Master Production Schedule
Overview
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•
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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
Planning Organization
Sales and Operations Plan
Resource Planning
Master Production Schedule
Rough Cut Capacity Planning
Materials Resource planning
Capacity Requirements Plan
Shop Floor Control
Input/Output
How MPS Works
• Information needed for MPS
logic
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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
30
30
Available
20
15
10
5
0
MPS
50
25
25
25
25
Jet Spray Corp. Example
• Jet Spray Corporation
– Markets dispensers for hot & cold
beverages
– Uses an integrated system that includes:
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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
Period
1
2
3
4
5
6
7
Demand
25
25
25
0
15
35
25
Available
MPS
50
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.