Advanced Concepts in Master Production Scheduling

1
Advanced Concepts inMaster Production Scheduling

• Chapter 14

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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.

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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 dont consume the
  forecast?
• Capacity planning.
• How should capacity requirements be forecast and
  consumed by actual orders?

4
Methods for Constructing Planning Bills of
Materials

• Matrix BOM approach.
• CCASuses relational database software.
• Commonality and BOM depth.

5
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.

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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 theyre
  manufactured.

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Chapter 14 Homework Tips

• Due Tuesday, October 1
• Problem 14.8