The MRP Model

Master
production schedule

Inventory Bills of
data material

Material
requirements Planning
planning factors

Schedule of Schedule of planned

planned purchase production order
order releases Action notices releases

4-2
 Principal Functions of MRP
– Plans and controls inventories
– Plans and controls order releases
– Provides accurate planned order loading for CRP

4-3
 Design Characteristic of MRP
– Planning Horizon
– Time buckets
– Replanning Frequency
– Firmed Planned Orders
– Pegging

4-4
 Why Measure?
– Set objectives
– Allocate resources
– Assign responsibility
– Measure performance
– Correct causes of problems
– Reward and learn from successes

4-5
 Performance Characteristics of MRP
• Orders
– Without shortages
– Released on time
– Due dates met
– Late start dates
– Waiting for material
– Rescheduled
– Lead time
• Actual versus planned
– Number of expedites
– Action message trend
– Stock issues
• Actual versus planned

4-6
Operational Characteristics of MRP
– Easy to use
– Fewest keystrokes per transaction
– No redundancy of data entry
– Barcoding
– Client/server
– Education and training

4-7
 MRP Mechanics
– Master production schedule
– Material balance needs
• What
• When
• How much
– Material and capacity planning
– Maintaining the plan
– Manual MRP

4-8
 MRP Grid
Technique
Order Quantity
Safety Stock
Allocated Qty.
Low-Level Code
Lead Time PERIODS
1 2 3 4 5 6 7 8
Gross Requirements
Scheduled Receipts
Projected Available 25
A
Net Requirements
Planned Order Receipts
Planned Order Releases

4-9
 A—Bill of Material

Level
A
0 LEAD TIME
TWO WEEKS

B C D
QTY. PER: 1 QTY. PER: 2 QTY. PER: 2
1 LEAD TIME LEAD TIME LEAD TIME
ONE WEEK TWO WEEKS ONE WEEK

C E
2 QTY. PER: 2 QTY. PER: 3
LEAD TIME LEAD TIME
TWO WEEKS ONE WEEK

4-10
 F—Bill of Material

Level
F
0 LEAD TIME
ONE WEEK

B D E
QTY PER: 1 QTY PER: 1 QTY PER: 1
1 LEAD TIME LEAD TIME LEAD TIME
ONE WEEK ONE WEEK ONE WEEK

C E
2 QTY PER: 2 QTY PER: 3
LEAD TIME LEAD TIME
TWO WEEKS ONE WEEK

4-11
 Bill of
Low-Level Code Low-Level
Material Code
Level

0 Product A Product B 0

1 1 2 1 10 1

2 3 4 11 9 2

3 5 6 3

4 7 8 4

5 9 9 5

The lowest level in the bill of
material structure among all
uses for a part determines its
low-level code (e.g., 5 in this
case considering Products A
and B)
Part ‘9’ will not be reviewed by
MRP with parts ‘3’, ‘4’, and ‘11’
since they are at a low-level
code of 2. Part ‘9’ will be
reviewed after parts ‘7’ and ‘8’.

4-12
 Capacity
•The capability of a worker, machine, work center, plant,
or organization to produce output per period.
– Capacity required represents the system capability needed
to make a given product mix.
– As a planning function, both capacity available and capacity
required can be measured
• Short term (capacity requirements plan)
• Intermediate term (rough-cut capacity plan)
• Long term (resource requirements plan).

Source: APICS Dictionary, 9th Edition, 1998.

6-13
 Capacity Planning
•The process of determining the amount of
capacity required to produce in the future.
– Aggregate or product-line level (resource
requirements planning)
– Master scheduling level (rough-cut capacity
planning)
– Material requirements planning level (capacity
requirements planning)

Source: APICS Dictionary, 9th ed., 1998.

6-14
 Planning and Execution Hierarchy
Priority Planning Validates Capacity Planning
Sales and operations Resource planning

Master production Rough-cut capacity

scheduling planning

(Detailed) material Detailed capacity

planning planning

Execution

6-15
 Load
– The amount of planned work scheduled
– The amount of actual work released for a specific
span of time to:
• a facility
• work center
• operation
– Standard hours of work
– When items consume similar resources at the
same rate, units of production.
Syn: workload.
Source: APICS Dictionary, 9th ed., 1998.

Detailed Scheduling and

Planning, ver. 2.0 – August 6-16
2001
Issues

⚫ What capacities must be available in order to

realize master planning?
⚫ Where and when must special shifts, overtime,
short-time work, or part-time work be ordered?
⚫ When and where can adjustments be made in
capacity or orders?
⚫ Can lead times and the number of orders in
process be reduced?

