Session 3 Master Planning

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Session 3 Master Planning
2013-02-20 16:51:32

Master planning
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  1. What is Master Planning Schedule - MPS?
    A priority plan consisting of due dates for the production of end items.
  2. What is the role of MPC?
    To synchronize and translate independent demand into dependent demand.
  3. What are two of the MPC processes?
    S&OP and master scheduling.
  4. Explain the different functions of the 3 stages of priority planning:
    1) S&OP develops plans for products at the family level.

    2) Master scheduling develops due dates and quantities at the end-item level.

    3) MRP determines the priority plan and due dates for purchased and manufactured components.
  5. What are 5 characteristics of S&OP?
    1) translates the strategic business plan into production rates that meet business goals

    2) continually updates the production, financial, and sales plan

    3) seeks input from various functions

    4) requires regular meetings with senior executives to resolve tradeoffs

    5) checks availability of resources to validate the production plan
  6. The production plan is a major output of what?
    S&OP and should reflect the resolution of decisions and tradeoffs made during the S&OP process.
  7. Production planning is concerned with what?
    1) Quantities demanded of each product family or product line in each period

    2) desired inventory levels

    3) equipment, labor, and material needed in each period

    4) availability of needed resources
  8. What are the 4 basic production strategies?
    1) Chase (demand matching)

    2) Level

    3) Subcontracting

    4) Hybrid (combination)
  9. What are 2 advantages of a "Chase" strategy?
    1) Stable inventory.

    2) Varied production to meet sales requirements.
  10. What are 4 disadvantages of a "Chase" strategy?
    1) Costs of hiring, training, overtime, and extra shifts

    2) Costs of layoffs and impact on employee morale

    3) Possible unavailability of needed work skills

    4) Capacity must match maximum demand
  11. What are 2 advantages of a "Level" strategy?
    1) Avoids labor and capacity costs of demand matching

    2) Avoids changeover costs and lowers the average production cost per item
  12. What are 2 disadvantages of a "Level" strategy?
    • Buildup of inventory
    • Requires a very accurate forecast
  13. What are 2 advantages of "subcontracting"?
    • No excess capacity
    • Level production
  14. What are 2 disadvantages of "subcontracting"?
    • Costs of subcontracting
    • Proprietary production technology
  15. What are 5 characteristics of a "Hybrid" strategy?
    1) Production is at or close to full capacity for at least part of the cycle.

    2) Production is at a lower rate during the other part of the cycle.

    3) Production is level during both parts of the cycle.

    4) Inventory buildup and workforce adjustment costs are less than in the chase strategy.

    5) Hybrid strategy requires an accurate forecast as in the level strategy.
  16. When is MTS used?
    • When:
    • Demand is constant and predictable
    • Only a few product options exists
    • Order fulfillment lead time requirements are shorter than manufacturing lead time.
  17. What information is needed for a make-to-stock production plan?
    • Forecast by time period for the planning horizon
    • Opening inventory
    • Desired ending inventory
  18. In resource planning, what are 2 ways to reconcile differences?
    Changing resources or altering priorities.
  19. What does a bill of resources do?
    Shows the quantity of critical resources of critical resources needed to make one "average" unit of each product within a product family.
  20. In resource planning, what are 2 ways to reconcile differences?
    • Changing resources
    • Altering priorities
  21. What does a bill of resources do?
    Shows the quantity of critical resources needed to make one "average" unit of each product within a product family.
  22. Why is the production plan a concern for finance, sales and marketing, and operations?
    • Revenue projections only are as good as sales.
    • Sales only are as good as production schedules.
    • Production schedules only are as good as the availability of resources.
  23. What 2 questions must be answered in resources planning?
    • Are the required resources available when needed?
    • If not, how will the difference between planned load and available resources be reconciled?
  24. What is the purpose of the MPS?
    • Link, production planning at the product family level to the end-item level.
    • Create the priority plan, including due dates and quantities, for end item manufacturing.
    • Provide end-item due dates and quantities used for calculating the rough-cut capacity plan.
    • Drive the material requirements plan.
  25. What are 2 reasons that the master schedule is a vital link between sales and production?
    • It makes valid order promises possible.
    • It represents an agree-upon plan between sales and production.
  26. What are the 3 objectives of master scheduling?
    • maintain the desired level of customer services.
    • make the best use of resources.
    • keep inventories at the desired level.
  27. What are 6 inputs to Master Scheduling?
    • Production plan
    • Forecasts for end items
    • Orders from customers
    • Additional independent demand
    • Inventory levels
    • Capacity constraints
  28. What are 4 steps in developing as master schedule?
    • Create a preliminary master schedule per end item.
    • Aggregate the master schedules for all end items.
    • Perform rough-cut capacity planning (RCCP).
    • Resolve difference and publish the MPS.
  29. What is the difference between a Master Schedule and the Master Production Schedule?
    • The Master Schedule is the bulk of info on the chart, including forecast, orders PAB, ATP, etc.
    • The Master Production Schedule is the line at the bottom that says how many to make.
  30. By BOM, what is cumulative lead time?
    The longest single path through the components of a BOM.
  31. What are time fences and zones?
    Used to manage the master schedule and to deal with changes that occur in customer demand and internal priorities, and problems that arise from supplier delays, machine breakdowns, or higher-than-expected scrap rates.
  32. What are 3 time zones?
    Liquid zone - Demand consists mainly of forecasts. Planning software, makes routine changes.

    Slushy zone - Demand consists of orders and forecasts. Planning software will not make the changes.

    Frozen zone - Capacity and materials have been committed to specific orders. Approval to change requires senior management approval.
  33. What are the major differences between resource planning and RCCP?
    Resource planning plans resources for the production and business plans while Rough-cut capacity planning validates resources for the MPS.

    Resource planning is based on resources required to make one average unit of a product family while Rouch-cut capacity planning is based on resources required to make one unit of specific models of end items.
  34. What if required capacity exceeds available capacity?
    • the capacity must be increased, or
    • the plan just be altered
  35. What is the basis for making deliver promises?
    The MPS.