Back-To-Basics Workshops

Size: px
Start display at page:

Download "Back-To-Basics Workshops"

Transcription

1 Back-To-Basics Workshops KEN TITMUSS, CFPIM The outcomes of the two workshops will be for the delegate to understand the generic overall Master Planning process for a manufacturing company and to be able to generate a Sales and Operations Plan (SOP) and Master Production Schedule for a case study company. WORKSHOP 1 SALES AND OPERATIONS PLANNING The agenda for this workshop will be Manufacturing Planning and Control Systems, Sales and Operations Planning and Resource Requirements Planning. The outcomes of this workshop are for the delegate to appreciate in more detail the Sales and Operations Planning process and to be able to create a SOP for a case study company. WORKSHOP 2 MASTER PRODUCTION SCHEDULING The agenda for this workshop will be Master Production Scheduling and Rough Cut Capacity Planning. The outcomes of this workshop are for the delegate to appreciate in more detail the Master Production Scheduling and Rough Cut Capacity Planning process and to be able to create a Master Schedule and a Rough Cut Capacity Plan for a case study company. In order to reinforce the concept of Master Planning in a manufacturing environment, the above workshops will use the following case study. ELF (PTY) LTD WORKSHOP CASE STUDY ELF (Pty) Ltd, the Electrical, Lighting and Fan Company of Germiston established in 1923, has changed over the years. Currently the company manufactures four ranges of products: Small appliances such as kettles, toasters and irons Heaters oil filled and convection type Fans, both ceiling and table / free standing models Electrical plugs and adapters. The lighting side of the business was discontinued in the late 1980s due to competitive pressure from imported products and aggressive marketing from another local supplier. At the same time, small appliances were introduced and five years later, the production of heaters was started. At the company s last strategic planning meeting, a month ago it was decided that in the fan range, ELF would discontinue manufacturing the ceiling range of fans, again due to competitive pressure from the Far East. Production would be phased out over the next three months; production would cover the current demand of 2,000 per month in the next three months only. ELF would still manufacture the table and freestanding models for the time being but there is no reason to expect current figure to increase significantly. In addition, Marketing announced that a deal had been struck with one of the largest retail supermarket chains in the country to stock the small appliances. They will need to supply 6000 each of kettles, irons and toasters by end September to fill the distribution supply chain, after which it is expected to supply at the rate of 2000 of each per month. For Elf to significantly change their capacity in any of their manufacturing departments, the lead time is between three months for the plugs and adapters, up to six months for the heater range. They have sufficient space in their factory to increase production by 50 to 60% without having to build new facilities. The production machinery they use is fairly readily available from local agents and there are plenty of people living in the area with the required skills. The cumulative lead time for raw materials in the plugs and adapter department is no longer than two months and no more than one months stock is held at any one time. Paper presented at SAPICS 24 th Annual Conference and Exhibition 8 to 10 July 2002, Sun City, South Africa Empowering The Supply Chains Of Africa ISBN SAPICS 2002,

2 The capacity to make products in the plug and adapters family has been determined to be 72,000 units based on the normal product mix. The SOP team has also requested that we reduce inventories in the family group to plus / minus 10,000 by the end of December. During this workshop we will be concentrating on the plugs and adapter side of the business looking at the priority and capacity planning for the first two major levels of planning in an ERP system, namely: Sales and Operations Planning Master Scheduling The plugs and adapter product group is produced in one section of the plant that consists of: A brass machining area producing the metal components for the range A plastic injection moulding section making the plastic components An assembly area putting the product together and packing it for shipment. The plug and adapters product group consists of three products: Three pin plugs Double adapter Two-pin adapter. The three pin plugs, as well as being sold as a product in their own right, are also used in the other plants where they are attached to all the small appliances, heaters, table and free standing fans being produced. Plugs are not included with the ceiling fans. The independent demand for products in the plugs and adapters is fairly consistent throughout the year, but demand for fans and heaters are seasonal in the summer for fans and winter for heaters. The company has organised the labour in the fan and heater department to be multiskilled so they can be moved from one department to the other according to the season. The demand for small appliances is fairly constant, but there is a slight increase in demand during the Christmas period. Manufacturing strategy for the various family groups is as follows: Heaters Chase Strategy Fans Chase Strategy Small Appliances Level Strategy Plugs / Adapters Level Strategy The marketing team has prepared aggregate forecasts for fans, small appliances and heaters. These forecasts do not include the recent information in the strategic plan with regards to the deal with the supermarket chain and the phasing out of the ceiling fans The company has just closed it books for the month of June and our job is now to prepare a SOP for the next six months, concentrating on the Plugs and Adapter product family. When Top Management approves the SOP, we will then need to create a Master Production Schedule for the three products in the plugs and adapters product family. The Master Schedules will then need to be confirmed viable using the Rough Cut Capacity Planning process. Time fence policy for the company has been set as follows: Demand Time Fence one month Planning Time Fence four months Planning Horizon six months

