s&op and master scheduling.ppt

7/23/2019 S&OP AND MASTER SCHEDULING.ppt

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Chapter 4 - The Master Schedule 4.1 Background and links to the S&OP

4.2 Master schedule horion 4.! Ti"e #ences

4.4 Sources o# de"and

4.$ Basic "ethodolog%

4. '"pact o# product en(iron"ent

4.) *eneral approach to "aster schedule de(elop"ent

4.+ ,(ailale-to-pro"ise logic

4. Planning options in an ,TO en(iron"ent

4.1/ The t0o-le(el "aster schedule

4.11 So"e notes on the "aster scheduling responsiilit%

4.12 e"and "anage"ent o(er(ie0

4.1! le"ents o# de"and "anage"ent


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'ntroduction

e(eloping and "anaging the "aster schedule 't is the ne3t step in production planning

,ssu"es that S&OP has properl% planned resources

Contains "ore detail than the S&OP

The ti"e horion is t%picall% shorter than S&OP

S&OP plans in ter"s o# #a"ilies

Master schedule represents #inal sellale ite"s

5 is a "a6or inter#ace et0een prod7n and custo"er Ser(ice #ir"s "a% not ha(e one

5 "aster scheduled operating roo"s888


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4.1 Background and 9inks to S&OP

S&OP lines up the proper resources S&OP aggregates #orecast de"and

5 seldo" includes actual input #ro" custo"er orders

5 planning is not done on the #inal product le(el

More planning is then needed to:


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Break do0n the aggregated plans5 into uildale products

Ser(e as a plan to include #orecast and actual

orders

Ser(e as a source o# in#o to de(elop capacit%

plans

Ser(e as a (ehicle to translate custo"er orders

into e##ecti(el% ti"ed #actor% orders Ser(e as a tool to plan in(entor% le(els

5 especiall% #inished goods


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This planning acti(it% is the "aster schedule 't starts 0ith a detailed product #orecast

e(elops a set o# rules #or the consu"ption o#

the #orecast

Translates the re;uire"ents into actual orders

The "aster schedule has "ore detail than S&OP

The "aster schedule has a shorter ti"e horion

The "aster schedule ;uantities or (alues should

e;ual those de(eloped in the S&OP


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S&OP


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Product *roups=>a"ilies


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e#inition o# a Master Schedule

The anticipated uild or u%schedule

>or speci#ic products and

ser(ices

, set o# planning nu"ers

that dri(es detailed

scheduling and planning

MPS Master scheduling


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Master Planning o#


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Planning #or Production

Sales

Planning

Production

Planning

Master

Sceduling

Detailed Planning

' Sceduling

.

AP

A

.

0

+

1

P

2

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G

3

O

,4

.

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4

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usiness

Planning

Source: Wallace, Tom F. Sales and Operations Planning, A How-To Guide, T.F. Wallace & Co. 1999.


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Master Scheduling

Sales and

Operations Plan

Master Scedule

Master Production

Scedule

,oug .ut

.apacity Planning

Input: The approved Sales and Operations Plan

Output: The approved Master Production Schedule


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The Master Scheduling Process

Develop preliminary

master scedule

4valuate using ,..P

,evise master scedule

,e-evaluate using ,..P

"

!

#

)

*

Production plan

&rom S'OP

Publis master scedule


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4.2 Master Schedule ?orion

The "aster schedule "ust ha(e a horion thatis e;ual to or longer than the cu"ulati(e lead

ti"e o# the product or ser(ice eing planned.

>irst e3a"ine the ill o# "aterial

5 sho0s co"ponents re;uired to asse"le a

product

5 sho0s the relationship et0een products

5 sho0s the ;uantit% to uild one product5 contains lead ti"es


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Cu"ulati(e lead ti"e is the a"ount o# ti"e ittakes to "ake a product #ro" start to #inish

>igure 4.1


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Bill o# Materials

Single9e(el

Multile(el

' n n e r

B 1 2 1 + @ 1

O u t e r

B 1 2 1 + @ 2

? a r d 0 a r e

A i t

B e a r i n g

, 1 2 1 + 1

B a l l s S e a l g r e a s e

? a r d 0 a r eA i t

# o r g i n g # a s t e n e r s

' n n e rB 1 2 1 + @ 1

B 1 2 1 + @ 2O u t e r

B e a r i n g

, 1 2 1 + 1


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Prole" 4.1

u"er o# *7s needed8

@hich are purchased co"ponents8


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Traditional Single 9e(el Bill o# Material

2evel

$

"

6-20

Packaged Product

2abel ottle .apulk Solution


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Packaged Product

2abel ottle .ap

Active 3iller

ulk Solution

ase

2evel

$

"

!

