Purpose of the lesson

Use stock-replenishment requirements, production-line information and available production resources to prepare feasible production schedules and material-requirements plans.

Practical outcome

By the end of this lesson, you must be able to:

• Translate stock-replenishment requirements into production orders.
• Allocate production orders to suitable production lines.
• Develop a schedule for each production line.
• Determine human-resource, equipment and material requirements.
• Identify and resolve production constraints.
• Revise production schedules when necessary.
• Develop a material-requirements plan by production line and supplier.

1. Gather the required information

Obtain:

• Approved stock-replenishment plan
• Customer-order and demand information
• Product and SKU master
• Bills of materials
• Inventory and work-in-progress reports
• Production-line capacities
• Standard production rates
• Changeover and setup times
• Employee and shift availability
• Equipment-availability information
• Maintenance schedules
• Material lead times
• Supplier information
• Quality requirements
• Required completion dates
• Production calendar

Check that the information is current, complete and approved.

2. Translate replenishment requirements into production orders

Review the replenishment plan and determine which products must be manufactured.

Calculate:

Production requirement = Required finished stock + Safety stock − Available finished stock − Scheduled production

Example:

• Required finished stock: 1,500 units
• Safety stock: 200 units
• Available finished stock: 400 units
• Scheduled production: 300 units

Production requirement = 1,500 + 200 − 400 − 300 = 1,000 units

Create a production order for the required quantity.

Production-order template

Confirm that the required quantities reflect pack sizes, minimum production runs and expected production losses.

3. Confirm the bill of materials

The bill of materials identifies the components and quantities required to manufacture one finished product.

Calculate gross material requirements using:

Gross material requirement = Production-order quantity × Material quantity per finished unit

For 1,000 units of Product A:

• Component X: 1,000 × 2 = 2,000 units
• Component Y: 1,000 × 1 = 1,000 units
• Packaging Z: 1,000 × 1 = 1,000 units

Verify the bill-of-material version before calculating requirements.

4. Link orders to production lines

Allocate each order to a line capable of producing the required product.

Consider:

• Product and line compatibility
• Production-line capacity
• Standard production rate
• Required completion date
• Existing workload
• Setup and changeover time
• Equipment condition
• Employee skills
• Quality requirements
• Maintenance downtime
• Material availability

Line-allocation schedule

5. Calculate production time

Use:

Production time = Required quantity ÷ Production rate

If 1,200 units are required and the line produces 150 units per hour:

Production time = 1,200 ÷ 150 = 8 hours

Add:

• Setup time
• Changeover time
• Planned breaks
• Quality-inspection time
• Cleaning time
• Expected controlled downtime

If production requires eight hours and setup requires one hour, reserve at least nine hours before allowing for other planned interruptions.

6. Sequence production orders

Sequence orders according to:

• Customer and replenishment priorities
• Required completion dates
• Material availability
• Production-line compatibility
• Setup and changeover requirements
• Shelf life
• Product family
• Cleaning requirements
• Maintenance windows
• Warehouse capacity

Where possible, group similar products to reduce setup and changeover time without compromising priority dates.

7. Prepare the production schedule

Develop a separate schedule for each production line.

Include planned maintenance, cleaning, quality checks and changeovers in the schedule.

8. Determine human-resource requirements

Identify the number and type of employees required for:

• Machine operation
• Material handling
• Quality control
• Setup and changeover
• Packaging
• Supervision
• Maintenance
• Cleaning

Human-resource schedule

Also check:

• Required competence
• Shift availability
• Approved working hours
• Leave and absence
• Safety and operator authorisation

Do not allocate an employee to specialised equipment without the required competence or authorisation.

9. Determine equipment requirements

Identify equipment needed to complete each production order.

Include:

• Production machinery
• Tools and dies
• Material-handling equipment
• Testing equipment
• Packaging equipment
• Cleaning equipment
• Safety equipment

Verify:

• Capacity
• Availability
• Operating condition
• Maintenance status
• Changeover requirements
• Compatibility with the product
• Availability of authorised operators

Equipment plan

10. Identify material constraints

Compare material requirements with usable inventory and confirmed receipts.

