution system may be configured as the single application for maintaining inventory balances of that inventory expected to be consumed in production at a plant location, and for recording transactions and updating inventory balances to record the consumption of ingredients and yield of products as a result of a production event (batch). The manufacturing execution system may also be configured as the single application for generating material requirements to meet given production needs for non-critical materials, and for recommending batches to produce non-critical intermediate items which will be consumed in a further batch at the same plant location, as well as batches required to meet net demand for critical intermediate items, as determined by the integrated plan (planned orders sent to the manufacturing execution system as a forecast). The manufacturing execution system may also recommend raw material purchases necessary to meet production requirements. The distribution execution system, on the other hand, may be configured to be responsible for all sales order processing and order fulfillment, as well as executing replenishment orders of items (e.g., movement of inventory) within the plant and distribution network, other than replenishments via production or outside purchases. The distribution execution system may also be responsible for generating pick, pack, and ship paperwork, and for receiving at the destination location. This may include the shipping and receiving between separate plant locations of materials stored in manufacturing execution system consumption warehouses that are planned by the integrated manufacturing and distribution execution system. The integrated manufacturing and distribution plan (created by a planning system, shown in FIG. 2) may specify enterprise-wide planning of distributable and critical materials and may recommend shipments of inventory within the plant and distribution network. The is integrated manufacturing and distribution plan may determine net manufacturing requirements to satisfy unmet demand within the network. These requirements may be in the form of planned orders sent to the manufacturing execution system. The planning system may also send net external demand (total demand less dependent demand within a plant) to the manufacturing execution system, which creates a forecast record at an item's replenishment warehouse. FIG. 1 is a functional block diagram of a manufacturing and distribution planning system 100 according to an embodiment of the present invention, illustrating the manner in which separate manufacturing and distribution plans may be generated from an integrated manufacturing and distribution plan. As shown therein, an integrated manufacturing and distribution plan 110 may be created by receiving (inventory) status information 132 from the distribution execution system 130 and (inventory) status information 142 from the manufacturing execution system 140. The planning system (reference 210 in FIG. 2) may apply a number of item and inventory-specific rules to the distribution status information 132 and to the manufacturing status information 142 in creating the integrated manufacturing and distribution plan 110. The integrated plan 110 includes all of the distribution events and all of the manufacturing events that are necessary to meet specific demands at specific dates. According to an embodiment of the present invention, the distribution execution system 130 is an execution system that operates on a separate distribution plan. Similarly, the manufacturing execution system 140 is an execution system that operates on a separate manufacturing plan. According to the present invention, an intelligent splitter 120 is provided between the planning system that generates the integrated plan 110 and the manufacturing and distribution execution systems 140, 130 to determine which components of the integrated plan 110 should be included in the distribution plan 125 to be routed to (and appropriately formatted for use by) the distribution execution system 130 and which components of the integrated plan 110 should be included in the manufacturing plan 135 to be routed to (and appropriately formatted for use by) the manufacturing execution system 140. As shown in FIG. 1, inventory returns (distribution events) may flow from the distribution execution system 130 to the manufacturing execution system 140 and inventory transfers (manufacturing events) may flow from the manufacturing execution system 140 to the distribution execution system 130. FIG. 2 is a combined block diagram and flowchart illustrating the manner in which separate manufacturing and distribution plans 140, 130 may be generated and sent to respective manufacturing and distribution execution systems, according to an embodiment of the present invention. The planning system 210 includes (stores or otherwise has access to) an integrated manufacturing and distribution plan, as shown at reference numeral 110 in FIG. 1. This integrated plan 110 may include both planned orders (manufacturing events) and planned arrivals (distribution events, each being a movement of some quantity of a selected item (inventory) from a source location to a destination location at a specific date). As shown in FIG. 2, the projected demand at the plant 212, being a planned order, may be directly routed to the manufacturing execution system 240, which views the plan as a forecasted demand at the warehouse, as shown at reference 242. The splitter 220, therefore, does not modify the planned orders from the planning system 210. For replenishment orders 214, however, the splitter 220 may selectively relinquish control over the inventory designated in the planned arrivals to the manufacturing execution system 240. The integrated plan 110 from the planning system 210, however, may operate on both manufacturing locations (plants) and distribution locations (warehouses). Moreover, the distribution execution system 230 "knows" (e.g., controls) only of inventory in warehouses or in transit between warehouses, whereas the manufacturing execution