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Supplement to Chapter 14 Materials requirements planning (MRP) 423 The master production schedule record Master production schedules are time-phased records of each end-product, which contain a statement of demand and currently available stock of each finished item. Using this information, the available inventory is projected ahead in time. When there is insufficient inventory to satisfy forward demand, order quantities are entered on the master schedule line. Table S14.1 is a simplified example of part of a master production schedule for one item. In the first row the known sales orders and any forecast are combined to form ‘Demand’. The second row, ‘Available’, shows how much inventory of this item is expected to be in stock at the end of each weekly period. The opening inventory balance, ‘On hand’, is shown separately at the bottom of the record. The third row is the master production schedule, or MPS; this shows how many finished items need to be completed and available in each week to satisfy demand. Table S14.1 Example of a master production schedule Week number 1 2 3 4 5 6 7 8 9 Demand 10 10 10 10 15 15 15 20 20 Available 20 10 0 0 0 0 0 0 0 MPS 0 0 10 10 15 15 15 20 20 On hand 30 Chase or level master production schedules In the example in Table S14.1, the MPS increases as demand increases and aims to keep available inventory at 0. The master production schedule is ‘chasing’ demand (see Chapter 11) and so adjusting the provision of resources. An alternative ‘levelled’ MPS for this situation is shown in Table S14.2. Level scheduling involves averaging the amount required to be completed to smooth out peaks and troughs; it generates more inventory than the previous MPS. Table S14.2 Example of a ‘level’ master production schedule Week number 1 2 3 4 5 6 7 8 9 Demand 10 10 10 10 15 15 15 20 20 Available 31 32 33 34 30 26 22 13 4 MPS 11 11 11 11 11 11 11 11 11 On hand 30 Available to promise (ATP) The master production schedule provides the information to the sales function on what can be promised to customers and when delivery can be promised. The sales function can load known sales orders against the master production schedule and keep track of what is available to promise (ATP) (see Table S14.3). The ATP line in the master production schedule shows the maximum that is still available in any one week, against which sales orders can be loaded.
424 Part Three Planning and control Table S14.3 Example of a level master production schedule including available to promise Week number 1 2 3 4 5 6 7 8 9 Demand 10 10 10 10 15 15 15 20 20 Sales orders 10 10 10 8 4 Available 31 32 33 34 30 26 22 13 4 ATP 31 1 1 3 7 11 11 11 11 MPS 11 11 11 11 11 11 11 11 11 On hand 30 The bill of materials (BOM) From the master schedule, MRP calculates the required volume and timing of assemblies, sub-assemblies and materials. To do this it needs information on what parts are required for each product. This is called the ‘bill of materials’. Initially it is simplest to think about these as a product structure. The product structure in Figure S14.2 is a simplified structure showing the parts required to make a simple board game. Different ‘levels of assembly’ are shown with the finished product (the boxed game) at level 0, the parts and sub-assemblies that go into the boxed game at level 1, the parts that go into the sub-assemblies at level 2, and so on. A more convenient form of the product structure is the ‘indented bill of materials’. Table S14.4 shows the whole indented bill of materials for the board game. The term ‘indented’ refers to the indentation of the level of assembly, shown in the left-hand column. Multiples of some parts are required; this means that MRP has to know the required number of each part to be able to multiply up the requirements. Also, the same part (for example, the TV label, part number 10062) may be used in different parts of the product structure. This means that MRP has to cope with this commonality of parts and, at some stage, aggregate the requirements to check how many labels in total are required. Figure S14.2 Product structure for the Treasure Hunt game
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sixth edition OperatiOns ManageMent
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Further reading in Operations Manag
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Pearson Education Limited Edinburgh
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Contents Guide to ‘operations in
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Contents ix Chapter 12 Inventory pl
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Guide to ‘operations in practice
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Guide to ‘operations in practice
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Making the most of this book and My
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Making the most of this book and My
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Preface xix Illustrations-based Ope
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To the Student . . . Making the mos
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About the authors Nigel Slack is th
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Publisher’s acknowledgements We a
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Part One INTRODUCTION This part of
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Chapter 1 Operations management 3 O
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Chapter 4 Process design Key questi
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88 Part Two Design Figure 4.2 The d
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90 Part Two Design Environmentally
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92 Part Two Design Figure 4.3 Diffe
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96 Part Two Design Figure 4.4 Devia
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100 Part Two Design Figure 4.8 Flow
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102 Part Two Design Given that an i
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104 Part Two Design From Little’s
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106 Part Two Design The relationshi
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108 Part Two Design Summary answers
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110 Part Two Design the grant appli
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Chapter 5 The design of products an
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116 Part Two Design Core products a
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118 Part Two Design Figure 5.3 The
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120 Part Two Design Short case Squa
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124 Part Two Design Reducing design
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126 Part Two Design Figure 5.7 A QF
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128 Part Two Design Purpose Basic f
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130 Part Two Design Interactive des
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132 Part Two Design Early conflict
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134 Part Two Design Summary answers
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136 Part Two Design similar. It was
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Chapter 6 Supply network design Key
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140 Part Two Design The supply netw
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142 Part Two Design a particularly
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144 Part Two Design and expanding o
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146 Part Two Design Figure 6.4 Offs
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148 Part Two Design Controversially
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150 Part Two Design Energy costs. O
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152 Part Two Design product and fas
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154 Part Two Design Figure 6.7 Cent
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158 Part Two Design Table 6.4 The a
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160 Part Two Design Figure 6.11 Rep
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162 Part Two Design Case study Disn
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164 Part Two Design plastic, and ap
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166 Part Two Design of a failing Di
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170 Part Two Design Figure S6.2 Som
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172 Part Two Design Figure S6.3 Tim
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174 Part Two Design Table S6.3 Expo
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176 Part Two Design a comparative s
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180 Part Two Design The basic layou
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184 Part Two Design Figure 7.5 The
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186 Part Two Design shown with thre
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188 Part Two Design Table 7.2 The a
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190 Part Two Design Combinatorial c
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192 Part Two Design The general fun
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194 Part Two Design Heuristic proce
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196 Part Two Design Figure 7.16 (a)
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198 Part Two Design the total work
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200 Part Two Design Working from th
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208 Part Two Design What is process
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214 Part Two Design E-business E-co
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216 Part Two Design Table 8.2 Examp
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220 Part Two Design ‘drive’ it.
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230 Part Two Design Case study Roch
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236 Part Two Design Human resource
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238 Part Two Design Table 9.2 Cause
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240 Part Two Design ● Group resou
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242 Part Two Design Job design Job
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244 Part Two Design ● ● ● ●
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246 Part Two Design Figure 9.7 A ty
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248 Part Two Design asked to contri
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250 Part Two Design ● ● ● Eff
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252 Part Two Design Table 9.3 Examp
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254 Part Two Design Qualified worke
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256 Part Two Design Case study Serv
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258 Part Two Design 3 4 5 Step 1 -
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260 Part Two Design them. This mean
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262 Part Two Design Work measuremen
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264 Part Two Design Figure S9.1 Tim
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Chapter 10 The nature of planning a
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270 Part Three Planning and control
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Part Four IMPROVEMENT Even the best
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Risk mitigation actions Chapter 19
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Notes on chapters 653 3 Sources inc
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Glossary 667 Reliability: when appl
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Glossary 669 Transformation process
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‘blue sky’ research projects 45
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cumulative representation 317-22 cu
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failures (continued) estimates of o
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inventories (continued) de-coupling
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mitigation of ethical practice brea
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precedence diagrams 197-9, 481 prec
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supply chains (continued) meaning 3
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