Advanced Concepts in Master Production Scheduling Chapter 14

Two-Level Master Production Scheduling An “average” item and a group of end items are linked to develop the MPS Example: Hill-Rom Company, Figures 14.1-14.3. Booking customer orders. Managing with a two-level MPS system. Mitel Corp. example.

Additional Techniques Alternative MPS explosion conventions. How should adjustments to the forecast percentages be modified as orders are received (adjusting product mix in short-term or long-term)? Consumption by actual orders. What should be done if orders don’t consume the forecast? Capacity planning. How should capacity requirements be forecast and consumed by actual orders?

Methods for Constructing Planning Bills of Materials Matrix BOM approach. CCAS—uses relational database software. Commonality and BOM depth.

Concluding Principles Super bills and bill structuring techniques should be used to manage product mix in an assemble-to-order environment. Firms wanting to closely couple the production plan, MPS, and order entry should use two-level master production scheduling techniques. Very complex product environments can be master scheduled with relatively few MPS records, with the right product structuring.

Concluding Principles High costs of developing and maintaining planning bills for the MPS should be offset by benefits of closer coupling to the market where competition requires rapid response. ATP logic can provide a mechanism for managing consumption of capacity as well as materials. Structuring bills of materials to determine the common and unique parts must accommodate both how the products are sold and how they’re manufactured.

Chapter 14 Homework Tips Due Tuesday, October 1 Problem 14.8