Production Planning & Control
MANF9742 2021 Term 2
Unit 5 Master Production
Scheduling
MANF9544
Concurrent Product & Process Design
By S. Kara
Today’s Lecture
• Unit 4 recap
• Unit 5 – Master Production Schedule
• Tutorial Units 4 and 5
MMANF 9742
P oduction Planning & Control
MANF9544
Concurrent Product & Process Design
By S. Kara
Unit 4 Recap
• Inventory is a necessary evil
– One of the largest user of capital in business (>25% of total
assets)
• Can be found at many points in manufacturing
operations
• Mismatch between demand and supply
• A number of inventory management techniques available
– Order Point Method: Quantity and timing of individual
independent demand items
MMANF 9742
P oduction Planning & Control
MANF9544
Concurrent Product & Process Design
By S. Kara
Unit 5 Overview
• The role of Master Production Schedule (MPS) in PPC
• MPS tasks and techniques
• Bill of Material (BOM) structure
• Managing the MPS
• Tutorial on Inventory Management and Master
Production Schedule (MPS)
MMANF 9742
P oduction Planning & Control
MANF9544
Concurrent Product & Process Design
By S. Kara
MPC Framework
Resource
Planning
Sales & Operations
Planning
Demand
Management
Master Production
Scheduling
Detail Materials
Planning
Material & Capacity
Planning
Detail Capacity
Planning
Supplier
Systems
Shop-floor
Systems En
te
rp
ris
e
Re
so
ur
ce
P
la
nn
in
g
(E
RP
) S
ys
te
m
Front End
Engine
Back End
Fe
ed
ba
ck
fo
r m
ea
su
re
m
en
t a
nd
c
on
tro
l
Rough-cut Capacity
Plan
MMANF 9742
P oduction Planning & Control
MANF9544
Concurrent Product & Process Design
By S. Kara
MPS Overview
• At conceptual level
– MPS converts disaggregate SOP plan into a plan for producing
specific products
– SOP: to balance supply and demand volume
– MPS: specifies the mix and volume of the output
• On a day-to-day basis
– MPS provides information to coordinate sales and manufacturing
• At an operational level
– Construction of MPS and updating it over time
MMANF 9742
P oduction Planning & Control
MANF9544
Concurrent Product & Process Design
By S. Kara
MPS Overview
• MPS is not a forecast
– Statement of production not a statement of demand
– Takes into account capacity limitations, cost of
production and other resource constraints
– MPS forms the basic communication btw market and
manufacturing
o Stated in product specifications
o Bill-of-Material (BOM) – the language of product
manufacturing
o End products can be controlled by Final Assembly Schedule
(FAS)
MMANF 9742
P oduction Planning & Control
MANF9544
Concurrent Product & Process Design
By S. Kara
The Business Environment for the MPS
• Make-to-Stock
– How much of and when each end item to produce
• Make-to-Order
– Defined as the particular end items composing to
customer requirements
• Assembly-to-Order
– MPS is stated in planning BOM
– MPS has as its components, a set of common parts
and options
MMANF 9742
P oduction Planning & Control
MANF9544
Concurrent Product & Process Design
By S. Kara
Linkages to Other Company Activities
Resource
Planning
Sales & Operations
Planning
Demand
Management
Master Production
Scheduling
Detail Materials
Planning (MRP)
En
te
rp
ris
e
Re
so
ur
ce
P
la
nn
in
g
(E
RP
) S
ys
te
m
Front End
Engine
Rough-cut Capacity
Plan
MMANF 9742
P oduction Planning & Control
MANF9544
Concurrent Product & Process Design
By S. Kara
Product
Information
Week Number
1 2 3 4 5 6 7 8 9 10 11 12
Forecast 10 10 10 10 10 10 10 10 10 10 10 10
Available 20 20 20 20 20 20 20 20 20 20 20 20
MPS 10 10 10 10 10 10 10 10 10 10 10 10
On Hand 20
• Time-Phased Record
MMANF 9742
P oduction Planning & Control
MPS Techniques
MANF9544
Concurrent Product & Process Design
By S. Kara
Product
Information
Week Number
1 2 3 4 5 6 7 8 9 10 11 12
Forecast 5 5 5 5 5 5 15 15 15 15 15 15
Available 25 30 35 40 45 50 45 40 35 30 25 20
MPS 10 10 10 10 10 10 10 10 10 10 10 10
On Hand 20
• Level Production MPS Approach to Seasonal Sales
MMANF 9742
P oduction Planning & Control
MPS Techniques
MANF9544
Concurrent Product & Process Design
By S. Kara
Product
Information
Week Number
1 2 3 4 5 6 7 8 9 10 11 12
Forecast 5 5 5 5 5 5 15 15 15 15 15 15
Available 20 20 20 20 20 20 20 20 20 20 20 20
MPS 5 5 5 5 5 5 15 15 15 15 15 15
On Hand 20
• Chase Sales MPS Approach to Seasonal Sales
MMANF 9742
P oduction Planning & Control
MPS Techniques
MANF9544
Concurrent Product & Process Design
By S. Kara
Lot Size: 30 Week Number
1 2 3 4 5 6 7 8 9 10 11 12
Forecast 5 5 5 5 5 5 15 15 15 15 15 15
Available 15 10 5 30 25 20 5 20 5 20 5 20
MPS 30 30 30 30
On Hand 20
• Lot Sizing in MPS
– EOQ = 30, RoL = 5, LT = 1
MMANF 9742
P oduction Planning & Control
MPS Techniques
MANF9544
Concurrent Product & Process Design
