1. Master Production Scheduling (MPS)

2. Master Production Scheduling (MPS)
Production Planning and Control System
Sales and Operations Planning
(S&OP)
Establishes overall production, workforce, and inventory levels
Determines when specific products will be made, when specific customers orders will be filled, and what products inventory are available to meet new demand
Master Production Scheduling (MPS)
Calculates the timing and quantities of material orders needed to support the master schedule
Material Requirements Planning
(MRP)
Purchasing Control
Production Control
(PAC)

3. PLANNING AND CONTROL ACTIVITIES IN MANUFACTURING ENTERPRISE
Strategic plan
Sales&Operation Plan (Aggregated Production Plan)
Master Production Schedule (MPS)
Material Requirements Plan
Purchasing Control
Production Control
Input /Output Control
Detailed Capacity Requirements Plan
Rough-cut Capacity Plan
Resources Planning
Plan
Execution
Demand
Forcasts
Customers Orders
Resources

4. 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

5. Master Production Schedule
A statement of what the company plans to produce in terms of products, quantities and planning periods
MPS PURPOSE:
A schedule for production orders for MPS items
Drives the MRP calculation
Input to Rough-Cut Capacity Planning
Basis for making delivery promises to customers
WHERE APPLICABLE ?
In all manufacturing companies

6. Master Production Scheduling (MPS)
Week 1 2 3 4 5 6 7 8
Stool X 50
Stool Y
150
100
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)

7. Master Production Scheduling
Master Production Scheduler
Requirements:
Demand forecasts
Customer orders
Safety stock
Orders from Final Product Warehouse
Resources:
Materials
Capacity
Over time
Regular time
Subcontracting

8. Master Production Scheduling in production environments
SOP – sales and operations plan
FAS – final assembly schedule
MTS A
MTO X V
MPS
SOP, MPS, DRP
Make to Stock
Make to Order
Assembly to Order
SOP, FAS
Final Products
Materials
Modules
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

9. Sales and Operations Plan disaggregation (family of ABC products case)
Month
January
February
March
April
Demand
3000
3400
Production
Inventory
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
Demand
350
450
Product B
200
300
Product C
100

10. Master Production Scheduling
Product: B
Lot size: units
On-hand: 300 units
Week 9 10 11 12 13 14 15 16
Demand
200
300
Projected 300 available
100
-100
Net requirements
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

11. 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 forcast
200
300
Projected available 300
100
MPS
400
Projected available - inventory available at end of the week
Projected available = On
Hand
MPS
Demand
forcast + -

12. 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 70
Product: B
Lot size: 400
On-hand: 300
Week 9 10 11 12 13 14 15 16
Demand forcast
200
300
Customer orders
250
170
130 80 70
Projected available 50
350
150
MPS
400
Larger
Forcast/Orders
MPS On
Hand
Projected available -
Projected available – planned inventory available at end of the week + =

13. Total orders to the next MPS Total orders to the next MPS
Available to promise
Available to promise allows the firm very quickly and realistically promise delivery of products to the customer without any changes in MPS
Product: B
Lot size: 400
On-hand: 300
Week 9 10 11 12 13 14 15 16
Demand forcast
200
300
Customer orders
250
170
130 80 70
Projected available 50
350
150
MPS
400
Available to promise (ATP) 30
270
240
330
Total orders to the next MPS
MPS
(1)
Available to promise
Week 1 - = On
Hand +
Total orders to the next MPS
MPS
(n)
Available to promise
Week n - =