master production scheduling logistics workshop asia 2004 phnom penh, cambodia 10 – 14 may 2004

Master Production Scheduling

Logistics Workshop Asia 2004

Phnom Penh, Cambodia10 – 14 May 2004

2

Master Production Planning

Brewery

Distribution Centres

Customers

3

Production Planning

Standard production planning

Forecasting

Sales & Operations Planning

Master Production Schedule

Material Requirements Planning

Purchasing / Procurement

Rough Cut Capacity PlanningInventory

Management

Customer Order Management

Finite Capacity Scheduling

Customer allocation per brewery

Production allocation per brewery

Warehousing / Shipping

(include transport management)

Distribution Requirements

Planning

Resource Requirements

Planning

Packaging Shop Floor Control

Brewing Shop Floor Control

Business plan

Capacity Requirements Planning

Definition Service Levels

Demand planning

4

Production Planning

RCCP

CRP

Forecasting

DistributionRequirements

Planning

Material Requirements

Planning

MasterProductionScheduling

5


Master production scheduling is the process to determine what the company plans toproduce expressed in finished products, quantities and date.

Stock objectives per master

schedule item

Sales forecast and customer orders per

master schedule item

Planned fabrication orders per master

schedule item

Action list

Work orders


Master data

Planning Bill of Material

Planning parameters (lead time, safety stock

etc.)

Planned inventory per

master mchedule item

6

Master Production Schedule Total Demand

Week

0 1 2 3 4 5 6 7

Requirement DC 1 4,000 4,000 4,000

Requirement DC 2 1,800 1,800 1,800

Requirement DC 3 1,200 1,200 1,200

Gross Requirement 4,000 3,000 4,000 3,000 4,000 3,000

Demand for the brewery

7

Week

0 1 2 3 4 5 6 7

Gross requirement 4,000 3,000 4,000 3,000 4,000 3,000

Planned available 10,000 6,000 3,000 3,600 2,900 3,500 2,800 2,800

To Produce 4,600 2,300 4,600 2,300

Planned order release 4,600 2,300 4,600 2,300

Safety Stock 2,400 1,800 2,400 1,800 2,400 1,800


Product: Heineken 60 cl Leadtime: 1 weekSafety stock: 3 daysOrder Quantity 2,300

8


Planned Available week 1: 10,00 – 4,000 = 6,000Safety stock should be 2,400, so no order

Week

0 1 2 3 4 5 6 7



To Produce 4,600 2,300 4,600 2,300


Safety Stock 2,400 1,800 2,400 1,800 2,400 1,800


9


Planned Available week 2: 6,000 – 3,000 = 3,000Safety stock should be 1,800, so no order

Week

0 1 2 3 4 5 6 7



To Produce 4,600 2,300 4,600 2,300


Safety Stock 2,400 1,800 2,400 1,800 2,400 1,800


10


Planned Available week 3: 3,000 – 4,000 = -1,000Safety stock should be 2,400 so order minimal 3,400

Week

0 1 2 3 4 5 6 7



To Produce 4,600 2,300 4,600 2,300


Safety Stock 2,400 1,800 2,400 1,800 2,400 1,800

Order 4,600, since order quantity = 2,300 (order release week 2)Planned available = -1,000 + 4,600 = 3,600


11


Planned Available week 4: 3,600 – 3,000 = 600Safety stock should be 1,800 so order minimal 1,200

Week

0 1 2 3 4 5 6 7



To Produce 4,600 2,300 4,600 2,300


Safety Stock 2,400 1,800 2,400 1,800 2,400 1,800

Order 2,300, since order quantity = 2,300 (order release week 3)Planned available = 600 + 2,300 = 2,900


12


Planned Available week 5: 2,900 – 4,000= -1,100Safety stock should be 2,400 so order minimal 3,500

Week

0 1 2 3 4 5 6 7



To Produce 4,600 2,300 4,600 2,300


Safety Stock 2,400 1,800 2,400 1,800 2,400 1,800

Order 4,600, since order quantity = 2,300 (order release week 4)Planned available = -1,100 + 4,600 = 3,500


13

Rough Cut Capacity Planning

RCCP is the process of converting the Master Production Schedule into requirements forkey resources. The comparison of load versus available capacity assists the planner inestablishing a feasible Master Production Schedule.


Work Orders

Master data

Work centres


Summary routes

Load profile per bottleneck (key)

work centre

14


Period (weeks)

Cap

acit

y un

its

Available on packaging line

15

Production Planning

RCCP

CRP

Forecasting

DistributionRequirements

Planning


Planning

MasterProductionScheduling

16

Material Requirements Planning

Work orders per Master Schedule

Item

MPSMaterial

Requirements Planning

Master data

Bill of Material

Planning parameters (lead time, safety stock

etc.)

Planned inventory

per component

item

Planned fabrication orders per

semi-finished item

Planned supply orders per

purchased item

Action list

Work orders

17

Capacity Requirements Planning


Work Orders


Planning

Work in process(WIP)

Master data

Work centres

Capacity Requirements

Planning

Routes

Load profile per work

centre

18

Planning process

Planning is an iterative process:

This means that you may run MPS, RCCP, MRP and CRP several times and in different order, before arriving at a feasible solution

master production scheduling logistics workshop asia 2004 phnom penh, cambodia 10 – 14 may 2004

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