Module 4 - Creating & Validating the Master Schedule

Question 1

Master Scheduling

Answer 1

-process where master schedule is generated and reviewed and adjustments made to master production schedule to ensure consistency with production plan

-master production schedule is primary input to material requirements plan

-sum of master production schedules for items within product family must equal production plan for that family

Question 2

Master Schedule

Answer 2

-format that includes time periods (dates), the forecast, customer orders, projected available balance, available-to-promise, and master production schedule

-takes into account forecast; production plan, and other important considerations such as backlog, availability of material, availability, availability of capacity, and management policies and goals

Question 3

Master Production Schedule

Answer 3

-line on master schedule grid that reflects anticipated build schedule for those items assigned to master scheduler

-schedule becomes set of planning numbers that drives material requirements planning (MRP)

-represents what org plans to produce, expressed in specific configurations, quantities, and dates

-takes into account:
1. sales and ops. plan
2. capacity limitations
3. production costs
4. resource considerations

Question 4

Scheduling

Answer 4

-act of creating a schedule, such as a shipping schedule, paster production schedule, etc.

Question 5

Master Schedule Item

Answer 5

-part number selected to be planned by master schedule

-item is deemed critical in its impact on lower-level components or resources such as skilled labor or dollars

-may be an end item, a component, planning bill of material

Question 6

Multilevel master schedule

Answer 6

-technique that allows any level in an end item’s bill of material to be master scheduled

-MPS items must receive requirements from independent and dependent demand sources

Question 7

Two-level master schedule

Answer 7

-planning bill of materials is used to master schedule an end product or family, along with selected key features (options and accessories)

example: ATO

Question 8

Overstated master production schedule

Answer 8

-schedule that includes either past due quantities or quantities greter than ability to product, given current capacity and material availability

-overstated MPS should be made feasible before MRP is run

Question 9

Product Load Profile

Answer 9

-listing of required capacity and key resources needed to manufacture one unit of selected item or family

Question 10

Materials Management

Answer 10

-grouping of management functions supporting complete cycle of material flow, from purchase and internal control of production material to the planning and control of work in process to the warehousing, shipping, and distribution of the finished product

Question 11

Product Structure

Answer 11

-sequence of operations that components follow during their manufacture into a product

-typical product structure shows raw material converted into fabricated components, components put together to make subassemblies, subassemblies going into assemblies, etc.

Question 12

Priority

Answer 12

-relative importance of jobs (i.e. sequences in which jobs should be worked on)

-separate concept from capacity

Question 13

Product Configuration Catalog

Answer 13

-listing of all upper-level configurations contained in an end-item product family

-its application is most useful when there are multiple end-item configurations in same product

-used to provide a transition linkage between end-item level and 2-level master production schedule

Question 14

Planning Bill of Material

Answer 14

-artificial grouping of items or events in bill-of-material format used to facilitate master scheduling and material planning

-may include historical average of demand expressed as a % of total demand for all options within a feature or for a specific end item within a product family

-used as the quantity per in the planning bill of material

-are not completed end-item BOMs

-purpose is to simplify planning

-constructed at feature level as opposed to the end item level like a single or multi-level BOM

Question 15

Feature

Answer 15

-distinctive characteristics of a good or service

-characteristic is provided by an option, accessory or attachment

example: in ordering new car, customer specify an engine type and size (option) but need not necessairly select an air conditioner (attachment)

Question 16

Production Forecast

Answer 16

-projected level of customer demand for a feature (option, accessory, etc.) of a MTO or ATO product

-used in two-level master scheduling, it is calculated by netting customer backlog against overall family or product line master production schedule then factoring this product’s available-to-promise by option % in planning bill of material

Question 17

Option Overplanning

Answer 17

-scheduling extra quantities of a master schedule option greater than expected sales for that option to protect against unanticipated demand

-schedule quantity may be planned only in the period where new customer orders are currently being accepted typically just after the demand time-fence

-technique usually used on 2nd level of a 2-level master scheduling approach to create a situation where more of the individual options than of the overall family are available

historical average of demand for an item is quantified in a planning bill of material and option overplanning is accomploshed by increasing this % to allow for demands greater than forecast

Question 18

Common Parts Bill of Material

Answer 18

-type of planning bill that groups common components for a product or family of products into one BOM, structured to a pseudoparents item #

Question 19

Modular Bill of Material

Answer 19

-type of planning bill that is arranged in product modules or options

-often used in companies where product has many optional features (e.g. ATO companies such as automobile manufacturers)

Question 20

Super Bill of Material

Answer 20

-type of planning bill, located at top level in structure, that ties together various modular bills to define an entire product or product family

-quantity per relationship of super bill to its modules represents forecasted % of demand of each module

-master-scheduled quantities of super bill explode to create requirements for modules that are also master scheduled

