A calculation based on the ATP figure in the master schedule;two methods of computing this are used with and without look ahead calculation
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.
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.
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
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
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
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.
product family
A group of products with similar characteristics, often used in production planning (or S&OP)
product mix
The proportion of individual products that make up the total production or sales volume
tactical planning
The process of developing a set of tactical plans (for example, production plan, sales plan, marketing plan)
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?
B) Master scheduling
Which of the following best represents inputs to the master scheduling process?
A) production plan, forecast, distribution planning
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?
B) planning time fence
Master scheduling is a balancing act between which of the following?
D) supply and demand
The MPS typically displays the plan for which of the following:
C) individual products
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
How often is the master schedule reviewed?
Weekly
True or False
Master scheduling creates a statement of future output for specific products
True
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.
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
What does the MTS consist of for ATO?
components and subassemblies
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.
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
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
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
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
What does the MRP system do?
Executes the detailed scheduling and planning activities that plan materials and suggest order release dates
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
What two factors have a major influence on master scheduling in different manufacturing environments?
business environment
product structure
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
What is the scheduling approach to MTS?
MPS/FAS - builds finish items to forecast
What is the scheduling approach to ATO?
MPS - builds components and subassemblies
FAS - Final assembly of exact configurations
What is the scheduling approach to MTO?
MPS - plans raw materials and components
FAS - builds only to customer orders
What is the product structure heavily influenced by ?
customer expectations
Manufacturing requirements
What are 6 Master scheduling logic and techniques?
Time phased master schedule record
Forecasts and customer orders
MPS
PABs
Lot Sizing
ATP
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
What is PAB?
Projected available balance
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
What is important to know about discrete ATP?
ATP is not carried forward to promise against orders received in or after the next period.
What is cumulative ATP?
ATP quantities in one period are carried forward to the next
What are the 3 zones of the demand time fence and the planning time fence?
Frozen
Slushy
Liquid
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
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)
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