6-21

Multi-9e(el Bill o# MaterialMulti-9e(el Bill o# MaterialMulti-9e(el Bill o# Material


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T%pical Planning Bill #or a ?otel

5otel ,oom

Smoking Pre&erence

ed Pre&erence

6ie7 Pre&erence

Meal Pre&erenceSmoking

Non-Smoking

8ing

+7o Doubles

One Double

Ocean

2agoon

reak&ast

No Meals

All Meals

!$9

:$9

)$9

)$9

!$9

;$9

)$9

#*9

)$9

!*9

6-22


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,d(antages o# Planning Bills

More accurate #orecasting


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@e "ust plan e%ond the cu"ulati(e leadti"e

5 pro"ise o# 1 product in 0eek 14

5 0hat aout other co"ponents8


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@ithout ade;uate in(entor%: start product in 0eek 12

5 2 0eek 9T

start suasse"l% C in 0eek +5 4 0eek lead ti"e

start suasse"l% * in 0eek !

5 $ 0eek lead ti"e

u% co"ponent ? in 0eek "inus 4

cu"ulati(e lead ti"e is...


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4.! Ti"e >ences

One prole" 0ith using #orecasts:5 the% are al"ost al0a%s 0rong

The "aster schedule uses ti"e #ences

5 the% estalish rules to "anage the "asterschedule

e"and ti"e #ence

Planning ti"e #ence


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4.! Ti"e >ences

@ithin the de"and ti"e #ence... The #orecast data is ignored

,ctual custo"er orders are used

Schedule is considered #roenD

5 no changes to the schedule

E i"possile or i"practical

E ake a loa# o# read and change the schedule during aking

The de"and ti"e #ence is the closest to thepresent ti"e in the schedule


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4.! Ti"e >ences

@ithin the planning ti"e #ence...

's set e;ual to or longer than the cu"ulati(e lead ti"e

o# the product.

5 Be%ond this ti"e there is ade;uate ti"e to react to changes

E additions deletions

E "odi#ications to product

E "odi#ications to schedule

Schedules are #ree or #loat 0ith actual de"and

Bet0een de"and and planning the schedule is

#le3ileD or slush%D

5 changes "a% e "ade ut "ust e anal%ed


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Ti"e >ences

e"and Ti"e >ence Sets the period o# the

"aster schedule 0here

changes are seldo"

per"itted Co(ers period o# actual

custo"er de"and

Fsuall% set to co(er the

production and asse"l%ti"e #or a product or the

deli(er% ti"e #or a ser(ice

Planning Ti"e >ence Sets the period 0ithin

0hich changes to the

"aster schedule "ust e

"ade % the "aster

scheduler

Co"ination o# actual

de"and plus #orecasted

de"and

Fsuall% set to include"aterial and co"ponents

ac;uisition ti"e


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MPS Ti"e Gones

DEMAND

TIME

Frozen Flexible Free

Customer Order

ac!log

Forecast

0mpacto& cange


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e#ining Ti"e >ence Policies

DEMAND

+ime

i Pl d O d


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,eleased

Orders

.omputerGenerated

Planned

Orders

Creating >ir" Planned Orders

DEMAND

TIME

Frozen Flexible Free

3irmPlanned

Orders

4 4 S # d


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4.4 Sources o# e"and

The "aster schedule is said to disaggregateD the

S&OP...

'"portant that the nu"ers "ust agree 0ith the

S&OP nu"ers

The #orecasting "ethods are o#ten di##erent

5 S&OP are long-range o#ten using causal

techni;ues

5 Master schedule is shorter and t%picall%0ould use ;uantitati(e "ethods

E actual custo"er orders

4 $ B i M th d l


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4.$ Basic Methodolog%

The "aster schedule uses de"and Horders and

#orecastI in its de(elop"ent 't considers:

5 in(entor% plans

5 laor plans5 ne0 product introductions

o0 considers

5 "eeting the custo"ers needs per the S&OP5 alancing de"and (. capacit%

5 estalishing in(entor% le(els per the S&OP

4 $ B i M th d l


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4.$ Basic Methodolog%

>igure 4.4 sho0s a si"ple "aster schedule.

The actual schedule that includes speci#ic

;uantities and "odels is the "aster

production schedule or MPS

re(ie0 o# schedule

5 on hand J )/

5 lot sie J +/

5 dates are co"pletion dates

4 ' t # P d t i t


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4. '"pact o# Product n(iron"ent

The "aster schedule "a% need to e

de(eloped and "anaged (er% di##erentl%

depending on the product en(iron"ent...

