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<ManualTopic ID="/baanerp/cp/onlinemanual/000314" xml:lang="en">
	<Header>
		<Title xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40">Production Lead-time Calculation</Title>
		<Keyword><Level1>Production Lead Time</Level1>
		</Keyword>
		<Keyword><Level1>Lead Time</Level1>
			<Level2>Production</Level2>
		</Keyword>
	</Header>
	<GeneralSection><List><ListIntro><GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef> can determine lead times for planned production orders in two ways:</ListIntro>
			<ListItem>Using detailed <Link href="/baanerp/ti/glossary/glossary#Routing.ti" role="glossary">routing</Link> data</ListItem>
			<ListItem>Using a <Link href="/baanerp/cp/glossary/glossary#000057" role="glossary">fixed order lead time</Link>
			</ListItem>
		</List>
		<Paragraph>Which method SSA ERP uses, depends on the value that you specified in the <GUIRef href="/baanerp/cp/rpd/cprpd1100m000#cprpd100.fltm" role="formfield">Start of Fixed Lead-Time Horizon (SFC)</GUIRef> field in the <GUIRef href="/baanerp/cp/rpd/cprpd1100m000" role="session">Items - Planning (cprpd1100m000)</GUIRef> session.</Paragraph>
		<Paragraph>Usually, SSA ERP plans <Link href="/baanerp/ti/glossary/glossary#000022" role="glossary">production order</Link> based on a routing, on a second-by-second basis. A <Link href="/baanerp/cp/glossary/glossary#000057" role="glossary">fixed lead time</Link> is less detailed: it is expressed in working days, and is quantity-independent. On the other hand, using fixed lead times leads to faster calculations.</Paragraph>
		<List><ListIntro>For longer-term planning, the level of detail offered by routing-based planning is not always necessary. Especially in the following cases, a fixed lead time can be a useful approximation:</ListIntro>
			<ListItem>There is little or no variation in the order quantity of your orders.</ListItem>
			<ListItem>The production process involved is largely quantity-independent.</ListItem>
		</List>
		<GeneralSection><SectionTitle>Fixed lead-time horizon</SectionTitle>
			<List><ListIntro>In Enterprise Planning you can set a <Link href="/baanerp/cp/glossary/glossary#000058" role="glossary">fixed lead-time horizon</Link>. In the <GUIRef href="/baanerp/cp/rpd/cprpd1100m000#cprpd100.fltm" role="formfield">Start of Fixed Lead-Time Horizon (SFC)</GUIRef> field in the <GUIRef href="/baanerp/cp/rpd/cprpd1100m000" role="session">Items - Planning (cprpd1100m000)</GUIRef> session, you can specify the number of workdays after which the fixed lead-time horizon starts. The value of this field is used in the following way:</ListIntro>
				<ListItem>If it is zero, Enterprise Planning uses a fixed lead time for all planned production orders.</ListItem>
				<ListItem>If it is larger than the order horizon, Enterprise Planning always uses a routing for all planned production orders.</ListItem>
				<ListItem>If it is between zero and the order horizon, Enterprise Planning uses a routing for orders before the fixed lead-time horizon, and uses a fixed lead time for orders within the fixed lead-time horizon.</ListItem>
			</List>
			<Note><SectionTitle>Note</SectionTitle>
				<Paragraph>If the value in the <GUIRef href="/baanerp/cp/rpd/cprpd1100m000#cprpd100.fltm" role="field">Start of Fixed Lead-Time Horizon (SFC)</GUIRef> field is higher than zero, Enterprise Planning rounds the start of the fixed lead-time horizon to the end of a plan period. As a result, the fixed lead-time horizon effectively starts at the next plan period.</Paragraph>
			</Note>
			<Paragraph>The start date of a planned order determines whether the order falls before or within the fixed lead-time horizon. If the start date is not known beforehand (that is, in backward planning), Enterprise Planning first carries out preliminary backward planning by using the fixed lead time. The resulting preliminary start date is checked against the fixed lead-time horizon.</Paragraph>
