Hi,

Anyone knows how LTO calculation in BCM really works?

I have a demand say on period 35 with start date 29/11/05 and end date 28/12/05.
My LTO in BCM is 31 days and my calendar runs 24 x 7.

The requirement date of the material should be on:
start = 29/11/05 - 31 days = 28/10/05
end = 28/12/05 - 31 days = 28/11/05

which means the requirements should not exceed period 35 as it starts on Nov 29.

But during my testing, the requirement did fall on period 35 and 1 period before it.

Can anyone share experience? really appreciated it.

hendra

Lead time offset will only replace normal capacity calculation (through routing) for demands that occur long into the future. This limit is set in Item Planning Data if I'm not mistaken (don't have access to BaanERP at the moment). The purpose of this is to relieve the server from the burden of performing detailed capacity calculation for demand that is still considered far into the future. The further into the future a demand is, by nature, the more uncertain that such demand will actually turn out exactly as it is forecasted now. Hence, not much point in performing detailed calculation for such demand

Rgds,
Paul

Hi Paul,

Thanks for the reply..

Yes, I am aware that BCM falls in the Planning horizon thus no detailed planning will be done. Instead it would follow the details given in the BCM session.

What I need to be sure is how the system calculated the lead time under the planning horizon.. because i use master planning to plan for long lead time materials.
If we don't understand correctly how the lead time is calculate, we might end up putting the wrong value.

I have put up the calculation method claimed by Baan, but I still don't get the results correct. That's why I need to know where have I gone wrong here.

Not planning horizon, there's setting for when (fixed) lead time offset would kick in replacing the CRP calculation (which is done using routing)

Rgds,
Paul

OK, that being said, I probably should explain things a little bit for you.
From the result of the planning you mentioned, I'd imagine that you're using backward levelling (at least) Constraint Planning with your RCCP. Because you don't have enough capacity to satisfy the demand on period 35 alone, backward levelling then moved some of the rough cut capacity requirements to period 34. Since critical material requirements follow rough cut capacity requirements, your critical material requirements were also spilling over to period 34.

Also, critical material requirements are meant to help you track, well, really critical materials. Don't put all your materials as critical, that would beat the purpose of critical material list in MPS. Plan your normal materials (most will fall in this category) using MRP instead

And in case you're confused, BaanERP chose the name Master Based Planning for MPS and Order Based Planning for MRP for some reason. MPS and MRP are the industrial standard terms

Rgds,
Paul