Final answer:
Time fences in a Master Production Schedule are periods with different levels of change flexibility, aiming to prevent sudden alterations that cause inefficiency. They can vary based on the company's industry, demand, and policies. The primary purpose is to stabilize production and control operational costs.
Step-by-step explanation:
The concept of time fences in the Master Production Schedule (MPS) refers to the predefined periods within the schedule that have varying degrees of flexibility for changes. Time fences aim to balance the efficiency and responsiveness of the manufacturing process. Within the MPS, there are typically three types of fences: the frozen time fence, where no changes are allowed; the slushy time fence, where limited changes are permitted under certain conditions; and the liquid time fence, where changes are more freely allowed.
Time fences are needed to ensure that there is a structured approach to making changes in the production schedules. They prevent the chaos that would result from constantly altering production plans, which can lead to inefficiencies, increased costs, and reduced morale among workers. By implementing time fences, a company can create a stabilization period for its production allowing for better resource planning, inventory control, and customer service.
Time fences might vary from one organization to another based on the nature of the business, type of industry, production methods, and company policies. Companies with highly variable demand may have more flexible time fences, whereas those in industries with stable demand may have stricter fences.
We are trying to avoid several problems by using time fences, such as excessive inventory levels, missed delivery dates, production inefficiencies, and increased operational costs. Time fences facilitate the smooth running of production processes by clearly demarcating the limits for making changes to the production schedule, ultimately ensuring a more predictable and reliable manufacturing operation.