MASTER SCHEDULING

PROCESS
Continued
 Time Fences
Time Fences
Demand Time Fence
• Sets the period of the MPS where
changes are seldom permitted
• Covers period of actual customer
demand
• Usually set to cover the assemble time
for a product or the delivery time for a
service
Planning Time Fence
• Sets the period within which changes
to the MPS must be evaluated by the
master scheduler.
• Combination of actual demand plus
forecasted demand
• Usually set to include material and
components acquisition time.
 Time Fences and their Qualification
2 to 3 weeks Deman 8 to 12 weeks Plannin
Today d Time g Time
Fence Fence

Stage of build / Assembly time Fabrication Time Material Procurement

service Time

Changes Emergency Change Planned Change Unrestricted

Made by Senior Management Master Scheduler Computer logic

Demand Considered Customer order or All Planned demand

Customer Orders Forecasts
 The Master Scheduling Grid

 Item No.: 78100

Period 1 2 3 4 5 6 7 8 9
 Description: Commercial
Forecast 20 22 21 25 24 23 21 21 25 Generator Unit
 Lot Size = 50
Customer Orders 19 17 15 11 9 5 2 1 0
Projected Available  On hand = 50
balance 50 31 14 49 24 0 27 6 35 10
 Demand Time Fence = 3
Available to Promise 14 15 43 49  Planning Time Fence = 8
Master Production
Schedule 50 50 50

DTF PTF
 The Master Scheduling Grid
 What is the Master Scheduling Grid?
 The Master Scheduling Grid is a rolling plan where the rows represent supply and demand information and
columns represent time period from the present to the end of the planning horizon.
 New periods are added at the end of the planning horizon as current periods become history.
 Explaining the rows on master scheduling grid
 Forecast – anticipated demand for a product within a certain time period.
 Customer orders – backlog of planned shipments for the product. This demand is certain and should always
be used in preference to the demand forecast within the demand time fence.
 Projected Available Balance (PAB) – An inventory balance projected into the future. It is the running sum of
on-hand or projected inventory minus demand plus supply. A value below safety stock here within the
planning time fence causes the master scheduler to take action by creating an MPS quantity or by
rescheduling.
 Available to Promise (ATP) – The uncommitted portion of a company’s inventory and planned production,
maintained in the master scheduling grid to support customer order promising. The ATP quantity is the
uncommitted inventory balance in the first period and is normally calculated for each period in which an
MPS receipt is scheduled.
 Master Production Schedule Qty – When the PAB has fallen below the safety stock level an MPS quantity
must be revaluated. This qty becomes the driver for lower level detail planning such as MRP.
The Projected Available Balance.
 The projected available balance (PAB) is the projected inventory
quantity in a particular time period.

Prior to the Demand Time Fence

• PAB = Prior period PAB + MPS – Customer orders

After the Demand Time Fence

• PAB = Prior period PAB + MPS – (Greater of Forecast or customer
orders)
Available to Promise
 Supports order promising
 Uncommitted portion of
 Inventory
 Planned supply
 Calculation method depends on order promising approach
 Non-cumulative
 Cumulative
 Look-ahead (backward ATP)
ATP Calculation Methods
• Non Cumulative
In this method it is assumed that no inventory or planned production can be carried forward. With this
method there is no possibility of overbooking the product.
• First Period
ATP = On hand Qty + MPS receipt qty – Sum of customer orders before next MPS
• For each other period
ATP = MPS receipt qty – Sum of customer orders before next MPS

• Cumulative
In this method it is assumed that inventory can be carried forward.
• First Period
ATP = On hand Qty + MPS receipt qty – Customer orders in this period
• For each other period
ATP = Previous period’s ATP + MPS receipt qty – Customer orders in this period
 On Hand = 20
 Lot Size = 40
 Demand Time Fence = 3

Period 1 2 3 4 5
Forecast 20 20 20 20 20
Customer Orders 18 15 25 10 10
Projected Available balance 20 2 27 2 22 2
ATP non cumulative 2 0 20
ATP cumulative 2 27 2 32 22
MPS receipts 40 40
 Look ahead (Backward ATP)
In this method a large order in a future period may be satisfied by “borrowing” from current
available production.

