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Master Production Schedule

Master Production Schedule

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Master Production Schedule

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  1. Master Production Schedule

  2. 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

  3. What is MPS? • Master Production Schedule – States the requirements for individual end items by date and quantity. -APICS

  4. 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

  5. Explanation Continued • Proactively control ability to deliver goods to customers • Resource availability control • Proactively control inventory levels

  6. Disaggregate the Sales and Operations Plan • The production plan is broken into product families

  7. 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

  8. Marketing  Operations • Marketing communicates demand through customer orders and forecasts • Operations communicates capacity through inventory levels and constraints

  9. Resource Availability Control • Production shortfalls will be known ahead of time and alternative plans can be made.

  10. Customer Service • Proactively control ability to deliver goods to customers

  11. Inventory Control • Proactive approach to inventory control • Items are scheduled to arrive when needed • Safety stock has less importance

  12. Planning Organization

  13. How MPS Works • Information needed for MPS logic • Lot Size • Lead Time • Product Demand • Starting Inventory

  14. How MPS Works Cont. W2 Inc. MPS for Widgets Lot Size = 25 units Lead Time = 0 periods

  15. 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

  16. Example Continued

  17. Brainstorming Exercise • How can an MPS system be used in your Firm?

  18. 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

  19. W2 Inc. Continued

  20. Summary • MPS breaks the Sales & Operations plan into product families • Maintains Desired Level of Customer Service • Allows proactive control of inventory

  21. 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.