Tech Talk

Get started with

Planning Optimization

for Dynamics 365

Supply Chain Management

DYN953PAL

Christian RyttPrincipal Program Manager

Microsoft Development Center Copenhagen

Vanya Lebedev (chat master)Principal Engineering Manager

Agenda • Introduction to Planning Optimization

• Current capabilities

• Migration to Planning Optimization

• Roadmap

• Q&A

Planning OptimizationNear real time planning during office hours

Reduce the load on SQL during master

planning run

Provide faster master planning,

especially for large data sets

Make it easier to introduce new

planning functionality

Build ground up, not all from day one

Why Planning as a service?

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Near real-time planning vs nightly planning runs

Receive

orderTime till next planning run Planning run

Follow-up

on plan

Supply

lead time

Receive

order

Follow-up

on plan

Supply

lead time

Built-in master planning

1. Wait for nightly plan to start (normally around 1-4am)

2. Planning run (outside of normal office hours)

3. Wait for planners getting to the office

4. Follow-up on plan

Planning Optimization

1. Planning run triggered by order

2. Follow-up on plan

✓ Potential savings and improved sales by

reduction of the total lead time, as new

demands are detected and managed

earlier - order same day because you

don’t have to wait for the nightly plan.

✓ Improved customer service and order

taking, as the impact of other changes as

well as the entered sales order is

detected, and the plan is fully optimized

accordingly.

Updated dynamic plan with close to real-time insight

to requirement changes on the supply side, as well as

affected existing orders.

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Planning Optimization - From hours to minutes

Planning includes fulfillment from production in Asia to the main distribution center in Europe. From here the customer brand is transferred to

57 stores in Europe, based on demand from around 10.000 item variants. Besides this external brands are planned for direct delivery to stores.

Before Planning Optimization

With Planning Optimization

Planning is done every night - based on demand changes from the previous day. Once planners get to the office, they start to expedite the bulk of supply orders.

Receive

orderTime till next planning run Planning run

Follow-up

on plan

Supply

lead time

1. Wait for nightly plan to start (normally around 1-4am)2. Planning run (outside of normal office hours)3. Wait for planners getting to the office4. Follow-up on plan

• Nightly planning job is competing for a timeslot with other nightly F&O batch jobs • If the nightly run failed or parameters was incorrectly set the plan is not updated until the next nightly run• Concerned that future business growth will overload the planning system or lead to runtime that excite the nightly window

Original runtime on D365 F&O: 8-9h (on big SQL) -> optimized (SQL finetuning) to 1,5h

• Cost and capital savings by reduced inventory levels, due to faster replenishment (safety stock reduction around 25-50%)• Increased sale – as store space earlier used for safety stock now can be utilized for additional item variants in the stores• Improved customer service with shorter lead time – stockout is fulfilled one day earlier, bringing it down from 2-3 days to 1-2 days• Parameter changes and simulations are reflected in minutes – no need to wait for a nightly run• Eliminated nightly server time reserved for planning batch job• Comfort that future business growth will not overload the planning system or cause long run times

Planning is executed add-hoc during office hours - when demand require replenishment. Planners can expedite the supply orders instantly.

Receive

order

Follow-up

on plan

Supply

lead time

1. Planning run triggered right after order entry2. Follow-up on plan

Preview results: 1 min (on big SQL, 2 min on small SQL)

What’s the price?

No extra charge

Planning Optimization is included in the current license

Future additional planning functionality might come with additional charge

© Microsoft Corporation Dynamics 365

What about extensions?

Standard service with no code changes

Pre-processing of master data

Post-processing of planning result

Plan to support flow of additional information

Long term the goal is a flexible service that support external input

© Microsoft Corporation Dynamics 365

Current capabilities

Planning Optimization – new capabilities

Intercompany - Include planned downstream demand

Product life cycle state - Exclude products with specific lifecycle states

Inventory marking - Update marking during firming

Reduce demand forecast by all transactions

Coverage time fences

Purchase requisitions

Forecasts with submodels

Documentation link included above

https://go.microsoft.com/fwlink/?linkid=2105830

Improvements and changed behaviorNegative on-hand is treated as zero on-hand

• Your data is wrong for some reason – the planning engine will assume zero to avoid over supply.

Plan filter

• To enhance the isolation between plans we have introduced plan specific item filters that will be honored at run time.

Auto firming based on order date (start date)

• Auto firming based on order date (start date), not requirement data (end date).

• This will ensure that firming of planned order happens in due time, without having to include lead time in the firming time fence.

Today's date + procurement time

• To avoid delays for safety stock supply Fulfill minimum use “Today's date + procurement time”, regardless of setting on item coverage.

Dynamics negative days

• Dynamics negative days is used for all products, regardless og negative days setup.

• We are exploring options for introducing additional flexibility.

Explosion

• Result from master planning or Net requirement can be viewed on Explosion form.

• Explosion run can not be triggered with Planning Optimization enabled.