Week 1 2 3 4 5 6  On Hand = 50
Customer orders 80 45 40 50 50 5  Lot Size = 100
PAB 50 70 25 85 35 85 80  Demand Time Fence
MPS receipts 100 100 100 =6
ATP 25 10 45

Week 1 2 3 4 5 6
Customer orders 80 45 60 50 50 5
PAB 50 70 25 65 15 65 60
MPS receipts 100 100 100
ATP 25 -10 45
ATP backward 15 0 45
 Scheduling Decisions
MPS FAS
MTO
MTS
MPS
• Standard products • Products supplied after
• Achieve management customer order is
targets of inventory received.
and customer service. • Master scheduler plans
supply of raw materials
• E.g. Tailor shop, Aircraft
FAS
Finished Products
MPS
ATO
• MPS is prepared at semi Raw Materials
finished level where
standard modules or
subassemblies are
produced in accordance
with a forecast
 Relating the Master Scheduling Process to the business
environment
Sr. No. Characteristic Make to Stock Assemble to Order Make to Order Engineer to Order

Interface between Production and

1 Low Medium High High
customer

2 Customer delivery time Short Medium Long Long

3 Production Volume of each unit High Medium Low Low

Production range (Number of products

4 Narrow Medium Broad Broad
in the line)

Basis for Production Planning and

5 Forecast Forecast and backlog Backlog; raw material forecast Backlog; raw material forecast
scheduling

6 Seasonality (likelihood) High Medium Low None

Based on availability of raw Based on availability of raw

Based on availability of Based on availability of
7 Order Promising material, capacity and some material, capacity and
finished goods subassemblies and components
engineering engineering

Over planning of components and Little uncertainty exists after Little uncertainty exists after
8 Handling of demand uncertainty Safety Stock
subassemblies receipt of order receipt of order

Determined by customer
9 Final assembly Schedule Not applicable Determined by customer orders Determined by customer orders
orders
Standard BOM for each
10 Bill of Material Planning BOM BOM unique for each order BOM unique for each order
product
Designing Product Structures
A bill of material is an engineering document that identifies the ingredients or subordinate
components required to physically make each part, formula or assembly.
The organization and presentation of the BOM files is commonly referred to as the structure of
the BOM

 Single Level bills of material

 Multi level bills of material
 Planning bills of material
 Single Level Bill of Material
Single level BOM maintains a unique end item for each possible configuration.
 Basic Single level Bill of Material
In its simplest form, the bill of material consists of the following fields
1. Assembly (or parent) item number
2. Description of the assembly
3. Unit of measure for the assembly
4. Each component item number
5. Description of each component
6. The qty of each component needed to make a single parent item
7. Unit of measure for each component.
 Enhanced Single Level Bill of Material
1. Revision number of the BOM
2. Date on which current revision number of the BOM becomes inactive.
3. Date on which current revision number of the BOM becomes active.
Level 0 Packaged
Product

Level 1 Bulk
Label Bottle Cap
Solution
 Multi Level Bill of Material

Level 0 Packaged
Product

Level 1 Bulk
Label Bottle Cap
Solution

Level 2 Active Filler Base

Planning Bill of Material
 It is an artificial grouping of items in bill of material format, used to facilitate master
scheduling and material planning.
 Three Types
 Modular Bills
 Common Parts bills
 Super bills

Sound System

Common AM/FM Tape Option, CD Player

Items, 100% Option, 50% 30% 20%
Modular Bill of Material.
 It is artificially arranged according to the product modules or options.
 Modules are standard units that can be prepared in advance of receiving a customer order. Also called as
“option”
 Each option or module is defined as a single level bill of material.
 Better computer processing

Model No. 100

Option A, A1 Option B, B1 Option C, C1 Option D, D1 Option E, E1

to A10 to B8 to C2 to D12 to E5

10 *8*2*12*5 = 9600 combinations

10 + 8 + 2 + 12 + 5 = 37 modular bills
ATO Modular Bill of Material
Clock Model
0001

Hands and Pendulum and

Common parts Face Plate 1 of
numbers 1 of wt. castings 1 Cabinet 1 of 4 Options 7 Works 1 of 2
kit, 1 12
10 of 8

Weights and Cabinet

User’s Manual Glass Base Waist Hood
Hardware Hardware
Common Parts Bill of Material
 The common parts bill, or kit, groups common components for a product or family into
one bill of material or one section of the bill of material.