			<Note><SectionTitle>Note</SectionTitle>
				<Paragraph>If the <GUIRef href="/baanerp/cp/rpd/cprpd1100m000#cprpd100.fltm" role="field">Start of Fixed Lead-Time Horizon (SFC)</GUIRef> is greater than zero, Enterprise Planning rounds the start of the fixed lead-time horizon to the end of a plan period. As a result, the fixed lead-time horizon effectively starts at the next plan period.</Paragraph>
			</Note>
			<Paragraph>Enterprise Planning first looks at the start date of a planned order, to see whether the start date falls before or within the fixed lead-time horizon. If the start date is not known beforehand, which is the case during backward planning, Enterprise Planning first estimates the order start date by planning the order lead time that you specified in the <GUIRef href="/baanerp/ti/ipd/tiipd0101m000" role="session">Items - Production (tiipd0101m000)</GUIRef> session backward. The resulting preliminary start date is checked against the fixed lead-time horizon, and determines whether Enterprise Planning uses detailed routing data or a fixed order lead-time to carry out lead-time calculation.</Paragraph>
			<Paragraph>Before Enterprise Planning actually plans the order lead time, it offsets the order finish date with the following lead-time components:</Paragraph>
			<List><ListItem>Safety time ( <GUIRef href="/baanerp/tc/ibd/tcibd2500m000" role="session">Items - Ordering (tcibd2500m000)</GUIRef> ).</ListItem>
				<ListItem>Extra lead-time ( <GUIRef href="/baanerp/cp/rpd/cprpd1100m000" role="session">Items - Planning (cprpd1100m000)</GUIRef> ).</ListItem>
				<ListItem>Outbound time ( <GUIRef href="/baanerp/wh/wmd/whwmd2510m000" role="session">Warehouse - Item (whwmd2510m000)</GUIRef> ).</ListItem>
			</List>
			<GeneralSection><SectionTitle>Lead-time planning with a fixed lead time</SectionTitle>
				<Paragraph>If the order start date falls after the fixed lead-time horizon, the production order lead-time is always equal to the order lead-time in the <GUIRef href="/baanerp/ti/ipd/tiipd0101m000" role="session">Items - Production (tiipd0101m000)</GUIRef> session.</Paragraph>
				<Paragraph>You can either enter a value in the <GUIRef href="/baanerp/ti/ipd/tiipd0101m000#tiipd001.oltm" role="field">Order Lead Time</GUIRef> field of the <GUIRef href="/baanerp/ti/ipd/tiipd0101m000" role="session">Items - Production (tiipd0101m000)</GUIRef> session, or let SSA ERP automatically fill in this field. In the latter case, you must run the <GUIRef href="/baanerp/ti/rou/tirou1202m000" role="session">Update Order Lead Times (tirou1202m000)</GUIRef> session to let <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef> calculate the value.</Paragraph>
				<Paragraph>Enterprise Planning plans the fixed lead time based on the calendar of the item's <Link href="/baanerp/tc/glossary/glossary#000011" role="glossary">enterprise unit</Link>. This planning process consists of the following steps:</Paragraph>
				<ProcedureList><ListItem>The order's finish date is offset to the latest working moment according to the enterprise-unit calendar.</ListItem>
					<ListItem>The order's start date is offset with the fixed lead time, according to the enterprise-unit calendar.</ListItem>
				</ProcedureList>
			</GeneralSection>
			<Figure><FigIntro>Figure 1: Lead-time planning with a fixed lead time</FigIntro>
				<HTML:IMG SRC="../images/nt_graph_000314a.gif" height="108" width="324" xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40"/><FigCaption>Figure 1</FigCaption>
				<FigLegend><LegendEntry><Symbol>OLT</Symbol>
						<Desc>Order lead time (from the <GUIRef href="/baanerp/ti/ipd/tiipd0101m000" role="session">Items - Production (tiipd0101m000)</GUIRef> session)</Desc>
