Sec 3 - Master Planning Flashcards Preview

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Flashcards in Sec 3 - Master Planning Deck (26)
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1
Q

Define Master Planning (MPC)

A

A group of business processes that includes the following activities: Demand management, production and resource planning, and master scheduling

2
Q

Which 2 processes are known, collectively, as Master Planning?

A

S&OP and master scheduling

3
Q

Define Priority Planning

A

The function of determining what material is needed and when.

Uses master scheduling and MRP to plan and re-plan to maintain proper due dates for purchased and manufactured components

4
Q

What is Sales and Operations Planning (S&OP)?

A

Translates the strategic business plan into production rates that meet the company financial, customer service, and other business goals

5
Q

Name 5 characteristics of a healthy S&OP process

A

1) Continual updating of operations, sales, and finance plans to meet strategic business plan objectives based on the latest market conditions and company capabilities
2) Formal process for obtaining inputs and updating plans for the various functions within the organization
3) Regular schedule for meeting with senior executives to review the updated plans
4) Check to see if resources will be adequate
5) Better management of the production rate, sales activities, inventory, and backlog

6
Q

Define Production Planning

A

Process to develop tactical plans based on setting the overall level of manufacturing output and other activities to best satisfy current planned sales levels while meeting general business objectives (profitability, productivity, etc)

7
Q

Name 4 areas of concern for Production Planning

A

1) Quantities demanded for each product family in each period
2) Desired inventory levels
3) Resources of equipment, labor, and materials needed in each period
4) Availability of needed resources

8
Q

Name 6 attributes of the typical Production Plan situation

A

1) Time horizon may be anywhere 1 month to 36 months
2) Plan usually stated as a monthly rate
3) Demand fluctuates or is seasonal for many products
4) Plan is made for product families or groups
5) Plant and equipment usually fixed within the time horizon
6) Management will have a variety of objectives

9
Q

Name 4 Production Plan strategies

A

1) Chase/demand matching
2) Level production / production leveling
3) Subcontracting
4) Hybrid / combo

10
Q

Define Chase production plan strategy

A

Goal is to produce the quantity demanded at any time. Inventory level is stable. Production adjusted to match sales requirements

11
Q

Define Level production plan strategy

A

Make an accurate forecast of average demand for a period and then set a level production rate to match the average.

12
Q

Define Subcontracting production plan strategy

A

sending production work outside to another manufacturer

13
Q

Define Hybrid production plan strategy

A

Combines aspects of both the chase and the level production planning methods

14
Q

When use a Make-to-Stock production plan?

A

1) Demand fairly constant and predictable
2) Only a few product options exist
3) Required delivery times are shorter than the manufacturing lead time

15
Q

Define Bill of Resources

A

Listing of the required capacity and key resources needed to manufacture one unit of a selected item or family.

16
Q

Define Master Scheduling

A

Process where master schedule is generated and reviewed and adjustments are made to ensure consistency with the production plan

17
Q

Define Master Production Schedule

A

a line on the master schedule grid that reflects the anticipated build schedule for those items assigned to the master scheduler. Represents what the company plans to produce expressed in specific configurations, quantities, and dates

18
Q

What inputs are needed for the Master Scheduling process?

A

1) Production plan
2) forecast for individual end items
3) Orders from customers
4) Additional independent demand
5) Inventory levels
6) Capacity constraints

19
Q

What are the 4 steps to develop a Master Schedule?

A

1) Create a preliminary schedule for each end item
2) Aggregate the master schedule for all end items if the products use the same resources and take the same amount of time
3) Perform Rough Cut Capacity Planning (RCCP)
4) Revolve differences and publish the MPS

20
Q

Define Planning Horizon

A

amount of time a plan extends into the future. Normally set to cover a minimum of cumulative lead time plus set up time for lot sizing low-level components and time for capacity changes of primary work centers or of key suppliers

21
Q

Define Final Assembly Schedule (FAS)

A

Schedule of end items to finish the product for specific customers’ orders in a make-to-order or assemble-to-order environment. May involve operations other than final assembly.

22
Q

Define Time Fences / Zones

A

A policy or guideline established to note where various restrictions or changes in operating procedures take place.

23
Q

Define liquid time zone

A

Beyond the time fence where changes are easy to make as long as they are consistent with the overall production plan.

24
Q

Define slushy time zone

A

Between the demand time fence and the planning time fence. Demand consists of orders and forecasts so tradeoffs are maybe possible. Materials have been ordered and some capacity might have been allocated

25
Q

Define Frozen time zone

A

Inside the demand time fence where demand is based on customer orders. Materials and capacity have been committed to specific orders. Changes would have ripple effects and cause other orders to be late.

26
Q

Define Rough Cut Capacity Planning

A

Compares resource availability with the requirements for key resources such as labor, machinery, warehouse space, supplier’s capabilities, etc