1.The master production schedule (MPS) is a statement based on the anticipated o
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Question
1.The master production schedule (MPS) is a statement based on the anticipated output. In other words, it's critical the organizational leaders know the anticipated demand. What are the potential issues that could affect the demand for a product? Please discuss the contingency plans that must be in place in case the production is lower or higher than projected.
2.Provide a clear explanation of what is meant by the explosion. What are the potential issues that might occur when parts are assembled by third parties? How can the manufacturer ensure the necessary parts are available when needed?
3.Please explain the sources of MRP system nervousness. As part of your discussion, include the actions available to the operational leaders to mitigate potential problems. What impact does quality have pertaining to potential concerns?
Please discuss. What were three key lessons you learned from the activities this week? Please explain detail.
Explanation / Answer
1. The potential causes that could impact the demand for a product :-
In order to prevent stock-outs in case of underproduction, it is important to always maintain a safety stock as per the expected demand.In case of overproduction, there must be provision to stock the excess inventory to minimize the loss.
2.Explosion simply put is the process of breaking down of a product into its components using its BOM(Bill of Materials). The process of explosion is used to calculate the requirements of each item by exploring the order issued for the child orders by referring to the bill of materials.
The issues which might occur in case the parts are assembled by third parties:-
The manufacturer can ensure the parts are present when necessary by adopting JIT inventory system and having proper SLA with the suppliers to ensure the same.
3. MRP system nervousness is caused due to two major factors:-
Smaller demand in higher levels causes large fluctuations at the lower levels so it is important to as accurately as possible predict the demand at level 0 or 1 to mitigate MRP system nervousness.
The key take away from this lesson are:
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