Session 8 Master Production Scheduling (MPS) Managing the MPS

http://www.pom.edu/mpc/lectures_in_manufacturing_planning.htm lecture session 7

Example Company MPS Records Handling MPS Lead Time Incorporating Capacity Constraints MPS Stability Managing the MPS Master Production Schedulers Job Concluding Principles
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Jet Spray Corporation Master Planning Schedule

Handling MPS Lead Time

The Spencer Optics Company produces an inexpensive line of sunglasses. 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.
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Spencer Optics (Continued)

a. Complete the time-phased record.
a. Classic Model Period 1 2 3 4 Forecast 100 100 100 100 Orders 110 80 50 20 Available 30 230 130 30 Available to Promise 30 150 MPS (Completion) 300 On-hand = 140, MPS lot size = 300 5 6 7 8 9 10 100 100 100 100 100 100 230 130 30 300 300 230 130 30 300 300

Spencer Optics (Continued)

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

b. Final Assembly - Classic Model Period 1 2 3 4 5 6 Gross requirements 300 300 Scheduled receipts 300 Projected available balance 0 0 0 0 0 0 0 Planned order release 300 300 Q = 300; LT = 2; SS = 0

8 9 10 300 0 0 0

Incorporating Capacity Constraints

End Product Beginning Inventory Period Forecast Lot size Hours per lot size

A B C

60 20 30

10 5 15

30 20 50

30 20 50

a. Prepare the master production schedule for these items during the next four periods using the Ethan Allen master production scheduling method.

Incorporating Capacity Constraints

a. Capacity=
Hours 40 35 30 25 20 15 10 5 0 Period 1 Period 2 Period 3 Period 4

C C B C C

B A

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

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, 30 hours of capacity are required each period versus 40 units of available capacity.
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Incorporating Capacity Constraints (Continued)

c. Suppose that the master production schedule is frozen for the next three periods. What specific impact would the policy have on the firm's performance? Freezing the MPS for the next three periods would not allow the plant to adjust to any radical changes in demand but it would stabilize plant operations.
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MPS Stability
Freezing the MPS Time Fencing
Demand Fence Planning Fence

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Ethan Allen Firm Planned Order Approach

Production Hours

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Period

Managing the MPS

Overstated MPS MPS Performance Measures Monitoring the MPS

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MPS Performance Measures

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Mitels Master Production Scheduler Job Description

A. 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 day management of the Master Production Schedule, as it relates to actioning unplanned forecast demand, forecast shortfalls, production and inventory changes, allowing accurate and up-to-date information which in turn drives material and capacity requirements and customer order dating. An advanced level of material planning and manufacturing process knowledge is required.
Organization Structure The Master Production Scheduler reports to the Manager, Planning who reports to the Director, Planning and Administration. 14

C.

Mitels Master Production Scheduler Job Description

D. 1. Job Description Specific Activities and Accountabilities: Responsible for the creation and continuous update of the master schedule that satisfies customer demand, maintains stability in terms of material and capacity requirements and minimizes RAW. WIP, and Finished Goods inventory levels by: Managing day to day increases/decreases to the schedule through interface with Materials, Manufacturing and Order Administration. 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, and implement any necessary changes to the schedule; i.e. cut rollover, Increase availability through Fast-Man MRP tool. Act as a focal point between N.A. Order Administration, Manufacturing and Distribution to ensure configured system orders are: Scheduled to meet customer cut-over requirements Scheduled to meet manufacturing cell capacity. Quoted and reviewed with manufacturing, initiating build and test. Free of any discrepancies, with Order Administration 15 notified to correct any problems.

Mitels Master Production Scheduler Job Description

Continuously monitor problem inventory, taking advantage of any conversion opportunities, making recommendations for scrapping, or potential ''Fire Sale's". Assess the impact to capacity, inventory levels, purchase order activity and problem inventory levels that result from any proposed major change to the master schedule, utilizing the Fast-Man MRP tool. Direct ( ) Indirect ( )

2.

Supervisory Responsibilities:

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
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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

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MPS Concluding Principles

The MPS unit should reflect the company's approach to the business environment in which it operates. The MPS is one part of an MPC system-the other 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 record processing. Customer order promising activities must be closely coupled to the MPS. Available-to-promise information should be provided to both the master scheduler and the 18 sales department.

MPS Concluding Principles

A final assembly schedule (FAS) should be used to convert 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 formal performance measurement system. The MPS can be usefully considered as a set of firm planned orders.
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