system 240 "knows" (e.g., controls) only inventory in manufacturing plants. Thus, when the integrated plan 110 from the planning system 210 recommends a movement of inventory between a warehouse and a plant, for example, the distribution execution system 230 must relinquish control of the inventory to the manufacturing execution system 240. This functionality is implemented by the splitter 220 in a variety of instances, to be detailed below. As shown in the flow chart portion of FIG. 2, replenishment orders 214 are filtered through splitting logic S1 and are selectively split into at least one of three legs, as appropriate. The three legs are, in no particular order: 1. a distribution warehouse to distribution warehouse leg. 2. a manufacturing plant to distribution warehouse leg. 3. a distribution warehouse to manufacturing plant leg. The leg(s) that the splitter logic S1 will divide a replenishment order 214 into will depend on the source and destination of the replenishment order, as follows:
Source Destination
Location Location Output
Distribution Distribution distribution warehouse to distribution
Warehouse Warehouse warehouse leg
Distribution Manufacturing distribution warehouse to distribution
Warehouse Plant warehouse leg
distribution warehouse to manufacturing
plant leg
Manufacturing Distribution manufacturing plant to distribution
Plant Warehouse warehouse leg
distribution warehouse to distribution
warehouse leg (only if the source distri-
bution warehouse is different from the
target distribution warehouse)
Manufacturing Manufacturing manufacturing plant to distribution
Plant Plant warehouse leg
distribution warehouse to distribution
warehouse leg (only if the source distri-
bution warehouse is different from the
target distribution warehouse)
distribution warehouse to manufacturing
plant leg
Indeed, if the replenishment order 214 includes movement of inventory (intermediate or finished goods, for example), from a plant to a warehouse, as shown at step S2, the manufacturing execution system 240 (which only "knows" about plants) should relinquish and 10 transfer control of the inventory to be moved to the distribution execution system 230 (which only "knows" about warehouses), as shown at step S4. In turn, the manufacturing execution system 240 may update a list of transfers from manufacturing to distribution, as shown at 244. After carrying out step S4 as detailed above, or if it is determined in step S2 that there is no plant to warehouse leg, it is then determined, in step S3, whether the replenishment order 214 calls for a warehouse to plant leg; e.g., a movement of inventory from a distribution warehouse to a manufacturing plant. If yes, then the splitter 220 should recommend a transfer of control of the involved inventory from the distribution execution system 230 to the manufacturing execution system 240 and the manufacturing execution system 240 should be informed of the incoming inventory (step S6), which is seen by the manufacturing execution system 240 as a pending receipt for incoming goods 246. The distribution execution system 230 then creates or updates a list 232 of transfers from the distribution execution system 230 to the manufacturing execution system 240. Whether or not a warehouse to plant leg has been detected in step S3, it is determined, in step S5, whether the replenishment order 214 calls for a warehouse to warehouse leg. If so, then splitter logic SI need not cause the distribution execution system 230 to relinquish control of the involved inventory, as this warehouse to warehouse transfer may be considered purely a distribution event. A distribution order may then be created, as noted in step S8 and reference numeral 234 within the distribution execution system 230. If there is no warehouse to warehouse transfer at step S5, the splitter 220 may be done processing or may have encountered an error, such as an error in the replenishment orders 214, for example. The distribution execution system 230 executes the replenishment orders 214 generated from the planning system 210 via the splitter 220. For those replenishment orders 214 tagged for automatic return to the manufacturing execution system 240 (indicating the final move within the distribution warehouse network), the distribution execution system may automatically return the inventory and delete the appropriate pending receipt transaction. According to an embodiment of the present invention, the splitter 220 must manage a transfer of control from the distribution execution system 230 to the manufacturing execution systems 240 of any inventory that must be moved from one location to another via the distribution execution system 230 that either starts in a plant or ends in a plant. Therefore, plant to warehouse, plant to plant, and warehouse to plant inventory transfers are instances where the splitter 220 must resolve potential conflicts over the control of the inventory, in the manner detailed above. Warehouse to warehouse inventory transfers do not require the particular attention of the splitter 220, as the control of the involved inventory never leaves the distribution execution system 230. Indeed, the only replenishment orders 214 that the distribution execution system 230 alone could execute are those with a distribution warehouse as both source and destination locations. Replenishment orders 214 which do not have distribution warehouses as both source and destination are intended to identify inventory transfers required between the manufacturing and the distribution execution system systems 240, 230. The splitter 220, therefore, may be involved whenever there is movement of a "distributable intermediate product"; that is, product that is produced by the manufacturing execution system 240, which can be consumed by the manufacturing execution system 240 into further production-related activities and can also be distributed (either moved to a different plant or warehouse or sold to a customer). As shown in FIG. 2, each of the three execution systems (Planning 210, Distribution 230 and Manufacturing 240) may be stored in its