					</LegendEntry>
					<LegendEntry><Symbol>LWM</Symbol>
						<Desc>Finish date set to the latest working moment (according to the item/enterprise-unit calendar)</Desc>
					</LegendEntry>
					<LegendEntry><Symbol>O/S/E</Symbol>
						<Desc>Outbound time / Safety time / Extra lead time</Desc>
					</LegendEntry>
					<LegendEntry><Symbol>A</Symbol>
						<Desc>Start date</Desc>
					</LegendEntry>
					<LegendEntry><Symbol>B</Symbol>
						<Desc>Finish date</Desc>
					</LegendEntry>
					<LegendEntry><Symbol>C</Symbol>
						<Desc>Requirement date</Desc>
					</LegendEntry>
				</FigLegend>
			</Figure>
			<GeneralSection><SectionTitle>Lead-time planning with detailed routing data</SectionTitle>
				<Paragraph>If the order start date falls before the fixed lead-time horizon, Enterprise Planning uses detailed routing data to calculate the order lead-time, and, subsequently, use this order lead-time to compute the order start date.</Paragraph>
				<Paragraph>Enterprise Planning retrieves these routing data from the <GUIRef href="/baanerp/ti/rou" role="module">Routing</GUIRef> module in <GUIRef href="/baanerp/ti" role="package">Manufacturing</GUIRef>. For each item, you can define a series of routings, and for each item/routing combination, you must define operations. Which routing SSA ERP selects depends, among other things, on:</Paragraph>
				<List><ListItem>Selection of the <GUIRef href="/baanerp/ti/rou/tirou1101m000#tirou101.stor" role="field">Standard Routing</GUIRef> check box in the <GUIRef href="/baanerp/ti/rou/tirou1101m000" role="session">Item - Routings (tirou1101m000)</GUIRef> session.</ListItem>
					<ListItem>The order quantity, if you selected the <GUIRef href="/baanerp/ti/ipd/tiipd0101m000#tiipd001.oqdr" role="field">Order Qty-dependent Routing</GUIRef> check box in the <GUIRef href="/baanerp/ti/ipd/tiipd0101m000" role="session">Items - Production (tiipd0101m000)</GUIRef> session.</ListItem>
					<ListItem>The setting of the <GUIRef href="/baanerp/ti/sfc/tisfc0101s000#tisfc001.efdt" role="field">Reference</GUIRef> field in the <GUIRef href="/baanerp/ti/sfc/tisfc0101s000" role="session">Production Orders (tisfc0101s000)</GUIRef> session, which determines which operation lines Enterprise Planning selects in the <GUIRef href="/baanerp/ti/rou/tirou1102m000" role="session">Routing Operations (tirou1102m000)</GUIRef> session.</ListItem>
				</List>
				<Paragraph>After Enterprise Planning selects a routing, it can calculate the order lead-time, which consists of a series of separate operations lead-times. To calculate these operation lead-times, Enterprise Planning retrieves the following operation data from the <Link href="/baanerp/ti/rou/tirou1102m000" role="session">Routing Operations (tirou1102m000)</Link> session:</Paragraph>
				<List><ListItem><Link href="/baanerp/ti/rou/tirou1102m000#tirou102.qutm" role="fieldhelp">Queue Time</Link>
					</ListItem>
					<ListItem><Link href="/baanerp/ti/rou/tirou1102m000#tirou102.sutm" role="fieldhelp">Average Setup Time [Min]</Link>
					</ListItem>
					<ListItem><Link href="/baanerp/ti/rou/tirou1102m000#tirou102.rutm" role="fieldhelp">Cycle Time [Min]</Link>
					</ListItem>
					<ListItem><Link href="/baanerp/ti/rou/tirou1102m000#tirou102.trdl" role="fieldhelp">Wait Time</Link>
					</ListItem>
					<ListItem><Link href="/baanerp/ti/rou/tirou1102m000#tirou102.mvtm" role="fieldhelp">Move Time</Link>
					</ListItem>
				</List>
				<Paragraph><GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef> calculates operation lead-times with the following formula:</Paragraph>
				<Formula><Paragraph UserLevel="Novice" UserType="Taskuser">Operation lead time = Queue  time + Cycle time * quantity + Wait time + Move time</Paragraph>
				</Formula>
			</GeneralSection>
		</GeneralSection>
