Imse 4350 Ch4
4. Production and
Material Planning
Planning Process
Aggregate production plan
Master production schedule Material requirements plan
Capacity plan
Realistic
No
Yes
Execute capacity plans
Execute material plans
Master Production
Schedule
A time-phased production plan that specifies how many of, and when to build, each end item
Must be in accordance with the aggregate production plan, which sets the overall level of output in broad terms
MPS Example 1
Months
Aggregate Production Plan
(shows the total quantity of amplifiers)
Weeks
1
January
February
1,500
1,200
2
3
4
5
6
7
8
Master Production Schedule
(shows the specific type and quantity of amplifier to be produced 240 watt amplifier
150 watt amplifier
75 watt amplifier
100
100
500
100
500
300
100
450
450
100
MPS Planning
Lot-for-lot or batch production policies
Ft = forecast for period t
Ot = (confirmed) customer orders for period t
It = end-item inventory in period t
Qt = MPS, manufacturing quantity in period t
MPS Example 2
Io = 1600, lot for lot or batch
W1
W2
W3
W4
W5
W6
W7
W8
= 2500
Ft
1000 1000 1000 1000 2000 2000 2000 2000
Ot
1200
It
Qt
800
300
200
100
0
0
0
W1
W2
W3
W4
W5
W6
W7
W8
Ft
1000 1000 1000 1000 2000 2000 2000 2000
Ot
1200
It
Qt
800
300
200
100
0
0
0
Material Requirements
Planning (MRP)
Determines quantity & timing of dependent demand items
Creates requirements and schedules identifying the parts, components, and materials necessary to produce the end products specified in the MPS
Objectives of MRP
Minimize inventory level
Maximize operating efficiency
Improve customer service
Inputs of MRP
Master production schedule
Specifications or bills-of-material
Inventory availability
Purchase orders outstanding
Lead times
Structure of the MRP
System
Data Files
BOM
Output Reports
Master production schedule
MRP by period report
MRP by date report
Lead times
Material Planning
Planning Process
Aggregate production plan
Master production schedule Material requirements plan
Capacity plan
Realistic
No
Yes
Execute capacity plans
Execute material plans
Master Production
Schedule
A time-phased production plan that specifies how many of, and when to build, each end item
Must be in accordance with the aggregate production plan, which sets the overall level of output in broad terms
MPS Example 1
Months
Aggregate Production Plan
(shows the total quantity of amplifiers)
Weeks
1
January
February
1,500
1,200
2
3
4
5
6
7
8
Master Production Schedule
(shows the specific type and quantity of amplifier to be produced 240 watt amplifier
150 watt amplifier
75 watt amplifier
100
100
500
100
500
300
100
450
450
100
MPS Planning
Lot-for-lot or batch production policies
Ft = forecast for period t
Ot = (confirmed) customer orders for period t
It = end-item inventory in period t
Qt = MPS, manufacturing quantity in period t
MPS Example 2
Io = 1600, lot for lot or batch
W1
W2
W3
W4
W5
W6
W7
W8
= 2500
Ft
1000 1000 1000 1000 2000 2000 2000 2000
Ot
1200
It
Qt
800
300
200
100
0
0
0
W1
W2
W3
W4
W5
W6
W7
W8
Ft
1000 1000 1000 1000 2000 2000 2000 2000
Ot
1200
It
Qt
800
300
200
100
0
0
0
Material Requirements
Planning (MRP)
Determines quantity & timing of dependent demand items
Creates requirements and schedules identifying the parts, components, and materials necessary to produce the end products specified in the MPS
Objectives of MRP
Minimize inventory level
Maximize operating efficiency
Improve customer service
Inputs of MRP
Master production schedule
Specifications or bills-of-material
Inventory availability
Purchase orders outstanding
Lead times
Structure of the MRP
System
Data Files
BOM
Output Reports
Master production schedule
MRP by period report
MRP by date report
Lead times