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Session 8
Master Production Scheduling (MPS)
Managing the MPShttp://www.pom.edu/mpc/lectures_in_manufacturing_planning.htmlecture session 7
Example Company MPS Records
Handling MPS Lead Time Incorporating Capacity Constraints
MPS Stability
Managing the MPS Master Production Schedulers Job
Concluding Principles
http://www.pom.edu/mpc/lectures_in_manufacturing_planning.htmhttp://www.pom.edu/mpc/lectures_in_manufacturing_planning.htm7/29/2019 8b Lect7 MPS Managing the MPS
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Jet Spray Corporation Master
Planning Schedule
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Handling MPS Lead Time
The Spencer Optics Company produces an inexpensive line ofsunglasses. 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.
Period 1 2 3 4 5 6 7 8 9 10
Forecast 100 100 100 100 100 100 100 100 100 100
Orders 110 80 50 20
Available 30 230 130 30 230 130 30 230 130 30
Available to Promise 30 150 300 300
MPS (Completion) 300 300 300
On-hand = 140, MPS lot size = 300
a. Classic Model
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Spencer Optics (Continued)
b. Prepare the MRP record for the assembly of the sunglasses. Thefinal assembly quantity is 300, lead time is 2 periods, and theres ascheduled receipt in period 2. Note that no inventory is shown forthe assembled sunglasses in this record, since its accounted for in
the MPS record.
1 2 3 4 5 6 7 8 9 10
300 300 300
300Projected available balance 0 0 0 0 0 0 0 0 0 0 0
300 300
b. Final Assembly - Classic Model
Q = 300; LT = 2; SS = 0
Period
Scheduled receipts
Planned order release
Gross requirements
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Incorporating Capacity Constraints
End ProductBeginning Inventory Period Forecast Lot size Hours per lot size
A 60 10 30 30
B 20 5 20 20
C 30 15 50 50
a. Prepare the master production schedule for these
items during the next four periods using the EthanAllen master production scheduling method.
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Incorporating Capacity Constraintsa.
Capacity=
Hours Period 1 Period 2 Period 3 Period 4
4035
30
25
20
15
10
5
0
C
B
A
C
C
C
B
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
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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, 30hours 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 specificimpact would the policy have on the firm's
performance?
Freezing the MPS for the next three periods wouldnot allow the plant to adjust to any radical changesin 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
Period
Production
Hours
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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 DescriptionA. 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 daymanagement of the Master Production Schedule, as it relates toactioning unplanned forecast demand, forecast shortfalls, productionand inventory changes, allowing accurate and up-to-date information
which in turn drives material and capacity requirements and customerorder dating. An advanced level of material planning and manufacturingprocess knowledge is required.
C. Organization Structure
The Master Production Scheduler reports to the Manager, Planning who
reports to the Director, Planning and Administration.
Mi l M P d i S h d l J b D i i
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Mitels Master Production Scheduler Job Description
D. Job Description
1. Specific Activities and Accountabilities:
- Responsible for the creation and continuous update of themaster schedule that satisfies customer demand, maintainsstability in terms of material and capacity requirements andminimizes RAW. WIP, and Finished Goods inventory levels by:
Managing day to day increases/decreases to the schedulethrough interface with Materials, Manufacturing and OrderAdministration.
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, andimplement any necessary changes to the schedule; i.e. cutrollover, Increase availability through Fast-Man MRP tool.
- Act as a focal point between N.A. Order Administration,
Manufacturing and Distribution to ensure configured systemorders are:
Scheduled to meet customer cut-over requirements
Scheduled to meet manufacturing cell capacity.
Quoted and reviewed with manufacturing, initiating buildand test.
Free of any discrepancies, with Order Administrationnotified to correct any problems.
Mit l M t P d ti S h d l J b D i ti
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Mitels Master Production Scheduler Job Description
- Continuously monitor problem inventory, taking advantage ofany conversion opportunities, making recommendations forscrapping, or potential ''Fire Sale's".
- Assess the impact to capacity, inventory levels, purchase orderactivity and problem inventory levels that result from any
proposed major change to the master schedule, utilizing theFast-Man MRP tool.
2. Supervisory Responsibilities: Direct ( ) Indirect ( )
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
MPS C l di P i i l
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MPSConcluding Principles
The MPS unit should reflect the company's
approach to the business environment in which itoperates.
The MPS is one part of an MPC system-theother 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 recordprocessing.
Customer order promising activities must beclosely coupled to the MPS.
Available-to-promise information should beprovided to both the master scheduler and the
sales department.
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MPSConcluding Principles
A final assembly schedule (FAS) should be used toconvert 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 formalperformance measurement system.
The MPS can be usefully considered as a set of firm
planned orders.