Overview • Define Master Production Schedule • Explain MPS • Discuss How MPS Works • Example From “Real Life” • Brainstorm: How Can MPS Help Your Firm? • Practice MPS Logic
What is MPS? • Master Production Schedule – States the requirements for individual end items by date and quantity. -APICS
MPS Explained • Breaks down, or disaggregates, the production plan into product families • Promotes valid order promises • Provides a communication medium between Marketing/Sales and Operations
Explanation Continued • Proactively control ability to deliver goods to customers • Resource availability control • Proactively control inventory levels
Disaggregate the Sales and Operations Plan • The production plan is broken into product families
Promotes Valid Order Promises • By validating the capacity for the MPS through rough cut capacity planning, alterative plans can be made when there are more orders than production
Marketing Operations • Marketing communicates demand through customer orders and forecasts • Operations communicates capacity through inventory levels and constraints
Resource Availability Control • Production shortfalls will be known ahead of time and alternative plans can be made.
Customer Service • Proactively control ability to deliver goods to customers
Inventory Control • Proactive approach to inventory control • Items are scheduled to arrive when needed • Safety stock has less importance
How MPS Works • Information needed for MPS logic • Lot Size • Lead Time • Product Demand • Starting Inventory
How MPS Works Cont. W2 Inc. MPS for Widgets Lot Size = 25 units Lead Time = 0 periods
Jet Spray Corp. Example • Jet Spray Corporation • Markets dispensers for hot & cold beverages • Uses an integrated system that includes: • MRP • Capacity Planning • Shop floor control • MPS • Inventory Management
Brainstorming Exercise • How can an MPS system be used in your Firm?
You’re the Master Scheduler… • W2 Inc. is scheduling production for a new product called the Widget 5000 • Starting Inventory = 0 • Lot Size = 50 • Lead time = 0
Summary • MPS breaks the Sales & Operations plan into product families • Maintains Desired Level of Customer Service • Allows proactive control of inventory
Bibliography • Sources: • Cox III, James F., and Blackstone Jr., John H., eds. APICS Dictionary. 1998 • Vollman, Thomas E., William L. Berry, D. Clay Whybark, (1997) Manufacturing Planning and Control Systems (4th ed.). New York McGraw-Hill • APICS. (2000). Basics of Supply Chain Management. Virginia.