Lesson 2 (simplified) Flashcards
Activities of planning and control
Scheduling: when
Loading: how much
Monitoring and control: is it going to plan
Sequencing: in what order
planning and control
Sales and Operations Planning (S&OP)
critical functions agree on an action plan to fulfil strategic goals
lead time
a span of time required to perform a process.
cumulative lead time
longest planned time to complete activity
delivery lead time
time from receipt to delivery
S&OP in action
sales forecast > order forecast > supply schedule > order schedule
Questions of priority and capacity in good planning and control system
- what are we going to make
- what does it take to make it
- what do we already have
- what must we get and when
Top-down planning and control
S&OP > master scheduling > material requirements planning > production activity control & vendor order management
Master scheduling
planning process that tracks outputs and matched to orders
- makes specific overall resource level established by S&OP
- when and in what quantity will be produced
- links production with order
- what resources are still available to meet new demand
master scheduling record
forecasted demand, booked orders, projected inventory level, production quantities, units still. available to meet needs
forecasted demand
best estimate of demand in any period
booked orders
confirmed demand
master production schedule (MPS)
amount that will be finished and available for sale each week
planning horizon
amount of time master schedule record extend in the future
Push system
moved when processed
