Business Basics
Home Page

Who is Bill Gaw?
And why should we
listen to him?


lean manufacturing principles and techniques training

Need a training tool that transforms MRP supporter into LEAN-MRP advocates?
LEAN-MRP Simulation Game-Plus

Lean Certification at your place and at
your pace with a "pay-as-you-go" plan.
Lean Manufacturing Certification

Master Scheduling
Part 7 of 12

privacy policy



Mfg. Training Options:

Lean Manufacturing Transformation

LEAN-MRP Simulation Exercises

Lean Manufacturing Certification Program

Lean Manufacturing
on-site Seminars

Inventory Management
Training Program

Lean Manufacturing, PowerPoint, 8-CD, Training Library

Lean Management PowerPoint Training Modules

Lean Management PowerPoint Training

Lean Manufacturing Assessment and Improvement Plan

Kaizen Training
(On-site Program)

ISO 9001-2008 Compliance and/or Registration

Strategic Planning Training Program

Manufacturing Perform-ance Management Training Program

the-Box Workshop

Lean Manufacturing Articles


If there are so many final configurations that it is im­possible to forecast accurately at that level, it may be better to forecast at a semi-finished level that has fewer choices that can be converted to many different end items. This been recognized as an issue in assemble-to-order products for a long time and has been the source of much of the logic behind product configurators. There are also many companies that offer a wide variety of end items made from a smaller number of semi-fin­ished items that do not need a configurator because they are not assemblies. They may offer already configured end items in a catalog, but not wish to stock them. They also want to keep inventories of the semi-finished items flexible and minimized.


Stocking all the catalog items would require significant safety stocks to achieve high levels of customer service. Total inventories would be high because the semi-fin­ished items would be included in all of the finished item inventories. Producing only to order would not satisfy the customers' expected lead-times. Customer service would be negatively affected by the company's ability to forecast each of the end items.



Two-level master scheduling allows a company to fore­cast at the semi-finished level, but still retain already configured end items. The end items are initially planned for no demand and no supply orders. The semi-finished items are planned to satisfy their forecasts with lot-sized master scheduled orders. When orders are entered for the end items, master schedules are created to drive the finishing processes. These master schedules drive com­ponent demands to the semi-finished master schedule level and consume the semi-finished forecasts. Available-to-promise (ATP) information is captured by checking the semi-finished ATP and adding on the finishing lead-times.

To Be Continued

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

Lean Manufacturing Articles and click on Series 14

   Increase Your Knowledge... Stay Connected
Join our 15,000 plus MBBP
Bulletin Subscribers

To stay current on Lean Manufacturing principles and techniques, subscribe to our Manufacturing Basics and Best Practices Bulletin (MBBP) and we'll send you our 10-PowerPoint-Plus, Lean Manufacturing, Mini-Modules. (All at no cost of course.)

  Your personal information will never be disclosed to any third party.

First Name:
Your E-Mail:

Here's what one of our 13,000 plus subscribers wrote about the MBBP Newsletter:

"Great manufacturing articles. Thanks for the insights. I often share portions of your articles with my staff and they too enjoy them and fine aspects where they can integrate points into their individual areas of responsibilities. Thanks again."

               Kerry B. Stephenson. President. KALCO Lighting, LLC

"Back to Basics" Training for anyone ... anywhere ... anytime

Business Basics, LLC
6003 Dassia Way, Oceanside, CA 92056
West Coast: 760-945-5596 

© 2001-2013 Business Basics, LLC