Sec 3 - Master Planning

Question 1

Define Master Planning (MPC)

Answer 1

A group of business processes that includes the following activities: Demand management, production and resource planning, and master scheduling

Question 2

Which 2 processes are known, collectively, as Master Planning?

Answer 2

S&OP and master scheduling

Question 3

Define Priority Planning

Answer 3

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

Question 4

What is Sales and Operations Planning (S&OP)?

Answer 4

Translates the strategic business plan into production rates that meet the company financial, customer service, and other business goals

Question 5

Name 5 characteristics of a healthy S&OP process

Answer 5

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

Question 6

Define Production Planning

Answer 6

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)

Question 7

Name 4 areas of concern for Production Planning

Answer 7

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

Question 8

Name 6 attributes of the typical Production Plan situation

Answer 8

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

Question 9

Name 4 Production Plan strategies

Answer 9

1) Chase/demand matching
2) Level production / production leveling
3) Subcontracting
4) Hybrid / combo

Question 10

Define Chase production plan strategy

Answer 10

Goal is to produce the quantity demanded at any time. Inventory level is stable. Production adjusted to match sales requirements

Question 11

Define Level production plan strategy

Answer 11

Make an accurate forecast of average demand for a period and then set a level production rate to match the average.

Question 12

Define Subcontracting production plan strategy

Answer 12

sending production work outside to another manufacturer

Question 13

Define Hybrid production plan strategy

Answer 13

Combines aspects of both the chase and the level production planning methods

Question 14

When use a Make-to-Stock production plan?

Answer 14

1) Demand fairly constant and predictable
2) Only a few product options exist
3) Required delivery times are shorter than the manufacturing lead time

Question 15

Define Bill of Resources

Answer 15

Listing of the required capacity and key resources needed to manufacture one unit of a selected item or family.

Question 16

Define Master Scheduling

Answer 16

Process where master schedule is generated and reviewed and adjustments are made to ensure consistency with the production plan

Question 17

Define Master Production Schedule

Answer 17

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

Question 18

What inputs are needed for the Master Scheduling process?

Answer 18

1) Production plan
2) forecast for individual end items
3) Orders from customers
4) Additional independent demand
5) Inventory levels
6) Capacity constraints

Question 19

What are the 4 steps to develop a Master Schedule?

Answer 19

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

Question 20

Define Planning Horizon

Answer 20

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

Question 21

Define Final Assembly Schedule (FAS)

Answer 21

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.

Question 22

Define Time Fences / Zones

Answer 22

A policy or guideline established to note where various restrictions or changes in operating procedures take place.

Question 23

Define liquid time zone

Answer 23

Beyond the time fence where changes are easy to make as long as they are consistent with the overall production plan.

Question 24

Define slushy time zone

Answer 24

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

Question 25

Define Frozen time zone

Answer 25

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.

Question 26

Define Rough Cut Capacity Planning

Answer 26

Compares resource availability with the requirements for key resources such as labor, machinery, warehouse space, supplier’s capabilities, etc