3 The manufacturing lead times for the Plugs and Adapter product family are as follows: Three pin plugs one week Double adapters two weeks Two pin adapters two weeks The customer service level for plugs and adapters has been set at 98%. In order to achieve this level of service it has been decided that statistical safety stock will be calculated and set for the products in the Plugs and Adapters product family. To achieve this, a MAD safety factor of 2.56 will be used. Top management has set the Master Schedule Policy that includes a performance measure stating the Master Schedule should be within 95% of the aggregate SOP. At the Master Production Scheduling level, the critical resource to manufacture the products in the Plugs and Adapter product family is the injection-moulding department. It has been demonstrated over several months that they only have the capability of processing 70kg of polymer per day and it is assumed that the department works an average of twenty days per month. As some background reading to the workshops the following is some generic reading on the Master Planning process. MASTER PLANNING The function of Master Planning is the development of the Master Plans, at both the product family and finished product level. It determines which finished products will be made, in what quantities and when, to meet the companies Business Plan. We can call this the company Game Plan. It can be related to a sporting analogy, where we would only go into a sporting fixture with a game plan to win, the same should hold true for a company. Master Planning involves the senior management from all the major functional areas of the business, who must approve these ongoing plans on a regular, formalised basis. There must be no section of the company that is not involved. MRPII / ERP is hierarchical when it comes to planning. At the top level, the three successively more detailed plans are put together with input from three directions. The company Business Plan is developed according to: 1. Overall corporate strategy 2. The development plans for the company's products and 3. The marketing plans for those products. The SOPs are put together to: 1. Achieve the Business Plan 2. To satisfy the demand from the market place and 3. Be achievable with the key resources within the company. The Master Production Schedule is developed as the statement of the finished items that will be manufactured: 1. To achieve the SOPs 2. To best satisfy the demand from the market place and 3. Be achievable with the key resources available within the company. A regular planning cycle must be developed. A year will be added to a three year Business Plan, once a year, generating a four-year plan. Once a quarter, a quarter will be dropped down from the Business Plan, adding another three months to a twelve or 24 month SOP. Once a month, a month will be dropped down from the SOP, adding another four weeks to a 26 week Master Production Schedule. Whatever the horizons are, a regular cycle is required.

4 The Business Plan is the statement of the company plan expressed in financial numbers and business ratios. It may be made up of both financial and non-financial performance measures. It will be a three to five year plan and will set the long range objectives, with targets including revenue, profit, inventory, lead times, return on assets, inventory turnover and number of employees. The Business Plan drives the development of the SOPs that states in product families or groups, what will be sold, made and stocked to achieve the Business Plan. These are the mid-term company plans. The planning horizon must be long enough to plan the availability of key resources that will be needed to execute the plans. There is normally a monthly cycle going through the development of the Sales Plan by sales and marketing and the development of the best Operations, or Production Plan to achieve the Sales Plan. The plan is checked for viability against available key or bottleneck resources. This process will doubtless lead to some contention. The issues raised are resolved at the Sales and Operations Planning meeting, attended by all the senior representatives of the company and chaired by the chief executive. At this meeting the plans are agreed for sales, marketing, operations, engineering and finance to achieve the Business Plan. The Operations Plan determines how many of each product family must be made to achieve the inventory, or backlog / order book, targets. The complete operation will be reviewed to determine the key resources that will constrain the achievement of the Operations Plan. Bills of resources are developed for each product family, showing how much of each key resource will be consumed and when, in the production of an average member of each family. A key resource plan will be developed to confirm viability of the Operations Plan. The output of the SOPs will be cross-checked with the Business Plan before proceeding further. The agreed Operations Plan must now be converted into a statement of how many of each finished item will be made and when, to develop the MPS. In some environments, planning or percentage bills may be used to explode the SOP into a trial MPS, which would be massaged before being firmed up to become the final MPS used to drive MRP. In other environments, the MPS is more directly developed from the demand in the marketplace, comprising all the different sources of demand, mainly customer orders and forecasts. For a good MPS, accuracy and knowledge of all demand is absolutely essential. The development of the MPS for each finished product has to achieve particular objectives. In a make-to-stock (MTS) environment the target may be to have a projected available balance (PAB) greater than or equal to two weeks of forecast. In a make-to-order (MTO) plant it may be to have a positive available-to-promise (ATP) from four weeks forward. The available-to-promise (ATP) is the quantity of a delivery from an MPS order that has not yet been promised to a customer order. Displays are normally provided to show PAB and ATP. The master scheduler utilises these displays and others, to manage the MPS. The objective is to manage stability into the MPS, to give production the best set of circumstances from which to achieve the plan, week after week. Time fences are established to help manage this stability. The aim of time fences is to freeze the MPS inside the demand time fence and to manage trade-offs and negotiate with marketing and manufacturing inside the second planning time fence. Rough Cut Capacity Planning is used to ensure the achieveability of the MPS, via a resource bill for each finished product. The definition of the critical resources at this level are more detailed than those considered for the Operations Plan. The horizon for the MPS must be as long as the cumulative lead time for the purchasing of the raw materials and components for the product and long enough to acquire these key resources to satisfy the MPS. There are well-recognised principles for a successful MPS: The detailed MPS must match the aggregate SOP. It must be recognised that the MPS drives the entire manufacturing system. Included in the MPS are all known requirements and demands. Use Pareto analysis to minimise the number of items in the MPS.

5 Treat the MPS as a set of firm planned orders that are not changed by the system. Manage stability into the MPS. The MPS must be understandable as far as parts, quantities and dates are concerned. Close the planning loop and feed unresolved problems back to the SOP. Any safety stock, or Master Schedule stock, of an MPS item must be highly visible. Order promising must be tied directly to the MPS, the PAB and the ATP. Use Rough Cut Capacity Planning to ensure sufficient resources to execute the MPS. Above all, the MPS must be realistic, valid and achievable. Up to this point a Master Plan has been developed that will achieve the Business Plan. Full detail for every raw material and component to achieve the master plan is planned through MRP. ABOUT THE AUTHOR Ken Titmuss has been running his own business, Kent Outsourcing Services, for the last six years providing CS-SAPICS education and consulting to more than 70 clients around Southern Africa. He holds a BSc Production Engineering and Management from Loughborough University, UK and was qualified to the level of CFPIM from APICS in 1994.

