The Clover group, a well-established branded consumer goods company in South Africa, has
recently acquired a brand new water and ice tea bottling facility. In order to align the
operations of this facility with the efficiency and effectiveness objectives of the Group as a
whole, this facility requires a specially tailored optimised master production schedule (MPS).
Infor Advanced Scheduler software, which is the software that the Group uses in all of their
other manufacturing facilities for production scheduling, is used to develop this optimal
production schedule. Some general production planning rules need to be developed as
guidelines for the development of the optimal MPS. Accompanying the MPS, a job schedule
that organises labour to ensure that the labour resources required are aligned with the
production plan, is also required for this facility.
Extensive literature studies focused at specifically sales and operations planning, capacity
planning and operations research tools and techniques, specifically Mixed Integer Linear
Programming (MILP) gives direction to the development of this MPS. In the first stages,
sales and operations functions and rough cut capacity planning is used to identify production
planning rules fitting the specifications of the facility in terms of equipment capabilities,
available capacity, sales and demand forecasts and company-wide general rules and
assumptions. After establishing the basic rules and parameters, all of the important factors
that influence the MPS are systematically optimised, and a MILP to determine the optimal lot
sizes for different scheduling alternatives is developed. All the optimised factors are then
combined to develop two alternative production schedules, one that is a continuous
production schedule of which the monthly schedule remains constant throughout the year.
The second alternative, which resulted in the optimal schedule alternative, is a production
schedule with one off-peak schedule followed for six months, combined with a peak schedule
for the other six months. The peak and off-peak periods are identified through analysis of
sales and demand forecasts for the coming year. Job schedules with different shift
configuration alternatives are created for both of the schedule alternatives, and this is how the
optimal schedule is selected, by evaluating the cost of labour associated with the selected
All the alternative schedules are confirmed as feasible solutions, and the selected MPS
alternative is optimal in terms of the determined lot sizes, average inventory holding cost and
labour cost related to the accompanying job schedule. A sensitivity analysis is done to
evaluate the rigidity of the MPS, should safety stock levels be adjusted, and the MPS proved
to be rigid enough as the schedule would barely change based on production time required.
The sensitivity analysis does prove that major cost savings can occur if safety stock levels are
reduced, but future work on improving forecasting accuracy is recommended first. Other
future work possibilities have emerged such as warehouse utilisation optimisation,
distribution and procurement planning and optimisation and forecasting improvement. This
project, along with future work recommendations are all ultimately aimed at developing and
optimising the operations of the Clover Waters Facility, in order to manage resource
constraints as efficiently and cost effectively as possible and satisfy customer demand.
Mini Dissertation (BEng)--University of Pretoria, 2016.