Make-to-Stock HMTSI

,sse"le-to-Order H,TOI

Make-to-Order HMTOI

S h d li i i


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Scheduling ecisions

Assemble-to-Order

4ngineer-to-Order

Design Supply Production Delivery


Make-to-Order


Make-to-Stock


6-18

4 ' t # P d t i t


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Make-to-Stock en(iron"ent...

Custo"er has no in#luence on #inal design

Master schedule ser(es as a #inal

asse"l% schedule H>,SI


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,sse"le-to-Order en(iron"ent...

Custo"er has in#luence o(er #inal outco"e

5 auto"oiles co"puters

Man% ra0 "aterials and co"ponents

>inal products not scheduled on the "aster

schedule

5 too "an% options

Master schedule the options

5 ic%cles 0ith di##erent colors seats tires

4 ' t # P d t i t


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Make-to-Order en(iron"ent...

Custo"er has large in#luence o(er design

Co"panies "a% use standard co"ponents

5 are asse"led di##erentl%

T%picall% #e0 nu"er o# ra0 "aterials ut a

large nu"er o# #inal products

T%pical o# ser(ice organiations

This MPS re#lects capacit% and ra0 "aterial

needs

4 ) * l , h t l t


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4.) *eneral ,pproach to e(elop"ent

>orecast and "aster schedule MTO aker%

5 easier to de(elop #orecast #or ra0 "aterials

E plan to "ake 1// loa(es o# read

E plan to "ake 1// cakes

>orecast and "aster schedule ,TO5 12/ #orecasts and "aster scheduled ic%cles

#or one ic%cle t%pes

5 de(elop schedule at option le(el

E #orecast co""on asse"lies5 seats 0heels #ra"es

E order placed at >,S H#inal ass% scheduleI

4 ) * l , h t l t


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4.) *eneral ,pproach to e(elop"ent

>igure 4.$ "aster schedule de(elop"ent

The "aster schedule is usuall% designed to

operate at the le(el that has the #e0est

ite"s that need to e scheduled.

4 + , ailale to Pro"ise 9ogic


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4.+ ,(ailale-to-Pro"ise 9ogic

,(ailale-to-pro"ise H,TPI allo0s a #ir" to

;uickl% and realisticall% pro"ise deli(er% o#product to custo"ers

5 t%picall% not used in MTS en(iron"ent

5 not used as "uch in the MTO en(iron"ent5 (er% (aluale in the ,TO en(iron"ent

>or an% MPS the ,TP is ho0 "an% ite"sare not pro"ised to speci#ic custo"er orders

The Pro6ected ,(ailale Balance


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The Pro6ected ,(ailale Balance

The pro6ected a(ailale alance HP,BI is the

pro6ected in(entor% position in a particular ti"e

period.

't is si"ilar to a pro6ected ank alance on a

pro6ected cash #lo0 state"ent.

Prior to the e"and ,#ter the e"and

Ti"e >ence K Ti"e >enceKP,B J Prior period P,B P,B J Prior period P,B

L MPS L MPS

- Custo"er orders - H >orecast or Cust. ordersI

>igure 4 ,TP


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>igure 4. ,TP

productK , de"and ti"e #enceK 2 0eeks

lead ti"eK 2 0eeks on handK $

9ot sieK /

Period 1 2 ! 4 $ ) + 1/ 11 12

>orecast 22 2$ 2/ 2/ 1+ 1+ !2 !/ 2+ 2+ 2 !$

Custo"er orders 24 2! 1) 22 1$ 14 1) 1 12 1 1! 11

pro6ected a(ail. Balance !2 4 2) $1 1 4 21 $! 24 $

,TP

MPS / / / / /

>igure 4 ,TP Solution


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>igure 4. ,TP Solution

productK , de"and ti"e #enceK 2 0eeks

lead ti"eK 2 0eeks on handK $

9ot sieK /

Period 1 2 ! 4 $ ) + 1/ 11 12

>orecast 22 2$ 2/ 2/ 1+ 1+ !2 !/ 2+ 2+ 2 !$

Custo"er orders 24 2! 1) 22 1$ 14 1) 1 12 1 1! 11

pro6ected a(ail. Balance !2 4 2) $1 1 4 21 $! 24 $

,TP 2 !2 2/

MPS / / / / /

4 + ,(ailale to Pro"ise H,TPI


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4.+ ,(ailale-to-Pro"ise H,TPI

