Classes 26-27 - Managing Production - Chapter 15

Classes 26-27 - Managing Production - Chapter 15 - BUS 370:...

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BUS 370: Managing production across the supply chain Chapter 15 Donavon Favre College of Management North Carolina State University
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2 Herman Miller Example Office furniture manufacturer Includes desks, file cabinets, chairs, drawers, overhead cabinets, etc. Hundreds of cubicles, multiple configurations Hundreds of small manufacturing jobs required for a single cubicle Pieces should arrive together
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3 Herman Miller Example Used planning and control system Proprietary software and applications PC based graphic displays at dealers Computer calculates required components and price Order electronically sent to the factory Within hours, ship date sent to customer Information shared with suppliers via Web portal
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4 Master Scheduling & Material Requirements Planning (MRP) Master scheduling defined Basic MPS record MRP defined Basic MRP record MRP considerations
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Master scheduling: Definition: 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 Primary interface point for actual customer orders Coordinates forecasted demand / actual orders with production activity Serves as tool for agreement between marketing & operations (more frequent and detailed level than SOP) Feeds more detailed material planning
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Link between Master Schedule (MPS) and SOP Sales and Operations Planning (S&OP) Master Scheduling Material Requirements Planning (MRP) Production Activity Control (PAC) Vendor Order Management When items are made (by week) When customer orders are filled What capacity is left Timing and quantity of material orders to meet Master Schedule Overall production workforce and inventory levels (by month) Material orders and receipt Manufacturing plan
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7 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
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Master Scheduling The master schedule must: => Satisfy the needs of marketing => Be feasible for operations
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9 MPS Formulas: Definitions ATP t = Available to promise in period t EI t = Ending Inventory for period t (same as projected on-hand inventory for next period) F t = Forecasted demand for period t MPS t = MPS (production) quantity available in period t OB t = actual firm orders booked from customers for period t
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Detailed MS for a product Notes: Weekly schedule Includes both forecasts and actual booked orders MeltoMatic Snowblower Month ********
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Classes 26-27 - Managing Production - Chapter 15 - BUS 370:...

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