MPR Chapter 6: S&OP and Master Scheduling

The flashcards below were created by user Sandy2015 on FreezingBlue Flashcards.

  1. Cumulative ATP
    A calculation based on the ATP figure in the master schedule;two methods of computing this are used with and without look ahead calculation
  2. Demand time fence
    The point in time inside of which the forecast is not longer included in total demand and projected available inventory calculations; inside this point, only customer orders are considered. Beyond this point, total demand is a combination of actual orders and forecasts, depending on the forecast consumption technique chosen.
  3. Discrete available to promise
    A Calculation based on the ATP figure in the master schedule. For the first period, the ATP is the sum of the beginning inventory plus the MPS quantity minus backlog for all periods until the item is master scheduled again. For all other periods, if a quantity has been scheduled for that time period, then the ATP is this quantity minus all customer commitments for this and other periods until another quantity is shceduled in the MPS.
  4. Forecast consumption
    The process of reducing the forecast by customer orders or other types of actual demands as they are received; the adjustments yield the value of the remaining forecast for that period
  5. Lot size
    The amount of a particular item that is ordered from the plant or a supplier or issued as a standard quantity to the production process
  6. operational plans
    The set of short range plans and schedules detailing specific actions; they are more detailed than strategic and tactical plans and cover a shorter time horizon
  7. planning time fence
    A point in time denoted in the planning horizon of the master scheduling process that marks a boundary inside of which changes to the schedule may adversely affect component schedules, capacity plans, customer deliveries and cost.
  8. product family
    A group of products with similar characteristics, often used in production planning (or S&OP)
  9. product mix
    The proportion of individual products that make up the total production or sales volume
  10. tactical planning
    The process of developing a set of tactical plans (for example, production plan, sales plan, marketing plan)
  11. Which of the following is the process of creating a detailed statement of independent demand that is used to develop detailed material and capacity plans?

    A) RCCP
    B) Master scheduling
    C) master planning of resources
    D) bill of material
    B) Master scheduling
    (this multiple choice question has been scrambled)
  12. Which of the following best represents inputs to the master scheduling process?

    A) S&OP, MRP, capacity planning
    B) production plan, forecast, distribution planning
    C) MPS, production plan, resource planning
    D) MPS, forecast, RCCP
    B) production plan, forecast, distribution planning
    (this multiple choice question has been scrambled)
  13. Which of the following is a point in time in the master scheduling process planning horizon that marks a boundary inside of which changes to the schedule may affect component schedules, capacity plans, customer deliveries, and cost?

    A) projected available balance
    B) demand time fence
    C) planning time fence
    D) ATP
    C) planning time fence
    (this multiple choice question has been scrambled)
  14. Master scheduling is a balancing act between which of the following?

    A) forecasts and orders
    B) forecast and inventory
    C) supply and demand
    D) inventory and customer service
    C) supply and demand
    (this multiple choice question has been scrambled)
  15. The MPS typically displays the plan for which of the following:

    A) product families
    B) dependent demand items
    C) product components
    D) individual products
    D) individual products
    (this multiple choice question has been scrambled)
  16. What is the fundamental role of master scheduling?
    • Disaggregate product family plans at the S&OP level into statements of current and future outputs for specific end items
    • Disaggregate the planning intervals generally from monthly to weekly, though daily and hourly intervals can also be used
  17. How often is the master schedule reviewed?
  18. True or False

    Master scheduling creates a statement of future output for specific products
  19. What are the objectives of master scheduling?
    • 1. Create a build schedule for specific products:end items, quantities and due dates
    • 2. Show when products are expected to be available
    • 3. Enable sales and customer service to promise deliveries to customers
    • 4. Provide the basis for tradeoffs if orders cannot be met
    • 5. Coordinate sales and operations in the common pursuit of superior customer service.
  20. What is the outcome of the master scheduling process
    the MPS - build schedule that shows when quantities of end items will be available

    This is only true for Make to Order and Make to Stock manufacturing environments
  21. What does the MTS consist of for ATO?
    components and subassemblies
  22. How does the master schedule link to the S&OP and production plan?
    The production plan produced  by S&OP provides the aggregate demand that needs to be reflected in the MPS.
  23. How does master scheduling link to Demand management?
    Forecasting into the S&OP for customer and end item demand, warehouse replenishments, interplant transfers, and spare parts requirements.

