1 Recommendations 3
2 Planned order releases 3
3 MRP Explosion 4
1 Probable sources
Based on the case we have come up with the following list of probable sources
Long setup times
For a company that is using ATO it is weird that Wescot has such long setup times. This would mean that switching production is quite a long work, while you switch your setups a lot thanks to ATO.
Big lot sizes
This also goes for the lot sizes. However taking in consideration the long setup times the bigger lot sizes are understandable, still this is weird for an ATO environment.
Quite big difference in orders and forecast
Despite the fact that the difference is not so big when measured overall the question is how big is the range, is this process statistically controlled? The average difference is not so high but this only means that in the end is was all fine, but looking at some models in this data the differences are quite big.
Difficulty regarding staff flexibility
The fact that staff on this workstation is so difficult to replace makes it vulnerable to problems. Risk like sickness or busy periods will hit this workstation the hardest. Since this most looks like the Bottleneck facility it will also affect the whole process.
Short term planning
The planning is very short term and this is very weird for the master schedule. Its made once a week for the next week. This means that operations don’t have the complete picture and will have difficulty adapting to changing situations.
2 MPS
Based on reducing the inventory of finished goods to a minimum we made an MPS on basis of the minimum lot size. This was done based on the fact that this is an ATO environment so you want no stock in finished goods. Furthermore the case mentioned complains by the controller about the high stock levels in the company.
The forecast used is shown below.
Afterwards this forecast was translated into an MPS per model.
Now that its was done on the model basis this resulted in the following MPS for