Master Planning The Forgotten, But Vital, Manufacturing Supply Chain Planning Process

Master Planning The Forgotten, But Vital, Manufacturing Supply Chain Planning Process Master Planning The Forgotten, But Vital, Manufacturing Supply Chain Planning Process KEN TITMUSS, CFPIM INTRODUCTION Over the last twelve years the author has presented numerous APICS and SAPICS educational

More information

TU-E2020 ADVANCED OPERATIONS MANAGEMENT. Demand management Sales & Operations Planning Master Production Scheduling

TU-E2020 ADVANCED OPERATIONS MANAGEMENT. Demand management Sales & Operations Planning Master Production Scheduling TU-E2020 ADVANCED OPERATIONS MANAGEMENT Demand management Sales & Operations Planning Master Production Scheduling 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999

More information

IT-375 using the 6 th Edition PRODUCTION AND INVENTORY CONTROL CHAPTER 1: INTRODUCTION TO MATERIALS MANAGEMENT

IT-375 using the 6 th Edition PRODUCTION AND INVENTORY CONTROL CHAPTER 1: INTRODUCTION TO MATERIALS MANAGEMENT IT-375 using the 6 th Edition PRODUCTION AND INVENTORY CONTROL CHAPTER 1: INTRODUCTION TO MATERIALS MANAGEMENT What is wealth? GDP = production = profits What is the source of wealth? The conversion process

More information

Planning Optimization in AX2012

Planning Optimization in AX2012 Planning Optimization in AX2012 Streamline your manufacturing operations with Master Planning and Forecasting Kevin Cosman 11 June 2013 About the Presenter Kevin Cosman, Senior Solutions consultant with

More information

Master Production Scheduling

Master Production Scheduling Master Production Scheduling Revised May 7, 2002. mps.doc Author: Dean Ziegler, CPIM Table of Contents Instructions: Search Tips Using Systems2win Word documents Systems2win Copyright Terms How does Master

More information

AGGREGATE & CAPACITY PLANNING

AGGREGATE & CAPACITY PLANNING 7 Ir. Haery Sihombing/IP Pensyarah Fakulti Kejuruteraan Pembuatan Universiti Teknologi Malaysia Melaka AGGREGATE & CAPACITY PLANNING Aggregate Planning Determine the resource capacity needed to meet demand

More information

CHAPTER 6 AGGREGATE PLANNING AND INVENTORY MANAGEMENT 명지대학교 산업시스템공학부

CHAPTER 6 AGGREGATE PLANNING AND INVENTORY MANAGEMENT 명지대학교 산업시스템공학부 CHAPTER 6 AGGREGATE PLANNING AND INVENTORY MANAGEMENT 명지대학교 산업시스템공학부 Learning Objectives You should be able to: Describe the hierarchical operations planning process in terms of materials planning & capacity

More information

BSCM Sample TEST. CPIM(Certified In Production & Inventory Management) - 1 -

BSCM Sample TEST. CPIM(Certified In Production & Inventory Management) - 1 - BSCM Sample TEST. 1. Which of the following demand fulfillment approaches typically provides the longest delivery time? A) Engineer-to-order. B) Make-to-order. C) Assemble-to-order. D) Make-to-stock. 2.

More information

MASTER PRODUCTION SCHEDULE

MASTER PRODUCTION SCHEDULE 6 MASTER PRODUCTION SCHEDULE MGT2405, University of Toronto, Denny Hong-Mo Yeh So far, in discussing material requirement planning (MRP), we have assumed that master production schedule (MPS) is ready

More information

1.3 ERP System Evolution

1.3 ERP System Evolution 1.3 ERP System Evolution Learning Objectives State the purpose of enterprise resource planning (ERP) systems List the challenges facing the industry List the development stages of the manufacturing planning

More information

Master Scheduling Course

Master Scheduling Course The Oliver Wight Public Course Portfolio Master Scheduling Course Detailed Description Schedule your products to satisfy customers and support changes in demand while maximizing plant and supplier resources.

More information

ORACLE MANUFACTURING MPS FOR PROCESS MANUFACTURING

ORACLE MANUFACTURING MPS FOR PROCESS MANUFACTURING ORACLE MANUFACTURING MPS FOR PROCESS MANUFACTURING KEY FEATURES MPS FOR PROCESS INCLUDES: Access real-time information from sales, production, inventory Allow planners and buyers to define their own planning

More information

CISCM STUDY GUIDE. International Purchasing and Supply Chain Management Institute, 2006 1

CISCM STUDY GUIDE. International Purchasing and Supply Chain Management Institute, 2006 1 CISCM STUDY GUIDE International Purchasing and Supply Chain Management Institute, 2006 1 TABLE OF CONTENTS PART PAGE PART I Materials, Production, Inventory, Logistics, and Supply Chain Management 3 PART

More information

School of Management and Languages Capacity Planning

School of Management and Languages Capacity Planning School of Management and Languages Capacity Planning Dr Neil Towers 1 Learning Objectives a. To understand Capacity Planning and Control b. To manage the supply chain capabilities effectively Dr Neil Towers

More information

1 0 W a y s t o U s e E R P t o L e a n t h e

1 0 W a y s t o U s e E R P t o L e a n t h e 1 0 W a y s t o U s e E R P t o L e a n t h e Manufacturing Supply Chain 10 Ways to Use ERP to Lean the Manufacturing Supply Chain Simple things that work for real manufacturers in the real world By Jakob

More information

Electronics Components Manufacturing: The Path to Excellence

Electronics Components Manufacturing: The Path to Excellence Electronics Components Manufacturing: case study The Path to Excellence Successful electronics manufacturers design their supply chains around their key stakeholders specifically, customers, suppliers

More information

Production Planning Process in a Flexible Manufacturing Cell

Production Planning Process in a Flexible Manufacturing Cell ISBN 978-1-84626-xxx-x Proceedings of 2011 International Conference on Optimization of the Robots and Manipulators (OPTIROB 2011) Sinaia, Romania, 26-28 Mai, 2011, pp. xxx-xxx Production Planning Process

More information

Master Scheduling and Rough-cut Capacity Planning

Master Scheduling and Rough-cut Capacity Planning Master Scheduling and Rough-cut Capacity Planning SUPPLEMENT D Before studying this supplement you should know or, if necessary, review 1. Capacity management concepts, Chapter 9, pp. 316 322. 2. Work

More information

Master Scheduling Course

Master Scheduling Course The Oliver Wight Public Course Portfolio Master Scheduling Course Detailed Description Schedule your products to satisfy customers and support changes in demand while maximizing plant and supplier resources.

