Demand and pegging

A customer order for an assembly can leave the planner investigating a component shortage. Material Requirement Planning keeps the customer requirement and the dated component need available for that discussion. Production Planner starts with the approved order quantity, checks the required date and follows the pegged demand back to the customer line before arranging more supply.

The planning population includes customer orders marked Approved or Released whose required dates fall within the run horizon. Draft requests remain outside that population. When a customer changes a commitment, the planner reviews the affected quantities and the supply already arranged before accepting the next planning result.

• Agree the demand basis. Production Planner prepares the customer order and item lines. Assign Manager’s approval responsibility during setup, then check the quantity and customer date before moving the order from Draft to Approved.
• Follow the component need. The demand line identifies the ordered item, while its pegged requirement identifies the component, quantity and need date. Check the item units before comparing demand for the finished assembly with demand for its inputs.
• Check the named supply. Use a pegged supply reference to locate the actual purchase or production document. Confirm its item, remaining quantity and date with the owner before accepting it as coverage.

Agree who maintains the customer promise and how an amended order reaches Production Planner. Establish the quantity unit for each item and decide when an order is ready for Manager’s review. Rehearse the approval responsibility with ordinary accounts before the operating cycle depends on it.

Choose a planning horizon covering a commitment the team can verify. Keep the customer required date alongside the component need date when discussing the result. A component may be needed before the finished assembly is due; review that timing with the people preparing the production work.

Take an Approved customer order for a pump assembly due next Friday and a Draft order for the same item due on the same date. Production Planner checks that planning includes the approved commitment and excludes the draft. Open the customer lines and compare the actual item quantities with the requirement being discussed.

Follow a pegged requirement back to that approved line. Check its component, required quantity and need date. If its supply reference points to a purchase, open the purchase and confirm what remains after receipts. Ask the purchasing owner whether the due date still holds. Repeat the check after changing the customer quantity so the team can explain the revised requirement.

• Approved demand — Approved and Released customer commitments with their required dates ready for horizon review.
• Demand pegging due — Requirements due for investigation, with the customer line and supply reference available.
• Draft demand review — Customer orders awaiting the agreed approval review before planning.

Use Demand to MRP review to choose the planning population. Follow Suggestion to supply commitment when a requirement needs more supply.