Hey guys! Ever found yourself in a situation where you need to exclude certain items from master planning in Dynamics 365? Maybe you have some products that you don't want to be included in the automated planning process, or perhaps you want to manage their supply manually. Whatever the reason, Dynamics 365 provides a flexible way to exclude items from master planning. This article will guide you through the process, ensuring that you can tailor your planning to fit your specific business needs.

Understanding Master Planning in Dynamics 365

Before diving into the exclusion process, let's briefly touch on what master planning is in Dynamics 365. Master planning is a powerful tool that helps you determine the quantity and timing of future production, purchases, and transfers. It considers various factors such as demand forecasts, sales orders, inventory levels, and production schedules to generate a comprehensive plan. This plan ensures that you have the right products in the right quantities at the right time, optimizing your supply chain and minimizing costs. Master planning is crucial for businesses that want to streamline their operations and improve their overall efficiency.

However, not all items need to be included in this automated process. Some items might be better managed manually due to their unique characteristics or specific business requirements. That's where the ability to exclude items from master planning comes in handy. By excluding certain items, you can focus the master planning process on the products that benefit most from automated planning, while still maintaining control over the supply of other items. This flexibility allows you to create a tailored planning strategy that aligns with your specific business needs. Moreover, excluding items from master planning can help reduce the processing time and complexity of the planning runs, making the entire process more efficient.

Master planning can be configured to run periodically, such as daily or weekly, or it can be triggered manually. The results of the master plan are then used to generate planned orders, which can be further reviewed and approved before being converted into actual purchase orders, production orders, or transfer orders. The entire process is designed to be highly automated, but it also provides ample opportunities for human intervention and adjustment. Understanding the fundamentals of master planning is essential for effectively using the exclusion features. This ensures that you're making informed decisions about which items to include and exclude, and that you're optimizing your supply chain to meet your business goals.

Why Exclude Items from Master Planning?

There are several reasons why you might want to exclude items from master planning in Dynamics 365. One common reason is that some items have a very stable demand and are managed using a simple reorder point system. In such cases, including these items in the master planning process might add unnecessary complexity without providing significant benefits. Another reason could be that some items are subject to special agreements with suppliers, such as consignment stock or vendor-managed inventory. These items might require a different planning approach than standard items, and excluding them from master planning allows you to manage them according to the specific terms of the agreement.

Another scenario where excluding items from master planning is useful is when you have items with a very short shelf life or items that are produced on a make-to-order basis. For items with a short shelf life, you might want to rely on manual planning to avoid overstocking and waste. For make-to-order items, the demand is directly linked to customer orders, and there's no need to forecast demand or generate planned orders through master planning. By excluding these items, you can ensure that the master planning process focuses on the items that truly benefit from automated planning, improving the accuracy and efficiency of the overall process. Furthermore, excluding items can be beneficial when dealing with new product introductions or phase-out products. New products might have limited historical data, making it difficult to generate accurate forecasts. Phase-out products, on the other hand, might have declining demand, which needs to be carefully managed to avoid excess inventory. In both cases, manual planning might be a better approach, and excluding these items from master planning can help streamline the process.

Finally, excluding items from master planning can be a strategic decision to optimize your supply chain. By carefully selecting which items to include and exclude, you can focus your resources on the products that are most critical to your business. This allows you to improve your service levels, reduce your inventory costs, and increase your overall profitability. Therefore, understanding the reasons for excluding items from master planning is crucial for making informed decisions and tailoring your planning strategy to meet your specific business needs. This ensures that you're getting the most out of Dynamics 365 and that you're optimizing your supply chain for success.

Methods to Exclude Items

Dynamics 365 offers several ways to exclude items from master planning. Let's explore these methods in detail:

1. Setting the Planning Formula

The planning formula on the item master is the most common and direct method. Setting this to "None" effectively excludes the item from any master planning runs. To do this, navigate to the item master record, usually found under Product Information Management > Products > Released Products. Select the item you wish to exclude, and then edit the item. Go to the Plan tab, and find the Planning fastTab. Here, you will find the Planning Formula field. Change this field to "None".