Clock Model
0001

Hands and Pendulum and

Common parts Face Plate 1 of
numbers 1 of wt. castings 1 Cabinet 1 of 4 Options 7 Works 1 of 2
kit, 1 12
10 of 8

Weights and Cabinet

User’s Manual Glass Base Waist Hood
Hardware Hardware
 Super Bills of Material
 It is the most widely used planning bill of material.
 It ties together various modular bills to define the product structure or a product family. It describes the
related options or modules that make up the specified end item and exists at the highest level of the
structure to tie them together.

Silver Bicycle

Common parts,
Eleven items (3 frames, 4
Frame Saddle Wheel Type Toe Clips
100%
saddles, 2 wheels, 1 option and 1

53 cm, 50%
Men's racing,
Clincher, 65% Yes, 40% common parts module) are
30%
master scheduled. Finished bike
Men's touring,
57 cm, 30%
25%
Tubular, 35% No, 60% would be scheduled using the
Final Assemble Schedule.
Women's racing,
60 cm, 20%
25%

Women's
touring, 20%
Advantages of Planning Bills
 More accurate forecasting
 Forecasting happens at higher product family level
 Reduced number of end items
 Number of end items is reduced because items are not assembled till demanded
 A more accurate scheduling and planning process
 Since forecast is more accurate, MPS can plan and schedule to the component level. The FAS schedules
are based on actual demand. Thus finished goods are reduced and customer service level is improved
 Facilitates order entry (configurator)
 Order entry is facilitated using modular or configuration codes, even to the point of having the customer
enter this information via internet
 Permits two level scheduling
 MPS is used for components and FAS is used to assemble to customer demands
 More efficient and flexible computer processing
 12 bills (3+4+2+2+1) must be maintained rather than 48 (3*4*2*2*1)
Accuracy of Records
 Item definition and planning information
 Item number, description, unit of measure
 Planning related – lot sizes, safety stock, ABC classification
 Bills of material
 Should be kept as flat as possible
 BOM in system should be compared with the bill used in production process
 Bills of distribution
 Should reflect changes in demand by distribution center so that planning can ensure the correct
assignment of distribution stock by region and by distribution center
 Planning bills
 Responsibility for maintaining the planning bills resides with the master scheduler
 Planning bills should be maintained to reflect the latest choices by the customer
 Resource definition
 Changes in product specification may require new resources to be defined. Hence resources should be
reviewed periodically.
 Equipment efficiency may change in long term. Hence need to be updated.
 Resource profiles
 Change in product mix may lead to change in resource profiles for average unit of the product family.
 Workcenter definition
 Workcenter related details (manning, machines available, costs etc) should be kept up to date
 Inventory records
 Effective cycle count programs should be implemented to maintain inventory accuracy
 Demand records
 Customer master file – name, address financial information
 Accuracy of customer orders
 Supply records
 To ensure valid order promise dates, supply records should be accurate.
Master Scheduler Responsibilities
 Understand the forecasting process and its strengths and limitations
 Participate in sales and operations planning process
 Manage the constraints of supply capacity
 Generate and maintain a realistic master production schedule
 Monitor consistency with the production plan
 Execute master scheduling policies, such as time fences, safety
stocks, subcontracting and lot-sizing.
 Maintain planning bills with up-to-date information about product
mix changes
 Identify, negotiate and resolve conflicts
Changes from Demand side affecting MPS

 Customer Schedule changes

 Rush Orders
 Order cancellations
 Changes to Specifications
Changes from Supply side affecting MPS

 Non conformance to schedule

 Production downtime
 Capacity availability
 Non conformance to specifications
 Scrap
 Effect of quality
Engineering Changes
 Mandatory or immediate
 Phased-in or optional
 Process
 Set up a review board
 Determine the procedure for instituting the change
 Set effective dates
 Ensure change process deals with multiple items
 Assess the cost and impact of the change
 Maintain the status for each revision
Thank you