master production schedule (2)
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Master Production ScheduleMaster Production Schedule
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OverviewOverview DefineDefine MMasteraster PProductionroduction SSchedulechedule
Explain MPSExplain MPS
Discuss How MPS WorksDiscuss How MPS Works
Example From Real LifeExample From Real Life
Brainstorm: How Can MPS Help YourBrainstorm: How Can MPS Help Your
Firm?Firm? Practice MPS LogicPractice MPS Logic
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What is MPS?What is MPS?
MMasteraster PProductionroduction SSchedulechedule
States the requirements forStates the requirements for
individual end items by date andindividual end items by date and
quantity.quantity. --APICSAPICS
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MPS ExplainedMPS Explained
Breaks down, or disaggregates,Breaks down, or disaggregates,
the production plan into productthe production plan into product
familiesfamilies
Promotes valid order promisesPromotes valid order promises
Provides a communicationProvides a communication
medium betweenmedium betweenMarketing/Sales and OperationsMarketing/Sales and Operations
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Explanation ContinuedExplanation Continued
Proactively control ability toProactively control ability to
deliver goods to customersdeliver goods to customers
Resource availability controlResource availability control
Proactively control inventoryProactively control inventory
levelslevels
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Disaggregate the Sales andDisaggregate the Sales and
Operations PlanOperations Plan
The production plan is brokenThe production plan is broken
into product familiesinto product families
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Promotes Valid Order PromisesPromotes Valid Order Promises
By validating the capacity forBy validating the capacity for
the MPS through rough cutthe MPS through rough cut
capacity planning, alterativecapacity planning, alterative
plans can be made when thereplans can be made when there
are more orders than productionare more orders than production
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MarketingMarketing OperationsOperations
Marketing communicatesMarketing communicates
demand through customerdemand through customer
orders and forecastsorders and forecasts
Operations communicatesOperations communicates
capacity through inventorycapacity through inventory
levels and constraintslevels and constraints
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Resource AvailabilityResource Availability
ControlControl
Production shortfalls will beProduction shortfalls will be
known ahead of time andknown ahead of time and
alternative plans can be made.alternative plans can be made.
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Customer ServiceCustomer Service
Proactively control ability toProactively control ability to
deliver goods to customersdeliver goods to customers
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Inventory ControlInventory Control
Proactive approach to inventoryProactive approach to inventory
controlcontrol
Items are scheduled to arrive whenItems are scheduled to arrive when
neededneeded
Safety stock has less importanceSafety stock has less importance
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Planning OrganizationPlanning Organization
Shop Floor Control
Materials Resource planning
Master Production Schedule
Sales and Operations Plan
Input/Output
Capacity Requirements Plan
Rough Cut Capacity Planning
Resource Planning
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How MPS WorksHow MPS Works
Information needed for MPSInformation needed for MPS
logiclogic
Lot SizeLot Size
Lead TimeLead Time
Product DemandProduct Demand
Starting InventoryStarting Inventory
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How MPS Works Cont.How MPS Works Cont.
Period 1 2 3 4 5
Demand 30 30 30 30 30
Available 20 15 10 5 0
MPS 50 25 25 25 25
W2
Inc. MPS for Widgets
Lot Size = 25 unitsLead Time = 0 periods
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Jet Spray Corp. ExampleJet Spray Corp. Example
Jet Spray CorporationJet Spray Corporation
Markets dispensers for hot & coldMarkets dispensers for hot & cold
beveragesbeverages Uses an integrated system that includes:Uses an integrated system that includes:
MRPMRP
Capacity PlanningCapacity Planning
Shop floor controlShop floor control
MPSMPS
Inventory ManagementInventory Management
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Example ContinuedExample Continued
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Brainstorming ExerciseBrainstorming Exercise
How can an MPS system beHow can an MPS system be
used in your Firm?used in your Firm?
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Youre the MasterYoure the Master
SchedulerScheduler
WW22Inc. is scheduling productionInc. is scheduling production
for a new product called thefor a new product called the
Widget 5000Widget 5000
Starting Inventory = 0Starting Inventory = 0
Lot Size = 50Lot Size = 50
Lead time = 0Lead time = 0
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WW22
Inc. ContinuedInc. Continued
Period 1 2 3 4 5 6 7
Demand 25 25 25 0 15 35 25
Available
MPS 50
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SummarySummary
MPS breaks the Sales &MPS breaks the Sales &
Operations plan into productOperations plan into product
familiesfamilies
Maintains Desired Level ofMaintains Desired Level of
Customer ServiceCustomer Service
Allows proactive control ofAllows proactive control ofinventoryinventory
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BibliographyBibliography Sources:Sources:
Cox III, James F., and Blackstone Jr., JohnCox III, James F., and Blackstone Jr., JohnH., eds.H., eds. APICS Dictionary.APICS Dictionary. 19981998
Vollman, Thomas E., William L. Berry, D.Vollman, Thomas E., William L. Berry, D.Clay Whybark, (1997)Clay Whybark, (1997) ManufacturingManufacturingPlanning and Control SystemsPlanning and Control Systems (4(4thth ed.). Newed.). NewYork McGrawYork McGraw--HillHill
APICS. (2000).APICS. (2000). Basics of Supply ChainBasics of Supply ChainManagement.Management. Virginia.Virginia.