Master Planning Of Resources-Part 2

Front 1

A grouping of the business processes that includes the following activities:

Demand management
Sales and Operations planning
Master scheduling

Back 1

Master Planning of Resources (MPR)

Front 2

Includes forecasting, distribution planning and order serviceing

Back 2

Demand management

Front 3

Integrates the plans of the business - sales, marketing, development, manufacturing, sourcing and financial - and utilizes RESOURCE PLANNING

Back 3

Sales and Operations Planning (S&OP)

Front 4

Includes development of a Master Production Schedule and a Final Assembly Schedule as applicable and utilizes ROUGH CUT CAPACITY PLANNING

Back 4

Master Scheduling

Front 5

Management of actual customer demand occurs here

Back 5

Demand Management

Front 6

Typically expressed in rates of demand at the product family level

Back 6

Product volume

Front 7

Establishes the big picture
How much?
Rates (selling/production)
Product Families
Planned in S&OP

Back 7

Product Volume

Front 8

The Details
Which ones?
Customer orders
Individual products
Planned in master scheduling

Back 8

Product Mix

Front 9

Sets direction

Back 9

Business Plan

Front 10

A statement of:

Long range strategy
Revenue, cost and profit objectives
Usually accompanied by:
Budgets
Projected balance sheet
Cash flow statement

Back 10

Business Plan

Front 11

Common features include:

The nature of the firm
Locations and facilities
Organazation and people
Levels of processing technology
The type and nature of capital resources required
Primary stakeholders interests

Back 11

Business Plan

Front 12

Usually stated in terms of dollars and grouped by product family.

Back 12

Business Plan

Front 13

Keys business goals (Metrics) (8)

Back 13

Growth
Profitability
ROI
Market Share
Customer Service (on-time delivery)
Reputation
Company Value
Asset management

Front 14

Includes:

The location and nature of customers

Projected market growth rates and demographic information

Impact of societal changes

Global and regional economic considerations and business conditions

Back 14

Market Definition

Front 15

The Community
The Management Team
The Owners and Shareholders
The Members of Associations
The Employees
The Customers
The Suppliers
Others

Back 15

Business Stakeholders

Front 16

Comparing many aspects of operational performance with operational performance of other organizations

Back 16

Benchmarking

Front 17

Compares:

Strategies
Capabilities
Processes
Costs
Logistics
Systems
Others

Back 17

Benchmarking

Front 18

Business Plan Stategic Data Source:

demographics, governemnt and business regulations, economic conditions, competitive enviroment

Back 18

Enviromental Scanning

Front 19

Business Plan Stategic Data Source:

Customer orders, market research, focus groups and forecasts

Back 19

Marketplace needs

Front 20

Business Plan Stategic Data Source:

Personnel skill levels, available resources

Back 20

Company capabilities

Front 21

Business Plan Stategic Data Source:

Profit, cash flow and revenue growth

Back 21

Financial targets

Front 22

Business Plan Stategic Data Source:

Levels of desired customer service, planned quality improvements, cost reduction goals and productivity improvements

Back 22

Strategic Golas

Front 23

Formal business process

Balances demand and supply

Product families (NOT ITEMS)

Volume, NOT MIX

Monthly review cycle

Both product and financial units

Back 23

Sales and Operations Planning

Front 24

Links Business Plan to departmental operations

Back 24

Sales and Operations Planning

Front 25

Provides a realistic production plan for meeting business objectives

Back 25

Sales and Operations Planning

Front 26

Represent how the product is presented to the market

Logical groupings based on similar sales and manufacturing requirements

Meaningful in terms of volume of sales generated

Ideally no more than 6 - 12 groupings per business unit

Back 26

Product Families

Front 27

Groups products logically

Back 27

Product Families

Front 28

Formal Business process

Balances demand and supply

For specific products and end items

Subject to independent demand

Used for order promising

Sets boundries for material and capacity planning

Back 28

Master Scheduling

Front 29

Formal Business process

Used to convert the MPS into load projections on critical workcenters and supply processes

Used to determine the feasibility of the MPS

Back 29

ROUGH-CUT CAPACITY PLANNING

Front 30

Innvestment decisions

Capital equipment decisions

Inventory Planning

Capacity Planning

Operations budgets

Lead-time management

Back 30

Areas Impacted by the Forecast

Front 31

Based on intuitive or judgemental evaluation

Back 31

Qualitative Techniques

Front 32

Based on computational projection of a numeric relationship

Back 32

Quantitative Techniques

Front 33

Data sources based on historical patterns of the data itself from company data

Back 33

Intrinsic

Front 34

Data sources based on external patterns from information outside the company

Back 34

Extrinsic

Front 35

A need for a particular product or component

Back 35

DEMAND

Front 36

Sources of demand (7)

Back 36

Consumers
Customers
Referrers
Dealers
Distributors
Interplant
Service Parts

Front 37

What is the formula for calculating the Seasonal Index?