6-17
Objectives of Capacity Planning
⚫ High service level, short delivery times, high delivery
reliability rate, and at the same time, adaptation to
customer requests
⚫ Low invested capital
⚫ Efficient use of available capacity
⚫ Flexibility and adaptability of capacity to changing
conditions
⚫ Minimal fixed costs in production administration and in
production itself.

6-18
Routing Data

⚫ Operation identification code

⚫ Operation description
⚫ Planned work center
⚫ Standard setup and tear-out time
⚫ Standard run time per unit
⚫ Tooling requirements

6-24
Lead-Time Elements
Lead-Time Components

Queue Setup Run Wait Move

Queue Wait
—time waiting before operation —time waiting after operation ends
begins

Setup Move
—time getting ready for operation —time physically moving between
operations
Run
—time performing operation

Source: Hablewitz et al., Shop Floor Training Aid, 1979.

Detailed Scheduling and Planning, rev. 1

Visual
5-17
6-25
 Operation vs. Interoperation Times

Interoperation time Interoperation time

{
{
Queue—Setup—Run—Wait—Move—Queue—Setup—Run—Wait—Move—Queue—Setup—Run—Wait—Move—
{

{
Operation time Operation time Operation time

6-26
Typical Lead Time Element Sources

⚫ Queue—average demonstrated queue time

⚫ Setup—engineered standard
⚫ Run—engineered standard
⚫ Wait—experience
⚫ Move—distance X move rate

6-27
 Work Center Data Elements
– Identification and description
– Number of shifts scheduled
– Number of machines or work stations or operators
(whichever is the capacity limiter)
– Hours scheduled per shift
– Workdays per period
– Utilization factor
– Efficiency factor
– Planned queue time

6-28
 Capacity Measurement
• Theoretical Capacity

• Based on clock hours

• Example:
• 4 machines x 8-hour shift x 5 days per week = 160 machine
hours
• At .2 standard hours per unit: 160  .2 = 800 units

6-29
 Capacity Measurement (continued)

•Demonstrated Capacity

•Average Historical Output

•Example:
• Last six periods output in units = 580, 565, 575, 570, 590, 560
• Average output in units: 573
• Demonstrated capacity in hours: 573 x .2 = 114.6 hours

6-30
 Capacity Measurement (continued)
•Rated Capacity

•Hours Available Adjusted by Utilization and Efficiency

•Example:
• 160 hours available x .90 utilization x .80 efficiency = 115.2
• At .2 standard hours per unit: 115.2  .2 = 576 units

6-31
 Utilization and Efficiency

Actual Hours Worked

•Utilization =
Hours Available

Standard Hours Produced

•Efficiency =
Actual Hours Worked

6-32
Rated Capacity Formula
•Shifts per Day
•x
•Machines or Work Stations or Operators
•x
•Hours per Shift
•x
•Days per Period
•x
•Utilization
•x
•Efficiency
•= Standard Hours per Period

6-33
 CRP Model
Schedule of planned
Production Order Status manufacturing order releases

Routing data

Capacity
requirements Workcenter data
planning

Workcenter load report Revised schedule of planned

manufacturing order releases

7-29
 Workcenter Load Report
Total Required: Total Available: Net over # of period over
Util With tolerance for daily overtime Net under # of period under
Eff Without tolerance for daily overtime

OVER OVER
OVER
Capacity
(120 hrs)

# of orders on operations
# of orders that can be delayed 1 period without affecting end-item schedule
Recommended plan for balancing

7-30
 Work Center Load Output Examples
Workcenter 208 Capacity: 120.0 hours per week

Week Manufacturing Part Scheduled Scheduled Load

Number Order Number Operation Start Complete Hours
1 12-678 ZY89-3872 040 121 123 32.0
12-719 TX23-8723 020 120 120 8.0
12-723 UD84-7492 040 122 126 64.0
Total Week 1 104.0

2 12-699 PD63-8623 070 125 127 10.0

• • • • • • •
• • • • • • •
• • • • • • •

7-31
Cumulative Overload—Balanced

150

Load
750
Capacity

150

7-32
Cumulative Underload—Balanced
150

750
Capacity
Load

150

7-33
Cumulative Overload—Unbalanced
150

Load

750
Capacity

150

7-34
 Cumulative Load—Balanced
150

Load
750
Capacity

150

7-35
 Bills of Material:

• Bill of Material (BOM):

A listing of all the subassemblies, intermediates, parts, and raw materials that go
into a parent assembly showing the quantity of each required to make an
assembly.
It is used in conjunction with the MPS to determine the item for which purchase
requisitions and production orders must be released.

