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Class 4 5 Slides

The document discusses the master production schedule (MPS), which is the formal link between production planning and actual production. It provides information on developing the MPS, including needed data, objectives, relationship to production plans, and examples of different MPS environments. The MPS drives material requirements and is the primary production priority plan.

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Chey Maniebo
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
25 views

Class 4 5 Slides

The document discusses the master production schedule (MPS), which is the formal link between production planning and actual production. It provides information on developing the MPS, including needed data, objectives, relationship to production plans, and examples of different MPS environments. The MPS drives material requirements and is the primary production priority plan.

Uploaded by

Chey Maniebo
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Introduction to

MATERIALS MANAGEMENT

CHAPTER 3
Master Scheduling

Introduction
Introduction toto Materials
Materials Management,
Management, 8e8e Copyright © 2017 by Pearson Education, Inc.
Chapman,
Chapman, Arnold,
Arnold, Gatewood,
Gatewood, and
and Clive
Clive All Rights Reserved
The Master Schedule is

• The formal link between production planning and


actual production
• The basis for calculation of resources needed
• The driving force behind the material
requirements plan
• The primary priority plan for manufacturing

Introduction to Materials Management, 8e Copyright © 2017 by Pearson Education, Inc.


Chapman, Arnold, Gatewood, and Clive All Rights Reserved
Information Needed to Develop
an MPS
• Production Plan data
• Forecasts – at a more detailed level than were
required for the Production Plan
• Actual customer orders
• Inventory levels
• Capacity constraints

Introduction to Materials Management, 8e Copyright © 2017 by Pearson Education, Inc.


Chapman, Arnold, Gatewood, and Clive All Rights Reserved
Relationship to Production Plan

Introduction to Materials Management, 8e Copyright © 2017 by Pearson Education, Inc.


Chapman, Arnold, Gatewood, and Clive All Rights Reserved
Objectives and Steps for the MPS

• Objectives
▪ Maintain good customer service
▪ Make effective use of resources
▪ Maintain effective levels of inventory
• Accomplished by
▪ Develop a preliminary MPS
▪ Check MPS against capacity and resources
▪ Reconcile any differences

Introduction to Materials Management, 8e Copyright © 2017 by Pearson Education, Inc.


Chapman, Arnold, Gatewood, and Clive All Rights Reserved
MPS Example

Introduction to Materials Management, 8e Copyright © 2017 by Pearson Education, Inc.


Chapman, Arnold, Gatewood, and Clive All Rights Reserved
Rough-cut Capacity Planning

• Establishes whether critical resources are


available
▪ Bottleneck operations
▪ Critical labor resources
▪ Critical material
• Often uses a resource bill for a single product

Introduction to Materials Management, 8e Copyright © 2017 by Pearson Education, Inc.


Chapman, Arnold, Gatewood, and Clive All Rights Reserved
Example Resource Bill

Introduction to Materials Management, 8e Copyright © 2017 by Pearson Education, Inc.


Chapman, Arnold, Gatewood, and Clive All Rights Reserved
Master Schedule Focal Points

• Make-to-Stock – Limited end products, many


components
• Make-to-Order – Many end products, fewer
components
• Assemble-to-Order - Many end products,
combination of components and subassemblies

Introduction to Materials Management, 8e Copyright © 2017 by Pearson Education, Inc.


Chapman, Arnold, Gatewood, and Clive All Rights Reserved
Example MPS Environments

Introduction to Materials Management, 8e Copyright © 2017 by Pearson Education, Inc.


Chapman, Arnold, Gatewood, and Clive All Rights Reserved
Final Assembly Schedule

• Assembly according to customer schedule


• Generally used in an Assemble-to-Order
environment
▪ Many options
▪ Too many possible final configurations to
forecast or master schedule
• MPS usually done at the option level

Introduction to Materials Management, 8e Copyright © 2017 by Pearson Education, Inc.


Chapman, Arnold, Gatewood, and Clive All Rights Reserved
Postponement

• Shifting customer influence in the final product


design as far down the supply chain as possible
• Reduces volatility in the earlier portions of the
supply chain
• Often allows for faster response to customer
demand

Introduction to Materials Management, 8e Copyright © 2017 by Pearson Education, Inc.


Chapman, Arnold, Gatewood, and Clive All Rights Reserved
MPS, FAS and Other Planning
Activities

Introduction to Materials Management, 8e Copyright © 2017 by Pearson Education, Inc.


Chapman, Arnold, Gatewood, and Clive All Rights Reserved
MPS Planning Horizon

• Minimum time horizon over which the master


schedule must extend to ensure complete
planning
• Calculated as the longest end-to-end lead time of
the product structure

Introduction to Materials Management, 8e Copyright © 2017 by Pearson Education, Inc.


Chapman, Arnold, Gatewood, and Clive All Rights Reserved
EXAMPLE - Cumulative Planning
Horizon
For this product – Minimum Planning Horizon 12 weeks

Introduction to Materials Management, 8e Copyright © 2017 by Pearson Education, Inc.


Chapman, Arnold, Gatewood, and Clive All Rights Reserved
Delivery Promises

• MPS is a plan for what production can and will do


• Sales delivery promises can be made from
▪ “Consumption” of forecasts – Projected
available balance
▪ Available to Promise calculations
• MPS values for a given time period left after
actual customer orders are subtracted.

Introduction to Materials Management, 8e Copyright © 2017 by Pearson Education, Inc.


Chapman, Arnold, Gatewood, and Clive All Rights Reserved
Available to Promise Example

Introduction to Materials Management, 8e Copyright © 2017 by Pearson Education, Inc.


Chapman, Arnold, Gatewood, and Clive All Rights Reserved
Projected Available Balance

• Within demand time fence (forecast not taken


into account)
▪ PAB = Prior period PAB + MPS – customer
orders
• Outside of demand time fence
▪ PAB = Prior period PAB + MPS – greater of
customer order or forecast

Introduction to Materials Management, 8e Copyright © 2017 by Pearson Education, Inc.


Chapman, Arnold, Gatewood, and Clive All Rights Reserved
Example of MPS with ATP and PAB
Demand time fence at end of week 3

Introduction to Materials Management, 8e Copyright © 2017 by Pearson Education, Inc.


Chapman, Arnold, Gatewood, and Clive All Rights Reserved
Time Fences
Points in the planning horizon to define MPS flexibility
▪ Frozen Zone (closest to current date)
• Capacity and materials committed to orders
• Senior management approval for changes
▪ Slushy Zone
• Less commitment of materials and capacity
• Tradeoffs between marketing and manufacturing
▪ Liquid Zone
• All changes allowed within limits of Production
Plan

Introduction to Materials Management, 8e Copyright © 2017 by Pearson Education, Inc.


Chapman, Arnold, Gatewood, and Clive All Rights Reserved
Time Fences

Introduction to Materials Management, 8e Copyright © 2017 by Pearson Education, Inc.


Chapman, Arnold, Gatewood, and Clive All Rights Reserved
Changes to the Master Schedule

• Some change is inevitable, reflecting several possible


sources
• Any change in the Master Schedule should be taken
seriously, however
▪ Small changes can ripple through product structure
▪ Various lead time and lot sizing issues can result in
massive component requirement changes
▪ Sometimes called “system nervousness”
• Use the “what if” capability of the system to check for
problems first
Introduction to Materials Management, 8e Copyright © 2017 by Pearson Education, Inc.
Chapman, Arnold, Gatewood, and Clive All Rights Reserved

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