8b Lect7 – MPS – Managing the MPS

Embed Size (px)

Citation preview

  • 7/29/2019 8b Lect7 MPS Managing the MPS

    1/19

    1

    Session 8

    Master Production Scheduling (MPS)

    Managing the MPShttp://www.pom.edu/mpc/lectures_in_manufacturing_planning.htmlecture session 7

    Example Company MPS Records

    Handling MPS Lead Time Incorporating Capacity Constraints

    MPS Stability

    Managing the MPS Master Production Schedulers Job

    Concluding Principles

    http://www.pom.edu/mpc/lectures_in_manufacturing_planning.htmhttp://www.pom.edu/mpc/lectures_in_manufacturing_planning.htm
  • 7/29/2019 8b Lect7 MPS Managing the MPS

    2/19

    2

    Jet Spray Corporation Master

    Planning Schedule

  • 7/29/2019 8b Lect7 MPS Managing the MPS

    3/19

    3

    Handling MPS Lead Time

    The Spencer Optics Company produces an inexpensive line ofsunglasses. The manufacturing process consists of

    assembling two plastic lenses (produced by the firm's plastic

    molding department) into a finished frame (purchased from

    an outside supplier).

    The firm's sales manager has prepared a 10-period sales forecast

    for one of the more popular sunglasses (the Classic model).

    The forecast is 100 orders per period. Spencer has customer

    orders of 110 units, 80 units. 50 units, and 20 units in periods

    l , 2, 3, and 4, respectively. The sunglasses are assembled in

    batches of 300. Presently, three such batches are scheduled:

    one in period 2, one in period 5, and one in period 8.

  • 7/29/2019 8b Lect7 MPS Managing the MPS

    4/19

    4

    Spencer Optics (Continued)

    a. Complete the time-phased record.

    Period 1 2 3 4 5 6 7 8 9 10

    Forecast 100 100 100 100 100 100 100 100 100 100

    Orders 110 80 50 20

    Available 30 230 130 30 230 130 30 230 130 30

    Available to Promise 30 150 300 300

    MPS (Completion) 300 300 300

    On-hand = 140, MPS lot size = 300

    a. Classic Model

  • 7/29/2019 8b Lect7 MPS Managing the MPS

    5/19

    5

    Spencer Optics (Continued)

    b. Prepare the MRP record for the assembly of the sunglasses. Thefinal assembly quantity is 300, lead time is 2 periods, and theres ascheduled receipt in period 2. Note that no inventory is shown forthe assembled sunglasses in this record, since its accounted for in

    the MPS record.

    1 2 3 4 5 6 7 8 9 10

    300 300 300

    300Projected available balance 0 0 0 0 0 0 0 0 0 0 0

    300 300

    b. Final Assembly - Classic Model

    Q = 300; LT = 2; SS = 0

    Period

    Scheduled receipts

    Planned order release

    Gross requirements

  • 7/29/2019 8b Lect7 MPS Managing the MPS

    6/19

    6

    Incorporating Capacity Constraints

    End ProductBeginning Inventory Period Forecast Lot size Hours per lot size

    A 60 10 30 30

    B 20 5 20 20

    C 30 15 50 50

    a. Prepare the master production schedule for these

    items during the next four periods using the EthanAllen master production scheduling method.

  • 7/29/2019 8b Lect7 MPS Managing the MPS

    7/19

    7

    Incorporating Capacity Constraintsa.

    Capacity=

    Hours Period 1 Period 2 Period 3 Period 4

    4035

    30

    25

    20

    15

    10

    5

    0

    C

    B

    A

    C

    C

    C

    B

    Produce Period 1 Period 2 Period 3 Period 4

    A 60/10 = 6 50 / 10 = 5 30 / 10 = 3

    B 20/5 = 4 15 / 5 = 3* 25 / 5 = 5*

    C 30 / 15 = 2 55 / 15 = 3.7 85 / 15 = 5.67

  • 7/29/2019 8b Lect7 MPS Managing the MPS

    8/19

    8

    Incorporating Capacity Constraints

    (Continued)

    b. Should the plant increase or decrease the

    capacity of the final assembly line?

    The plant should decrease capacity by 10

    hours/period because the total units forecast each

    period totals 30 units (10 + 5 + 15) and the time

    to produce each unit is 1 hour. Therefore, 30hours of capacity are required each period versus

    40 units of available capacity.

  • 7/29/2019 8b Lect7 MPS Managing the MPS

    9/19

    9

    Incorporating Capacity Constraints

    (Continued)

    c. Suppose that the master production schedule is

    frozen for the next three periods. What specificimpact would the policy have on the firm's

    performance?

    Freezing the MPS for the next three periods wouldnot allow the plant to adjust to any radical changesin demand but it would stabilize plant operations.