• Planning BOM:
It is an artificial grouping of items or events in bill of material format, used to
facilitate master scheduling and material planning.
 BOM Users:

• Engineering →To define the product

• Manufacturing →To make the product
• Store →To issue items
• Planning →To schedule the materials
• Finance & Accounting →To cost the product
• Order Entry →To help configure the product
• Service Dept. →To know about the service parts
• Quality Assurance →To assure that product is made
properly
• Sourcing →To know what to source
 Bills of Material:

Sigle Level
BoM
Real /
Buildable
Multi Level
BoM
BoM Modular
BoM
Planning
Pseudo BoM
Common Parts
BoM
Phantom
BoM
Super
BoM
 Modular BOM:

Wall Clock

Movement Needles and Face Plate Cabinet Common Parts

1 of 2 Numbers 1 of 12 1 of 4 1
1 of 10

Glass Back User Manual Base Mounting Bracket

 Modular BOM:

• Arranged according to product modules or options

• Modules are standard units that can be prepared in advance of receiving a
customer order
• Options are customer selectable choices from offered product features.
• Modules/ Options are defined fully in BOM as single level BOMs.
• Example: A-T-O BOM
 Modular BOM:

• Modules assist the ordering and planning process because the customer selects
the specific module or combination of modules desired.
• Easier to manage because they need small number of bills
(2*10*12*4*1 = 960 Vs 2+10+12+4+1 = 29)
• The use of Modular BOM –
- reduces the number of end items to be scheduled
- Facilitates order entry
- permits more efficient computer storage and system maintenance.
 Common Parts BOM:

• The Common Parts Bill, or Kit, groups common components for a product or
family into one BOM or one section of the BOM.
• Kitting is the commonly used adaptation of the common parts BOM. It is
represented by the same diagram as the common parts BOM.
• The Key difference between Common Parts BOM and Kit:
- Common Parts BOM involves major components of the item, while kit would be
defined for smaller parts, often those used for installation or variable assembly
situations.
Thus kits would likely involve installation parts, which would be thrown away or
saved for subsequent use.
 Common Parts BOM:

• PURE Common Parts BOM:

Those parts which are common to all the end items and in same quantity.
• INDIVIDUAL Common Parts BOM:
Those parts which are used on specific model in specific quantity.
• MAXIMUM QTY. Common Parts BOM:
All parts with their maximum usage quantity.
Used when there are few differences among the models or if the cost of parts
involved is not high. (Or if the parts were recoverable and reusable)
 Common Parts BOM:
Deluxe Kitchen Cabinet

Common Parts Gas Pilot Option Electronic Ignition Option

1 of 4 1 of 3
Item Regular Deluxe Heavy-Duty Max. Quantity
201 1 1 1 1
202 1 1 1 1
203 1 1 1 1
211 3 2 1 3
212 0 1 0 1
231 4 1 2 4

PURE Common Parts BOM

INDIVIDUAL Common Parts BOM
MAXIMUM QTY. Common Parts BOM
 Super BOM:

• Super BOM exists at the highest level of the product structure and ties together
several modular or common parts bills to define an entire product family.
• The quantity-per relationship of the super bill represents the forecasted
percentage of the demand of each module.
• The master scheduled quantities of super bill explode to create requirements for
the modules that are also master scheduled.
 Super BOM:
Silver Bicycle

Frame Size Saddle Wheel Type Toe Clips

53 cm 0.50 Men’s Racing 0.30 Clincher 0.65 Yes 0.40

57 cm 0.30 Men’s Touring 0.25 Tubular 0.35 No 0.60

60 cm 0.20 Women’s Racing 0.25

Women’s Touring 0.20

 Advantages of the Planning BOM:

• More Accurate Forecasting

• Reduced number of end items
• A more accurate scheduling and planning process
• Simplified order entry
• Two-level scheduling
• A more accurate method of product costing
• A more efficient and flexible data storage and maintenance system.
 Phantom BOM:

• A BOM coding and structuring technique used primarily for transient

(non stocked) subassemblies.

• For the transient item, lead time is set to zero and the order quantity to lot-for-
lot.

• It represents an item that is physically built, but rarely stocked, before being used
in the next step or level of manufacturing.

