MASTER PRODUCTION SCHEDULE

7/18/2019 MASTER PRODUCTION SCHEDULE

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Master Production

Schedule

Presented By: Megha (28)



They

combine

Eventually, the time comes when individual “end item” products and services

must be scheduled at specific work centers.

This is accomplished by master scheduling

Aggregate Production& Capacity Plans

Products intoproduct groups.

Demand intomonthly totals.

PersonnelRequirements

across departments

Which alltogether

reflect Top Management

Decisions.

Which means, producing a SU!" !#$ (a time table including quantities) to produce specific

items or provide specific services within a given time period.

Introduction



Master Schedule & the Master Production Schedule (MPS)

The master schedule (MS) isa presentation of the demand,including the forecast and thebacklog (customer ordersreceived), the master productionschedule (the supply plan), theprojected on hand (P!)inventory, and the available"to"promise (A#P) $uantity.The master productionschedule (MPS) is the primary

output of the master schedulingprocess.%t is the plan' forproviding the supply to meetthe demand.

Table %

E&ample ' # simple (S for an (S item )end

product*



Master Scheduling Functions

#ranslate aggregate plans into specic end items.

valuate alternative schedules.

*enerate material re$uirements.

*enerate capacity re$uirements.

+acilitate information processing.

ectively utili-e capacity.



E&ample ' # case in which the distribution re+uirements are the gross re+uirements

for the (S

Here, theMS;enables mareting to make

legitimate delivery

commitments to field warehouses

and final customers.enables production to evaluate

capacity requirements in a

more detailed manner.

provides to management the

opportunity to ascertain whether

the business plan and its

strategic objectives will be

achieved

Table



!nderstanding "#$ $%I'%M$%" in which

master scheduling takes place

efore describing the activities involved in creating andmanaging the MS,we need to eamine the di**erent organi+ational environments in

which master scheduling takes place THESE EN!R"NMENTS #RE DETERM!NED

$%

the compan&'s STRATEGIC RESPONSES to;

and

the %/#01#1 of C21#301

the AC#%/1 of C3P#%#01

#hus, a ,MP$"$"I$

S"'-"$./ evolves...



"he 'ole and Structure o* Master Scheduling

Master !cheduling is a business process designed to balance

demand and supply at the detailed, mi" level. Master !cheduling is

primarily a decision#maing process, performed by an individual

called the Master !cheduler . $s such, it is people-centered; the

computer’s role is to support the people in their decision#maing

activities.

The output from this process is the Master %roduction !chedule,

which is the anticipated build schedule for specific products (or parts

of products) and customer orders. The Master !chedule is&

' time#phased,

' e"tends for a number of wees into the future, and

' is typically e"pressed in weely time increments or smaller.



Inputs & outputs o* master scheduling





DEVELOP!" # M#S$E%P%OD&'$O! S'ED&LE

#he process of developing a master productionschedule includes

(4) calculating the projected on"hand inventory

(5) determining the timing and si-e of the production$uantities of specic products

Ste *+ 'alculate Pro,ected On-and n.entories+ $he /rstste is to calculate theprojected on"hand inventory, 6hich is an estimate of the amountof inventory available each 6eek after demand has been satised7



#he manufacturer of the ladder"back chair produces the chair tostock and needsto develop an 3P1 for it. 3arketing has forecasted a demand of89 chairs for therst 6eek of April, but actual customer orders booked are for 8:chairs. #he current on"hand inventory is ;; chairs. /o 3P1

$uantity is due in 6eek 4. +igure 5 sho6s an 3P1 record 6iththese $uantities listed. As actual orders for 6eek 4 are greaterthan the forecast, the scheduler uses that gure for actual ordersin calculating the projected inventory balance at the end of 6eek47

Eample



%n 6eek 5, theforecasted$uantitye<ceeds actualorders booked,

so theprojectedon"handinventory forthe end of6eek 5 is 4= >

9 "89? "48. #he shortagesignalsthe need formore chairs in6eek 5.



Ste 2+ Deter0ine the $i0ing and Si1e o MPS3uantities+ $he goal o deter0ining the timing andsi-e of 3P1 $uantities is to maintain a nonnegativeprojected on"hand inventory balance.

#he scheduler adds the 3P1 $uantity to the projected on"

hand inventory and searches for the ne<t period 6hen ashortage occurs. #his shortage signals a need for asecond 3P1 $uantity, and so on.

