Supply Planning (MP) Module
||Master Planning (MP)
||Master planning is the process of creating a comprehensive plan for managing the resources of a manufacturing company, including production, inventory, and distribution. It involves forecasting demand for products, determining production schedules, and coordinating the movement of materials and finished goods. It also includes balancing the supply and demand, identifying bottlenecks and taking actions to eliminate them, and monitoring performance to ensure that the plan is being followed and is effective.
- Uses sales plan demand as input for creating production plan
- Allows for multiple simulation scenarios
- Considers factory capacity and various constraints (human resources, transportation, cost) in formulating supply plan
- Allows for variable planning bucket (weekly, monthly, etc.)
- Monitors performance and identifies bottlenecks
- Helps balance supply and demand, forecast demand, and schedule production
- Coordinates movement of materials and finished goods.
||Global SCM Department, Production Control Department
||The planning cycle for a Master Planning (MP) module in a manufacturing company can vary depending on the specific needs of the company and the industry it operates in. However, typically it is done on a regular basis, such as:
- Monthly: This is a common frequency for companies that produce a high number of SKUs (Stock Keeping Units) or have a high degree of variability in demand.
- Bi-monthly: Some companies prefer to plan every two months, this approach helps to take a longer-term view of the production process.
- Quarterly: Companies that operate in industries with lower variability in demand may plan every three months.
- Annual: Some companies plan only once a year for long term production.
It's important to note that the planning cycle should be defined based on the company's specific needs and requirements. It can be adjusted based on the company's product life cycle, sales & operation planning (S&OP) process, market demand, and production capacity.
- Improved forecasting and scheduling: MP helps to forecast demand for products and determine production schedules, which can help to reduce inventory costs and improve customer service.
- Increased efficiency: MP coordinates the movement of materials and finished goods, which can help to reduce lead times, improve production efficiency, and increase capacity utilization.
- Reduced inventory costs: MP helps to balance supply and demand, which can help to reduce inventory costs and improve cash flow.
- Improved customer service: MP helps to ensure that the right products are available at the right time, which can help to improve customer service and increase customer satisfaction.
- Better coordination: MP helps to coordinate the activities of different departments and functions within a manufacturing company, which can help to improve communication and collaboration.
- Better decision making: MP provides information that can be used to make better decisions regarding production, inventory, and distribution.
- Flexibility: MP allows for variable planning bucket, multiple simulation scenarios which can be adjusted based on the company's specific needs and requirements.
- Monitoring and control: MP allows the user to monitor performance, identify bottlenecks, and take actions to eliminate them, which can help to improve the overall performance of the company.