• Similar: Non-nettable, Blow-throughs, Transients,

 Flattening the BOMs
Model ‘Z’
Instrument

Power Supply Meter Chassis

Assembly

Chassis Front Panel

PCB Assembly

IC Diode

Which items will go to Parts Stockroom and to WIP Stockroom?

 Flattening the BOMs
Typical Material Flow:
Parts Stockroom Mfg. Areas WIP Stockroom

PCB Assembly •PCB Assembly

•IC
•Diode

•Chassis
•Front Panel Chassis Assembly
•Chassis Assembly

•Power Supply
•Meter Final Assembly

Model ‘Z’
Instrument
 Flattening the BOMs
Revised Material Flow:
Vendors Point-of-Use Storage Mfg. Areas

•IC
•Diode PCB Assembly

•Chassis
Chassis Assembly
•Front Panel

•Power Supply
Final Assembly
•Meter

How will the BOM will look like NOW? Model ‘Z’
Instrument
 Flattening the BOMs
Model ‘Z’
Instrument

Power Supply Meter Chassis Front Panel IC Diode

Chassis
Phantoms! PCB Assembly
Assembly
Important points:

• Use of time zones and time fences

• The role of RCCP
• Master Scheduling Techniques
• Multilevel Master Scheduling
• FAS and MPS
• Hedging

53
 Introduction

Date Sources for the Master Schedule:

Function Data provided

• Engineering New product information

• Sales/ Marketing Sales forecast
• Management Customer service targets
• Finance Expense budgets
• Materials Supply constraints
• Production Production constraints
• Maintenance Maintenance schedules
• Human Resources Workforce constraints

54
 Introduction

Conflicting Functional Goals:

Function Goal

• Sales (MTS) No stock-outs

• Production High efficiency and utilization
• Finance Minimum inventory investments
• Purchase Positive purchase price variance

• It is a challenge for master scheduler to-

- understand the requirements of all groups
- understand the nature of trade-offs
- balance these trade-offs
• Solution: Iterative Master Scheduling process

55
 Techniques

Master Scheduling Techniques:

MPS Development Techniques:

• Designing Product Structures
• Consuming the forecast
• Calculating resource requirements
• Adjusting the load profile
• Creating firm planned orders

MPS Maintenance Techniques:

• Pegging and bottom-up re-planning
• Providing safety and hedges
• Managing two level master scheduling
• Defining time fence policies

56
 Development
Techniques

Technique 1: Designing Product Structure:

• Conventional BOM
• Planning BOMs

57
 Development
Techniques

Technique 2: Consuming the Forecast:

• To compute the Projected Available Balance –

- within DTF, use orders
- outside DTF, use greater of order or forecast

Firm Zone Slushy Zone Liquid Zone

Forecast orders

Capacity

DTF PTF Capacity Fence

Customer orders and

other demands
58
 Development
Techniques

Technique 2: Consuming the Forecast:

• Effect of manufacturing environment:

Firm Zone Slushy Zone Liquid Zone

Capacity

DTF PTF Capacity Fence

ATO MTO ETO

MTS

59
 Development
Techniques

Technique 2: Consuming the Forecast:

Item: 12345 DTF= 3

Lot size = 50 PTF= 8
On Hand = 50 Lead time = 2

Period 1 2 3 4 5 6 7 8 9

Forecasted 20 22 21 25 21 23 21 21 25
Sales
Customer 19 17 15 11 22 5 2 1 0
Orders
PAB

ATP

MPS

DTF PTF
60
 Development
Techniques

Technique 2: Consuming the Forecast:

Item: 12345 DTF= 3

Lot size = 50 PTF= 8
On Hand = 50 Lead time = 2

Period 1 2 3 4 5 6 7 8 9

Forecasted 20 22 21 25 21 23 21 21 25
Sales
Customer 19 17 15 11 22 5 2 1 0
Orders
PAB 50 31 14 49 24 2 29 8 37 12

ATP

MPS 50 50 50

DTF PTF
61
 Development
Techniques

Technique 2: Consuming the Forecast:

Item: 12345 DTF= 3

Lot size = 50 PTF= 8
On Hand = 50 Lead time = 2

Period 1 2 3 4 5 6 7 8 9

Forecasted 20 22 21 25 21 23 21 21 25
Sales
Customer 19 17 15 11 22 5 2 1 0
Orders
PAB 50 31 14 49 24 2 29 8 37 12

ATP 14 2 43 49

MPS 50 50 50

DTF PTF
62
 Development
Techniques

Technique 3: Calculating Resource Requirements (RCCP):

• Bill of Resources (or Product Load Profile) is defined as a listing of required

capacity and key resources to manufacture one unit of a selected item or family.
• The Resource Requirements are further defined by a lead time offset so as to
predict the impact of the item/ family scheduled on the load of the key resource
by time period.
• RCCP uses these bills to calculate the approximate capacity requirements of the
MPS.

