OPM 311 Exam 2
Outputs of S&OP Process
Master Schedule (MPS)
Planned- order schedules
A schedule indicating the amount and timing of future orders.
Order Releases
Authorizing the execution of planned orders.
Inputs of S&OP Process
Business plan, Demand Plan
Exception Reports
Call attention to major discrepancies such as late and overdue orders, excessive scrap rates, reporting errors, and requirements for nonexistent parts.
Bill of Materials (BOM)
Contains a listing of all of the assemblies, subassemblies, parts, and raw materials that are needed to produce one unit of a finished product.
Performance control reports
Evaluate system operation. They aid managers by measuring deviations from plans, including missed deliveries and stockouts, and by providing information that can be used to assess cost performance.
Product Structure Tree
Provides a visual depiction of the subassemblies and components needed to assemble a product.
Inventory Records
Refer to stored information on the status of each item by time period, called time buckets.
Low- level coding
Restructuring the bill of materials so that multiple occurrences of a component all coincide with the lowest level at which the component occurs.
Planning reports
Useful in forecasting future inventory requirements. They include purchase commitments and other data that can be used to assess future material requirements.
MRP is designed to answer what 3 questions?
What is needed, how much is needed, when is it needed
Product Family
a group of products whose similarity in manufacturing procedures, marketing characteristics, or specifications enables them to be aggregated for planning, marketing, or occasionally costing
Materials Requirement Planning (MRP)
a methodology used for planning the production of assembled products
business plan
establishes operations and capacity strategy
aggregate (demand) plan
establishes operations capacity
master schedule
establishes schedules for specific products
The MRP:
generates production plan for end item that indicates the quantities and timing of the subassemblies, component parts, and raw materials required for assembly of that end item
Aggregate Planning
intermediate range capacity panning, usually covers 2-12 months
Sales and Operations Planning (S&OP)
intermediate range decisions to balance supply and demand, integrating financial and operations planning
changes to planned orders
revisions of due dates or order quantities and cancellation of orders
cumulative lead time
the sum of the lead times the sequential phases of a process require, from ordering of parts or raw materials to completion of final assembly
Demand Review
to review demand plan actual as compared to the plan of record approved at the last S&OP
dependent demand
when demand for items is derived from plans to make certain products