More information

Ch.1 Purchasing & Supply Chain Management

Ch.1 Purchasing & Supply Chain Management Module 1 : Purchasing Process. Ch.1 Purchasing & Supply Chain Management Edited by Dr. Seung Hyun Lee (Ph.D., CPM) IEMS Research Center, E-mail : lkangsan@iems.co.kr Definition of Supply Chain. Definition

More information

BEST PRACTICES IN DEMAND AND INVENTORY PLANNING

BEST PRACTICES IN DEMAND AND INVENTORY PLANNING WHITEPAPER BEST PRACTICES IN DEMAND AND INVENTORY PLANNING for Food & Beverage Companies WHITEPAPER BEST PRACTICES IN DEMAND AND INVENTORY PLANNING 2 ABOUT In support of its present and future customers,

More information

Inventory Management, Just-in-Time, and Backflush Costing

Inventory Management, Just-in-Time, and Backflush Costing Inventory Management, Just-in-Time, and Backflush Costing Inventory Management in Retail Organizations Inventory Management is planning coordinating controlling activities related to the flow of inventory

More information

SUPPLY CHAIN MODELING USING SIMULATION

SUPPLY CHAIN MODELING USING SIMULATION SUPPLY CHAIN MODELING USING SIMULATION 1 YOON CHANG AND 2 HARRIS MAKATSORIS 1 Institute for Manufacturing, University of Cambridge, Cambridge, CB2 1RX, UK 1 To whom correspondence should be addressed.

More information

How To Improve Forecast Accuracy

How To Improve Forecast Accuracy www.demandsolutions.com Guide to Improving Forecast Accuracy A 10-point plan for creating more accurate demand information A Management Series White Paper Presented by Demand Solutions No one doubts that

More information

SWP 58/91 SUPPLY NETWORKS AND THE CHANGING ROLE

SWP 58/91 SUPPLY NETWORKS AND THE CHANGING ROLE SWP 58/91 SUPPLY NETWORKS AND THE CHANGING ROLE OF OPERATIONS MANAGERS DR COLIN ARMISTEAD AND JOHN MAPES Operations Management Group Cranfield School of Management Cranfield Institute of Technology Cranfield

More information

SAP APO SNP (Supply Network Planning) Sample training content and overview

SAP APO SNP (Supply Network Planning) Sample training content and overview SAP APO SNP (Supply Network Planning) Sample training content and overview Course Objectives At the completion of this course, you will be able to: Understand the concepts of SNP and supply chain network

More information

Supply chain software that fits your people, your processes, and your IT environment.

Supply chain software that fits your people, your processes, and your IT environment. Supply chain software that fits your people, your processes, and your IT environment. Using Arkieva, Momentive has significantly reduced inventory, increased margins, and improved on-time deliveries. Paul

More information

Javelin MRP: Production Planning In A Complex Environment

Javelin MRP: Production Planning In A Complex Environment Javelin MRP: Production Planning In A Complex Environment We trust you found our tongue in cheek comparison to the EU Referendum and Production Planning entertaining. This document is designed to deliver

More information

LOGISTICS & SUPPLY CHAIN MANAGEMENT

LOGISTICS & SUPPLY CHAIN MANAGEMENT LOGISTICS & SUPPLY CHAIN MANAGEMENT Section 1 Understanding the Supply Chain and its logistics activities C O R R A D O C E R R U T I What is Logistics? Logistics takes care of the activities and the decisions

More information

Paper F5. Performance Management. Monday 2 December 2013. Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Paper F5. Performance Management. Monday 2 December 2013. Fundamentals Level Skills Module. The Association of Chartered Certified Accountants Fundamentals Level Skills Module Performance Management Monday 2 December 2013 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be attempted. Formulae

More information

APICS acknowledges the Basics of Supply Chain Management Committee for its contributions in the development of this resource.

APICS acknowledges the Basics of Supply Chain Management Committee for its contributions in the development of this resource. APICS acknowledges the Basics of Supply Chain Management Committee for its contributions in the development of this resource. Jim Caruso, CPIM, CSCP (chair) Carol Bulfer, CPIM James F. Cox, Ph.D., CFPIM,

More information

Scope of Supply Chain Management (SCM)

Scope of Supply Chain Management (SCM) Scope of Supply Chain Management (SCM) Session Speaker Prof. P.S.satish 1 Session Objectives To understand the scope of Supply Chain Management To compare different activities of Supply Chain Management

More information

Achieving World-class Fabless Planning

Achieving World-class Fabless Planning Whitepaper Series Achieving World-class Fabless Planning Reduce lengthy cycle times and respond to change quickly Introduction The Fabless Semiconductor industry achieves high growth rates and superior

More information

S&OP Case Study Creating Value at O Neal Manufacturing Services. Anthony Zampello, CPIM, CIRM, CSCP Adjunct Faculty Bentley University

S&OP Case Study Creating Value at O Neal Manufacturing Services. Anthony Zampello, CPIM, CIRM, CSCP Adjunct Faculty Bentley University S&OP Case Study Creating Value at O Neal Manufacturing Services Anthony Zampello, CPIM, CIRM, CSCP Adjunct Faculty Bentley University Prepared by: Jamie Cochran, Strategic Business Applications Manager,

More information

Management Information Systems

Management Information Systems Faculty of Foundry Engineering Virtotechnology Management Information Systems Classification, elements, and evolution Agenda Information Systems (IS) IS introduction Classification Integrated IS 2 Information