own database, with its own inventory. The inventory that is controlled by and visible to the manufacturing execution system 240 may include raw materials and intermediate products to be consumed in the specified manufacturing process. The inventory that is controlled by and visible to the distribution execution system 230 may include those finished goods and intermediate products that are available to be distributed (to warehouses and/or plants). The inventory that is controlled by and visible to the planning execution system 210 may include all raw materials, intermediate products, and finished goods available for either manufacturing or distribution. Thus, according to an embodiment of the present invention, the manufacturing execution system 240 does not need (or have) any access to information regarding the inventory that is controlled by the distribution execution system 230, and the distribution execution system 230 does not need (or have) any access to information regarding the inventory that is controlled by the manufacturing execution system 240. In contrast, the planning execution system 210 needs (and has) visibility to the inventories controlled by both the distribution and manufacturing execution systems 230, 240. According to an embodiment of the present invention, inventory control may be strictly based on which execution system 230, 240 maintains the inventory balance. The manufacturing execution system 240 may have no visibility to those inventory balances that are expected to be distributed, and the distribution execution system 230 may have no visibility to those balances that are expected to be consumed in production. The planning system 210, however, may have visibility to inventory in both execution systems 230, 240. An embodiment of the present invention calls for support for full warehouse location control within both the manufacturing execution system 240 and the distribution execution system 230, based on each execution system's current functionality. Warehouse location control may not be supported on moves between the two execution systems 230, 240; default receiving locations should be established in each location controlled warehouse for inter-system inventory transfers of location controlled items. The planning system 210 may have visibility to inventory balances of critical items in the manufacturing execution system 240. The manufacturing execution system 240 balances may be visible as either on hand inventory or scheduled receipts (in cases where lots are on hold with a future hold expiration date). The planning system 210 may include a set of sourcing and distribution rules that determine where a specific location sources inventory from and how inventory is moved from one location to another. The distribution execution system 230 may send the planning system 210 unfulfilled orders for independent demand. A limited Bill Of Material (BOM) may be kept in the planning system 210 to include all subordinate critical materials, providing the ability for the planning system 210 to calculate supply requirements for critical ingredients (dependent demand) of finished goods as well as the finished goods themselves. Based on its visibility of on-hand and pending supply of inventory in the manufacturing execution system 240 (actually seen by the planning system 210 as inventory at a plant) and distribution warehouses, and in-transit inventory between distribution warehouses, the planning system 210 may create recommended shipments (replenishment orders) for independent demand and distribution demand (dependent demand that is sourced from outside the plant) which can be is satisfied from inventory existing (or planned to exist by demand date) in the network. Independent and distribution demand which can not be satisfied by inventory in the network may be sent to the manufacturing execution system 240 as a forecast (dependent demand is excluded because the manufacturing execution system 240's internal planning engine may derive dependent demand based on formula requirements), which places demand on a Master Production Schedule (MPS) for those items within the manufacturing execution system 240. Additionally, the planning system 210 may provide a Leveled Production Plan (Constrained Planned Orders) to the manufacturing execution system 240. The Leveled Production Plan may include orders to meet Independent, Dependent, and Distribution Demand which can't be satisfied by existing inventory within the network, and may serve as a source of supply to the manufacturing execution system 240's MPS to satisfy demand placed by the forecasts. Previous to the current invention, the planning system 210 only had visibility to and planned for distribution of finished goods inventory in the distribution execution system 230, so all the planning system 210 planned replenishment orders were for movements within the distribution execution system 230. According to an embodiment of the present invention, however, the planning system 210 may also determine critical intermediate and raw material inventory requirements, and may have visibility to inventory in the manufacturing execution system 240. Since the planning system 210 may have visibility to manufacturing execution system 240 inventory, it may make recommendations for internal shipments that transfer inventory between the manufacturing execution system 240's warehouses (which the planning system 210 sees as a move between two plant locations) and/or from a manufacturing execution system 240 warehouse (seen by the planning system 210 as a plant location) to a distribution warehouse or vice-versa. In cases where both the source and destination of a recommended shipment are distribution warehouses, the splitter 220 may pass the recommendation to the distribution execution system 230 unmodified. In other cases, when either the source or destination (or both) is a manufacturing warehouse (seen by the planning system 210 as a plant location), the splitter 220 may recommend manual (logical) movements of inventory from the manufacturing execution system 240 to the distribution