By S. Kara
Revised
Forecast
Week Number
2 3 4 5 6 7 8 9 10 11 12 13
Forecast 10 10 10 10 10 15 15 15 15 15 15 15
Available 0 -10 10 0 -10 -25 -10 -25 -10 -25 -10 -25
MPS 30 30 30 30
On Hand 10
• Rolling-through Time
Adjusted
MPS
Week Number
2 3 4 5 6 7 8 9 10 11 12 13
Forecast 10 10 10 10 10 15 15 15 15 15 15 15
Available 30 20 10 30 20 5 20 5 20 5 20 5
MPS 30 30 30 30 30
On Hand 10
MMANF 9742
P oduction Planning & Control
MPS Techniques:
Time-Phased Record
MANF9544
Concurrent Product & Process Design
By S. Kara
Revised
Forecast
Week Number
1 2 3 4 5 6 7 8 9 10 11 12
Forecast 5 5 5 5 5 5 15 15 15 15 15 15
Orders 5 3 2
Available 15 10 5 30 25 20 5 20 5 20 5 20
ATP 10 30 30 30 30
MPS 30 30 30 30
On Hand 20
• Available-to-Promise (ATP)
ATP = 20 - (5 + 3 + 2) = 10
MMANF 9742
P oduction Planning & Control
MPS Techniques:
Time-Phased Record
MANF9544
Concurrent Product & Process Design
By S. Kara
Revised
Forecast
Week Number
2 3 4 5 6 7 8 9 10 11 12 13
Forecast 10 10 10 10 10 10 15 15 15 15 15 15
Orders 5 5 2
Available 30 20 10 30 20 5 20 5 20 5 20 5
ATP 28 30 30 30 30
MPS 30 30 30 30 30
On Hand 10
• Available-to-Promise (ATP)
ATP =(30+10) - (5 + 5 + 2) = 28
MMANF 9742
P oduction Planning & Control
MPS Techniques:
Time-Phased Record
MANF9544
Concurrent Product & Process Design
By S. Kara
BOM Structuring for MPS
• BOM
– Engineering documents that specifies the
components to make each part or assembly
– Associated with product structure
• Single-level BOM
– Comprises only components immediately
required, not the component of the component
• Intended BOM
– List of components, from end items all the way to
raw materials
MMANF 9742
P oduction Planning & Control
MANF9544
Concurrent Product & Process Design
By S. Kara
BOM Structuring for MPS
• BOM and Assembly Diagram
No. Part No. Part Name
1 51292 Outlet End
2 51284 Handle
3 52043 Switch & Insulator
4 51576 Electric Cord
5 51265 Rear Housing
6 51268 Motor Mounting Plate
7 51495 Motor Assy. & Fan Spacer
8 51270 Screw & Lock Washer Assy.
9 51273 Stationary Fan
10 51488 Rotary Fan & Spacer Assy.
11 51281 Front Fan Cover
12 51272 Forward Housing
13 51286 Air Filter
14 52388 Reusable Bag
15 51288 Inlet End Assy.
16 51642 Upholstery Tool
17 52074 Crevice Tool
18 50815 Dusting Tool
19 57432 Packaging Material (not shown)
MMANF 9742
P oduction Planning & Control
MANF9544
Concurrent Product & Process Design
By S. Kara
BOM Structuring for MPS
Packaged
Hand-Vac
Upholstery
Tool
Crevice
Tool Hand-vac
Forward
Housing
Assembly
Front-end
Assembly
Forward Housing
Air
Filter
Reusable Bag
Inlet End
Assembly
Complete Fan
Assembly
Front Fan Cover
Rotary Fan &
Spacer
Stationary Fan
Assembly
Screw &
Lock Washer
Assembly
Rear
Housing
Assembly
Motor
Mounting
Plate
Motor
Assembly
Rear
Housing
Electric
Cord
Outlet
End
Handle
Switch & Insulator
Dusting
Tool Package
• Assembly and Product Structure Diagrams
MMANF 9742
P oduction Planning & Control
MANF9544
Concurrent Product & Process Design
By S. Kara
BOM Structuring for MPS
• The Modular BOM
MPS
Options
Components
End Items
FAS
MMANF 9742
P oduction Planning & Control
MANF9544
Concurrent Product & Process Design
By S. Kara
Final Assembly Schedule (FAS)
• FAS is the exact set of end products
• FAS controls the manufacturing from fabricated
components to completed products
• Make-to-Stock
– MPS to FAS: substitution of one end item part number to another
• Assembly-to-Order (Make-to-Order)
– End item BOM is not maintained
– Link between FAS and Customer Order Penetration Point
(COPP)
MMANF 9742
P oduction Planning & Control
MANF9544
Concurrent Product & Process Design
By S. Kara
MPS Stability
Pr
od
uc
tio
n
Ho
ur
s
Week
1 2 43 5 6 87 9 10 1211 13 1514 16 1817
Firm Planned Orders
(frozen schedule)
Firm Planned Orders
(customer promises)
Firm Planned Orders
(manual forecast)
Demand
Fence
Planning
FenceFrozen Slushy Liquid
Capacity
MMANF 9742
P oduction Planning & Control
MANF9544
Concurrent Product & Process Design
By S. Kara
• The Overstated MPS
– The sum of the MPS should be equal to production plan
• MPS Measures
– Should be in concrete terms
o Meeting the schedule
o Customer service – hitting the order promise dates
• Monitoring and controlling
– Evaluating plants wrt meeting the MPS
o Production vs production plan
o Customer service
Managing the MPS
MMANF 9742
P oduction Planning & Control
MANF9544
Concurrent Product & Process Design
By S. Kara
Conclusions
• MPS reflects the company’s approach to
business environment
• MPS should use the common ERP database
• Must keep the MPS equal to the operational plan
• Should be evaluated with formal performance
measurement systems
MMANF 9742
P oduction Planning & Control