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Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - 0000 X Supporting Slides Professor David K Harrison.

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Presentation on theme: "Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - 0000 X Supporting Slides Professor David K Harrison."— Presentation transcript:

1 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - 0000 X Supporting Slides Professor David K Harrison Glasgow Caledonian University Dr David J Petty The University of Manchester Institute of Science and Technology Systems for Planning & Control in Manufacturing: Systems and Management for Competitive Manufacture ISBN 0 7506 49771

2 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - MPS - Overview Definition The anticipated build schedule for thoseitems assigned to the Master Scheduler. The master scheduler maintains this schedule and in turn it becomes a set of planning numbers which drives MRP. It represents what the company plans to produce expressed in specific configurations, quantities and dates. The MPS is not a sales forecast which represents a statement of demand. The MPS must take account of the forecast, the Production Plan (SOP), and other important considerations such as order backlog, availability of material, availability of capacity, management policy and goals etc. MPS - Balancing Supply and Demand Material Requirements Planning Master Production Scheduling Sales and Operations Planning Business Planning Capacity Requirements Planning Realistic Shop Floor Control No Yes Purchasing 18 1801

3 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - MPS - Examples CD A EF B A B Sales Requirement ResourceItem Assembly1000 Assembly1000 C D Net Requirement ResourceItem Machine Shop 1000 E F Actual Production Machine Shop Machine Shop Machine Shop Total 4000 Assembly Shop Capacity = 2000 Machine Shop Capacity = 3000 Actual Production Total 2000 Sales Demand 400,000 MRP "x" req. = 400,000 "y" req. = 400,000 Actual Production Actual Purchase = = x y 18 400,000 300,000 1000 500 1000 500 3000 500 1000 1802

4 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Reasons to Master Schedule - 1 Lumpy JanMarMayJulSepNov 0 20 40 60 80 100 120 Sales Months 18 Load Capacity 1803

5 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Month- End Biased Wk1Wk3Wk5Wk7Wk10Wk12 0 20 40 60 80 100 120 Sales Weeks Reasons to Master Schedule - 2 Load Capacity 18 1804

6 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Reasons to Master Schedule - 3 18 Seasonal JanMarMayJulSepNov 0 20 40 60 80 100 120 Sales Months Load Capacity 1805

7 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - A Company May Also Sequence Work to Minimise Changeovers The MPS Must be Kept Relatively Stable to Minimise Planner Action Messages Overload Wk1Wk3Wk5Wk7Wk10Wk12 0 20 40 60 80 100 120 Sales Weeks Reasons to Master Schedule - 4 18 Load Capacity 1806

8 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - MPS Overview 18 Capacity Product Data Demand Master Schedule Master Production Scheduling DP1031 DP1032 DP1033 DP1034 DP1029 DP1030 1,000 1,500 2,000 200 1,000 12 1,000 1,500 2,000 1,000 7,000 15 1,000 1,500 2,000 200 2,000 16 1,000 1,500 2,000 17 1,000 1,500 2,000 200 2,000 18 1,000 1,500 2,000 19 1,000 1,500 2,000 200 2,000 20 1,000 1,500 2,000 200 1,000 14 1,000 1,500 2,000 1,000 1311 1,000 1,500 2,000 1,000 Part No. Planning Horizon MPS Statement of Supply Demand - Actual or Forecast Defined in Terms of End- Items or Planning BOM Drives MRP Crucial Element in Management Control Weeks 1807

9 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Planning Horizon 18 MPS Planning Horizon Significance of Change HighLow Demand Time Fence (DTF) Manufacturing Committed to Plan Changes Subject to Approval Capacity Trade-offs Permitted Overall Levels of Production Defined Capacity Defined by SOP Planning Time Fence (PTF) Now Prevents Orders Being Scheduled Takes Actual Demand Only Takes Greater of Planned and Actual Demand Cumulative Manufacturing Lead TimeCumulative Purchasing Lead Time 1808

10 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Emergency Demand 18 Short Order Shop Uncommitted Capacity Trade Offs Uncommitted Inventory 100% 1809

11 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - MPS Mechanics – 1 Load Capacity Time Load/Capacity Normal Lead Time Planned Automatic Reschedule Explode to Next Level Order Type Created Automatically by MRP Created Manually by Planner Planned or Firm Planned Orders are Converted into Scheduled Receipts Firm Planned Scheduled Receipt Comment Yes NoYes No 18 1810