Question 21

Projected Available Balance (PAB)

Answer 21

-inventory balance projected into the future

-it is the running sum of on-hand inventory minus requirements plus scheduled receipts and planned orders

Question 22

Batch

Answer 22

-quantity scheduled to be produced or in production

-for discrete products batch is planned to be standard batch quantity but during production, standard batch quantity may be broken into smaller lots

-in nondiscrete products batch is a quantity that is planned to be produced in a given time period based on a formula or recipe that often is developed to product a given # of end items

-type of manufacturing process used to produce items with similar designs; may cover wide range of order volumes

-typically items ordered are of a repeat nature and production may be for a specific customer order or stock replenishment

Question 23

Lot

Answer 23

-quantity produced together and sharing same production costs and specifications

Question 24

Pegging

Answer 24

-in MRP & MPS ability to identify for a given item sources of its gross requirements and/or allocations

Question 25

Rough-Cut Capacity Planning (RCCP)

Answer 25

-process of converting master production schedule into requirements for key resources often including labor, machinery, warehouse space, suppliers’ capabilities, money, etc.

-comparison to available or demonstrated capacity is usually done for each key resource which assists master scheduler in establishing a feasible master production schedule

-3 approaches to performing RCCP:
1. Bill of labor (resources, capacity)
2. capacity planning using overall factors
3. resource profile

Question 26

Capacity Planning Using Overall Factors (CPOF)

Answer 26

-rought cut capacity planning technique

-master schedule items and quantities are multipled by total time required to build each item to provide total # of hours to produce the schedule

-historical work center %s are then applied to total # of hours to provide an estimatre of hourse per work center to support the master schedule

-least detailed of the 3 RCCP approaches; quick to calculate but not as sensitive to shifts in product mix

Question 27

Bill of Labor

Answer 27

-also called capacity bill procedure

-structured listing of all labor requirements for fabrication, assembly, and testing of a parent item

-uses bill of labor, routing data, bill of material (BOM), and master production schedule

Question 28

Resource Profile

Answer 28

-standard hours of load placed on a resource by time period

-production lead-time data is taken into account to provide time-phased projections of capacity requirements for individual production facilities

Question 29

Work Center

Answer 29

-specific production area, consisting of one of more people and/or machines with similar capabilities that can be considered as one unit for purposes of capacity requirements planning and detailed scheduling

Question 30

Cumulative Lead Time

Answer 30

-longest planned length of time to accomplish the activity in question

-found by reviewing the lead time for each bill of material path below the item; whichever path adds up to the greatest # defines cumulative lead time

Question 31

Time Fences

Answer 31

-policy or guideline to note where various restrictions or changes in operating procedures take place

example: changes to master production schedule can be accomplished easily beyond the cumulative lead tie, while changes inside cumulative lead time become increasingly more difficult to a point where changes should be resisted

-master scheduling uses time fences to determine what kind of changes in volume/variety are allowed for orders as they move from order receipt through to production

Question 32

Demand Time Fence

Answer 32

-point in time inside of which forecast is no longer included in total demand and projected available inventory calculations; inside this point only customer orders are considered; beyond this point total demand is a combination of actual orders and forecasts

-in some contexts, demand time fence may correspond to that point in future inside which changes to master schedule must be approved by an authority higher than the master scheduler; customer orders may still be promised inside demand time fence wihtout higher authority approval if there are quantitiies available-to-promise (ATP)

-usually covers period of actual production time

-For MTS DTF is very close, a customer order triggers shipment from stock

for MTO: DTF is farther out, since lead time includes some purchasing and subassembly/assembly lead time

Question 33

Planning Time Fence

Answer 33

-point in time denoted in planning horizon of the master scheduling process that marks a boundary inside of which changes to schedule may adversely affect component schedules, capacity plans, customer deliveries, and cost

-outside planning time fence, customer orders can be booked and changes to master schedule can be made within the constraints of production plan

-changes inside planning time fence must be made manually by the master scheduler

-

Question 34

Order Entry

Answer 34

-process of accepting and translating what a customer wants into terms used by the manufacturer or distributor

-commitment should be based on available-to-promise line in master schedule

-can be as simple as creating shipping documents for finished goods in a MTS environment or more complicated including design efforts for MTO products

Question 35

Order Promising

Answer 35

-process of making a delivery commitment

-for MTO products usually involves a check of uncommited material and availability of capacity, often as represented by the master schedule ATP

Question 36

Available-to-Promise

Answer 36

-in ops. uncommitted portion of a company’s inventory and planned production maintained in master schedule to support customer-order promising

-ATP quantity is uncommitted inventory balance in first period and is normally calculated for each period in which an MPS receipt is schedule–in first period ATP includes on-hand inventory less customer orders that are due and overdue