Table of Contents

Instructor Guide

2013 APICS Confidential and Proprietary

Table of Contents
Participant Workbook Page

Table of Contents
Session 1Master Planning of Resources
The Manufacturing Planning and Control System..............................................

1-9

Manufacturing and Service Industry Objectives.........................................................................

1-9

Role of Manufacturing Planning and Control..............................................................................

1-11

Manufacturing Planning Hierarchy............................................................................

1-15

Role of Planning Software in MPC..............................................................................................

1-21

Factors Affecting MPR System Design.........................................................................

1-23

Master Planning of Resources....................................................

1-29

Direction Setting: Strategic and Business Planning....................................................................

1-29

Demand Management.................................................................................................................

1-33

Sales and Operations Planning.....

1-41

Master Scheduling......................................................................................

1-45

Distribution Planning............................................................................................................

1-47

2013 APICS

Instructor Guide Version 4.2

Master Planning of Resources

Session 2Forecasting Demand

Demand Forecasting Concepts........................................................................

2-7

Forecasting Framework..............................................................................

2-7

Managing the Forecast..............................................................................................

2-17

Forecasting Techniques........................................................................................

2-29

Factors Affecting the Forecast.............................................................................................

2-29

Qualitative Forecasting Techniques............................................................................................

2-39

Quantitative Intrinsic Techniques................................................................................................

2-45

Quantitative Causal Techniques.................................................................................................

2-59

Collaborative Planning, Forecasting, and Replenishment...........................................................

2-63

Instructor Guide Version 4.2

ii

2013 APICS

Table of Contents
Participant Workbook Page

Session 3Demand Management and Customer Service

Evaluating Forecast Performance....................................................................
Guidelines for Evaluating Forecasts..........................................................................................
Outcomes of Forecast Evaluation..........................................................................................
Determining Forecast Error................................................................................................
Standard Deviation..................................................................................................

3-7
3-7
3-9
3-9
3-21

Customer Relationship and Order Management................................................

3-25

Customer Relationship Management (CRM).............................................................................

3-25
3-33
3-39
3-41

Customer Order Management.....................................................................................................

Effective Customer and Internal Communication..
Order Delivery Performance Measurement...............................................................................

Customer Service and Safety Stock..........................................................

Purpose of Safety Stock.........................................................................................................
Customer Service Levels
Calculation of Safety Stock.
Customer Service Policy and Performance Targets..

2013 APICS

iii

3-49
3-49
3-51
3-53
3-61

Instructor Guide Version 4.2

Master Planning of Resources

Session 4Distribution Planning

Distribution Network Planning.......................................................

4-7

Distribution Channel Design Considerations.............................................................................

4-7

Network Configuration...........................................

4-17

Transportation and Distribution Center Site Decisions.

4-29

Distribution Replenishment Planning...............................................

4-37

Product Forecasting....................................................................

4-37

Replenishment Planning Approaches......................................................................

4-43

Replenishment Planning Linkages to S&OP and Master Scheduling...................................

4-61

Measuring Performance.................................................................

4-69

Distribution System Performance Measures..........................................................................

4-71

Instructor Guide Version 4.2

iv

2013 APICS

Table of Contents
Participant Workbook Page

Session 5Sales and Operations Planning

S&OP Introduction...............................................................................

5-7

Major Attributes........................................................................
S&OP Relationships........................................
S&OP Fundamentals....................................................................................................

5-7
5-9
5-11

Management Considerations.........................................................................

5-13

Guiding the Business...................................................................

Roles and Responsibilities.....
Key Planning Factors..

5-13
5-19
5-21

The S&OP Process.....................................................

5-25

S&OP Process Outcomes.............................................................................

5-25

Monthly Executive S&OP Process Steps....

5-27

Developing and Validating the Production Plan..............................................

5-31

Production Planning Methods......

Make-to-Stock S&OP Plan....
Developing a Make-to-Stock S&OP Grid.
Financial Evaluation of Level and Chase....
Developing a Make-to-Order S&OP Grid....
Resource Planning..

5-31
5-33
5-35
5-41
5-47
5-57

2013 APICS

Instructor Guide Version 4.2

Master Planning of Resources

Session 6S&OP and Master Scheduling

Introduction.......................................................................................

6-7

Transition from Sales and Operations Planning.....

6-7

Master Scheduling Objectives..................................................................................

6-7

Role in Manufacturing Planning and Control..

6-9

Maintaining the Master Schedule.

6-11

Major Influences on Master Scheduling............................................

6-13

Business Environment...........................................................................................

6-13

Master Scheduling Process................................................................

6-19

Introduction...................................................................

6-19

Maintaining the Stability of MPS.........................................................................................

6-39

Instructor Guide Version 4.2

vi

2013 APICS

Table of Contents
Participant Workbook Page

Session 7Managing the Master Schedule

Management Considerations....

7-7

The Balancing Act....

7-7

The Role of the Master Scheduler.

7-9

The Role of the Senior Executive..

7-11

Planning and Coordinating Changes

7-13

Maintaining the Integrity of the Master Schedule

7-27

Assemble-to-Order Master Scheduling.....................................................

7-31

Bills of Material........................................................................................................................

7-31

Planning Bills of Material....

7-33

Two-Level Master Scheduling Demonstration and Problems..

7-43

Reviewing Capacity Requirements...................................................................

7-55

Rough-Cut Capacity planning.................................................................................................

7-55

RCCP Process.................................................................................................................

7-57

Possible Solutions........................................................................................................

7-63

Overload and Underload......................................................................................................

7-65

Revised MPS and RCCP Report...

7-67

Advanced Planning and Scheduling (APS)......................................................

7-69

Approach to Capacity Planning...............................................................................................

7-69

APS Process...........................................................................................................................

7-71

Measuring Master Scheduling Performance....................................................

7-73

Policies and Methods..............................................................................................................

7-73

Problem Indicators..................................................................................................................

7-75

Performance Measures..

7-77

2013 APICS

vii

Instructor Guide Version 4.2

Master Planning of Resources

Session 8Case Studies

Case Studies.......................................................................................................

8-7

Production Planning Methods....

8-7
8-13
8-19

Master Scheduling in a Make-to-Order Environment.

Master Scheduling in a Make-to-Stock Environment.

Appendix
Progress Check Answer Sheet.........................................................................
Bibliography.........................................................................................
Course Evaluation..............................................................................................

A-1
A-2
A-3

Index
Index....................................................................................................................

Instructor Guide Version 4.2

viii

Index 1

2013 APICS