The production master plan establishes the quantity of final products and the period of time in which they will be produced. This detailed plan takes into account the needs of the market, considering the availability and the orders in process of manufacture.
Can be defined as strategys that set a certain quantity of items to be produced from time to time to correctly deliver to customers. It is used for the purpose of plan products that influence company profits, therefore, it is necessary that such planning be done with greater care.
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Operations managers typically meet weekly to review market forecasts, orders, inventories and capacity information, to develop this production plan adequately.
In this article you will find:
Development of a production master plan
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In order to make a master production plan Product and component sales that depend on external production demands must be taken into account. This plan is divided into sections that are separated by a period of time, which is called a temporary barrier.
During the development of this plan, the following data should be taken into account:
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- The roadmap of each of the products, to detail well the description of the different production processes and the requirement of materials, components, tools and equipment, among others.
- The production time data required by the processes for each product.
- A production capacity must be developed for the entire planned period, where they can be carried out modifications, updates and in case of any changes, a detailed approach should be made short term.
What is a master production plan for?
East master program, is the result of a production planning process, therefore, it serves to indicate what is needed to compensate the demand of the production plan, since through said plan they can set the items to be done and when to do them, due to the specific product terms it constitutes.
It can be said that this plan is a foundation of what has to be produced, which means that it can be expressed in the following terms:
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- Customer order.
- Modules of a repetitive production company.
- Finished product in a company of continuous production.
Goals of a master production plan
When the calculation of a production plan, it is important to identify some functional objectives of the different areas of the company:
Finance
Inventories need to be reduced as much as possible.
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Marketing
It is important to comply with the delivery dates that have been agreed with the clients.
High direction
Increase production and customer service, using the least amount of resources possible.
Manufacturing
Elaboration of classified programs and decrease the amount of production time.
Schedule final products
With proper scheduling, you can quickly finish all those commitments you have with customers and be punctual in deliveries, so that customers are satisfied.
Avoid overloads
Overloading product facilities should be avoided at all costs, so that production capacity is realized efficiently and with low-cost results.
Planning horizon of a production master plan
This must be long enough to equalize the accumulated manufacturing cycle of the products, this includes the amount of planning time and the delivery of materials. There are three types of time horizons, which are:
Fixed demand horizon
This horizon also known as minimal or frozen zone, you cannot modify the period of the master production plan, this is because the Materials are already ordered and assigned to specific orders that are in the process of being elaboration.
If it were to be modified, there could be economic losses due to delays in delivery periods, which would significantly reduce production capacity.
Fixed planning horizon
In this horizon, the period of time where the production engineer has to carry out a long-term planning, so that you can determine the acceptance of orders placed in the future.
During this period of time, changes in planning may arise, due to the lack of materials, therefore, the production capacity could vary in each process.
Liquid zone
The liquid zone is directly related to the time period that is behind the fixed planning horizon. The engineer in charge can make all kinds of modifications that he deems necessary, while the orders have not been closed.
Aggregate plan features
- Formalizes the planning process, where current and future problems are highlighted and possible solutions are proposed.
- Anticipate various decisions when they are put into practice.
- Decisions must confront problems.
- It must span a time range called the horizon.
- It must be updated frequently, have a detailed plan level, be realistic and also achievable.
Importance of the master production plan
This plan is very important, since through it various products can be planned that have a great influence to benefit the company. Thanks to this plan, the following can be highlighted:
Program
- Component and production needs.
- The production capacity that is needed to be able to determine the amount of time that each machine needs and the personnel that is needed to carry out the process.
Decide
- Knowledge of what is going to be manufactured, to inform customers and set delivery dates, so that there is no delay in this regard.
- The prior establishment of the evolution of stocks and thus knowing the financing needs.
- The profitability to easily know the financial fluidity of the inflows and outflows, as well as the financial immobilizations that allow to establish adequate measures of said profitability.
- The distribution of activities when the production plan has been determined, then you can distinguish the obtaining of the necessary information, calendar of dates and the validation of the period in progress.
