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Master Scheduling
Introduction
Aggregate Production
& Capacity Plans
They
combine
Products into
product groups.
Demand into
monthly totals.
Which alltogether
reflect Top Management
Decisions.
Personnel
Requirements
across departments
Eventually, the time comes when individual end item products and services
must be scheduled at specific work centers.
This is accomplished by master scheduling
Which means, producing a SUPPLY PLAN (a time table including quantities) to produce specific
items or provide specific services within a given time period.
Table 1
Creates
demand
requirements
Creates
demand
requirements
Is the key
link
Is the key in
developing the
master
schedule
Calculates net
requirements
Figure 1
Example : A case in which the distribution requirements are the gross requirements
for the MS
Here, the
MS;
enables marketing to make
legitimate delivery
commitments to field warehouses
and final customers.
enables production to evaluate
capacity requirements in a
more detailed manner.
provides to management the
opportunity to ascertain whether
the business plan and its
strategic objectives will be
achieved.
Distribution
requirements (gross
requirements for MS)
Table 2
Net Requirements are
calculated by MRP logic.
the INTERESTS of
CUSTOMERS
and
the ACTIONS of
COMPETITORS
Thus, a COMPETETIVE
STRATEGY evolves...
Placed Orders
Forecasted Demand
Current and
Planned
Availability, eg.,
Initial Inventory,
Initiated
Production,
Subcontracted
quantities
MPS
Planning Time
Horizon unit
Master Production
Schedule:
When & How Much
to produce for each
product
Capacity
Planning
Example
The manufacturer of the ladder-back chair produces the chair to
stock and needs
to develop an MPS for it. Marketing has forecasted a demand of
30 chairs for the
first week of April, but actual customer orders booked are for 38
chairs. The current on-hand inventory is 55 chairs. No MPS
quantity is due in week 1. Figure 2 shows an MPS record with
these quantities listed. As actual orders for week 1 are greater
than the forecast, the scheduler uses that figure for actual orders
in calculating the projected inventory balance at the end of week
1:
In week 2, the
forecasted
quantity
exceeds actual
orders booked,
so
the
projected
on-hand
inventory
for
the
end
of
week 2 is 17 +
0
-30= -13.
The
shortage
signals
the need for
more chairs in
week 2.
a lead time of one week is indicated for the ladder-back chair; that
is, one week is
needed to assemble 150 ladder-back chairs, assuming that items
B, C, D, and E are
available. For each MPS quantity, the scheduler works backward
through the lead
time to determine when the assembly department must start
producing chairs.
Consequently, a lot of 150 units must be started in week 1 and
another in week 6.
AVAILABLE-TO-PROMISE QUANTITIES
Example
:
The number of time fences can vary. Black & Decker uses three
time fences: 8, 13, and 26 weeks. The 8-week fence is essentially a
demand time fence. From 8 to 13 weeks, the MPS is quite rigid, but
minor changes to model series may be made if components are
available. From 13 to 26 weeks, substitution of one end item for
another is permitted as long as the production plan is not violated
and components are available. Beyond 26 weeks, marketing can
make changes as long as they are compatible with the production
plan.
SOLVED PROBLEM
The order policy is to produce end item A in lots of 50 units.
Using the data shown in Figure 6 and the FOQ lot-sizing rule,
complete the projected on-hand inventory and MPS quantity
rows. Then complete the MPS start row by offsetting the MPS
quantities for the final assembly lead time. Finally, compute
the available-to-promise inventory for item A. If in week 1, a
customer requests a new order for 30 units of item A, when is
the earliest date the entire order could be shipped?
The projected on-hand inventory for the second
week is
The other ATPs equal their respective MPS quantities because there
are no booked orders for those weeks. As for the new order for 30
units, the earliest it can be shipped is week 3 because the ATP for
week 1 is insufficient. If the customer accepts the delivery date of
week 3, the ATP for week 1 will stay at 5 units and the ATP for week
3 will be reduced to 5 units. This acceptance allows the firm the
flexibility
to immediately satisfy an order for 5 units or less, if one comes in.
The customer orders booked for week 3 would be increased to 35 to
reflect the new orders shipping date.