,(ailale-to-pro"ise H,TPI is the unco""itted portion o# the

current in(entor% or #uture planned suppl%

,TP is si"ilar to the unco""itted a"ount o# %our current ank

alance and #uture pa%checks

,TP Hperiod 1I J On-hand alance L MPS 5 Su" o# custo"erH1st period onl%I orders e#ore ne3t MPS

,TP J MPS 5 Su" o# custo"er orders e#ore ne3t MPS

Hall #uture periods that contain an MPS planned receiptI

6-16

,(ailale to Pro"ise


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,(ailale-to-Pro"ise

>orecasted sales 2/ 22 21 2$ 24 2! 21 21 2$

Custo"er orders 1 1) 1$ 11 $ 2 1 /

Pro6ected a(ail. alance $/ !1 14 4 24 / 2) !$ 1/

,(ailale-to-pro"ise

Master production schedule

0tem= >:"$$ Demand +ime 3ence= #

Description= .ommercial Generator ?nit Planning +ime 3ence= :

2ot Si@e= *$ On 5and= *$ 2ead +ime= ! periods

.alculate te available-to-promise &or periods "%

6-17

Period " ! # ) * ; > : %

,(ailale to Pro"ise HSolutionI


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>orecasted Sales 2/ 22 21 2$ 24 2! 21 21 2$

Custo"er Orders 1 1) 1$ 11 $ 2 1 /

Pro6ected ,(ail. Balance $/ !1 14 4 24 / 2) !$ 1/

,(ailale-to-Pro"ise 14 1$ 4! 4

Master Production Schedule $/ $/ $/

0tem= >:"$$ Demand +ime 3ence= #

Description= .ommercial Generator ?nit Planning +ime 3ence= :

2ot Si@e= *$ On 5and= *$ 2ead +ime= ! periods

,(ailale-to-Pro"ise HSolutionI

Period " ! # ) * ; > : %

6-17a

4 + ,(ailale to Pro"ise 9ogic


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4.+ ,(ailale-to-Pro"ise 9ogic

Ae% points aout ,TP:

't is calculated #ro" custo"er orders not

#ro" #orecasts at an% ti"e

5 the idea is it sho0s the a(ailailit% to pro"ise

a product to custo"ers not to #orecasts

,TP pro(ides a (aluale tool to

co""unicate i""ediatel% and honestl%

0ith custo"ers

4 Planning Options in ,TO


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4. Planning Options in ,TO

>orecasts are done #or the end ite"s

Master schedules are done #or the

co"ponents

, special ill o# "aterial is used

5 Planning ill5 super ill

>igure 4.+

5 o(erplanningE "i3 hedge

E "arket hedge

4 1/ The T0o 9e(el Master Schedule


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4.1/ The T0o-9e(el Master Schedule

>igure 4. sa"ple t0o-le(el "aster

schedule

4 11 Master Scheduling


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4.11 Master Scheduling


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4.12 e"and Manage"ent O(er(ie0

So"e de"and is internal to the co"pan%

5 ser(ice re;uire"ents

5 ne0 product protot%pes

5 ;ualit% assurance testing

5internal repairs

5 distriution re;uire"ents

"arketing and sales are #le3ile

changing capacit%

changing hu"an capacit%

suppliers in(entor% phased out designs

4 11 Master Scheduling


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Planned Orders

Firm Planned Orders

Released Orders

Production Orders Purc"ase Orders

T%pes o# Suppl% Orders

4 1! le"ents o# e"and Mg"t


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4.1! le"ents o# e"and Mg"t.

>our "a6or ele"ents o# de"andK

prediction

co""unication

in#luence prioritiation and allocation



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Prediction...

#orecasting custo"er de"and

5 di##erent "ethods "a% e used

5 track the #orecast

5 lessen the i"pact o# errorE co""unication

E in#luence

E lead ti"e reduction

E production #le3iilit%E S&OP = Master Schedule policies

E sa#et% stock



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Prediction...

Set sa#et% stock le(els

5 "ust e aligned 0ith custo"er ser(ice le(els

set % S&OP

5 "ust e understood % all e"plo%ees



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Prediction...

