A Bumpy Road for Toyota
BUS 307: Operations Management & Quantitative Techniques
January 5th, 2013
The Realco Breadmaster
A master production schedule (MPS) is a plan for individual commodities to produce in each time period such as production, staffing, inventory, etc. The process of developing a master production schedule includes calculating the projected on-hand inventory and determining the timing and size of the production quantities of specific products. There are many advantages to developing a MPS within a company. With the case study of The Realco Breadmaster in chapter 15, we will develop a master production schedule and answer the other questions that are related to the case study. This diagram allows us to have a simplified understanding of the results and benefits of what information and aspects of the company a master production schedule will take into consideration and what the resulting information to gain will be. We cans see from the diagram below that end result of a well=organized MPS can benefit Realco by giving them the amounts to be produced, the correct staffing levels needed, the available inventory to promise, and their projected available balance. It allows Realco as a company to simply be on the same page.
Picture Obtained from: http://www.apicsforum.com/sites/default/files/u1/pp010.png
A master production schedule for the bread-maker will be presented below. Demand Management| Week 1| Week 2| Week 3| Week 4| Week 5| Week 6| Week 7| Week 8| Weekly demand for bread-maker| 20,000| 20,000| 20,000| 20,000| 20,000| 20,000| 20,000| 20,000| Working days in a week| 6| 6| 6| 6| 6| 6| 6| 6|
MPS demand for bread-maker| 3,333| 3,333| 3,333| 3,333| 3,333| 3,333| 3,333| 3,333|
Realco has not overpromised, but instead it is clear that the bread-makers produced are far much greater than the demand anticipated. Therefore, Realco is going to be left with an excess of inventory if they continue the route that has been established up front. The master production schedule that I have come up with will allow them not to have as much excess inventory, even though Realco could adjust the production numbers to 25,000 due to Jack Jones having the highest order at 23,500.
There are advantages and disadvantages to the way Jack Jones is promising orders. The main advantages to the way Jack is promising orders is that there won’t be an order that would go unfilled, and he could promise them to have the orders out on time. Yet, the major disadvantage is that at the end of year mark he will be left with a major overflow of bread-makers, therefore it is very important to have a schedule to guide in the process. Scheduling is an important tool for manufacturing, where it can have a major impact on the productivity of a process. In manufacturing, the purpose of scheduling is to minimize the production time and costs, by telling a production facility when to make, with which staff, and on which equipment. Production scheduling aims to maximize the efficiency of the operation and reduce costs
There are a five main ways formal master scheduling would improve this process overall for Jack Jones and his bread-masters. First, it can help to smooth the demand signal, because most customer demand signals will contain peaks and troughs of demand. Second, it protects lead time and helps book future deliveries. Also, a formal master production schedule acts as a single communication tool to the business. The fourth idea is that it would improve the overall process in that is helps the supply chain prioritize requirement, and this allows for the supply chain team to be more effective. Lastly, it just overall helps to stabilize production to the point the right amount of product is being produced.
To determine whether or not it is more detrimental to a company to refuse a customer’s...