More information

MGT 025 Operations Management

MGT 025 Operations Management SUMMER 2016 MGT 025 Operations Management Term: 2016 Summer Session Instructor: Staff Classroom: RM 204-A, #1 Teaching Building Office Hours: TBA Course Description& Objectives: The overall objective of

More information

Manufacturing Planning and Control for Supp Chain Management

Manufacturing Planning and Control for Supp Chain Management Manufacturing Planning and Control for Supp Chain Management Sixth Edition F. Robert Jacobs Indiana University William L. Berry The Ohio State University (Emeritus) D. Clay Whybark University of North

More information

Live Learning Center. Solution-Driven Integrated Learning Paths. Make the Most of Your Educational Experience

Live Learning Center. Solution-Driven Integrated Learning Paths. Make the Most of Your Educational Experience Solution-Driven Integrated Learning Paths Educational Sessions Lean Global Supply Chain Basics of Operation Management Demand Management, ing, and S & OP Professional Advancement Special Interest Topics

More information

Sales & Operations Planning Training - UK Consultant

Sales & Operations Planning Training - UK Consultant ERP success needs a Sales & Operations Planning process You will not achieve excellence from ERP if you do not have an effective, high level Sales & Operations Planning (S&OP) process. Introduction We

More information

Business Solutions that Create Value for Aluminium Producers

Business Solutions that Create Value for Aluminium Producers Business Solutions that Create Value for Aluminium Producers Benefits of an Integrated and Collaborative Approach White Paper This White Paper discusses the business challenges and requirements of the

More information

MRP, ERP och JIT. Styrningsnivåer. Johann Packendorff. The development of ERP. Increasing impact on the whole supply

MRP, ERP och JIT. Styrningsnivåer. Johann Packendorff. The development of ERP. Increasing impact on the whole supply MRP, ERP och JIT Johann Packendorff Styrningsnivåer The development of ERP Increasing impact on the whole supply network Manufacturing Resource Planning (MRPII) Material Requirements Planning (MRP) Web-integrated

More information

MOS 3330 Test 2 Review Problems & Solutions

MOS 3330 Test 2 Review Problems & Solutions MOS 3330 Test 2 Review Problems & Solutions General Information Test date, time, location: See the course outline See also the course web site: dan.uwo.ca/courses/3330 Test time conflict (due to having

More information

Business Challenges. Customer retention and new customer acquisition (customer relationship management)

Business Challenges. Customer retention and new customer acquisition (customer relationship management) Align and Optimize Workflows with Lean Dan Marino Marino Associates, LLC Strategic and tactical planning Information systems integration Customer retention and new customer acquisition (customer relationship

More information

Chapter 11. MRP and JIT

Chapter 11. MRP and JIT Chapter 11 MRP and JIT (Material Resources Planning and Just In Time) 11.1. MRP Even if MRP can be applied among several production environments, it has been chosen here as a preferential tool for the

More information

Chapter 7 Production Planning

Chapter 7 Production Planning Production Planning and Control Chapter 7 Production Planning Professor JIANG Zhibin Dr GRANG Na Department of Industrial Engineering & Management Shanghai Jiao Tong University Contents Introduction Master

More information

Fundamentals of Materials and Operations Management

Fundamentals of Materials and Operations Management Fundamentals of Materials and Operations Management Program Overview Program Overview Introduction Fundamentals of Materials and Operations Management Fundamentals of Materials and Operations Management

More information

ERP Course: Production and Materials Management Reading: Chapter 6 from Mary Sumner

ERP Course: Production and Materials Management Reading: Chapter 6 from Mary Sumner ERP Course: Production and Materials Management Reading: Chapter 6 from Mary Sumner Peter Dolog dolog [at] cs [dot] aau [dot] dk 5.2.03 Information Systems September 16, 2008 2 Sales Finished and packaged

More information

Paper F5. Performance Management. Monday 14 December 2009. Fundamentals Level Skills Module. The Association of Chartered Certified Accountants

Paper F5. Performance Management. Monday 14 December 2009. Fundamentals Level Skills Module. The Association of Chartered Certified Accountants Fundamentals Level Skills Module Performance Management Monday 14 December 2009 Time allowed Reading and planning: Writing: 15 minutes 3 hours ALL FIVE questions are compulsory and MUST be attempted. Formulae

More information

Key Benefits: Minimize lead times and maximize on-time deliveries to customers. Respond quickly to changes in demand for materials and capacity

Key Benefits: Minimize lead times and maximize on-time deliveries to customers. Respond quickly to changes in demand for materials and capacity Microsoft Business Solutions Axapta Master Planning streamlines your manufacturing processes and supply chain to help you reduce costs and satisfy customer demands. Key Benefits: Minimize lead times and

More information

tutor2u tutor2u Interactive Business Simulations Finance: Cash Flow Management

tutor2u tutor2u Interactive Business Simulations Finance: Cash Flow Management Interactive Business Simulations Finance: Cash Flow Management Note: this interactive simulator is designed to be viewed using an up-to-date internet browser. Users must also have Macromedia Flash Player

More information

Introduction to production scheduling. Industrial Management Group School of Engineering University of Seville

Introduction to production scheduling. Industrial Management Group School of Engineering University of Seville Introduction to production scheduling Industrial Management Group School of Engineering University of Seville 1 Introduction to production scheduling Scheduling Production scheduling Gantt Chart Scheduling

More information

Chapter 5: Strategic Capacity Planning for Products and Services

Chapter 5: Strategic Capacity Planning for Products and Services Chapter 5: Strategic Capacity Planning for Products and Services Assistant Prof. Abed Schokry Operations and Productions Management First Semester 2010 / 2011 Learning Outcomes: Chapter 5 After finishing