63
 Development
Techniques

Technique 4: Adjusting the load profile:

• Adjust
- Load
- Capacity
• For work centers which
- Are bottlenecked
- Experience turbulent requirements
- Involve high cost labor
- Are underutilized
• Load adjustment through
- Rescheduling
- Lot Splitting
• Capacity adjustment through
- Overtime / Undertime
- Additional shift
- Hiring / layoff
- adjusting outsourced volume 64
 Development
Techniques

Technique 5: Creating Firm Planned Orders:

• A planned order is what a computer system thinks you need

• A firm planned order is what planner thinks you need
• A released order is what you will actually get, whether you need it or not

Applications of firm planned orders:

• Smoothing a “nervous” schedule
• Explode through ERP to plan (and not allocate) materials and capacities
(Released order explosion allocate the materials and capacities)

Order Status Quantity/ Date Resource Requirements

Planned Planned Planned
Firm Planed Firm Planned
Released Committed Allocated

65
 Development
Techniques

Technique 5: Creating Firm Planned Orders:

Steps Involved:
• Stage 1:
“Free Float” the system with computer generated planned orders
• Stage 2:
At PTF, Compare FPO with Production rate
- Production Rate < Summed FPO…
Advice the team responsible for production rate to match.
- Production Rate > Summed FPO…
Pull in planned orders so that Summed MPS equals the production rate.
• Stage 3:
- At DTF, assure balanced demand and release the order

66
 Development
Techniques

Technique 5: Creating Firm Planned Orders:

For short lead time items

Computer Generated
Firm Zone Slushy Zone Liquid Zone Planned Orders

Firm planned
Capacity orders

DTF PTF Capacity Fence

Released Orders For long lead time

items
67
 Maintenance
Techniques

Technique 6: Pegging and Bottom-up Replanning:

• Pegging:
Pegging displays, for a given item, the identity of the sources of its gross
requirements and/or allocations.
It is ‘live where used’ information
• Bottom-up replanning:
It is the process of using pegging data to solve material availability problems.
Potential solutions involve:
- Compress lead time
- Cut order quantity
- Substitute material….

68
 Maintenance
Techniques

Technique 7: Providing Safety and Hedges:

• Safety Stock/ Buffer Stock/ Market Hedge:

In the context of MPS, safety stock can refer to additional inventory and/or
capacity planned as protection against-
- forecast errors and /or
- short term changes in the backlog
• Hedge:
In MPS, a hedge is defined as a quantity of stock to protect against uncertainty in
demand.
Hedge is similar to safety stock, except that hedge has a time dimension as well.

69
 Maintenance
Techniques

Technique 7: Providing Safety and Hedges:

• Product Mix Hedge:

Provides for extra units of components, the proportions of which may be difficult
to forecast.

B C

B1 0.6

B2 0.4

Forecasted demand for A = 200

Qty. planned: B1 = 200 * 0.6 = 120 ; B2 = 200 * 0.4 = 80
Hedge qty.: B1 = 50 ; B2 = 50
Forecast consumed = 180
Uncertainty exists for 20 only since 180 are already built.
Balance quantities of B and C are rescheduled till next planning. 70
 Maintenance
Techniques

Technique 7: Providing Safety and Hedges:

• Volume Hedge:
Volume hedge set increments for the total number of products by a certain
amount or proportion.

B C

B1 0.6

B2 0.4
Forecasted demand for A = 200
Qty. planned: 200 + 50
Hedge qty.: 50
Beyond Hedging time fence, no major resources are committed to the hedge qty.
If this quantity rolls over the hedging time fence, major items will be in the action
bucket, hence will require resource commitment to be made. 71
 Maintenance
Techniques

Technique 7: Providing Safety and Hedges:

• CAUTION:
This technique creates ‘over planning’ of requirements.
Although it provides greater safety, it also can overstate the schedule, thus should
be used with caution and should always be visible.