When the planning formula is set to "None", the master planning engine will completely ignore the item during planning runs. This means that no planned orders will be generated for the item, regardless of demand forecasts, sales orders, or inventory levels. This is the simplest and most effective way to exclude an item from master planning when you want to completely remove it from the automated planning process. However, it's important to note that setting the planning formula to "None" will also prevent the item from being included in any inventory planning reports or analyses. Therefore, you should only use this method when you're certain that you want to completely exclude the item from the master planning process. Moreover, it's crucial to communicate this change to all relevant stakeholders, such as planners, buyers, and warehouse managers, to ensure that they're aware that the item is no longer being planned automatically.

2. Coverage Group Settings

Coverage groups define how master planning handles items. You can create a coverage group specifically for items you want to exclude. Then, configure this coverage group to effectively ignore demand. To do this, navigate to Master Planning > Setup > Coverage Groups. Create a new coverage group, and give it a descriptive name, such as "Excluded Items". In the General tab, set the Coverage code to "Manual". This setting indicates that the item's supply should be managed manually, rather than through master planning. Then, in the Planned orders tab, set the Firming time fence to a very high value, such as 999 days. This effectively prevents any planned orders from being generated for the items in this coverage group.

Assign the item to this coverage group in the item master. By assigning an item to a coverage group with a manual coverage code and a long firming time fence, you can effectively exclude it from master planning while still allowing it to be included in inventory planning reports and analyses. This method provides more flexibility than setting the planning formula to "None", as it allows you to manage the item's supply manually while still tracking its inventory levels and demand patterns. However, it's important to note that this method requires careful configuration of the coverage group settings to ensure that the item is truly excluded from master planning. You should also monitor the item's inventory levels and demand patterns regularly to ensure that the manual planning process is effective. Moreover, it's crucial to communicate the coverage group assignment to all relevant stakeholders, such as planners, buyers, and warehouse managers, to ensure that they're aware of the item's planning status.

3. Using Filters in Master Planning Runs

When running master planning, you can use filters to exclude specific items or groups of items. This is useful for temporary exclusions or when you only want to plan a subset of your items. To do this, navigate to Master Planning > Master Planning > Run > Master Planning. In the Records to include section, click on the Filter button. This will open a query dialog where you can specify the criteria for including items in the master planning run. To exclude specific items, you can add a filter for the Item number field and specify the items that you want to exclude. You can also use other fields, such as Item group or Category, to exclude groups of items.

Using filters in master planning runs is a flexible way to exclude items temporarily without changing their master data settings. This is particularly useful when you want to run master planning for a specific subset of items or when you want to exclude certain items due to temporary circumstances, such as a supplier shortage or a production issue. However, it's important to note that this method only excludes the items from the current master planning run. The items will still be included in future runs unless you apply the same filters again. Therefore, you should use this method with caution and ensure that you're aware of the implications of excluding items from master planning. Moreover, it's crucial to document the filters that you're using and communicate them to all relevant stakeholders, such as planners, buyers, and warehouse managers, to ensure that they're aware of the items that are being excluded from master planning.

Step-by-Step Guide to Excluding Items Using Planning Formula

Let's walk through the most common method: setting the planning formula to "None".

1. Navigate to Released Products: Go to Product Information Management > Products > Released Products.
2. Select the Item: Find and select the item you want to exclude from master planning.
3. Edit the Item: Click Edit to open the item details for editing.
4. Go to the Plan Tab: Navigate to the Plan tab on the item details page.
5. Find the Planning Formula Field: In the Planning fastTab, locate the Planning Formula field.
6. Set to None: Change the Planning Formula field to "None".
7. Save: Save the changes. The item is now excluded from master planning.

Best Practices and Considerations

• Documentation: Always document why an item was excluded and which method was used. This helps maintain clarity and consistency.
• Communication: Inform relevant team members (planners, buyers) about the exclusion to avoid confusion.
• Regular Review: Periodically review excluded items to ensure they still need to be excluded. Business conditions change, and some items might need to be re-included in master planning.
• Impact Assessment: Before excluding an item, consider the potential impact on inventory levels, customer service, and overall supply chain performance.

Conclusion

Excluding items from master planning in Dynamics 365 is a valuable tool for tailoring your planning strategy to meet your specific business needs. By understanding the different methods available and following best practices, you can optimize your supply chain and improve your overall efficiency. Whether you're dealing with stable demand items, consignment stock, or make-to-order products, Dynamics 365 provides the flexibility you need to manage your inventory effectively. So go ahead and give it a try, and see how it can benefit your business!