Master Production Scheduling

(MPS)
 Production Planning and Control System

Sales and Operations Planning Establishes overall production,

(S&OP) workforce, and inventory levels

Determines when specific products

will be made, when specific
Master Production Scheduling
(MPS) customers orders will be filled, and
what products inventory are available
to meet new demand

Calculates the timing and quantities

Material Requirement Planning
of material orders needed to support
(MRP)
the master schedule

Production Control
Purchasing Control
(PAC)
 PLANNING AND CONTROL SYSTEM

Demand Resources
Strategic planning

Sales&Operation Plan. Resources

(Aggregated Production Plan) Planning
Forecasts

Master Production Rough-cut

Customers Scheduling (MPS) Capacity Plan.
Orders
Material Requirements Plan Detailed Capacity
Requirements Plan.
Plan
Execution
Input /Output
Purchasing Production
Control
Control Control
 Master Production Scheduling (MPS)

Master Production Scheduling allows the firm to:

•„Break down” the aggregated plans made in the SOP into production schedule
of specific products which are ordered by customer
•Serve as a plan that uses actual customer orders in addition to forecast data
•Serve as a source of information by which it is possible to develop much more
specific capacity and resource plans.
•Serve as a method to effectively translate customer orders into effectively timed
production orders for the facility.
•Serve as an effective tool for planning finished goods inventory levels
 Master Production Schedule

A statement of what the company plans to produce in terms of

individual products, quantities and planning periods

MPS PURPOSE:
1. A schedule for production orders for MPS items
2. Drives the MRP calculation
3. Input to Rough-Cut Capacity Planning
4. Basis for making delivery promises to customers

WHERE APPLICABLE ?

In all manufacturing companies

 Master Production Scheduling (MPS)

Week 1 2 3 4 5 6 7 8
Stool X 50 50 50 50
Stool Y 150 150 100 150

Master Production Schedule should take into account:

•customers requirements (quantities and delivery time)
•capacity and time constraints (be feasible)
•production efficiency factors (minimum production batch size, inventory
holding level)
 Master Production Scheduling

Require
ments: Resource
•De
mand fo Master Production s:
re •Mat
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•Cu
stomer casts Scheduler
•Cap
or acity
•Sa
fety sto ders Ov
•Ord ck er time
ers from Re
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Master Production Scheduling in production environments
SOP – Sales and Operations Plan
FAS – Final Assembly Schedule

SOP, MPS, SOP, FAS SOP, FAS

DRP
Final Products Final Products Final Products
MTO
Modules
MPS
MTS MTS MTO

A X V
Materials Materials Materials

MPS
Make to Stock Assembly to Order Make to Order
Master Production Scheduling depends on the production environment (MTS or MTO or ATO).
MPS operates at the level that has the fewest items that need to be scheduled.
The subject of planning :
MTS - specific final products
ATO – modules and components to be assembled
MTO – standard components and raw materials
Sales and Operations Plan disaggregation
(family of ABC products case)
Month January February March April
Demand 3000 3000 3000 3400
Production 3000 3000 3000 3400
Inventory 0 0 0 0

Demand disaggregation in March and April

A,B,C products demand decomposition in March and April
Product participation in total demand: B= 26.5%, C = 26,5%, A =47%

Month March April

Week 9 10 11 12 13 14 15 16

Product A
350 350 350 350 450 450 450 450
Demand

Product B
Demand 200 200 200 200 300 300 300 300

Product C
200 200 200 200 100 100 100 100
Demand
 Master Production Scheduling
Product: B
Lot size: 400 units
On-hand: 300 units

Week 9 10 11 12 13 14 15 16
Demand 200 200 200 200 300 300 300 300

Projected 300 100 -100

available
Net
requirements 100
MPS 400

Projected available – planned inventory available at the end of the week

On-hand – current inventory (initial inventory)
Lot size – minimal quantity accepted
MPS – Master Production Schedule
 Master Production Scheduling
(Make to Stock environment)

Product: B
Lot size: 400
On-hand: 300

Week 9 10 11 12 13 14 15 16
Demand 200 200 200 200 300 300 300 300
forcast
Projected 300 100 300 100 300 100 200 300
available
MPS 400 400 400 400 400

Projected available - inventory available at end of the week

Projected Demand
On + MPS -
available = Hand forcast
 Customer orders entry
Demand sources: individual customers orders, distributors orders, final
products warehause orders

Week 9 10 11 12 13 14 15 16
Total orders 250 200 170 130 80 80 70
Product: B
Lot size: 400
On-hand: 300
Week 9 10 11 12 13 14 15 16
Demand 200 200 200 200 300 300 300 300
forcast
Customer 250 200 170 130 80 80 70
orders
Projected 300 50 250 50 250 350 50 150 250
available
MPS 400 400 400 400 400

Projected available – planned inventory available at end of the week

Projected On - Larger
+
available = Hand MPS Forcast/Orders
 Available to promise
Available to promise allows the firm very quickly
Product: B
and realistically promise delivery of products to
Lot size: 400
On-hand: 300
the customer without any changes in MPS

Week 9 10 11 12 13 14 15 16
Demand 200 200 200 200 300 300 300 300
forcast
Customer 250 200 170 130 80 80 70
orders
Projected 50 250 50 250 350 50 150 250
300 available
MPS 400 400 400 400 400
Available to 50 30 270 240 330 400
promise
(ATP)

Available to = On MPS Total orders to

-
promise Hand + (1) the next MPS
Week 1

Available to MPS Total orders to

= -
promise (n) the next MPS
Week n