The Master Production Schedule is the anticipated build schedule for
those items produced by the company. It is the primary input into
the MCRP System, and determines to a great extent how the entire
Production Planning and Control System operates. How the Master
Production Scheduling function is handled is influenced considerably
by the Demand Response Strategy employed, as described below.
In Engineer-to-Order, based on the order quantity and due date
inputs from Demand Management and the technical and schedule
information from Engineering, the Master Production Scheduler
schedules the product so that it will be manufactured and delivered
in the quantity, quality, and time required by the customer. The
Master Scheduler schedules the product in the Master Production
Schedule in conjunction with all other products ordered by other
customers. Customer order promisingis based on the backlog plus
estimates for design, procurement, and manufacturing for a
particular item. The Master Production Scheduler is concerned with
controlling these custom orders as they progress through all steps
in the process.
In Make-to-Order, the customer order normally represents the unit
of control in the Master Production Schedule; the backlog of
customer orders forms part of the overall lead time for the product.
Overall, the order backlog is a critical measure for estimating
material and capacity requirements. With the Master Production
Schedule and the Manufacturing Bill of Materials as inputs, the
Material and Capacity Requirements Planning system "explodes" the
product to determine the required quantity and timing for the
manufacture and/or purchase of the subassemblies, parts, and raw
materials needed to build the product on time.
In Assemble-To-Order to schedule the Master Production Schedule,
the company can either forecast and schedule each module, or better
yet, they can create a Super Modular Planning Bill to drive a
two-level MPS. In the Super Modular Planning Bill, the parent is an
unbuildable assembly of modules while the children are the actual
modules exploded by percentages based on their historical usage.
When received, the customer orders are sent directly to the Final
Assembly Schedule, and the lead time is equal to the time for
assembly, provided the modules are in stock. A key task of the MPS
is to provide viable customer promise dates. Since accurate promise
dates are important, the MPS should be extremely stable and
predictable, which can be achieved by instituting and enforcing
time fences in the MPS.
In Make-to-Stock, the MPS is usually stated in end items, and these
end products are produced to forecasted demand. The accuracy of
product forecasts are extremely important in Make-to-Stock, and
forecasts must be carefully monitored Customer orders are filled
directly from stock in order to provide short delivery times for
commodity products. Customer order promising is normally not
required; if the item is not in stock the customer will usually buy
from another producer. The Final Assembly Schedule and the Master
Production Schedule are one and the same schedule, except when a
Family Planning Bill is used.
The Demand Response Strategy is an important element of
manufacturing strategy that has received too little attention to
date. With the increase in time competition, this aspect of
manufacturing strategy will become more important. It is imperative
that companies recognize this, and take steps to determine and
implement viable Demand Response Strategies for their products.
The Demand Response Strategy must be well matched with the company's
products and its market, if the company is to be successful. In
turn, the Manufacturing Process and the Production Planning and
Control System must be well matched with the company's Demand
Response Strategy for the company to be most effective. Also, the
Demand Response Strategy adopted will have a significant effect on
how the Demand Management and the Master Production Schedule should
be operated. Failure to maintain the proper match between these
elements of the manufacturing system will result in inefficiency,
poor competitiveness, and loss of profits.
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