    Customer orders in S&OP and master scheduling

    Order promising
  24. How does master scheduling link to Distribution planning?
    Demand management - provides rolled up forecast and order information from inventory stocking locations

    Logistics planning - Along with RCCP, logistics capacity planning determines if key distribution resources are available or are in short supply. 

    Resources include: labor, storage, transportation, materials, and equipment
  25. How does master scheduling link to RCCP?
    Analyzes the MPS for potential production resource constraints. Shortages of key labor, materials, equipment and plant capacity need to be resolved in the master scheduling process
  26. How does master scheduling link to Material Requirements Planning (MRP)?
    The validated MPS provides the gross requirements for end item units for the MRP system
  27. What does the MRP system do?
    Executes the detailed scheduling and planning activities that plan materials and suggest order release dates
  28. What are the basic elements of the grid?
    • Forecast for the periods in the planning horizon
    • Customer orders (booked)
    • Projected available inventory balance
    • Inventory ATP to customers
    • MPS
  29. What two factors have a major influence on master scheduling in different manufacturing environments?
    • business environment
    • product structure
  30. What are 3 important manufacturing requirements that influence master scheduling approaches in different manufacturing environments?
    • Appropriate production process
    • Techniques for managing fluctuations in sales volume
    • Choice of unit of production stated in MPS
  31. What is the scheduling approach to MTS?
    MPS/FAS - builds finish items to forecast
  32. What is the scheduling approach to ATO?
    MPS - builds components and subassemblies

    FAS - Final assembly of exact configurations
  33. What is the scheduling approach to MTO?
    MPS - plans raw materials and components

    FAS - builds only to customer orders
  34. What is the product structure heavily influenced by ?
    • customer expectations 
    • Manufacturing requirements
  35. What are 6 Master scheduling logic and techniques?
    • Time phased master schedule record
    • Forecasts and customer orders
    • MPS
    • PABs
    • Lot Sizing
    • ATP
  36. What is a Time Phased master schedule record?
    • Time phased record, or grid, which shows the relationship between
    • 1. the inputs to the master schedule, disaggregated from the S&OP and supplemented by demand information generated by distribution requirements planning and actual customer orders
    • 2. the outputs from the master schedules, the MPSs that are the anticipated build schedules for end items expressed as scheduled receipts in lot size quantities usually in weekly or daily time periods
  37. What is PAB?
    Projected available balance
  38. What is ATP?
    • 1. it is used in customer order promising (MTS, MTO, and ATO)
    • 2. represents inventory and planned MPS receipts not yet committed to customer orders
    • 3. ignores the forecast;focuses on customer orders
    • 4. is calculated for the first period and each period with an MPS receipt
    • 5. is of two major types: discrete and cumulative
  39. What is important to know about discrete ATP?
    ATP is not carried forward to promise against orders received in or after the next period.
  40. What is cumulative ATP?
    ATP quantities in one period are carried forward to the next
  41. What are the 3 zones of the demand time fence and the planning time fence?
    • Frozen
    • Slushy
    • Liquid
  42. What is the frozen zone in the time fence?
    It is the time from current date to the demand time fence (usually 2 - 3 weeks) where changes are seldom permitted

    Only customer orders are used in calculating PAB
  43. What is the slushy zone in the time fence?
    • Slushy is the time between the Demand time fence and the planning time fence. 
    • Changes can be made relatively easily if the right components are available.
    • Both customer orders and forecasts are used in calculating PAB (the higher of the two)
  44. What is the Liquid zone?
    This zone is outside of the Planning time fence and allows changes in mix and volume.Changes are often made by the planning software automatically

    Customer orders and forecasts (the higher of the two) are used in calculating PAB
Card Set
MPR Chapter 6: S&OP and Master Scheduling
MPR Chapter 6 S&OP and Master Scheduling
Show Answers