OPERATIONS MANAGEMENT - Master Production Scheduling
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The document discusses master production scheduling (MPS) as a critical process in operations management, detailing its role in synchronizing production output with customer orders and market demand. It explains how MPS serves as a bridge between sales and operations planning (S&OP) and highlights key elements such as forecasted demand, booked orders, and available-to-promise (ATP) quantities. Additionally, the document includes graphical representations and examples of calculations related to MPS, illustrating how to determine projected inventory and ATP for specific products.
OPERATIONS MANAGEMENT - Master Production Scheduling
- 1. Dept. of MBA, Sanjivani COE, Kopargaon OPERATIONS MANAGEMENT Master Production Scheduling Presented By: Dr. Sanjit Singh Sanjivani College of Engineering, Kopargaon Department of MBA
- 2. Dept. of MBA, Sanjivani COE, Kopargaon Planning and Control Planning and control – A set of tactical and execution-level business activities that includes master scheduling, material requirements planning, and some form of production activity control and vendor order management.
- 3. Dept. of MBA, Sanjivani COE, Kopargaon Top-Down Model of Manufacturing Planning and Control Systems Figure 12.1
- 4. Dept. of MBA, Sanjivani COE, Kopargaon Master Scheduling Master Scheduling – A detailed planning process that tracks production output and matches this output to actual customer orders. Controls the timing and quantity of production for products or product families. Serves as the primary interface point for actual customer orders. Coordinates forecasted demand and actual orders with production activity. Serves as a tool for agreement between marketing and operations (but at a different level than S&OP).
- 5. Dept. of MBA, Sanjivani COE, Kopargaon Link between S&OP and MPS Month: January February March Output: 200 300 400 Push Mowers 25 25 25 25 Self-propelled 35 40 Riding 12 13 January (weeks) 1 2 3 4 S&OP MPS
- 6. Dept. of MBA, Sanjivani COE, Kopargaon Master Schedule Record Forecasted demand Booked orders Projected inventory levels Production quantities Units still available to meet customer needs (Available to Promise)
- 7. Dept. of MBA, Sanjivani COE, Kopargaon Forecasted Demand vs. Booked Orders Forecasted demand – A company’s best estimate of the demand in any period. Booked orders – Confirmed demand for products Projected Requirements = Maximum (Forecasted demand, Booked orders)
- 8. Dept. of MBA, Sanjivani COE, Kopargaon Master Production Schedule (MPS) Master Production Schedule (MPS) – The amount of product that will be finished and available for sale at the beginning of each week. The MPS quantities drive more detailed planning activities, such as material requirements planning.
- 9. Dept. of MBA, Sanjivani COE, Kopargaon Ending Inventory • Projected Ending Inventory – Best estimate of what inventory levels will look like at the end of each week based on current information. ) , max( 1 t t t t t OB F MPS EI EI
- 10. Dept. of MBA, Sanjivani COE, Kopargaon Available to Promise (ATP) Available to Promise – A field in the master schedule record that indicates the number of units that are available for sale each week, given those that have already been promised to customers.
- 11. Dept. of MBA, Sanjivani COE, Kopargaon Available to Promise (ATP) • Calculating ATP for the first week of the master schedule record:
- 12. Dept. of MBA, Sanjivani COE, Kopargaon Available to Promise (ATP) • Calculating ATP for any subsequent week in which MPS > 0:
- 13. Dept. of MBA, Sanjivani COE, Kopargaon Partial Master Schedule Record (Snowblowers)
- 14. Dept. of MBA, Sanjivani COE, Kopargaon Calculating ATP Figure 12.5
- 15. Dept. of MBA, Sanjivani COE, Kopargaon Calculating ATP Figure 12.6
- 16. Dept. of MBA, Sanjivani COE, Kopargaon Complete Master Schedule Record (Snowblowers) Figure 12.7
- 17. Dept. of MBA, Sanjivani COE, Kopargaon MPS Example (Backpacks) Now Calculate Projected Ending Inventory and Available to Promise Figure 12.8
- 18. Dept. of MBA, Sanjivani COE, Kopargaon Calculations (Backpacks) Calculating Ending Inventory: Calculating ATP:
- 19. Dept. of MBA, Sanjivani COE, Kopargaon MPS Example (Backpacks) with ATP What are the implications of the Master Production Schedule? Figure 12.9