More information

abf Avercast Business Forecasting The Trusted Name in Demand Management. Software Features: Enterprise Level Software Solutions for: The Cloud

abf Avercast Business Forecasting The Trusted Name in Demand Management. Software Features: Enterprise Level Software Solutions for: The Cloud Avercast Business Forecasting Avercast Business Forecasting (ABF) is powered by an industry leading 187 forecasting algorithms. ABF systematically measures each algorithm against up to five years of historical

More information

ORACLE MANUFACTURING MATERIAL PLANNING FOR PROCESS MANUFACTURING

ORACLE MANUFACTURING MATERIAL PLANNING FOR PROCESS MANUFACTURING ORACLE MANUFACTURING MATERIAL PLANNING FOR PROCESS MANUFACTURING KEY FEATURES MATERIAL PLANNING FOR PROCESS INCLUDES: Material and rough cut capacity planning Multi-level graphical pegging Advanced sourcing

More information

Supply Chain Design and the effects on shipping

Supply Chain Design and the effects on shipping Supply Chain Design and the effects on shipping Agenda Introductions Supply Chain Evolution LLamasoft - Company Supply Chain Guru - Product Shipping Demonstration Q & A Introductions Tom Davies Director

More information

BUSINESS TO MANUFACTURING (B2M) COLLABORATION BETWEEN BUSINESS AND MANUFACTURING USING ISA-95 ABSTRACT

BUSINESS TO MANUFACTURING (B2M) COLLABORATION BETWEEN BUSINESS AND MANUFACTURING USING ISA-95 ABSTRACT BUSINESS TO MANUFACTURING (B2M) COLLABORATION BETWEEN BUSINESS AND MANUFACTURING USING ISA-95 Dennis Brandl dennis.brandl@sequencia.com Sequencia Corporation ABSTRACT Integrating business and manufacturing

More information

SAP Sales and Operations Planning Compare & Contrast with SAP APO. Phil Gwynne SAP UKI 2013

SAP Sales and Operations Planning Compare & Contrast with SAP APO. Phil Gwynne SAP UKI 2013 SAP Sales and Operations Planning Compare & Contrast with SAP APO Phil Gwynne SAP UKI 2013 But the King is still reported alive regularly Disclaimer The information in this document is confidential and

More information

Full-time MSc in Logistics and Supply Chain Management

Full-time MSc in Logistics and Supply Chain Management Full-time MSc in Logistics and Supply Chain Management Course structure and content 2016-2017 The course has been developed to produce expert logistics and supply chain professionals who can take the skills

More information

DEMAND DRIVEN SUPPLY NETWORK WITH SCOR FOR UZEL

DEMAND DRIVEN SUPPLY NETWORK WITH SCOR FOR UZEL Fit4Future DEMAND DRIVEN SUPPLY NETWORK WITH SCOR FOR UZEL Istanbul Chamber of Industry 25.Mart.2008 Tolga Yıldırım Supply Chain Strategy Specialist ABOUT SPEAKER Tolga Yıldırım Central Supply Chain Strategy

More information

APICS PRINCIPLES OF OPERATIONS MANAGEMENT TOPIC OUTLINE CONCEPTS AND APPLICATIONS

APICS PRINCIPLES OF OPERATIONS MANAGEMENT TOPIC OUTLINE CONCEPTS AND APPLICATIONS APICS PRINCIPLES OF OPERATIONS MANAGEMENT TOPIC OUTLINE CONCEPTS AND APPLICATIONS About this Topic Outline This outline details the concepts and applications coved in all five of the APICS Principles of

More information

Steel supply chain transformation challenges Key learnings

Steel supply chain transformation challenges Key learnings IBM Global Business Services White Paper Industrial Products Steel supply chain transformation challenges Key learnings 2 Steel supply chain transformation challenges Key learnings Introduction With rising

More information

Manufacturing Planning and Control

Manufacturing Planning and Control 1 Chapter Manufacturing Planning and Control The manufacturing planning and control (MPC) system is concerned with planning and controlling all aspects of manufacturing, including managing materials, scheduling

More information

Schoeller Allibert Limited Job Description. Reports to: Operations Director Date of Completion. 04/05/16

Schoeller Allibert Limited Job Description. Reports to: Operations Director Date of Completion. 04/05/16 Schoeller Allibert Limited Job Description Job Title. Process Manager Location: Winsford Name Department. Operations Reports to: Operations Director Date of Completion. 04/05/16 Job Purpose. To manage

More information

www.flowcastingbook.com Page 1

www.flowcastingbook.com Page 1 The Summary in Brief The retail store has been disconnected from planning the supply chain, even though the majority of planning problems can only be addressed at store level. For example, retail out-of-stocks

More information

Feasibility Study Requirements. Qatar Development Bank

Feasibility Study Requirements. Qatar Development Bank Feasibility Study Requirements Qatar Development Bank i. Feasibility Study Requirements The Feasibility study should ideally encompass the following areas / sections A. Executive Summary. B. Project details

More information

Activity 28.1 (page 509): Types of costs. Business Indirect cost Explanation. digger

Activity 28.1 (page 509): Types of costs. Business Indirect cost Explanation. digger 28Costs Activity 28.1 (page 509): Types of costs 1 Identify one indirect cost for each of these businesses: a building firm a high-street bank a TV repairer an oil-fired power station. [4] 2 Explain why

More information

Manufacturing Planning and Control for Supply Chain Management

Manufacturing Planning and Control for Supply Chain Management Manufacturing Planning and Control for Supply Chain Management APICS/CPIM Certification Edition F. Robert Jacobs Indiana University William L. Berry The Ohio State University (Emeritus) D.ClayWhybark University

More information

tutor2u Stock Control The Importance of Managing Stocks AS & A2 Business Studies PowerPoint Presentations 2005

tutor2u Stock Control The Importance of Managing Stocks AS & A2 Business Studies PowerPoint Presentations 2005 Stock Control The Importance of Managing Stocks AS & A2 Business Studies PowerPoint Presentations 2005 What Are Stocks? Three main categories of stocks Raw Materials Work in Progress Finished Goods Types

