1. Introduction to Materials Management
Chapter 3 – Master Scheduling
Use print copy for class

2. The Master Schedule is:
The formal link between production planning and actual production
The basis for calculation of resources needed
The driving force behind the material requirements plan
The primary priority plan for manufacturing

3. Information Needed to Develop an MPS
Production Plan data
Forecasts
Actual customer orders
Inventory levels
Capacity constraints

4. Relationship to Production Plan

5. Objectives and Steps for the MPS
Maintain good customer service
Make effective use of resources
Maintain effective levels of inventory
Accomplished by:
Develop a preliminary MPS
Check MPS against capacity and resources
Reconcile any differences

6. MPS Example

7. Rough-cut Capacity Planning
Establishes whether critical resources are available
Bottleneck operations
Critical labor resources
Critical material
Often uses a resource bill for a single product

8. Example Resource Bill

9. Master Schedule “Focal Points”
Make-to-Stock – Limited end products, many components
Make-to-Order – Many end products, fewer components
Assemble-to-Order Many end products, combination of components and subassemblies

10. Example MPS Environments

11. Final Assembly Schedule
Assembly according to customer schedule
Generally used in an Assemble-to-Order environment
Many options
Too many possible final configurations to forecast or master schedule
MPS usually done at the option level

12. MPS, FAS and Other Planning Activities

13. MPS Planning Horizon
Minimum time horizon over which the master schedule must extend to ensure complete planning
Calculated as the longest end-to-end lead time of the product structure

14. EXAMPLE - Cumulative Planning Horizon
For this product – Minimum Planning Horizon 12 weeks

15. Delivery Promises MPS is a plan for what production can and will do
Sales delivery promises can be made from
“Consumption” of forecasts – Projected available balance
Available to Promise calculations
MPS values for a given time period left after actual customer orders are subtracted.

16. Available to Promise Example

17. Projected Available Balance
Within demand time fence (forecast not taken into account)
PAB = Prior period PAB + MPS – customer orders
Outside of demand time fence
PAB = Prior period PAB + MPS – greater of customer order or forecast

18. Example of MPS with ATP and PAB (Demand time fence at end of week 3)

19. Time Fences
Points in the planning horizon to define the flexibility allowed in the MPS
Frozen Zone (closest to current date)
Capacity and materials committed to customer orders, forecast generally ignored
Senior management approval for changes
Slushy Zone
Less commitment of materials and capacity
Tradeoffs negotiated between marketing and manufacturing
Liquid Zone – All changes allowed within limits of the Production Plan

20. Time Fences