master schedule2

8/13/2019 MASTER Schedule2

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Aggregate Production Planning

Aggregate production planning is defined as theprocess of development, analytics and maintenance ofa schedule for the business' overall operations.

It is usually medium range in nature, lasting anywherefrom three to 18 months.

The planned output levels, targeted sales andintended inventory levels are taken into account while

preparing an aggregate plan. An efficient aggregate plan should do away with day-

to-day scheduling


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Definition:Master Production scheduling (MPS)

Translating a business plan into a comprehensiveproduct manufacturing schedule that covers what is to

be assembled or made, when, with what materialsacquired when, and the cash required.

MPS is a key component of material requirementsplanning

It represents the critical linkage between planningand execution of operations. It is the next stage in theproduction planning process in any organisation afteraggregate production planning is done.


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HOW MPS WORKS

Information needed for MPS logic

Lot size

Lead time Product demand

Starting inventory


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Relationship between MPS &APP Aggregate production planning is a rough cut capacity

planning exercise on the basis of forecast quantities ofproducts.

MPS makes use of actual customer orders for thepurposes of capacity planning and resource allocation

to specific customer orders.


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Master Production Scheduling

TechniquesAvailable = inventory position at end of week

= starting inventory + MPS forecast

Plan to have positive inventory level

Buffer in case production below plan

Or demand higher than anticipated


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Utility of MPS MPS is the process by which disaggregation of varieties

is done

using this information additional planning is carriedout to assign the required capacity to each variety.

planning for the material required for productionduring each period is also done


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Why MPS is required ? . The most important reason is that at the stage of

aggregate production planning, normally forecast

demand is taken for the purpose of estimating thecapacity required

when actual orders are received this informationprovides a better input

MPS uses actual and the most recent information


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It ensures specific material and capacity availability ina particular time period.

As customer orders get amended and/or cancelled,the information has a bearing on capacity availability.

The MPS module serves the important purpose ofcomputing capacity available to promise.


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FORECASTING

AGGREGATEPRODUCTION

PLANNING

CAPACITYPLAN

MATERIALPLAN

ACTUALPRODUCTION

MASTERPRODUCTIONSCHEDULING

MARKET

LABOUR

VENDOR


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Link b/w MPS & other planning

processesAs shown the figure MPS takes inputs from the order

in flow system and APP to perform the disaggregationexercise.

Based on the disaggregation, capacity planning andmaterials planning are performed to ensure theiradequate availability

.If there is some infeasibility in either capacity or

material availability, the plans are altered to arrive atpossible production plans. Therefore, MPS determineswhat needs to be ultimately produced and what isdemanded.


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The stages involved in MPS There are two stages involve in MPS

1.To update the projected demand based on earlier

forecast and current market information. 2. It involves the Disaggregation of product

information and relating to specific material, andcapacity requirements.


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STEPS FOR ACTUAL PRODUCTION

Step 1. Incorporating current market information into

the production plan

Step 2.Disaggregation of product information


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. if the forecast quantities are higher than the firmorders it is a normal practice to work on the basis offorecast quantities.

On the other hand if the firm orders are more thanthe forecast quantity then it is desirable to incorporatethis information for the purpose of planning .


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STEP 2.Disaggregation of product

informationAt the time of APP an aggregate unit was chosen and

different varieties of a product or services wereconverted to equivalent product/services .


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SUMMARY MPS breaks the Sales & Operations plan into product

families. Maintains Desired Level of Customer Service

Allows proactive control of inventory

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