More information

Planning and Scheduling Operations in Dynamic Supply Chain

Planning and Scheduling Operations in Dynamic Supply Chain Planning and Scheduling Operations in Dynamic Supply Chain Sung Joo Bae Assistant Professor Yonsei University 14 1 Supply Chain Management 14 2 Supply Chains Tier 3 Poland USA Canada Australia Malaysia

More information

Simulations can be run at item and group level giving users flexibility. In brief

Simulations can be run at item and group level giving users flexibility. In brief We all aim to optimize all kinds of aspects of our business, but we all also are aware it s very challenging to put reality in an optimization model. Nevertheless, we require insights which enable us to

More information

Dab Pumps. boosts global productivity with Infor LN, Infor ION, and other Infor solutions. Customer Innovation Study

Dab Pumps. boosts global productivity with Infor LN, Infor ION, and other Infor solutions. Customer Innovation Study Customer Innovation Study Dab Pumps boosts global productivity with Infor LN, Infor ION, and other Infor solutions Speed is not just marketing. It s something real with Infor. Infor has the best solution

More information

Basics of Supply Chain Management (BSCM) Curriculum

Basics of Supply Chain Management (BSCM) Curriculum Basics of Supply Chain Management (BSCM) Curriculum Version 4.0 Session 1 to Supply Chain Management to Manufacturing Role of Manufacturing Global Citizenship Manufacturing Business Model Business Environment

More information

Network Planning & Optimization. Caltex Designs for Growth

Network Planning & Optimization. Caltex Designs for Growth Network Planning & Optimization Caltex Designs for Growth Astrid Tuin Solutions Manager LLamasoft, Inc. Henry Brunekreef Associate Director Logiworx Pty Ltd Who We Are Caltex Australia's leading transport

More information

Primary Logistics Activities

Primary Logistics Activities 1 TOPIC 1: OVERVIEW OF BUSINESS LOGISTICS AND PLANNING Topic Outcomes: You should be able: 1. Define logistics 2. Define activity mix in logistics business 3. Determine the importance of business logistics

More information

Capacity Planning and Scheduling

Capacity Planning and Scheduling Capacity Planning and Scheduling Key to testing the viability of the MPS is knowing whether or not we have, or will have, sufficient manufacturing capacity to meet it. I make a clear differentiation between

More information

BERGHOF Adaptive ERP Tuner makes your ERP simply more efficient. Efficiency through Enterprise Resource Planning

BERGHOF Adaptive ERP Tuner makes your ERP simply more efficient. Efficiency through Enterprise Resource Planning BERGHOF Adaptive ERP Tuner makes your ERP simply more efficient Efficiency through Enterprise Resource Planning Agenda 1 2 3 Introduction of Berghof Systems Challenges Adaptive ERP Tuner 4 References 5

More information

Marketing Director, Finishing Store and Despatch, Workshop Supervisor

Marketing Director, Finishing Store and Despatch, Workshop Supervisor Managing Director ACCOUNTABLE TO: Board of Directors Marketing Director, Finishing Store and Despatch, Workshop Supervisor To ensure the company operates profitably and in an ethical manner in order to

More information

Supply Chain Management: from a necessary evil to a core organisational competency

Supply Chain Management: from a necessary evil to a core organisational competency Supply Chain : from a necessary evil to a core organisational competency Dr Sinéad Roden Senior Lecturer in Operations & Supply Director of Studies for MSc in Global Supply Chain Percentage of world revenues

More information

Relationships. The Key to Effective Demand Planning in a Business-To-Business Environment. Inspiring Business Excellence

Relationships. The Key to Effective Demand Planning in a Business-To-Business Environment. Inspiring Business Excellence Infor mative gu i des on i n du s t r y bes t pr ac t ic e s Relationships The Key to Effective Demand Planning in a Business-To-Business Environment George Palmatier Oliver Wight Americas Inspiring Business

More information

Ferdinand Fanshawe, Sales Director and Martha Ross, Operations Director The Widget Pharma Company, Orangeville

Ferdinand Fanshawe, Sales Director and Martha Ross, Operations Director The Widget Pharma Company, Orangeville Experiences from the front line of Operations Improvement, by: Ferdinand Fanshawe, Sales Director and Martha Ross, Operations Director The Widget Pharma Company, Orangeville About 3 years ago our company

More information

Product Documentation SAP Business ByDesign 1302. Supply Chain Planning and Control

Product Documentation SAP Business ByDesign 1302. Supply Chain Planning and Control Product Documentation PUBLIC Supply Chain Planning and Control Table Of Contents 1 Supply Chain Planning and Control.... 6 2 Business Background... 8 2.1 Demand Planning... 8 2.2 Forecasting... 10 2.3

More information

Choosing Planning & Scheduling solutions for Metals

Choosing Planning & Scheduling solutions for Metals Choosing Planning & Scheduling solutions for Metals White Paper The planning and scheduling of metals production presents special problems because of the complexity of the manufacturing process and the

More information

Strategic Framework to Analyze Supply Chains

Strategic Framework to Analyze Supply Chains Strategic Framework to Analyze Supply Chains 1 Andy Guo A Strategic Framework for Supply Chain Design, Planning, and Operation Part I: Understand the supply chain Part II: Supply chain performance Part

More information

Datasheet Electronic Kanban Ultriva vs. ERP ekanban Modules By Narayan Laksham

Datasheet Electronic Kanban Ultriva vs. ERP ekanban Modules By Narayan Laksham Datasheet Electronic Kanban Ultriva vs. ERP ekanban Modules By Narayan Laksham Summary: Several ERP vendors offer rudimentary Kanban modules to compliment their MRP systems. However, these Kanban modules