  • 7/29/2019 8b Lect7 MPS Managing the MPS

    10/19

    10

    MPS Stability

    Freezing the MPS

    Time Fencing

    Demand Fence

    Planning Fence

  • 7/29/2019 8b Lect7 MPS Managing the MPS

    11/19

    11

    Ethan Allen Firm

    Planned Order Approach

    Period

    Production

    Hours

  • 7/29/2019 8b Lect7 MPS Managing the MPS

    12/19

    12

    Managing the MPS

    Overstated MPS

    MPS Performance Measures Monitoring the MPS

  • 7/29/2019 8b Lect7 MPS Managing the MPS

    13/19

    13

    MPS Performance Measures

  • 7/29/2019 8b Lect7 MPS Managing the MPS

    14/19

    14

    Mitels Master Production Scheduler

    Job DescriptionA. Identifying Information

    Job Title:Master Scheduler

    Department/Unit:Planning & Administration

    Job Location:Kanata, Ontario

    B. Job Purpose and Mandate

    The incumbent of this position is responsible for the day to daymanagement of the Master Production Schedule, as it relates toactioning unplanned forecast demand, forecast shortfalls, productionand inventory changes, allowing accurate and up-to-date information

    which in turn drives material and capacity requirements and customerorder dating. An advanced level of material planning and manufacturingprocess knowledge is required.

    C. Organization Structure

    The Master Production Scheduler reports to the Manager, Planning who

    reports to the Director, Planning and Administration.

    Mi l M P d i S h d l J b D i i

  • 7/29/2019 8b Lect7 MPS Managing the MPS

    15/19

    15

    Mitels Master Production Scheduler Job Description

    D. Job Description

    1. Specific Activities and Accountabilities:

    - Responsible for the creation and continuous update of themaster schedule that satisfies customer demand, maintainsstability in terms of material and capacity requirements andminimizes RAW. WIP, and Finished Goods inventory levels by:

    Managing day to day increases/decreases to the schedulethrough interface with Materials, Manufacturing and OrderAdministration.

    Working with Materials to ensure smooth E.C.O. transition

    into factory Continuously monitor the impact of ''Performance to

    Forecast'' on inventory levels for the current month, andimplement any necessary changes to the schedule; i.e. cutrollover, Increase availability through Fast-Man MRP tool.

    - Act as a focal point between N.A. Order Administration,

    Manufacturing and Distribution to ensure configured systemorders are:

    Scheduled to meet customer cut-over requirements

    Scheduled to meet manufacturing cell capacity.

    Quoted and reviewed with manufacturing, initiating buildand test.

    Free of any discrepancies, with Order Administrationnotified to correct any problems.

    Mit l M t P d ti S h d l J b D i ti

  • 7/29/2019 8b Lect7 MPS Managing the MPS

    16/19

    16

    Mitels Master Production Scheduler Job Description

    - Continuously monitor problem inventory, taking advantage ofany conversion opportunities, making recommendations forscrapping, or potential ''Fire Sale's".

    - Assess the impact to capacity, inventory levels, purchase orderactivity and problem inventory levels that result from any

    proposed major change to the master schedule, utilizing theFast-Man MRP tool.

    2. Supervisory Responsibilities: Direct ( ) Indirect ( )

    3. Key relationships (internal and external)

    Internal and external auditors

    Marketing

    Order Administration

    Distribution A1l levels of management within Mitel

    Traffic

    Manufacturing

    Materials Planning

    Product Management

    Mit l M t P d ti S h d l J b D i ti

  • 7/29/2019 8b Lect7 MPS Managing the MPS

    17/19

    17

    Mitels Master Production Scheduler Job Description

    E. Job requirements superior product knowledge

    3-4 years progressive experience in materials or production control

    knowledge of internal Mitel processes and procedures

    APIC's Certification a definite asset

    knowledge gained through APIC's Certification organizational and planning skills

    secondary education

    high degree of initiative and personal motivation

    personal computer skills

    broad based knowledge of supply/demand process

    MPS C l di P i i l

  • 7/29/2019 8b Lect7 MPS Managing the MPS

    18/19

    18

    MPSConcluding Principles

    The MPS unit should reflect the company's

    approach to the business environment in which itoperates.

    The MPS is one part of an MPC system-theother parts need to be in place as well for a fully

    effective MPS activity. Time-phased MPS records should incorporate

    useful features of standard MRP recordprocessing.

    Customer order promising activities must beclosely coupled to the MPS.

    Available-to-promise information should beprovided to both the master scheduler and the

    sales department.

  • 7/29/2019 8b Lect7 MPS Managing the MPS

    19/19

    19

    MPSConcluding Principles

    A final assembly schedule (FAS) should be used toconvert an anticipated build schedule (MPS) into an

    actual build schedule.

    The master production scheduler must keep the sum of

    the parts (MPS) equal to the whole (production plan). The MPS activity must be clearly defined

    organizationally.

    Stability must be designed into the MPS and managed.

    The MPS should be evaluated with a formalperformance measurement system.

    The MPS can be usefully considered as a set of firm

    planned orders.