12 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - MPS Mechanics - 2 18 MPS Orders Are Created Manually Action Messages Assist Planner MPS Orders are Firm Planned Available to Promise (ATP) Used for Order Promising Time Fences Can be Ignored (Time Fence Violation) RCCP is also a Valuable Tool in Master Scheduling 1811

13 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - MPS Example 18 Independent Forecast Actual Demand 12345678 20 5 SOH Time Part No:K7 Lead Time: 3 Order Qty: 60 Available to Promise Projected Available Balance 10545256545255 151020 MPS (Receipt) 60 Demand Time FencePlanning Time Fence 5 3060 1812

14 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Two Level MPS - 1 Make to Stock Make to Order Engineer to Order Configure to Order End Items (Single Level MPS) Planner Items (Two Level MPS) Variety Finished Goods Components Raw Materials "D" P" 18 1813

15 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Two Level MPS – 2 Components End-Items - Actual Product OS NP T I O Level 2 - MPS Driven by Generic Forecast Demand Level 1 – Final Assembly Schedule (FAS) Driven by Specific Customer Demand Inventory Held at Point of Minimum Inventory Planner Items - Fictitious 18 1814

16 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Two Level MPS - 3 Car EngineBodyGearboxTrim 1.4 1.6 1.8 XR12 1.8D Saloon Estate Cabriolet Manual Auto PIV Electric B L LX GL Ghia Sport Red Blue Black Green White Maroon ColourOptions CD Electric Sun Roof Mobile Phone Passenger Air Bag Metallic Paint ABS Permutations = x x x x x = 63366611664 OptionsTrimGearboxBodyEngineColour 1.4 (25%) 1.6 (25%) 1.8 (20%) XR12 (10%) 1.8D (15%) Electric (5%) Saloon (65%) Estate (30%) Cabriolet (5%) Manual (85%) Auto (10%) PIV*(5%) B (20%) L (20%) LX (20%) GL (18%) Ghia (10%) Sport (12%) Red (20%) Blue (30%) Black (20%) Green (5%) White (5%) Maroon (20%) CD (10%) Electric Sun Roof (10%) Mobile Phone (5%) Passenger Air Bag (5%) Metallic Paint (25%) ABS (35%) 18 *PIV = Positively Infinitely Variable 1815

17 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Management Aspects of MPS - 1 18 Purchasing COSTS! Sales SELL! BUY! Production MAKE! Finance Logistics ? Engineering DESIGN! 1816

18 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Management Aspects of MPS - 2 18 Adoption of Plan MPS Meetings Senior Management Driven Master Production Scheduler 1817

19 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Master Scheduler - Responsibilities 18 Maintain the MPS Provide Management with Information Ensure the MPS Reflects the Aggregate Plan Ensures the MPS is Feasible 1818

20 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - The Ideal Master Scheduler 18 Experience 10 Years in Manufacture 10 Years in Sales/Marketing 5 Years in Production/Material Control 2-3 Years in Finance Desirable Qualifications Business Administration Mechanical, Electrical and Production Engineering Production and Inventory Management Age An Energetic 35 Year Old 1819

21 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - The Practical Master Scheduler Company Employee Good Communicator and Diplomat Good All-Round Product/Business Knowledge Respected in the Organisation The Person the Company Wants to Develop 18 1820

22 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Planning and Execution Manufacturing Manufacturing Overload Long Work-to-Lists Past Due Orders Shortages High WIP Long Lead Times Sales and Planning Long Planner Action Lists Unreliable Delivery Promises General High Inventory Result: Execution Input (MPS) WIP Output 18 1821

23 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - MPS - Summary Supply - Demand Balance Mechanism for Control of the Organisation Tool for Defining Priorities Mechanism for Ensuring Feasible and Stable Schedules Requires Management Commitment Fundamental to All Manufacturing Management Techniques MPS Formalises a Process that Must be Undertaken 18 1822

24 Systems for Planning & Control in Manufacturing Produced by D K Harrison and D J Petty 21/04/02 Sld - Course Book Systems for Planning & Control in Manufacturing: Systems and Management for Competitive Manufacture Professor David K Harrison Dr David J Petty ISBN 0 7506 49771 X 0000


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