Feature management

Gantt timeline showing the required production, transfer and purchase

orders required to produce 80 ea of Speaker Pro Pack

Simulation example

Changing forecast for the simulation plan – resulting in a change from 80 ea to 160 ea for the Speaker Pro Pack

Quick update of the plan with the in-memory Planning

Optimization service.

Additional material purchase is required due to the quantity

increase from 80 ea to 160 ea

Demo

Documentation – Safety margins with calendars explained in detail

Business as usual – but a lot faster

Simulate and view explosion

Migration to Planning Optimization

Supported Azure geographies

• United States

• Canada

• Europe

• United Kingdom

• Australia

• Asia Pacific (Dec 2020)

How are customers notified about the migration?

Public announcement around deprecation on docs.

Direct mail to customers who need to migrate to Planning Optimization (send via LCS) – customers are

identified via telemetry data related to planning usage.

Customers who receive the above email should reply on the included questionnaire - informing about

their migration plans and if relevant request an exception.

Microsoft reply via email informing if exception is rejected or granted to continue usage of the built-in

master planning engine.

Customers should reevaluate if migration to Planning Optimization is possible, when new features are

released.

Starting from version 10.0.16 customers, without the need for planning related to manufacturing scenarios,

and no exception, will receive a warning when running built-in master planning. This warning is shown as

an error, with an ask to migrate or request an exception. Note that master planning will continue to work

despite the error.

Microsoft keep track of customers with an exception to continue usage of the built-in master planning

engine and notify customers via email when features required to migrate becomes available.

Customers with an exception must migrate to Planning Optimization when required features becomes

available, as the exception will end after a grace period starting from the availability date.

DRP scenariosCustomers without planned production orders

Since April 2020

Customers should

migrate to Planning

Optimization, as soon

as possible.

October 2020

Exception process for supported scenarios.

Deprecation of supported MRP scenarios

was announced and migration request

send to impacted customers.

Feb 2021

With version 10.0.16 master planning run

without planned production orders will

show an error – customers should migrate

to Planning Optimization or request an

exception (link in error message).

April 2021

Deprecation of distribution scenarios will start.

Will impact support options etc.

First support for scheduling around June.

October 2021

First MRP scenarios starts

to deprecate.

Focus on finite

capacity scheduling

and process industry

scenarios.

Customer can request an exception

Exception required from v 10.0.16

MRP scenariosCustomers with planned production orders

Supported with Planning Optimization

Customer can request an exception

Exception required

Supported with Planning Optimization

April 2022Additional MRP scenarios

deprecate.

When is the migration message shown in 10.0.16?

Only when ALL the following is true:

• Master planning run with built-in planning master planning engine (classic)

• No planned production orders generated in this or any other planning runs in the past 8 days

• Environment is cloud hosted (not on-prem)

• Version 10.0.16+

• No exception granted for this environment

• Flight was not enabled for sandbox environment (service fabric only)

Exception

When is exception relevant?

When features, extension or other factors prevent migration to Planning Optimization and NO planned production orders are generated, then exception is relevant incase:

• Error message is shown, or

• Environment Admin receive mail from Microsoft to migrate, or

• Production environment upgrade to 10.0.16+ not sandbox.

Exception will allow running built-in (legacy) master planning with version 10.0.16 on Prod environments, without any error message.

Do I risk that my current master planning suddenly stop working?

• No!

Support will be limited on built-in (legacy) master planning.

Encourage to migrate to Planning Optimization asap.

Demo - migration

Running Optimization Fit Analysis

Installing LCS Add-in

Turn on Planning Optimization

Roadmap

Planning Optimization - MRP

GA of Planned production orders

Include route & resource information – scheduling during firming

Defaulting of material location for BOM lines without warehouse

Planning Optimization

Action messages (redesigned)

Shelf life, expiration and best before

Additional extension points

Intercompany planning - multi plan execution

Plan copy and delete

Planning Optimization - MRP

Process manufacturing: batch orders, co/by products & sequencing

Schedule with finite capacity

Determine applicable resources based on capability requirements

CTP based on full MRP

Scheduling with finite materials

Planning with scrap rules

Prioritized item substitution

Support for lean Kanban’s

Planning Optimization

Inventory marking during firming

Forecast sub-models

Purchase requisitions

Coverage time fence

Order margin and Issue margin

Demand forecast - Transaction reduction key

Planning Optimization

Approval of planned orders

Receipt margins

Exclude service items

Respect product lifecycle state

Include intercompany demand

Forecast reduction by all transactions

Planning Optimization - MRP

Schedule with infinite capacity (June)

Subcontracting

Roadmap is subject to changeMeaning it will most likely change ☺

Fit analysis - documentation includes feature list with latest expected availability dates

A little surprise

Planned order firming with filtering (Query based)

Ship with version 10.0.19

Planning Optimization Resources

Migration – with exception details and FAQ

Get started – installation steps and requirements

Fit analysis – including feature list with expected availability dates

Functional documentation – enhanced documentation for planning

Training – online training for Planning Optimization

Yammer group – forum for announcements and questions

Q&A

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