Smart Buffer Profiler

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Using the Smart Buffer Profiler

Smart Buffer Profiler (SBP) utilizes demand history to create profile assignments for items. To be able to run the SBP, you must upload the Part, Bill of Material, and Demand History files. Ensure that all of the Lead Times, MOQs, and Order Cycles are correct in the Part file prior to upload.

For SBP to calculate Average Daily Usage (ADU) from the demand history, the “use ADU imported with part record” field must be unchecked in the Processing window. Buffer Profiles created by the SBP are classified as “auto” whereas those that are imported are categorized as “custom.”

To begin, start by viewing the demand history by clicking on the SBP option in the menu followed to Demand History Analysis as shown below:

Demand History Analysis

The Demand History Analysis shows the data that the SBP uses to determine buffer profile assignments. This analysis is run independently of the SBP and can be exported for further analysis.

The "Weeks of Analysis Demand Horizon" setting in the Demand History Analysis determines the number of weeks of demand history that the SBP uses to generate Buffer Profiles. As a rule of thumb, you should ensure that this number of weeks always matches the ADU / FDU horizons of your parts before running the SBP.

Column Definitions for Demand History Analysis

Weeks of Analysis Demand Horizon

You can load demand history and then choose how many weeks of that history will be analyzed. In the example above, it is set to 26 weeks. All the elements displayed below (except ADU) such as Total Qty, Number of Pulls, Max Pulls, are results of the number of weeks selected in this field. You can change this number as needed and select the “Save and Reanalyze” button to see updated values.

The "Weeks of Analysis Demand Horizon" setting in the Demand History Analysis determines the number of weeks of demand history that the SBP uses to generate Buffer Profiles. As a rule of thumb, you should ensure that this number of weeks always matches the ADU / FDU horizons of your parts before running the SBP.

Exclude Negative Demand

The demand history could contain negative values if a customer returns material or if inventory adjustments occur. If this switch is turned ON, then negative values will be ignored. If OFF, the negative values will be used as part of the analysis.

Total Qty

This is the total demand for a specific part in the analysis period.

Num Pulls

The Number of Demand Pulls. This is the number of days of demand against the item.

Avg Qty

This is the average demand for a specific part in the analysis period. It is calculated by dividing the Total Qty field by the Number of Pulls.

Standard Deviation

This is the standard deviation of all the demand values during the analysis period. The standard deviation is calculated with the Total Qty of demand and the total number of work days based on the Default and Location, and/or Part calendars.

DHA ADU

ADU

CoV

This is a measure of variability. The higher the CoV, the higher the variability of the item.

Max Pull

This is the largest single demand pulse against the part.

Smart Buffer Profiler Wizard

The Wizard portion of the Smart Buffer Profiler is where you will establish the settings for and generate buffer profiles.

The first step in the SBP Wizard is to determine which locations and part types that you want to generate buffer profiles for. For each location on the left hand side of the screen, select the switches in the same row for the part types you want to generate buffers for. If you want to select all part types for a location or deselect all of a column, you can select the "All/None" button at the top of each column.

In this example, Buy and Make parts have been selected at the Plant Location. Once these selections have been made, click the "Next".

In the next screen, you will need to select the minimum demand and order cycle criteria for each part type.

Min Number of Demand Pulls

This is the minimum amount of days of demand that a part needs to have in the demand analysis horizon for it to be buffered. It is common that this number should be higher for Buy part types, as you may not wish to buffer an item that has less than a certain amount of usage over the horizon. However, if you are uncertain about the correct cut-off or want to decide what should be buffered during the initial buffer review, you can always buffer all parts by setting this number to 1 (has to have at least 1 usage in the last horizon) or 0 (does not need demand and everything will be buffered).

GZ Min Order Cycle

This setting allows you to set a protection against buffers that would recommend ordering more than once a week. All buffers could potentially use one of three Green Zone calculation methods: MOQ, Lead Time Factor/Percentage, or Order Cycle. If there is a small or no MOQ and no order cycle in the data for a part, it is possible that the MOQ or LTF methods recommend a green zone size that covers less than a week of usage. For parts that do not already have an order cycle value, you can use this setting to establish a "placeholder" order cycle value so that the largest Green Zone size will contain at least a week's worth of usage. This is often the same number of days as is your work week.

This placeholder will not replace any preexisting order cycle, even if that value is less than the placeholder. If you do not wish to use this setting, set the number to "0" on the part types you don't want to use it on.

Once these values have been entered, click Next.

In this section, Lead Time categories must be established for each Part Type. In the example shown below, both Buy and Make parts have 5 Lead Time categories. Additional categories can be added using the green “Add” button on the top-right side of the screen. To remove categories, click the Delete button denoted by an “X.” Once the Lead Time categories have been established, click Next.

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In this section, Variability categories must be established for each Part Type. In the example shown below, both Buy and Make parts have 5 Variability categories. Additional categories can be added using the green “Add” button on the top-right side of the screen. To remove categories, click the Delete button denoted by an “X.” Once the Variability categories have been established, click Next.

Select “Run Smart Buffer Profiler” as the next step to generate new Buffer Profiles. This will only generate the initial buffer profiles. You will have a chance to review them before you accept the changes.

Once SBP is run, a message will display stating that number of new Buffer Profiles that have been created. Upon acceptance, these Buffer Profiles are assigned to the appropriate parts. In the example below, 150 new Buffer Profiles have been created. If running SBP results in no new changes, a message stating “Smart Buffer Profiler has created 0 new profiles” will be displayed.

Last, cancel or accept the recommended changes. By clicking “Accept Changes” the new Buffer Profiles will be assigned to the relevant parts. By selecting "Cancel", you will remove the settings and results of the run from the SBP.