Criteria for selectin RM and PM to be planned in APO

[Former Member]

Hi Experts,

What should be the criteria for selecting RM/PM to be planned APO?

We have around 30-40 RMs and PMs...we can't plann each and every RM/PM in APO.

Critical RM and PM should be planned in APO..How do you define crticallity?

Thanks,

Vipul

[Former Member]

Dear Vipul

Criticality level of a product is subjective to the business but in general the Products to be planned in APO would be

Finished Goods

1. HIgh Profit margin Products

2. Products produced on bottle neck resources

3. Products with long manufacturing time.

4. Products having SFG or RM with high procurement lead times.

5. Products which have priorities from the business

Raw materials.

1. HIgh value and high lead time items

Edited by: VIrender Thakur on Oct 22, 2009 10:59 AM