execution system 230 (if the source is a manufacturing warehouse), and physical movements between distribution warehouses. If the destination of a planning system 210 planned transfer is a manufacturing warehouse, the splitter 220 may tag the distribution physical replenishment order with an indicator that will trigger the distribution execution system 230 to transfer the inventory to the co-located manufacturing warehouse automatically upon receipt of the actual transfer at the distribution warehouse destination. Additionally the splitter 220 may create a pending receipt transaction in the manufacturing execution system 240 (identified with the same ID as the replenishment order) to offset the demand which triggered that shipment. In cases where the source of an internal shipment is a manufacturing warehouse, the splitter 220 may output the recommendation to a report, and the inventory may be manually transferred from the manufacturing execution system 240 to the distribution execution system 230. Since the planning system 210 sees manufacturing execution system 240 inventory in a single planning system 210 (plant) location regardless of which manufacturing warehouse it is in, when the planning system 210 recommends a movement from a plant location, the splitter 220 may determine the specific manufacturing warehouses to be the source and destination of the manual transfer. When the distribution execution system 230 updates the planning system 210 with the status of a replenishment order (shipped, in-transit, received), the planning system 210 may use views provided by the splitter 220 to determine which original planning system 210 recommendation is being acted upon by the distribution execution system 230 (since it will have been modified by the splitter 220). The planning system 210, according to an embodiment of the present invention, may send all Vehicle Loads, all Recommended Shipments, and all Planned Arrivals (adjusted for the Vehicle Loads and Recommended Shipments) to the splitter 220. All approved Vehicle Loads may be passed to the distribution execution system 230 incrementally, giving the Distribution Execution System 230 responsibility for that distribution work which is ready to execute. All Vehicle Loads, Recommended Shipments, and adjusted Planned Arrivals may be passed to the manufacturing execution system 240, to represent Planned future Supply. Not all Vehicle Loads, however, may be ready for execution at the time that the planning system 21,0 exports its data. As additional Vehicle Loads are subsequently approved for execution, the planning system 210 may export them to the splitter 220. A subset of the splitter 220 may be invoked to process only the newly approved Vehicle Loads. Newly Approved Vehicle Loads may be sent to the distribution execution system 230, after the planning system 210 exports its approved vehicle loads. The splitter 220 may then send all Vehicle Loads that have not been previously exported to the distribution execution system 230. HARDWARE OVERVIEW FIG. 3 illustrates a block diagram of a computer 300 with which an embodiment of the present invention may be implemented. Computer system 300 includes a bus 301 or other *X communication mechanism for communicating information, and a processor 302 coupled with bus 301 for processing information. Computer system 300 further comprises a random access memory (RAM) or other dynamic storage device 304 (referred to as main memory), coupled to bus 301 for storing information and instructions to be executed by processor 302. Main memory 304 also may be used for storing temporary variables or other intermediate information during execution of instructions by processor 302. Computer system 300 also includes a read only memory (ROM) and/or other static storage device 306 coupled to bus 301 for storing static information and instructions for processor 302. A data storage device 307, such as a magnetic disk or optical disk, is coupled to bus 301 for storing information and instructions. Computer system 300 may also be coupled via bus 301 to a display device 321, such as a cathode ray tube (CRT), for displaying information to a computer user. An alphanumeric input device 322, including alphanumeric and other keys, is typically coupled to bus 301 for communicating information and command selections to processor 302. Another type of user input device is cursor control 323, such as a mouse, a trackball, or cursor direction keys for communicating direction information and command selections to processor 302 and for controlling cursor movement on display 321. The present invention is related to the use of computer system 300 to split an integrated manufacturing and distribution system plan from a planning system 210 into separate manufacturing and distribution plans 135, 125 for use by separate manufacturing and distribution execution systems 240, 230, respectively. According to one embodiment, the methods according to the present invention are implemented by one or more computer systems 300 in response to processor(s) 302 executing sequences of instructions contained in memory 304. Such instructions may be read into memory 304 from another computer-readable medium, such as data storage device 307. Execution of the sequences of instructions contained in memory 304 causes processor(s) 302 to perform the process steps that are described above. In alternative embodiments, hard-wired circuitry may be used in place of or in combination with software instructions to implement all or selected portions of the present invention. Thus, the present invention is not limited to any specific combination of hardware circuitry and software. While the foregoing detailed description has described preferred embodiments of the present invention, it is to be understood that the above description is illustrative only and not limiting of the disclosed invention. Those of skill in this art will recognize other alternative embodiments and all such embodiments are deemed to fall within the scope of the present invention.
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