Supporting Slides

1
Supporting Slides
X
Systems for Planning Control in
Manufacturing Systems and Management for
Competitive Manufacture
Professor David K Harrison Glasgow Caledonian
University Dr David J Petty The University of
Manchester Institute of Science and Technology
ISBN 0 7506 49771
0000
2
MPS - Overview
18
Business Planning
MPS - Balancing Supply and Demand
Sales and Operations Planning
Master Production Scheduling
Definition The anticipated build schedule for
those items assigned to the Master Scheduler. The
master scheduler maintains this schedule and in
turn it becomes a set of planning numbers which
drives MRP. It represents what the company plans
to produce expressed in specific configurations,
quantities and dates. The MPS is not a sales
forecast which represents a statement of demand.
The MPS must take account of the forecast, the
Production Plan (SOP), and other important
considerations such as order backlog,
availability of material, availability of
capacity, management policy and goals etc.
Material Requirements Planning
Capacity Requirements Planning
No
Realistic
Yes
Shop Floor Control
Purchasing
1801
3
MPS - Examples
18
A
B
Assembly Shop Capacity 2000
Machine Shop Capacity 3000
Net
Actual
Resource
Item
Requirement
Production
C
D
E
F
Machine
C
1000
Shop
Machine
Sales
Actual
D
Resource
Item
1000
Shop
Requirement
Production
Machine
A
E
Assembly
1000
1000
Shop
Machine
B
F
Assembly
1000
1000
Shop
Total
Total
2000
4000
300,000
400,000
1802
4
Reasons to Master Schedule - 1
18
Lumpy
Load Capacity
120
100
80
Sales
60
40
20
0
Jan
Mar
May
Jul
Sep
Nov
Months
1803
5
Reasons to Master Schedule - 2
18
Month-End Biased
Load Capacity
120
100
80
Sales
60
40
20
0
Wk1
Wk3
Wk5
Wk7
Wk10
Wk12
Weeks
1804
6
Reasons to Master Schedule - 3
18
Seasonal
Load Capacity
120
100
80
Sales
60
40
20
0
Jan
Mar
May
Jul
Sep
Nov
Months
1805
7
Reasons to Master Schedule - 4
18
Overload
Load Capacity
120
100
80
Sales
60
40
20
0
Wk1
Wk3
Wk5
Wk7
Wk10
Wk12
Weeks

• A Company May Also Sequence Work to Minimise
  Changeovers
• The MPS Must be Kept Relatively Stable to
  Minimise Planner Action Messages

1806
8
MPS Overview
18
Demand

• Statement of Supply
• Demand - Actual or Forecast
• Defined in Terms of End-Items or Planning BOM
• Drives MRP
• Crucial Element in Management Control

Master
Product
Production
Capacity
Data
Scheduling
Master
Schedule
Planning Horizon
Weeks
Part No.
12
15
16
17
18
19
20
14
13
11
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
1,000
DP1029
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,500
DP1030
MPS
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
DP1031
200
200
200
200
200
DP1032
1,000
1,000
2,000
2,000
2,000
2,000
2,000
1,000
1,000
1,000
DP1033
7,000
DP1034
1807
9
Planning Horizon
18
MPS Planning Horizon
High
Low
Significance of Change
Cumulative Manufacturing Lead Time
Cumulative Purchasing Lead Time
Manufacturing Committed
Overall Levels of
Capacity Defined
to Plan
Production Defined
by SOP
Changes Subject
Capacity Trade-offs
to Approval
Permitted
Planning
Now
Demand
Time
Time
Fence (PTF)
Fence (DTF)

• Prevents Orders Being Scheduled
• Takes Actual Demand Only

• Takes Greater of Planned and Actual Demand

1808
10
Emergency Demand
18
Short Order Shop
100
Uncommitted Capacity
Trade Offs
Uncommitted Inventory
1809
11
MPS Mechanics 1
18
1810
12
MPS Mechanics - 2
18

