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Lean Manufacturing Articles

10. MPS SUMMARY Problem

Production plans created in S&OP drive the master schedules. At the master schedule level, detailed deci­sions are made about specific situations on specific items. The aggregate result of all these decisions may call for more resources than were originally budgeted in the resource planning during S&OP.

Implications

 

This opens the door for a disconnect between annual business plans, high level operating plans, and the de­tailed plans that actually drive sales, manufacturing, and purchasing.

Solution

A simple check on the variance between production plans and master schedules is to aggregate the master schedules into monthly quantities by family and com­pare to the family production plans that were created in S&OP. If the sum of the master schedules varies by more than an acceptable tolerance in a specific month or cumulatively over time, the master schedules should be brought back in line or the production plans changed to accommodate the difference.

To Be Continued

For balance of this article, click on the below link:

Lean Manufacturing Articles and click on Series 14


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