Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
33 Cards in this Set
- Front
- Back
|
Master planning |
A phase of MPC that includes S&OP (which produces the plan) and master scheduling (which produces the MPS). (also known as priority planning, which is the setting and maintaining of time-phased due dates) |
|
|
The role of MPC is to |
synchronize and translate independent demand into dependent demand. (after demand management has shaped and recognized independent demand. |
|
|
S&OP develops plans for products at what level? |
Family level |
|
|
Master Scheduling develops due dates and quantities for products at what level? |
End item level |
|
|
Once end item due dates are established by the master schedule, ___ determines the priority plan and due dates for purchased and manufactured components |
MRP |
|
|
Priority planning |
the setting and maintaining of time-phased due dates. It is also the function of determining what material is needed and when. Master scheduling and MRP are the elements used for the planning and replanning process to maintain proper due dates on required materials. |
|
|
S&OP |
Sales and Operations Planning. this translates the strategic business plan into production rates that meet business goals. It continually updates the production, financial and sales plan, seeks input from various functions, requires regular (like monthly) meetings with senior executives to resolve tradeoffs, and chekcks availability of resources to validate the production plan. |
|
|
Production Planning |
A major output of S&OP and should reflect the decisions made during planning. It is concerned with: the product family quantities demanded in each period; desired inventory levels; resources of labor, material and equipment needed to meet demand; availability of resources. Time horizon may be 12 months to 36 months; plan stated on monthly rate |
|
|
Production Planning APICS Definition |
a process to develop tactical plans based on setting the overall level of manufacturing output and other activities to best satisfy the current planned level of sales, while meeting general business objectives of profitablility, productivity, and so on, as expressed in the overall business plan. |
|
|
4 strategies used to develop a production plan |
1. Chase, or demand matching, strategy 2. Level production strategy or production leveling 3. Subcontracting 4. Hybride |
|
|
Chase or Demand matching strategy |
Production level matches the quantity demanded at any given time. Advantages: Stable Inventory; Varied production to meet sales req Disadvantages: Costs of hiring, training, overtime, and extra shifts; Costs of layoffs and employee morale; possible unavailability of work skills; capacity must match max demand |
|
|
Level Strategy |
Set an accurate forecast for a period of time and set production at a level rate to match that forecast. Advantages: avoids workforce adjustments; avoids changeovers and reduces per time production cost Disadvantages: buildup inventory and carry over costs; Requires accurate forecast Practice calc on pg 3-25 |
|
|
Subcontracting |
Level production at the minimum demand and outsource all additional demand. Advantages: Prevents buildup of inventory; avoids excess capacity costs and reduces costs of changeovers and workforce adjustments; can quickly acqruie additional capacity Disadvantages:propriety production/competative advantages; might be higher cost than in-house production |
|
|
Hybrid Strategy |
A combo of the 3 pure production strategies. minimizes change overs during the planning cycle. Characteristics: - production is at or close to capacity for at least part of the cycle. -production is at a lower rate during the other part - production is level during both parts of the cycle -less workforce adjustment than with Chase - less inventory than level - requires accurate forecast like the level strategy |
|
|
Make to Stock Production Plan |
FP are put into and sold from inventory. Used when: demand is constant and predictable;only a few product options; manufacturing lead times exceed expected delivery date. Need for planning: forecast by time period; opening inventory; desired end inventory. |
|
|
Functions concerned with S&OP |
Finance (revenue projections are only as good as sales); Sales and marketing (sales are only as good as production schedules); Operations (production schedules only are as good as the availability of resources). |
|
|
Resource Planning |
Also called resource requirements planning. Used to determine if availability of resources meets production plan and fixes differences by altering priorities/changing plans. |
|
|
Bill of Resources |
(also called a resource bill) It shows the quantity of critical resources needed to make one 'average' unit of each product within a product family. by multiplying number of items need to be made by bill of resources numbers, one can determine how much total resources are needed. practice calcs on pg 3-35 |
|
|
After S&OP/production planning (to determine feasible rate of production at product family level during horizon of 1 to 3 years) comes... |
Master scheduling. Its purpose: - link product family level plan to end item level. -create priority plan, quantity, and due dates -provide end item due dates used to calculate rough-cut capacity plan. -drive material requirements plan |
|
|
the master schedule is a vital link between |
Sales and production |
|
|
Objectives of a Master Schedule |
-maintain desired level of customer service -make the best use of resources -keep inventories at desired levels |
|
|
Inputs to a master schedule process |
- production plan - forecasts for individual end items -orders from customers -additional independent demand -inventory levels -capacity constraints |
|
|
Production plans are usually stated in ___ and master schedule in ___ |
months;weeks |
|
|
Steps to determine a master schedule |
1. create a preliminary master schedule for each end item with demand 2. aggregate the master schedule for all end items if the products use the same resources and take the same amount of time 3. perform Rough cut capacity planning (RCCP) 4. resolve differences and publish the MPS |
|
|
Master Schedule vs MPS |
master schedule includes: planning chart that includes forecast, customer orders, projected inventory, available to promise (ATP) and MPS |
|
|
PAB |
Projected Available Balance. tells you if you need to schedule an MPS. if balance is higher than demand, dont need to order one. |
|
|
If ending PAB is negative... |
schedule the MPS receipt according to lot-size policy |
|
|
Ending PAB equation |
Ending PAB= beginning PAB+ scheduled MPS receipt- forecast *(assume scheduled MPS is negative at first) |
|
|
Planning Horizon |
APICS Dictionary: the amount of time a plan extends into the future. it normally is set to cover a minimum of cumulative lead time plus time for lot sizing low-level components and for capacity changes of primary work centers. see WB pg 3-46 for a visual |
|
|
Time Fences and Zones.. |
are used to manage the master schedule and to deal with changes that occur in customer demand and internal priorities, and problems etc. Zones in this book include: Liquid, Slushy, and frozen. see 3-48/49 for more detail. |
|
|
RCCP |
rough cut capacity planning. 3rd step in master scheduling process. it is the second check of availa of resrouces (after resource planning in the production plan done previously). see difference between the two on pg 3-51. |
|
|
the MPS is manufacturings anticipated build schedule for end items. |
true. and it is based on end item demand forecasts and customer orders provided by sales. |
|
|
ATP |
Available to promise. the uncommitted portion of a companies inventory and planned production... pg 3-55. - practice there too. |