More information

Collaborative Supply Chain Management Learning Using Web-Hosted Spreadsheet Models ABSTRACT

Collaborative Supply Chain Management Learning Using Web-Hosted Spreadsheet Models ABSTRACT Collaborative Supply Chain Management Learning Using Web-Hosted Spreadsheet Models Don N. Pope Abilene Christian University, ACU Box 29309, Abilene, Texas 79699-9309 Phone: 325-674-2786 Fax: 325-674-2507

More information

Universidad del Turabo MANA 705 DL Workshop Eight W8_8_3 Aggregate Planning, Material Requirement Planning, and Capacity Planning

Universidad del Turabo MANA 705 DL Workshop Eight W8_8_3 Aggregate Planning, Material Requirement Planning, and Capacity Planning Aggregate, Material Requirement, and Capacity Topic: Aggregate, Material Requirement, and Capacity Slide 1 Welcome to Workshop Eight presentation: Aggregate planning, material requirement planning, and

More information

Operations Management

Operations Management 13-1 MRP and ERP Operations Management William J. Stevenson 8 th edition 13-2 MRP and ERP CHAPTER 13 MRP and ERP McGraw-Hill/Irwin Operations Management, Eighth Edition, by William J. Stevenson Copyright

More information

Lesson-13. Elements of Cost and Cost Sheet

Lesson-13. Elements of Cost and Cost Sheet Lesson-13 Elements of Cost and Cost Sheet Learning Objectives To understand the elements of cost To classify overheads on different bases To prepare a cost sheet Elements of Cost Raw materials are converted

More information

ISE 421 QUANTATIVE PRODUCTION PLANNING

ISE 421 QUANTATIVE PRODUCTION PLANNING ISE 421 QUANTATIVE PRODUCTION PLANNING LECTURE III MRP, MRPII, ERP, APS Dr. Arslan ÖRNEK 2013 2014 Fall Term PRODUCTION PLANNING & SCHEDULING (PP&S) PP&S is one of the most critical activities in a manufacturing

More information

Breakfast seminar. Sales & Operations Planning. Dan Schultz Håkan Espenkrona Peter Wahlgreen Tetra Pak

Breakfast seminar. Sales & Operations Planning. Dan Schultz Håkan Espenkrona Peter Wahlgreen Tetra Pak Breakfast seminar Sales & Operations Planning Dan Schultz Håkan Espenkrona Peter Wahlgreen Tetra Pak MYSIGMA welcomes customers and partners to this seminar MYSIGMA BREAKFAST SEMINAR SERIES PROGRAM 2014-05-28

More information

1 Aggregate Production Planning

1 Aggregate Production Planning IEOR 4000: Production Management Lecture 5 Professor Guillermo Gallego 9 October 2001 1 Aggregate Production Planning Aggregate production planning is concerned with the determination of production, inventory,

More information

PROJECT PROFILE ON THE ESTABLISHMENT OF NAILS PRODUCING PLANT

PROJECT PROFILE ON THE ESTABLISHMENT OF NAILS PRODUCING PLANT Investment Office ANRS PROJECT PROFILE ON THE ESTABLISHMENT OF NAILS PRODUCING PLANT Development Studies Associates (DSA) October 2008 Addis Ababa Table of Contents 1. Executive Summary... 1 2. Product

More information

P2 Performance Management

P2 Performance Management Pillar P P2 Performance Management Instructions to candidates Specimen Examination Paper You are allowed three hours to answer this question paper. You are allowed 20 minutes reading time before the examination

More information

Functional Area Systems Production / Operation Systems

Functional Area Systems Production / Operation Systems ACS-1803 Introduction to Information Systems Instructor: Kerry Augustine Functional Area Systems Production / Operation Systems Lecture Outline 5, Part 2 ACS-1803 Introduction to Information Systems Examples:

More information

26/10/2015. Functional Area Systems Production / Operation Systems. Examples: Functional Area Info Systems. Functional Area Information Systems

26/10/2015. Functional Area Systems Production / Operation Systems. Examples: Functional Area Info Systems. Functional Area Information Systems ACS-1803 Introduction to Information Systems Instructor: Kerry Augustine Functional Area Systems Production / Operation Systems Lecture Outline 5, Part 2 ACS-1803 Introduction to Information Systems Examples:

More information

Revenue from contracts with customers The standard is final A comprehensive look at the new revenue model

Revenue from contracts with customers The standard is final A comprehensive look at the new revenue model Note: Since issuing the new revenue standard in May 2014, the FASB and IASB have proposed various amendments to the guidance. This In depth supplement has not been updated to reflect all of the proposed

More information

Procurement Outsourcing in an Automotive Air Conditioner Manufacturer in India: A SAP-LAP Analysis

Procurement Outsourcing in an Automotive Air Conditioner Manufacturer in India: A SAP-LAP Analysis Procurement Outsourcing in an Automotive Air Conditioner Manufacturer in India: A SAP-LAP Analysis Reeturaj Mishra Indian Institute of Management Rohtak MDU Campus, Rohtak, 124001, India Parikshit Charan

More information

Outsourcing Manufacturing: A 20/20 view

Outsourcing Manufacturing: A 20/20 view Outsourcing Manufacturing: A 20/20 view OUTSOURCING MANUFACTURING is becoming a well-established approach for companies that want to strategically manage materials in today s fast-paced business environment.

More information

Agenda. TPPE37 Manufacturing Control. A typical production process. The Planning Hierarchy. Primary material flow

Agenda. TPPE37 Manufacturing Control. A typical production process. The Planning Hierarchy. Primary material flow TPPE37 Manufacturing Control Agenda Lecture 2 Inventory Management 1. Inventory System Defined 2. Inventory Costs 3. Inventory classification 4. Economic order quantity model 5. Newsboy problem 6. Reorder

More information