Master Production Schedule Overview Define Master Production Schedule

Master Production Schedule

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 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

Planning Organization

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

How MPS Works Cont. 2 W Inc. MPS for Widgets Lot Size = 25 units Lead Time = 0 periods Period 1 2 3 4 5 Demand 30 30 30 Available 20 15 10 5 0 MPS 50 25 25

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

Example Continued

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

You’re the Master Scheduler… 2 • W Inc. is scheduling production for a new product called the Widget 5000 • Starting Inventory = 0 • Lot Size = 50 • Lead time = 0

2 W Inc. Continued Per i o d 1 2 345 6 7 De m a n 2 2 2 1 3 2 d 5 5 50 5 5 5 Av a il

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 (4 th ed. ). New York Mc. Graw-Hill • APICS. (2000). Basics of Supply Chain Management. Virginia.