Track and co"pare actual (. planned

5 "ake ad6ust"ents and #orecast "ore

accuratel%

Bill o#


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Bill o#


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Master Scheduling Polic%

Master scheduling polic%

5 escries organiational responsiilities

5 e#ines appro(al c%cle #or the "aster schedule

5 stalishes ti"e #ences and change "anage"ent

procedures

stalishes "ethods o# #orecast re(ie0

5 stalishes "ethods o# #orecast relie#

5 e#ines #orecast re(ie0 guidelines

e#ines "aster scheduling techni;ues5 Order pro"ising guidelines

5 Make-to-stock "ake-to-order strategies

@hat 's an ##ecti(e Schedule8


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@hat 's an ##ecti(e Schedule8

Production

System

+rade-O&&s0nventory

usageBcostsC

.ustomerdelivery

Manu&acturing e&&iciencyE

BsceduleC

The *oals o# Master Scheduling


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The *oals o# Master Scheduling

To alance suppl% and de"and priorities

To de(elop practical solutions to suppl%constraints

To prioritie and allocate suppl% to custo"er

de"ands To estalish a strateg% to a(oid o(erloaded

schedules and unalanced conditions

To create a schedule 0ith attainaleco"pletion dates that satis#% custo"er needs

Master Scheduler >unctions


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Master Scheduler >unctions

Fnderstand the #orecasting approach and its li"itations

Participate in the de(elop"ent o# the sales and

operations plan

Manage the constraints o# suppl% capacit%

Maintain a realistic "aster schedule

Monitor consistenc% 0ith the sales and operations plan

3ecute "aster schedule policies such as ti"e #ences

sa#et% stocks sucontracting and lot-siing

'denti#% negotiate and resol(e con#licts

Master Scheduler No uali#ications


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Master Scheduler No uali#ications 3perienced 0ith products and custo"ers

, good co""unicator *ood 0ith nu"ers

Cool under pressure

isciplined"aintains data accurac%

,sserti(e"akes things happen, prole" sol(er rather than a #ire#ighter

Creati(e#inds inno(ati(e 0a%s to alance suppl% and

de"and *enuinel% interested in products and custo"er ser(ice

@ho Brings @hat to the Tale8


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@ho Brings @hat to the Tale8

Mar!etingProduct

DefinitionProduct

Demand

Ca#ital

Master

$c"eduleusiness

Plan

%or!force

A&ailabilit'

Source: Launc!ur", #e$% . 'r$nc$(le) o* 'lann$n+ mer$c, 1999.

Finance

MaterialsO#erations

(umanResources

Engineering

Management

Ca#acit'

S%"pto"s o# Poor Master Schedules


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S%"pto"s o# Poor Master Schedules

Fnreliale deli(er% pro"ises

Persistent past due orders

3cess in(entor%

3pediting selected orders

3cessi(e schedule changes Fpper "anage"ent

scheduling inter(ention

3cessi(e o(erti"e or idle ti"e

nd o# "onth shipping surge 9ack o# accountailit%

MPS Per#or"ance Measure"ents


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MPS Per#or"ance Measure"ents Custo"er ser(ice

'n(entor% turns Schedule reliailit%


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Aeeping the MPS


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Co""on Changes in e"and

Custo"er schedule changes


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Co""on Changes in Suppl%

oncon#or"ance to schedule

5 Production do0nti"e

5 Capacit% a(ailailit%

5 O(er- or undersuppl%

oncon#or"ance to speci#ications

5 Scrap

5 ##ect o# ;ualit%

ngineering Changes


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g ee g C a ges

Mandator% or i""ediate

Phased-in or optional

Process

5 Set up a re(ie0 oard

5 eter"ine the procedure #or instituting change

5 Set e##ecti(e dates

5 nsure change process deals 0ith "ultiple ite"s

5 ,ssess the cost and i"pact o# the change

5 Maintain the status #or each re(ision

Managing Change


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g g g

's the change

necessar%8

's the change

#easile8

,re resourcesa(ailale8

@hat are the costs

and the risks8

The S&OP and the Master Schedule


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Sales and

Operations Plan

Master

Scedule

De&inition Supply ,ateby Product Group

Anticipated uildor uy Scedule

0templanned

Product Group 4nd 0tem or Speci&ic2evel in ill o&

Materials

Planning5ori@on

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ri(es "aterial and capacit% plans Order pro"ising

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The 'nputs to the Master Schedule


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Production plan line #ro" the sales and operations plan

etailed sales #orecast 'n(entor% position and targets

Backlog position and targets

Ti"e #ence policies

Custo"er orders

'nterplant orders

Ser(ice parts orders

istriution re;uire"ents Planning ills o# "aterial

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The Outputs #ro" the Master Schedule


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Master production schedule

Master purchasing schedule

Pro6ected in(entor% position

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Valuale order pro"ising in#or"ation

Possile Solutions


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Overloading

O(erti"e 3tra shi#ts

Trans#er people


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?nderloading 'ncrease sales de"and Fse ti"e #or training

Fse ti"e #or "aintenance


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s&op and master scheduling.ppt

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