The document discusses master scheduling and related planning processes. It provides the following key points: 1. Master scheduling begins with disaggregating an aggregate production plan into specific product requirements and end-item level schedules. This includes assigning quantities and due dates. 2. The master schedule coordinates production planning with other functions like marketing, capacity planning, and distribution. It shows the timing of end-item production and completed orders. 3. The process involves calculating projected inventory balances and available-to-promise values to evaluate order commitments and production needs. Rough cut capacity planning is also used to check resource feasibility.

1. Master Scheduling
Master Planning
Prepared by/ Mostafa Ashour

2. Manufacturing Planning And Control
Source -APICS book one - BCSM– session Three

3. Sales And Operation Planning
(S&OP)

4. S&OP translates the strategic business plan into production rates that meet
company financial, customer service, and other business goals.
▪ Translates the strategic business plan into production rates that meet business
goals
▪ Continually updates the production, financial, and sales plan
▪ Seeks input from various functions
▪ Regular (such as monthly) meeting with senior executives to resolve tradeoffs
▪ Checks availability of resources to validate the production plan

5. Sequences of Planning Processes
Market Demand
(forecast-orders-safety
stock)
Production strategy
chosen
Aggregate Planning
Production Plan
Determine the required
recourses for each
product family
(Resource bill)
Compare the required
resources with available
recourses and take
action
(Resource Planning)
Disaggregate into end
item level
Aggregate the master
schedule for all end
items
Perform RCCP
Resolve differences and
publish MPS
Drive the MRP

6. The process begins with an aggregation of demand from all sources (e.g., firm orders,
forecasts, safety stock requirements). (Production Plan)
Production, marketing, and finance personnel work toward developing a master
production schedule.
Although manufacturing people will have a major input in determining that schedule and
a major responsibility for making it work, marketing and finance will also have important
inputs and responsibilities. The rationale for having these
functional areas work together is the increased likelihood of developing a plan that works
and with which everyone can live.

7. Master Scheduling

8. S&OP
Master
Scheduling
MRP
Develop Priority and capacity Plans for
products at family level.
Develop Priority and capacity Plans for
products at end items level.
Takes Priority and capacity Plans down
to purchased and manufactured
components level.
MasterPlanning

9. The master schedule is the heart of production planning and control, it is the next step of
master planning after Production Planning.
Master Schedule showing the quantity and timing of specific end items for a scheduled
Horizon rather than an entire product group, along with the timing
of production.
Master Schedule doesn't show planned production, rather achieve planned production
or demand from all sources.

10. Purpose of master schedule
• Disaggregate Production Planning at product family level into end-item level.
• Create Priority plan, including quantities and due dates for end item manufacturing.
• Provide data used for calculation the rough cut capacity planning.
• Drive the material requirement plan which takes priority plan to component level.
Why ?
Master schedule main objective:
• To maintain the desired level of customer service.
• To maintain the desired level of inventory.
• Make the best use of resource.

11. Master Scheduling starts with disaggregation
break down the aggregate plan into specific product requirement to Create meaningful
of production for each product type by Priority planning (quantity and due dates) in
order to :
• Scheduling operations and planning inventory requirement.
• Labor requirement ( work force size-level of skills).
• Purchase material and Parts.
• Dealing with problems or capacity shortage.
The master schedule interfaces with marketing, capacity planning, production planning,
and distribution planning

12. With Marketing
- It reveals when orders are scheduled for production and when completed orders are to
be shipped.
- Enables marketing to make valid delivery commitments to warehouses and final
customers
With Capacity Planning and Production
- Enables production to evaluate capacity requirements; it provides the necessary met by
information for production and marketing to negotiate when customer requests
cannot be normal capacity.
With distribution
- Reveals when finished Products are to be shipped
Master Schedule help managers to evaluate and control existing and new orders, How ?

13. Master Scheduler also the following responsibilities :
1. Evaluating the impact of new orders.
2. Providing delivery dates for orders.
3. Dealing with problems:
a. Evaluating the impact of production delays or late deliveries of purchased
goods.
b. Revising the master schedule when necessary because of insufficient supplies or
capacity.
c. Bringing instances of insufficient capacity to the attention of production and
marketing personnel so that they can participate in resolving conflicts.
4. the master schedule may be updated monthly to include any revisions in planned
output

14. Development of Master Schedule
Inputs
Beginning Inventory
Forecast
Customer Orders
Other Factors to be taken into considerations
Any hiring/firing
Limited level of inventory
Skill levels
Capacity constrains
Market considerations (such as seasonality)
Production Plan

15. Development of Master Schedule
Output
Un Committed inventory (ATP)
Master Production Schedule (MPS)
Projected inventory
Master Scheduling Steps
• Disaggregate the Production Plan on a weekly basis to the end-item level
• Preliminary calculation of Projected available balance (PAB)
• Calculation and Available to promise value (ATP)
• Aggregate the master schedule for all end items
• Perform Rough Cut Capacity Planning
• Resolve differences and publish the MPS

16. Projected available balance (PAB)/Or projected on-hand inventory.
Tells us when additional inventory (i.e., production) will be needed.
If the balance is high enough to cover the demand, then no MSP receipt necessary.
Projected on-hand inventory = Inventory from previous week - Current week’s
requirements
Available To Promise(ATP)
Knowledge of the uncommitted inventory that can enable marketing to make realistic
promises to customers about deliveries of new orders.
The ATP quantity is the uncommitted inventory balance in the first period and is normally
calculated for each period in which an MPS is scheduled.
ATP at first Period = beginning inventory + MPS - Customer orders
ATP at Period which an MPS is scheduled = MPS – Customer orders

17. Rough Cut Capacity Planning(RCCP)
Approximate balancing of capacity and demand to test the feasibility of a master
schedule.
Ensure that the master schedule is workable by checking capacities of production and
warehouse facilities, labor, and vendors to ensure that no gross deficiencies exist
Note / The capacities used for master scheduling are based on decisions made during
aggregate planning.

18. PAB at first week = 64-33=31 ( We Usually take the larger number of forecast and
customer order )
PAB at week 2 = inventory from previous week +MPS- larger number of forecast and
customer order = 31+0 - 30 = 1 Nonnegative So No MPS (Production) is needed
PAB at week 3 = 1 + 0(before MPS) - 30 = -29 Negative So addition inventory or
production(MPS) is needed.
After adding MPS based on the lot size (70 in this example), PAB will became (41)

19. AS Mentioned ATP is normally calculated the first period and each period in which an
MPS is scheduled.
ATP at first week = bingeing inventory + MPS – customer orders up to first MPS receipt.
= 64+ 0 - 30 - 20 = 11
ATP at Week 3 = MPS –Customer orders
= 70 - 10 - 4 = 56

20. Aggregate the master schedule for all end items
Aggregate all MPSs which have been established for individual end items.
Aggregation into master schedule for all end items of particular group of products or
product family along Planning Horizon.
Provide the total order quantity for all end items in each week
Used in RCCP to determine if production recourses will be adequate during the planning
period.

21. In addition to the obvious manufacturing resources needed to support the plan:
Financing resources will be needed and must be planned for, both in amount and
timing.
Marketing resources also will be needed in varying degrees throughout the process. In
order for the plan to work.
An initial plan must be revised based on an assessment of the availability of various
resources. Once these have been decided, the master production schedule can be
firmed up.
Other Resources to be consider

22. THANK YOU!