Master planning of resources

Table of Contents

Instructor Guide

© 2013 APICS Confidential and Proprietary

Table of Contents Participant Workbook Page

Table of Contents Session 1—Master Planning of Resources The Manufacturing Planning and Control System..............................................

1-9

Manufacturing and Service Industry Objectives.........................................................................

1-9

Role of Manufacturing Planning and Control..............................................................................

1-11

Manufacturing Planning Hierarchy……………............................................................................

1-15

Role of Planning Software in MPC..............................................................................................

1-21

Factors Affecting MPR System Design.…………........................................................................

1-23

Master Planning of Resources…………………....................................................

1-29

Direction Setting: Strategic and Business Planning....................................................................

1-29

Demand Management.................................................................................................................

1-33

Sales and Operations Planning…..………………………………………………………..………….

1-41

Master Scheduling………………………......................................................................................

1-45

Distribution Planning……............................................................................................................

1-47

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Master Planning of Resources

Session 2—Forecasting Demand Demand Forecasting Concepts…........................................................................

2-7

Forecasting Framework………………………..............................................................................

2-7

Managing the Forecast…..…………............................................................................................

2-17

Forecasting Techniques........................................................................................

2-29

Factors Affecting the Forecast.……............................................................................................

2-29

Qualitative Forecasting Techniques............................................................................................

2-39

Quantitative Intrinsic Techniques................................................................................................

2-45

Quantitative Causal Techniques.................................................................................................

2-59

Collaborative Planning, Forecasting, and Replenishment...........................................................

2-63

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Session 3—Demand Management and Customer Service Evaluating Forecast Performance….................................................................... Guidelines for Evaluating Forecasts.......................................................................................... Outcomes of Forecast Evaluation….......................................................................................... Determining Forecast Error……................................................................................................ Standard Deviation……….…….................................................................................................

3-7 3-7 3-9 3-9 3-21

Customer Relationship and Order Management................................................

3-25

Customer Relationship Management (CRM).............................................................................

3-25 3-33 3-39 3-41

Customer Order Management..................................................................................................... Effective Customer and Internal Communication………………………………………………….. Order Delivery Performance Measurement...............................................................................

Customer Service and Safety Stock……….......................................................... Purpose of Safety Stock…......................................................................................................... Customer Service Levels……………………………………………………………………………… Calculation of Safety Stock……………………………………………………………………………. Customer Service Policy and Performance Targets………………………………………….…….

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3-49 3-49 3-51 3-53 3-61

Instructor Guide Version 4.2

Master Planning of Resources

Session 4—Distribution Planning Distribution Network Planning……….………......................................................

4-7

Distribution Channel Design Considerations.............................................................................

4-7

Network Configuration………………………………………………..….........................................

4-17

Transportation and Distribution Center Site Decisions…………………………………………….

4-29

Distribution Replenishment Planning……………...............................................

4-37

Product Forecasting…………………………………....................................................................

4-37

Replenishment Planning Approaches……………......................................................................

4-43

Replenishment Planning Linkages to S&OP and Master Scheduling…...................................

4-61

Measuring Performance……………….................................................................

4-69

Distribution System Performance Measures…..........................................................................

4-71

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Table of Contents Participant Workbook Page

Session 5—Sales and Operations Planning S&OP Introduction…………...............................................................................

5-7

Major Attributes.…………………………………....................................................................... S&OP Relationships….……………………………….…………………...................................... S&OP Fundamentals………....................................................................................................

5-7 5-9 5-11

Management Considerations.…........................................................................

5-13

Guiding the Business………………………………................................................................... Roles and Responsibilities………………………………………………………………………..... Key Planning Factors………………………………………………………………………………..

5-13 5-19 5-21

The S&OP Process……………………….……....................................................

5-25

S&OP Process Outcomes………………….............................................................................

5-25

Monthly Executive S&OP Process Steps…..……………………………………………………..

5-27

Developing and Validating the Production Plan..............................................

5-31

Production Planning Methods……………....…………………………………………………….. Make-to-Stock S&OP Plan…..…………………………………………………………………….. Developing a Make-to-Stock S&OP Grid…………………………………………………………. Financial Evaluation of Level and Chase………………………………………………...………. Developing a Make-to-Order S&OP Grid……………………………...…………………………. Resource Planning…………………………………………………………………………………..

5-31 5-33 5-35 5-41 5-47 5-57

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Instructor Guide Version 4.2

Master Planning of Resources

Session 6—S&OP and Master Scheduling Introduction…..………….....................................................................................

6-7

Transition from Sales and Operations Planning…..…………………………………………..….

6-7

Master Scheduling Objectives…………..................................................................................

6-7

Role in Manufacturing Planning and Control……………………………………………………..

6-9

Maintaining the Master Schedule………………………………………………………………….

6-11

Major Influences on Master Scheduling…………............................................

6-13

Business Environment…..………….........................................................................................

6-13

Master Scheduling Process.…………...............................................................

6-19

Introduction…………………………………………...................................................................

6-19

Maintaining the Stability of MPS….........................................................................................

6-39

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Table of Contents Participant Workbook Page

Session 7—Managing the Master Schedule Management Considerations………………....……………………………………

7-7

The Balancing Act…………………..…………………………………………….………………….

7-7

The Role of the Master Scheduler….………………………………………………………………

7-9

The Role of the Senior Executive…………………………………………………………………..

7-11

Planning and Coordinating Changes………………………………………………………………

7-13

Maintaining the Integrity of the Master Schedule…………………………………………………

7-27

Assemble-to-Order Master Scheduling…….....................................................

7-31

Bills of Material........................................................................................................................

7-31

Planning Bills of Material………..…………………………………………………………………..

7-33

Two-Level Master Scheduling Demonstration and Problems………………………….……….

7-43

Reviewing Capacity Requirements...................................................................

7-55

Rough-Cut Capacity planning.................................................................................................

7-55

RCCP Process…….................................................................................................................

7-57

Possible Solutions……..…......................................................................................................

7-63

Overload and Underload…......................................................................................................

7-65

Revised MPS and RCCP Report…………………………………………………………………...

7-67

Advanced Planning and Scheduling (APS)......................................................

7-69

Approach to Capacity Planning...............................................................................................

7-69

APS Process...........................................................................................................................

7-71

Measuring Master Scheduling Performance....................................................

7-73

Policies and Methods..............................................................................................................

7-73

Problem Indicators..................................................................................................................

7-75

Performance Measures……………………………………………………………………………..

7-77

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Instructor Guide Version 4.2

Master Planning of Resources

Session 8—Case Studies Case Studies.......................................................................................................

8-7

Production Planning Methods………..…………………………………………….……………….

8-7 8-13 8-19

Master Scheduling in a Make-to-Order Environment……………………………………………. Master Scheduling in a Make-to-Stock Environment…………………………………………….

Appendix Progress Check Answer Sheet......................................................................... Bibliography…………......................................................................................... Course Evaluation..............................................................................................

A-1 A-2 A-3

Index Index....................................................................................................................

Instructor Guide Version 4.2

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Index 1

© 2013 APICS