9-MPS_BOM_FAS - Master Production Schedule (MPS) (contd)...

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Unformatted text preview: Master Production Schedule (MPS) (contd) Bill of Materials (BOM) Final Assembly Schedule (FAS) (Source: Vollmann et.al. Chapter 6) Spring 2010 IE324 - MPS-BOM-FAS Master Scheduling Applications Manufacturing Company Hotel Medical Center Logistics company Restaurant Spring 2010 2 IE324 - MPS-BOM-FAS Supplier Scheduling Master scheduling applies to purchased items as well as manufactured items in the supply chain. Master schedules can be developed for suppliers to give suppliers projected demand and supply information for their own planning purposes Spring 2010 3 IE324 - MPS-BOM-FAS The Product-Process Matrix Engineer-to-Order Make-to-Order Assemble-to-Order Make-to-Stock Product Variety Product Volume High High Low Low Spring 2010 4 IE324 - MPS-BOM-FAS Scheduling Decisions Assemble-to-Order Design Supply Production Delivery Design Supply Production Delivery Design Supply Production Delivery Design Supply Production Delivery Make-to-Stock Make-to-Order Engineer-to-Order Time Time Spring 2010 5 IE324 - MPS-BOM-FAS Make-to-Stock Environment Build (make) to forecast Rapid delivery Standard products High volumes Low variety Typically lower profit margins per unit Business Impact Finished goods are stocked Forecast error costs money Spring 2010 6 IE324 - MPS-BOM-FAS Make-to-Order Environment More variety than Make- to-Stock (MTS) Some repeat products Long lead times Low volumes High end item variety Large profit margins Business Impact Forecasted revenue Raw material is stocked in anticipation of future sales Spring 2010 7 IE324 - MPS-BOM-FAS Assemble-to-Order Environment Fewer products than MTO Higher volume than MTO Some standard sub- assemblies Build to forecast at the option level Configured to customer order Planning Bill of Materials Business Impact Limited finished goods Material is stocked at a semi- finished stocking point Minimal configuration time Maximum product flexibility Spring 2010 8 IE324 - MPS-BOM-FAS Engineer-to-Order Environment Custom designed products Unique bills of material Unique item numbers Very long lead times Low volumes High product variety Business Impact No finished goods Low levels of raw material Revenue forecasts Difficult to forecast Estimating is very important Spring 2010 9 IE324 - MPS-BOM-FAS Bill of Materials (BOM) Structuring for the MPS It is an engineering document that specifies the ingredients (or subordinate components) required physically to make each part number or assembly....
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9-MPS_BOM_FAS - Master Production Schedule (MPS) (contd)...

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