Materials Management and Planning Training Course

Participants can assess demand inputs and select planning assumptions for material requirements.

• Independent demand separated from dependent demand within product structures
• Demand history cleaned for outliers, promotions, returns and one-off orders
• Forecast accuracy measured using mean absolute percentage error
• Bias identified through forecast-versus-actual variance analysis
• Demand horizons aligned with procurement, production and replenishment lead times
• Planning assumptions documented for seasonality, growth and demand uncertainty

Participants can assess the master data quality needed for reliable materials planning.

• Item master fields defined for planning, purchasing, storage and costing
• Units of measure reconciled across buying, stocking and production transactions
• Bill of materials levels checked for quantity, revision and component validity
• Routings and work-centre data connected to material timing requirements
• Lead-time components separated into supplier, transport, receiving and inspection time
• Planning data governance assigned through ownership, approvals and change control

Participants can segment inventory and assign differentiated review and control policies.

• ABC analysis classifies items by annual consumption value
• XYZ analysis groups items by demand variability and predictability
• Criticality analysis ranks service, safety and operational consequences
• Segmentation matrix combines value, variability and criticality criteria
• Cycle-count frequencies assigned to A, B and C inventory classes
• Control policies matched to stocked, non-stocked and consignment materials

Participants can calculate order quantities using demand, cost and operational constraints.

• Carrying cost components include capital, storage, risk and insurance
• Ordering cost estimated from requisition, purchasing, receiving and invoice activities
• Economic order quantity calculated using annual demand and cost inputs
• Quantity discounts assessed against holding-cost and obsolescence implications
• Minimum order quantities tested against consumption and storage constraints
• Lot-sizing rules compared for repetitive and intermittent demand items

Participants can set reorder points and safety-stock levels for selected material categories.

• Reorder point calculated from average demand during replenishment lead time
• Safety stock set for demand variability and lead-time uncertainty
• Service-level targets translated into z-scores for normal demand distributions
• Maximum stock levels established using review cycles and order quantities
• Min-max planning parameters tested against actual issue and receipt patterns
• Parameter exceptions identified through stockout, surplus and expedite records

Participants can build a baseline materials planning file for a selected product family.

• Product family scope defined by demand, process and inventory characteristics
• Demand profile translated into weekly material consumption requirements
• Current inventory position reconciled with open orders and allocated stock
• Supplier lead times validated against purchase order receipt history
• Initial reorder parameters calculated for priority purchased materials
• Baseline assumptions recorded within the materials planning file

Participants can connect aggregate demand and supply decisions to material planning requirements.

• S&OP cycle links commercial forecasts, supply capability and financial targets
• Aggregate demand translated into product-family volume and timing requirements
• Supply constraints classified by materials, capacity, labour and distribution
• Pre-S&OP scenarios compare inventory, overtime, subcontracting and allocation options
• Executive decisions converted into approved demand and supply plans
• Planning calendars align monthly S&OP with weekly materials reviews

Participants can construct a master production schedule that generates feasible material timing.

• Master production schedule converts aggregate plans into item-level commitments
• Available-to-promise calculated from inventory, scheduled receipts and planned production
• Time fences distinguish frozen, slushy and liquid planning periods
• Demand priorities assigned between customer orders, forecasts and strategic stock
• Rough-cut capacity checks test schedule feasibility before material release
• Schedule stability measured through changes, expedites and order rescheduling

Participants can run MRP logic to determine planned order releases and receipts.

• Gross requirements exploded through multilevel bills of materials
• Scheduled receipts netted against available inventory and safety stock
• Net requirements calculated by period using projected available balances
• Planned order receipts offset by lead time into releases
• Low-level codes sequence material planning across dependent components
• MRP exception messages prioritised for shortages, reschedules and cancellations

Participants can assess whether material and capacity plans can support required output.

• Capacity requirements planning converts planned orders into work-centre loads
• Finite capacity constraints identified for bottleneck resources and critical materials
• Material availability checks precede release of production and maintenance work
• Load profiles compare required hours with available resource capacity
• Constraint responses include resequencing, overtime, subcontracting and demand allocation
• Feasibility decisions documented with timing, cost and service consequences

Participants can convert material requirements into supplier schedules and purchase priorities.

