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You are hereII. Master Planning of Resources

II. Master Planning of Resources

By Anonymous - Posted on 08 January 2012

MPR is defined as a grouping of the business processes which includes the following activities

Demand Management : http://www.apicsforum.com/ebook/7._demand_management
SOP : http://www.apicsforum.com/ebook/2._production_planning
Master Scheduling : http://www.apicsforum.com/wiki/3._master_production_schedule
Validating The Plan & Measuring Performance

Planning Process:

The planning process involves a balancing act between demand (sales forecasts & actual customer orders) & supply (production & purchase orders). If demand exceeds supply then a shortage will occur & if the demand is less than supply then excess inventory will be created.
Two of the most important issues from the supply perspective are product volume & product mix.

i.  Product Volume:
The level of product volume establishes the big picture of demand placed on a supply operation. Product volume is generally expressed in rates of demand at the product group level.
It is generally difficult for a supply operation to change the supply rate from period to period. Supply operations prefer level loading in terms of product volume.

ii. Product Mix:
As per the 11th ed of APICS dictionary “The proportion of individual products that make up the total production or sales volume”.
It is measure of the different types of the product that can be supplied within a particular product group.

 Mix variation is typically a problem for supply operations that have inflexible processes. Any operation with significant capital investment in high speed machinery that requires long production runs to justify the high cost of setting up the equipment requires a product mix. E.g. steel mills & paper making operations. Product mix determines the specific amounts of each product type to be produced to meet the needs of the overall plan. Variation in the product mix can be handled with relative ease by reducing set up time & the adoption of small work cells.

Planning Horizon:
As per APICS dictionary “planning horizon is the amount of time a plan extends into the future”. For a master schedule, this is normally set to cover a minimum of cumulative lead time plus time for lot sizing low-level components and for capacity changes of primary work centers or of key suppliers. For longer term plans the planning horizon must be long enough to permit any needed additions to capacity.

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