Back 37

The Seasonal Index=

Period Average Demand
---------------------------
Average demand fo all periods

Front 38

Expert Opnion
Market Research
Focus Groups
Historical analogy
Delphi method
Panel consensus

Back 38

Qualitative Techniques

Front 39

Opinions of experts in a particular area are sought

Back 39

Expert Opinion

Front 40

Usually conducted through surveys and is generally used to support product development and promotions

Back 40

Market research

Front 41

Consists of panels of customers who are asked to provide their opinions about a product or service

Back 41

Focus Groups

Front 42

Compares sales of a new product or service wih the sales of a previous similar product or service

Back 42

Historical Analogy

Front 43

Based on the knowledge and judgement of a small group of experts. A specific question is asked. Repsonses are collected from all the respondents and then compiled into a prediction of the future according to the experts

Back 43

Delphi Method

Front 44

A group of people provides opinions about the future and a facilitator brings the group to a concensus. The idea is that the group as a whole would make better decisions than would each member individually

Back 44

Panel consensus

Front 45

What are the four stages of Life-Cycle Managment?

Back 45

Stage 1: Introductory phase

Stage 2: Growth phase

Stage 3: Maturity phase

Stage 4: Decline phase

Front 46

Sales data and Forecast data shoulde be recorded in the same ___________

Back 46

Periods (daily, weekly or monthly)

Front 47

Monitor __________ not sales and or shipments

Back 47

Demand

Front 48

Record the circumstances of ___________ ___________.

Back 48

Exceptional Demand

Front 49

Record _________ separately from unique customers and market sectors

Back 49

Demand

Front 50

When monitoring demand, should you look at what was ordered or what was shipped?

Back 50

What was ordered.

Front 51

Used to detect Forecast Bias

Back 51

Tracking Signal

Front 52

Used to identify unusual demands that exceed a predetermined limit

Back 52

Demand Filter

Front 53

What is the formula for calculating standard deviation?

Back 53

Standard deviation =

√∑(Actual-Forecast)2
n-1

Front 54

How can standard deviation be calculated using MAD?

Back 54

Standard Deviation ~ MAD X 1.25

Front 55

How can you calculate MAD if the stnadard deviation is known?

Back 55

MAD ~ Standard deviation/1.25

Front 56

The consistent deviation from the mean in one direction (high or low)

Back 56

Bias

Front 57

The tendancy of the forecast to be either above or below the actual observations

Back 57

Bias

Front 58

Accurate database

Easy and effective entry systems

Accurate product or service availability information

Rapid Processing

Allocation

Order Confirmation

Reliable delivery

Back 58

Customer Order Management

Front 59

The activity of committing delivery dates to the customer based on the availability of product or capacity within the supply operation

Back 59

Order Promising

Front 60

Once the forecast at each final distribution point is determined, the sum of all of the final distribution points served by an area distribution center constitutes the forecast for the area stocking point

Back 60

Forecasting by Aggregation

Front 61

Determines a forecast at final distribution centers by forecasting the total nationwide or worldwide sales for the product, in terms of the number of units. (Forecasting total sales tends to yield a more accurate forecast). A second forecast is then used which involves the historical percentage of the total sales consumed by each regional center. Regional sales are then distributed, again by historical percentages, to area centers and so forth.

Back 61

Forecasting by Allocation

Front 62

The supply side of S&OP planning includes?

Back 62

Inventory
Production Orders
Purchase Orders

Front 63

The Demand side of S&OP includes?

Back 63

Demand Forecasts

Actual Orders

Front 64

Links the strategic plan for the business with its execution and reviews performance measures for continuous improvement

Back 64

The S&OP planning process

Front 65

A measure of the different types of product that can be supplied within a particular product family

Back 65

Product mix

Front 66

typically expressed in rates of demand at the product family level

Back 66

Product volume

Front 67

Used to separate periods or groups of periods for planning purposes

Back 67

Time Fence

Front 68

that point in time inside of which the forecast is no longer included in total demand and projected available inventory calculations; inside this point, only customer orders are considered. Beyond this point, total demand is a combination of actual orders and forecasts depending on the forecast consumption technique chosen

Back 68

Demand Time Fence

Front 69

A point in time denoted in the planning horizon of the master scheduling process that marks a boundry inside of which changes to the schedule may adversely afect component schedules, capacity plans, customer deliveries and cost.

Back 69

Planning Time Fence

Front 70

PAB in first period=

Back 70

On-hand qty + MPS - Customer Orders

Front 71

PAB after first period and prior to DTF=

Back 71

Prior period PAB+MPS - Customer Orders

Front 72

PAB after the demand time fence =

Back 72

Prior period PAB+MPS - (Greater of forecast or customer orders)

Front 73

Non-cummulative ATP first period =

Back 73

On-hand Qty+MPS - SUM of customer orders BEFORE next MPS

Front 74

Non-cummulative ATP for each other period =

Back 74

ATP IS CALCULATED ONLY IN THOSE PERIODS WHERE THERE IS AN MPS RECEIPT!

ATP = MPS Receipt Qty - SUM of customer orders BEFORE next MPS

Front 75

An artificial grouping of items in bill of material format used to facilitate master scheduling and material planning

Back 75

Planning Bill of Material

Front 76

A quantity of stock planned to be in inventory to protect against fluctuationsin demand or supply.

Back 76

Safety Stock

Front 77

Inventory held in the event that the demand is greater than the forecast or that timing of demands is earlier than predicted by the forecast

Back 77

Product volume hedges

Front 78

Inventory held in the event that demand mix for components varies from the forecast than predicted by the forecast

Back 78

Product mix hedges

Front 79

Added time to ensure against delivery delays

Back 79

Safety lead time

Front 80

Provides reserve capacity at key work centers

Back 80

Safety capacity