+igure 8 sho6s a master production schedule for the ladder"

back chair for the ne<t eight 6eeks. #he order policyre$uires production lot si-es of 4;9 units. A shortage of 48chairs in 6eek 5 6ill occur unless the scheduler provides foran 3P1 $uantity for that period.





nce the 3P1 $uantity is scheduled, the updated projectedinventory balance for 6eek 5 is

#he scheduler proceeds column by column through the 3P1record until reaching the end, lling in the 3P1 $uantitiesas needed to avoid shortages. #he 48= units 6ill satisfy

forecasted demands until 6eek =, 6hen the inventoryshortage in the absence of an 3P1 $uantity is = > 9 "8; ?"5:. #his shortage signals the need for another 3P1 $uantityof 4;9 units. #he updated inventory balance is = > 4;9 " 8;? 455 chairs for 6eek =.



%n addition to providing manufacturing 6ith the timingand si-e of production $uantities ,the 3P1 providesmarketing 6ith information that is useful in negotiatingdelivery dates 6ith customers. #he $uantity of enditems that marketing can promise to deliver on

specied dates is called aaila*le+to+promise (#TP)inentor& !t is the di-erence bet6een the customerorders already booked and the $uantity that operationsis planning to produce.

##!.#$.E+T"+PR"M!SE /0#NT!T!ES



+igure @ sho6s an 3P1 record 6ith an additional ro6 for theavailable"to promise$uantities. #he A#P in 6eek 5 is the 3P1 $uantity minus bookedcustomerorders until the ne<t 3P1 $uantity, or 4;9 " (5= > 5@ > : > 9 > 9)? 4 units.

%n +igure @, the A#P for the rst 6eek is ;; > 9 " 8: ? 4=.





#his information indicates to the sales department that itcan promise as many as 4= units this 6eek, 4 more unitssometime in 6eeks 5 through B, and 4;9 more units in 6eek= or :. %f customer order re$uests e<ceed A#P $uantities inthose time periods, the 3P1 must be changed before thecustomer orders can be booked or the customers must be

given a later delivery date6hen the ne<t 3P1 $uantityarrives.



SOLVED P%OBLEM

#he order policy is to produce end item A in lots of ;9 units.2sing the data sho6n in +igure B and the +D lot"si-ing rule,complete the projected on"hand inventory and 3P1 $uantityro6s. #hen complete the 3P1 start ro6 by osetting the 3P1$uantities for the nal assembly lead time. +inally, computethe available"to"promise inventory for item A. %f in 6eek 4, a

customer re$uests a ne6 order for 89 units of item A, 6hen isthe earliest date the entire order could be shippedE

#he projected on"hand inventory for the second6eek is





6here re$uirements are the larger of the forecast or actualcustomer orders booked for shipment during this period. /o 3P1$uantity is re$uired.Fithout an 3P1 $uantity in the third period, there 6ill be ashortage of item A7 ; > 9 " @9 ?" 8;. #herefore, an 3P1 $uantity e$ual to the lot si-e of ;9 must be

scheduled for completion in the third period. #hen the projectedon"hand inventory for the third 6eek 6ill be ; > ;9 " @9 ? 4;.+igure G.= sho6s the projected on"hand inventories and 3P1$uantities from 3 <plorer that 6ould result from completingthe 3P1 calculations. #he 3P1 start ro6 is completed by simplyshifting a copy of the 3P1 $uantity ro6 to the left by one column

to account for the one"6eek nal assembly lead time. Alsosho6n are the available"to"promise $uantities. %n 6eek 4, theA#P is





#he A#P for the 3P1 $uantity in 6eek 8 is

#he other A#Ps e$ual their respective 3P1 $uantities because thereare no booked orders for those 6eeks. As for the ne6 order for 89units, the earliest it can be shipped is 6eek 8 because the A#P for6eek 4 is insuHcient. %f the customer accepts the delivery date of6eek 8, the A#P for 6eek 4 6ill stay at ; units and the A#P for 6eek8 6ill be reduced to ; units. #his acceptance allo6s the rm theIe<ibilityto immediately satisfy an order for ; units or less, if one comes in. #he customer orders booked for 6eek 8 6ould be increased to 8; toreIect the ne6 orderJs shipping date.



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MASTER PRODUCTION SCHEDULE