		<Figure><FigIntro>Figure 2: Lead-time planning with detailed routing data</FigIntro>
			<HTML:IMG SRC="../images/nt_graph_000314b.gif" height="108" width="324" xmlns:ssa="http://www.ssaglobal.com" xmlns:HTML="http://www.w3.org/TR/REC-html40"/><FigCaption>Figure 2</FigCaption>
			<FigLegend><LegendEntry><Symbol>OP1/OP2/OP3</Symbol>
					<Desc>Routing operations (see the <GUIRef href="/baanerp/ti/rou/tirou1101m000" role="session">Item - Routings (tirou1101m000)</GUIRef> session)</Desc>
				</LegendEntry>
				<LegendEntry><Symbol>LWM</Symbol>
					<Desc>Finish date set to latest working moment (according to the resource calendar of the latest operation)</Desc>
				</LegendEntry>
				<LegendEntry><Symbol>O/S/E</Symbol>
					<Desc>Outbound time / Safety time / Extra lead time</Desc>
				</LegendEntry>
				<LegendEntry><Symbol>A</Symbol>
					<Desc>Start date</Desc>
				</LegendEntry>
				<LegendEntry><Symbol>B</Symbol>
					<Desc>Finish date</Desc>
				</LegendEntry>
				<LegendEntry><Symbol>C</Symbol>
					<Desc>Requirement date</Desc>
				</LegendEntry>
			</FigLegend>
		</Figure>
		<GeneralSection><SectionTitle>Using a fixed lead time</SectionTitle>
			<Paragraph>The fixed lead time is defined in the <GUIRef href="/baanerp/ti/ipd/tiipd0101m000#tiipd001.oltm" role="field">Order Lead Time</GUIRef> field in the <GUIRef href="/baanerp/ti/ipd/tiipd0101m000" role="session">Items - Production (tiipd0101m000)</GUIRef> session.</Paragraph>
			<Paragraph>The fixed lead time is planned by using the calendar of the item's enterprise unit:</Paragraph>
			<ProcedureList><ListItem>The order's finish date is set backward to the latest working moment according to the enterprise-unit calendar.</ListItem>
				<ListItem>The order's start date is determined by planning backward the fixed lead time, using the enterprise-unit calendar.</ListItem>
			</ProcedureList>
		</GeneralSection>
		<GeneralSection><SectionTitle>Using a routing</SectionTitle>
			<Paragraph>Routings are defined in the <GUIRef href="/baanerp/ti/rou" role="module">Routing</GUIRef> module in <GUIRef href="/baanerp/ti" role="package">Manufacturing</GUIRef>. A routing consists of one or more operations. Each operation is carried out at a particular work center. This work center can either be:</Paragraph>
			<List><ListItem>A work center that is also defined as a <Link href="/baanerp/cp/glossary/glossary#000008" role="glossary">resource</Link> in <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef>.</ListItem>
				<ListItem>A work center that is not defined as a resource in Enterprise Planning.</ListItem>
			</List>
			<Paragraph>A resource in Enterprise Planning can have its own calendar, and you can maintain a <Link href="/baanerp/cp/glossary/glossary#000132" role="glossary">resource master plan</Link> for it.</Paragraph>
			<Paragraph>SSA ERP plans each operation based on the appropriate resource calendar or the work center's department calendar:</Paragraph>
			<List><ListItem>The latest operation is planned, using the calendar of the resource involved (or the department calendar, if no resource calendar is available).</ListItem>
				<ListItem>The order's finish date is made equal to the finish date of the latest operation.</ListItem>
				<ListItem>Each of the remaining operations is planned, using the appropriate resource calendar (or department calendar).</ListItem>
				<ListItem>The order's start date is equal to the start date of the earliest operation.</ListItem>
			</List>
		</GeneralSection>
	</GeneralSection>
	<RelatedTopics><SectionTitle>Related topics</SectionTitle>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000161" role="manual">To compute supply lead-times</Link>
		</RelTopic>
		<RelTopic><Link href="/baanerp/cp/onlinemanual/000034" role="manual">The use of calendars in Enterprise Planning</Link>
		</RelTopic>
	</RelatedTopics>
</ManualTopic>
