Sec 3 - Master Planning Flashcards
Define Master Planning (MPC)
A group of business processes that includes the following activities: Demand management, production and resource planning, and master scheduling
Which 2 processes are known, collectively, as Master Planning?
S&OP and master scheduling
Define Priority Planning
The function of determining what material is needed and when.
Uses master scheduling and MRP to plan and re-plan to maintain proper due dates for purchased and manufactured components
What is Sales and Operations Planning (S&OP)?
Translates the strategic business plan into production rates that meet the company financial, customer service, and other business goals
Name 5 characteristics of a healthy S&OP process
1) Continual updating of operations, sales, and finance plans to meet strategic business plan objectives based on the latest market conditions and company capabilities
2) Formal process for obtaining inputs and updating plans for the various functions within the organization
3) Regular schedule for meeting with senior executives to review the updated plans
4) Check to see if resources will be adequate
5) Better management of the production rate, sales activities, inventory, and backlog
Define Production Planning
Process to develop tactical plans based on setting the overall level of manufacturing output and other activities to best satisfy current planned sales levels while meeting general business objectives (profitability, productivity, etc)
Name 4 areas of concern for Production Planning
1) Quantities demanded for each product family in each period
2) Desired inventory levels
3) Resources of equipment, labor, and materials needed in each period
4) Availability of needed resources
Name 6 attributes of the typical Production Plan situation
1) Time horizon may be anywhere 1 month to 36 months
2) Plan usually stated as a monthly rate
3) Demand fluctuates or is seasonal for many products
4) Plan is made for product families or groups
5) Plant and equipment usually fixed within the time horizon
6) Management will have a variety of objectives
Name 4 Production Plan strategies
1) Chase/demand matching
2) Level production / production leveling
3) Subcontracting
4) Hybrid / combo
Define Chase production plan strategy
Goal is to produce the quantity demanded at any time. Inventory level is stable. Production adjusted to match sales requirements
Define Level production plan strategy
Make an accurate forecast of average demand for a period and then set a level production rate to match the average.
Define Subcontracting production plan strategy
sending production work outside to another manufacturer
Define Hybrid production plan strategy
Combines aspects of both the chase and the level production planning methods
When use a Make-to-Stock production plan?
1) Demand fairly constant and predictable
2) Only a few product options exist
3) Required delivery times are shorter than the manufacturing lead time
Define Bill of Resources
Listing of the required capacity and key resources needed to manufacture one unit of a selected item or family.
Define Master Scheduling
Process where master schedule is generated and reviewed and adjustments are made to ensure consistency with the production plan
Define Master Production Schedule
a line on the master schedule grid that reflects the anticipated build schedule for those items assigned to the master scheduler. Represents what the company plans to produce expressed in specific configurations, quantities, and dates
What inputs are needed for the Master Scheduling process?
1) Production plan
2) forecast for individual end items
3) Orders from customers
4) Additional independent demand
5) Inventory levels
6) Capacity constraints
What are the 4 steps to develop a Master Schedule?
1) Create a preliminary schedule for each end item
2) Aggregate the master schedule for all end items if the products use the same resources and take the same amount of time
3) Perform Rough Cut Capacity Planning (RCCP)
4) Revolve differences and publish the MPS
Define Planning Horizon
amount of time a plan extends into the future. Normally set to cover a minimum of cumulative lead time plus set up time for lot sizing low-level components and time for capacity changes of primary work centers or of key suppliers
Define Final Assembly Schedule (FAS)
Schedule of end items to finish the product for specific customers’ orders in a make-to-order or assemble-to-order environment. May involve operations other than final assembly.
Define Time Fences / Zones
A policy or guideline established to note where various restrictions or changes in operating procedures take place.
Define liquid time zone
Beyond the time fence where changes are easy to make as long as they are consistent with the overall production plan.
Define slushy time zone
Between the demand time fence and the planning time fence. Demand consists of orders and forecasts so tradeoffs are maybe possible. Materials have been ordered and some capacity might have been allocated
Define Frozen time zone
Inside the demand time fence where demand is based on customer orders. Materials and capacity have been committed to specific orders. Changes would have ripple effects and cause other orders to be late.
Define Rough Cut Capacity Planning
Compares resource availability with the requirements for key resources such as labor, machinery, warehouse space, supplier’s capabilities, etc