72
 Maintenance
Techniques

Technique 8: Managing Two-Level Master Scheduling:

• Two level master scheduling involves scheduling at two different levels of product
structure using:
- either a FAS and MPS or
- two separate MPS.
• Primarily used in A-T-O environment since it provides more control over the
complex assembly process
• Two level master scheduling may involve the use of a ‘Production Forecast’ and a
different computation of the PAB.
• Production Forecast:
It is defined as a predicted level of customer demand for an option, feature, and
so forth of an A-T-O product.
It is computed by-
1. Netting the customer backlog against an overall family or product line MPS
2. Factoring this product ‘available to promise’ by the option % in the planning
BOM
73
 Maintenance
Techniques

Technique 8: Managing Two-Level Master Scheduling:

Instrument Panel

1.0 1.0 1.0

Common Parts Wiring Harness Instrument Options

0.5 0.5

Option 1 Option 2

0.5 0.3 0.2

Digital Analog Hybrid

74
 Maintenance
Techniques

Technique 8: Managing Two-Level Master Scheduling:

Item: Instrument Panel DTF= 3
Lot size = 20 PTF= 6
On Hand = 10 Lead time = 0
Week 1 2 3 4 5 6
Forecasted Sales 10 10 10 10 10 10

Customer Orders 0 20 0 14 0 0

PAB 10 10 10 10 16 6 16

ATP 10 0 6 20

MPS 20 20 20

Production Forecast = (MPS-Customer Order) of Product Group * Option %

Item: Digital DTF= 3
Lot size = 10 PTF= 6
On Hand = 2 Lead time = 0
Week 1 2 3 4 5 6 PAB=
Production F’cast 0 3 10 Prior Period PAB +
Customer Orders 10 5 0 MPS –
PAB 2 2 2 2 4 4 4 (Cust. Order + F’cast)
ATP 0 5 10

MPS 10 10 10 75
Technique 9: Defining Time-Fence Management Policies:

A LT=1

B LT=1 C LT=2

D LT=2 E LT=3

D
B
A
C

76
Technique 9: Defining Time-Fence Management Policies:

Action Bucket

E E E

D D D
B B B
A A A
C C C

MPS
DTF

77
Technique 9: Defining Time-Fence Management Policies:

E E
E D
D D B
B B A
A A C
C C
E
E D
B
D A
E B C
D A
B C
A
C

We’re Here DTF PTF

78
 Maintenance
Techniques

Technique 9: Defining Time-Fence Management Policies:

Firm Zone Slushy Zone Liquid Zone

Capacity

DTF PTF Capacity Fence

• Today (Action Bucket):
Master scheduler cannot change schedule without approval of management.
• DTF:
Master Scheduler cannot add to the schedule, however re-ranking is possible.
Sales cannot promise orders without supporting ATP or re-prioritizing the orders.
• PTF:
Master scheduler may be authorized to over-plan up to a specified limit for long
lead-time items.
• Capacity Time Fence:
The organization can alter capacity.

79
 FAS & MPS

Final Assembly Schedules:

• Definition:
FAS is defined as the schedule of end items to finish the product for specific
customer orders in M-T-O or A-T-O environment.
It is prepared only upon the receipt of a customer order.
It is constrained by the availability of material (MPS) and Capacity (Assembly).
It is responsible for scheduling operations from the stocking / Master scheduled
level to the end-item level.

80
 FAS & MPS

Final Assembly Schedules:

• Relationship with MPS in an A-T-O environment:

FAS MPS
Time span
Demand Source
Product Level
Constraint
Period (Bucket)

81
 FAS & MPS

Final Assembly Schedules:

• Relationship with MPS in an A-T-O environment:

FAS MPS
Time span Planning (Short) Firm Time Fences (Long)
Demand Source Customer Orders Forecast
Product Level Finished end item Subassemblies,
Components
Constraint MPS S&OP / PP
Period (Bucket) Days / Shifts Weeks / Months

82
 FAS & MPS

Final Assembly Schedules:

Example:
• MPS Extract:
WEEK 1:
Transmissions: Engines:
Standard 30 Six-cylinder 50
Automatic 60 Eight-cylinder 40
Total 90 Total 90
• FAS
Trans. Engine M T W T F ST AT 6C 8C Total
Std. 6 Cyl 3 3 4 2 1 13 -- 13 -- 13
Std 8 Cyl 3 3 3 4 4 17 -- -- -- 17
Auto 6 Cyl 8 7 7 7 8 -- 37 37 -- 37
Auto 8 Cyl 4 5 4 5 5 -- 23 -- 23 23
Total 18 18 18 18 18 30 60 50 40 90

83