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X. Supporting Slides. 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.

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  1. X Supporting Slides 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 1000 500 500 1000 500 500 1000 3000 x Actual = "x" req. = 400,000 Production Sales Demand MRP 400,000 Actual = "y" req. = 400,000 Purchase y 18 A B Assembly Shop Capacity = 2000 Machine Shop Capacity = 3000 Net Actual Item Resource Requirement Production C D E F Machine C 1000 Shop Machine Sales Actual D Item Resource 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. 11 12 13 14 15 16 17 18 19 20 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 1,000 1,000 1,000 2,000 2,000 2,000 2,000 2,000 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 Now Planning 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. Normal Lead Time Capacity Load Load/Capacity Order Type Automatic Reschedule Explode to Next Level Comment Yes Yes Planned Created Automatically by MRP Time No Yes Firm Planned Created Manually by Planner Planned or Firm Planned Orders are Converted into Scheduled Receipts No No Scheduled Receipt 18 MPS Mechanics – 1 1810

  12. 18 MPS Mechanics - 2 • 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 15 10 20 5 Order Qty: 60 Projected Available Balance 25 10 5 45 25 65 45 25 5 MPS (Receipt) 60 60 5 Available to Promise 30 60 1812

  14. 18 Two Level MPS - 1 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. 18 Two Level MPS – 2 End-Items - Actual Product Level 1 – Final Assembly Schedule (FAS) Driven by Specific Customer Demand I T O P N O S Inventory Held at Point of Minimum Inventory Components Level 2 - MPS Driven by Generic Forecast Demand Planner Items - Fictitious 1814

  16. Engine Body Gearbox Trim Colour Options 1.4 Saloon Manual B Red CD 1.6 L Blue Electric Sun Roof Estate Auto 1.8 Cabriolet PIV LX Black Mobile Phone XR12 GL Green Passenger Air Bag 1.8D Ghia White Metallic Paint Electric Sport Maroon ABS Permutations = 6 x 3 x 3 x 6 x 6 x 6 = 11664 18 Two Level MPS - 3 Car Engine Body Gearbox Trim Colour Options 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 Engineering Logistics MAKE! COSTS! BUY! Finance Production Purchasing 1816

  18. 18 Management Aspects of MPS - 2 • 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. 18 The Ideal Master Scheduler • 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. 18 The Practical Master Scheduler • 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. 18 Planning and Execution 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. 18 MPS - Summary • 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. X Course Book 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

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