• MPS Orders Are Created Manually
• Action Messages Assist Planner
• MPS Orders are Firm Planned
• Available to Promise (ATP) Used for Order
  Promising
• Time Fences Can be Ignored (Time Fence Violation)
• RCCP is also a Valuable Tool in Master Scheduling

1811
13
MPS Example
18
Demand Time Fence
Planning Time Fence
Time
1
2
3
4
5
6
7
8
SOH
Independent Forecast
20
20
20
20
20
20
Part No
K7
Lead Time
3
Actual Demand
5
15
10
20
Order Qty
60
Projected Available Balance
10
5
45
25
65
45
25
5
25
MPS (Receipt)
60
60
5
Available to Promise
30
60
1812
14
Two Level MPS - 1
18
Variety
Make to Stock
End Items
Make to Order
"D"
(Single Level MPS)
Engineer to Order
Finished Goods
P"
Planner Items
Configure to Order
(Two Level MPS)
Components
Raw Materials
1813
15
Two Level MPS 2
18
End-Items - Actual Product
Level 1 Final Assembly Schedule (FAS) Driven by
Specific Customer Demand
I
T
O
N
P
O
S
Inventory Held at Point
of Minimum Inventory
Components
Level 2 - MPS Driven by Generic Forecast Demand
Planner Items - Fictitious
1814
16
Two Level MPS - 3
18
Car
Options
Trim
Gearbox
Body
Engine
Colour
1.4 (25)
Saloon (65)
Manual (85)
B (20)
Red (20)
CD (10)
1.6 (25)
Estate (30)
Auto (10)
L (20)
Blue (30)
Electric Sun Roof (10)
1.8 (20)
Cabriolet (5)
PIV(5)
LX (20)
Black (20)
Mobile Phone (5)
XR12 (10)
GL (18)
Green (5)
Passenger Air Bag (5)
1.8D (15)
Ghia (10)
White (5)
Metallic Paint (25)
Electric (5)
Sport (12)
Maroon (20)
ABS (35)
PIV Positively Infinitely Variable
1815
17
Management Aspects of MPS - 1
18
?
DESIGN!
SELL!
Sales
Logistics
Engineering
MAKE!
COSTS!
BUY!
Purchasing
Production
Finance
1816
18
Management Aspects of MPS - 2
18

• Adoption of Plan
• MPS Meetings
• Senior Management Driven
• Master Production Scheduler

1817
19
Master Scheduler - Responsibilities
18

• Maintain the MPS
• Provide Management with Information
• Ensure the MPS Reflects the Aggregate Plan
• Ensures the MPS is Feasible

1818
20
The Ideal Master Scheduler
18

• Experience
• 10 Years in Manufacture
• 10 Years in Sales/Marketing
• 5 Years in Production/Material Control
• 2-3 Years in Finance Desirable
• Qualifications
• Business Administration
• Mechanical, Electrical and Production Engineering
• Production and Inventory Management
• Age
• An Energetic 35 Year Old

1819
21
The Practical Master Scheduler
18

• Company Employee
• Good Communicator and Diplomat
• Good All-Round Product/Business Knowledge
• Respected in the Organisation
• The Person the Company Wants to Develop

1820
22
Planning and Execution
18
Manufacturing
Input (MPS)
Manufacturing Overload
Long Work-to-Lists
Past Due Orders
Shortages
High WIP
WIP
Long Lead Times
Sales and Planning
Long Planner Action Lists
Unreliable Delivery Promises
General
High Inventory
Execution
Result
Output
1821
23
MPS - Summary
18

• Supply - Demand Balance
• Mechanism for Control of the Organisation
• Tool for Defining Priorities
• Mechanism for Ensuring Feasible and Stable
  Schedules
• Requires Management Commitment
• Fundamental to All Manufacturing Management
  Techniques
• MPS Formalises a Process that Must be Undertaken

1822
24
Course Book
X
Systems for Planning Control in
Manufacturing Systems and Management for
Competitive Manufacture Professor David K
Harrison Dr David J Petty ISBN 0 7506 49771
0000