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<ManualTopic ID="/baanerp/cp/onlinemanual/000314" xml:lang="en">
   <Header>
      <Title>Production lead-time calculation in Enterprise Planning</Title>
      <Keyword type="header" order="d1e175886">
         <Level1>Production lead time</Level1>
      </Keyword>
      <Keyword type="header" order="d1e175889">
         <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>
         <ListItem>Using detailed routing data for the short-term future, combined
		  with a fixed order lead time for the longer-term future.</ListItem>
      </List>
      <Paragraph>Which method LN uses, depends on the
		value that you specified in the <GUIRef href="/baanerp/cp/rpd/cprpd1100m000#cprpd100.fltm" role="manual">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, LN 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>
   <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="manual">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>
      <Important>
         <SectionTitle>Important!</SectionTitle>
         <Paragraph>If the <GUIRef href="/baanerp/cp/rpd/cprpd1100m000#cprpd100.fltm" role="field">Start of Fixed Lead-Time Horizon (SFC)</GUIRef> field is zero, you cannot transfer
		  the generated planned orders to the <Link href="/baanerp/cp/glossary/glossary#000027" role="glossary">execution level</Link>, because <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef> links no
		  routing operations to the planned order. You can use this setting only for
		  simulations.</Paragraph>
      </Important>
      <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, <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef> 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 you apply backward
		planning, <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef> 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. If this start date is before the fixed lead-time
		horizon, <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef> repeats the calculation with detailed routing data.</Paragraph>
      <List>
         <ListIntro>Before <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef> actually plans the order lead time, it offsets the order
		  finish date with the following lead-time components:</ListIntro>
         <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>
   <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 LN 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>
         <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef> 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>.</Paragraph>
      <ProcedureList>
         <ListIntro>This planning process consists of the following
		  steps:</ListIntro>
         <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>
      <Figure space-and-orientation="indented-estimated">
         <FigIntro>Figure 1: Lead-time planning with a fixed lead time</FigIntro>
         <HTML:IMG xmlns:HTML="http://www.w3.org/TR/REC-html40" height="108" width="324"
                   SRC="../images/nt_graph_000314a.gif"
                   alt="[...]"/>
         <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>
   <GeneralSection>
      <SectionTitle>Lead-time planning with detailed routing data</SectionTitle>
      <Paragraph>If the order start date falls before the fixed lead-time
		horizon, <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef> 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>
         <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef> 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 LN 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 <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef> 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, <GUIRef href="/baanerp/cp" role="package">Enterprise Planning</GUIRef> 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="formfield">Queue Time</Link>
         </ListItem>
         <ListItem>
            <Link href="/baanerp/ti/rou/tirou1102m000#tirou102.sutm" role="formfield">Average Setup Time [Min]</Link>
         </ListItem>
         <ListItem>
            <Link href="/baanerp/ti/rou/tirou1102m000#tirou102.rutm" role="formfield">Cycle Time [Min]</Link>
         </ListItem>
         <ListItem>
            <Link href="/baanerp/ti/rou/tirou1102m000#tirou102.trdl" role="formfield">Wait Time</Link>
         </ListItem>
         <ListItem>
            <Link href="/baanerp/ti/rou/tirou1102m000#tirou102.mvtm" role="formfield">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 space-and-orientation="indented-estimated">
         <Paragraph>Operation lead time = Queue  time + Cycle time * quantity + Wait time + Move time</Paragraph>
      </Formula>
      <Figure space-and-orientation="indented-estimated">
         <FigIntro>Figure 2: Lead-time planning with detailed routing
		  data</FigIntro>
         <HTML:IMG xmlns:HTML="http://www.w3.org/TR/REC-html40" height="108" width="324"
                   SRC="../images/nt_graph_000314b.gif"
                   alt="[...]"/>
         <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>
   <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">Calendars in Enterprise Planning</Link>
      </RelTopic>
   </RelatedTopics>
</ManualTopic>