• Purchase requisitions generated from MRP and replenishment planning signals
• Supplier schedules communicate quantities, dates, releases and delivery locations
• Blanket orders governed through release schedules and consumption visibility
• Supplier lead-time performance measured using requested and actual receipt dates
• Expediting priorities based on shortage impact, recovery options and customer commitments
• Order acknowledgements checked against quantities, dates and specification requirements

Participants can design warehouse controls that preserve stock accuracy and material availability.

• Receiving controls verify quantity, condition, documentation and purchase order status
• Put-away rules assign locations by velocity, size, hazard and handling needs
• Two-bin replenishment supports simple consumption-based material control
• Kanban cards signal replenishment quantities for repetitive internal demand
• Cycle counting investigates record variance, root cause and corrective action
• Inventory adjustments controlled through authorisation, evidence and audit trails

Participants can identify excess inventory and prepare disposition actions supported by evidence.

• Inventory ageing reports distinguish active, slow-moving and dormant stock
• Excess inventory calculated against forecast, demand history and replenishment commitments
• Obsolescence risks assessed from engineering changes, expiry dates and product discontinuation
• Disposition hierarchy covers redeployment, return, rework, sale and disposal
• Root-cause analysis traces excess stock to demand, parameters and procurement decisions
• Inventory reserve proposals supported by evidence, approvals and accounting requirements

Participants can build material risk controls for supply disruptions and critical shortages.

• Supply risk register captures probability, impact, owner and treatment actions
• Single-source exposure assessed using supplier, qualification and substitution data
• Critical material buffers sized against disruption duration and recovery lead time
• Dual sourcing evaluated for cost, quality, capacity and contractual implications
• Business continuity triggers define escalation thresholds and response responsibilities
• Shortage allocation rules protect contractual, safety and strategic demand priorities

Participants can create a materials scorecard that drives review and corrective action.

• Inventory turns calculated using cost of goods sold and stock value
• Days inventory outstanding interpreted alongside service and demand volatility
• Stockout rate measured by item, order line and customer impact
• Schedule adherence tracks planned versus actual production and supplier receipts
• Inventory accuracy reported from cycle counts and transaction reconciliation
• Daily and monthly review routines assign actions, owners and due dates

Participants can specify ERP planning parameters and governance controls for ongoing maintenance.

• MRP type selected for reorder-point, forecast-driven and dependent-demand materials
• Lot-size procedures configured for fixed, periodic and economic quantities
• Safety-stock fields governed through approval thresholds and periodic review
• Lead-time updates validated against supplier performance and receiving history
• Planning exceptions reviewed before parameter changes enter production systems
• Data stewardship roles maintain item, supplier and bill-of-material records

Participants can improve a materials plan by testing risks, constraints and corrective actions.

• Demand surge scenario tests safety stock and replenishment responsiveness
• Supplier delay scenario identifies shortages, alternatives and escalation requirements
• Forecast reduction scenario evaluates cancellation, rescheduling and excess-stock actions
• Capacity constraint scenario tests material release and production sequencing options
• Parameter sensitivity compares service, inventory value and order frequency
• Revised materials plan records decisions, owners, dates and expected outcomes

Participants can establish decision rights and review routines for coordinated materials management.

• RACI matrix assigns accountability for forecasts, parameters and supply exceptions
• Daily shortage meetings focus on recovery actions and customer commitments
• Weekly materials reviews reconcile demand, supply, inventory and supplier constraints
• Escalation paths distinguish operational decisions from executive trade-offs
• Change control protects planning stability after product or specification changes
• Meeting packs present exceptions, decisions, owners and completion dates

Participants can build, review and present a complete materials management plan for a defined product family or operating unit.

• Materials plan integrates demand, inventory, supply, capacity and risk assumptions
• Inventory policy specifies segmentation, service targets and planning parameters
• MRP output converted into purchase, production and replenishment priorities
• Supplier schedule and shortage actions address critical material constraints
• Performance scorecard defines measures, thresholds, owners and review cadence
• Peer review tests feasibility, financial implications and implementation actions