Use:

Net material requirement = Gross requirement + Safety allowance − Available material − Confirmed receipts

Example:

• Gross requirement: 2,000 units
• Safety allowance: 100 units
• Available material: 1,200 units
• Confirmed receipts: 500 units

Net material requirement = 2,000 + 100 − 1,200 − 500 = 400 units

A positive result shows the quantity still required.

Record:

• Material or component
• Required quantity
• Available quantity
• Shortage
• Required date
• Affected production order
• Corrective action

11. Identify production constraints

Check for:

• Insufficient line capacity
• Employee shortages
• Missing employee skills
• Equipment breakdowns
• Planned maintenance
• Material shortages
• Late supplier deliveries
• Excessive setup time
• Quality problems
• Limited packaging capacity
• Limited storage for completed goods
• Competing priority orders

Constraint register

12. Revise the production schedule

When the initial schedule is not feasible:

1. Confirm the constraint.
2. Identify affected production orders.
3. calculate the effect on quantity and completion dates.
4. Develop authorised alternatives.
5. Select the most practical option.
6. revise the line schedule.
7. Update material and resource requirements.
8. Communicate the revision.
9. Obtain approval.
10. Monitor the revised schedule.

Possible revisions include:

• Move the order to another compatible line.
• Change the production sequence.
• Split the order between lines.
• Reschedule planned maintenance where authorised.
• Reallocate suitably trained employees.
• Approve an additional shift or overtime.
• Expedite materials.
• Use an approved substitute material.
• Negotiate a revised completion date.

Maintain both the initial and revised schedules as evidence.

13. Develop the material-requirements plan

Prepare the material-requirements plan for every production line and supplier.

Material-requirements plan

Consider:

• Supplier lead time
• Minimum order quantities
• Pack sizes
• Existing purchase orders
• Expected losses
• Safety stock
• Inspection time
• Internal material-transfer time

The plan must ensure that materials reach the correct production line before they are required.

14. Validate the final schedule

Before releasing the schedule:

1. Confirm that all production orders are included.
2. Verify quantities and due dates.
3. Check production-line compatibility.
4. Recalculate production durations.
5. Confirm employee availability and competence.
6. Confirm equipment availability.
7. Verify material availability and receipts.
8. Check quality and maintenance requirements.
9. Resolve or escalate constraints.
10. Obtain the required approval.

The final schedule must be feasible and free from unresolved constraints that would prevent execution.

15. Monitor production execution

During production:

• Record actual start and finish times.
• Monitor output against plan.
• Track material consumption.
• Record downtime and defects.
• Monitor employee and equipment utilisation.
• Update expected completion times.
• Escalate deviations.
• Revise downstream warehouse and transport schedules where necessary.

Planned-versus-actual record

Practical task

You are provided with a case study containing stock-replenishment plans, production lines, production resources and operational constraints.

Complete the following:

1. Translate replenishment requirements into production orders.
2. Link each order to a suitable production line.
3. Calculate production durations.
4. Develop a schedule for each production line.
5. Determine human-resource requirements.
6. Determine equipment requirements.
7. Calculate material requirements.
8. Identify human-resource, equipment and material constraints.
9. Revise the production schedule to resolve the constraints.
10. Develop a material-requirements plan by production line and supplier.
11. Validate and submit the final schedules.

Required evidence

Include the following in your Portfolio of Evidence:

• Source stock-replenishment plan
• Production-order schedule
• Bills of materials used
• Production-time calculations
• Initial line schedules
• Human-resource schedule
• Equipment plan
• Material-requirement calculations
• Constraint register
• Revised production schedules
• Material-requirements plan by line and supplier
• Evidence of validation and approval
• Completed observation checklist
• Learner declaration of authenticity

Competence checklist

Lesson Summary

To prepare a production schedule, translate replenishment needs into production orders, assign the orders to compatible lines and calculate the required production time. Allocate competent employees, operational equipment and sufficient materials to each line. Identify capacity, labour, equipment and material constraints and revise the schedule before release. Develop a material-requirements plan for each production line and supplier, verify that all resources will be available when required and retain the initial plans, calculations, revisions and approvals as practical evidence.