Aggregate plans:

Plannin Operational planning

Short-term schedules
MRP
= Preparing for execution.
= Allocating resources.
= Ensuring material availability.

g
Show overall Planning organises the resources needed by operations.
production per Four standard scheduling rules:
Planning process: 1. First-come First-served.
month. 1. Translate forecast into capacity needs. 2. Most urgent first.
2. Calculate the capacity available in 3. Shortest Leadtime first.
present facilities. 4. Earliest Due-date first.
3. Identify mismatch between 1&2.
Master schedules:
4. Suggest alternative plan for Bottleneck:
Show production
per SKU per week. overcoming mismatch. The bottleneck is the resource working at full capacity, it sets the
5. Compare alternative plans and choose pace. To increase the overall capacity, the bottleneck should be
Production strategies: the best removed.
• Chase • Mixed 6. Implement the best plan.
• Level • Sub-contract Managing bottlenecks:
Control systems: • Establish buffer in front of the bottleneck.
Control systems are mostly part of an ERP system, • Control the rate of materials feeding the bottleneck.
it monitors, reports, identifies deviations from • Make sure you maintain the capacity of the bottleneck
plans and schedules and adjusts. • Always look for alternatives that can reduce stress on the
bottleneck.

OPT
Optimised production technology is a software package that works
on the theory of constraints also known as bottlenecks.

Five steps through MRP: Batching MRP orders: Step 1: Data gathering. Step 4: Pre S&OP meeting. Executive S&OP (Stahl & Wallace)
1. Find gross requirements of level 0 items. Combining single product orders, Updated every month with Evaluate the outcome of step 5 steps performed every month.
2. Calculate net requirements of level 0 items. or several different small orders, actual sales, production, 2&3, resolve conflicts is demand Step 1-5 = approx. 2 weeks
3. Run step 1+2 until items are covered on all into fewer, larger ones. inventory etc. and supply. Recommendations for Executive S&OP meeting fall in the
levels. executive meeting. middle of the month.
4. Find order quantities and timing to meet Closed-loop MRP: Time frame scope: 2-36 months
Step 2: Demand planning.
requirements. Introducing feedback between ahead.
Making a forecast of the Step 5: Executive S&OP meeting.
5. Finalise timetable (adjust & check if needed). capacity planning and MRP.
sales by gathering input Top management meets with
from different participants step 4. They discuss
MRP II:
Outputs MRP: departments. and evaluate and the person in
Manufacturing resource planning,
• Timetable for materials to be ordered connects schedules for all charge decides on one plan.
including (what to order, how much, when functions back to the MPS.
and when to schedule). Step 3: Supply planning.
• Timetables of operations needed to achieve ERP: Using the forecasted sales
the MPS. Enterprise resource planning to determine how much
• List of planned orders for materials from enables coordinating operations there can be supplied and
external suppliers. of different organisations within if there are any
• Performance reports. the supply chain. constraints.
Matthijs Lucas
Portfolio 1