Master production schedule

Master production schedule (MPS) - is a detailed plan of the production broken down by specific time intervals (usually days, weeks or months).

Structure and application

It is used in manufacturing companies using ERP or MRP II systems because it enables inventory levels planning at the level of the final product quantity.

It allows to describe the expected production volume of particular product. MPS diagram allow to specify the gross demand in the MRP algorithm, which is necessary to plan the amount of necessary materials.

MPS is customarily presented in the form of a table where the columns are substituted for previously defined time intervals and rows for the number of available lines of products, number of pieces supplied and the anticipated demand for the product.

Objectives of master production schedule

The two main objectives of the master production scheduling are:

• Securing material for final assembly, which is being carried out based on specific customer needs. To be able to perform specific order in time desired by the client semi-products and materials must be prepared according to MPS.
• Ability to assess the ability to take orders. Based on ongoing production and awaiting execution of orders we can calculate if and how much we can offer to our customers. MPS is method to transform customer orders into production orders spread over time.

Due to the fact that MPS is used for further planning requirements for the materials. It is always created for individual products never for entire product groups.

Examples of Master production schedule

• A manufacturing firm that produces computer parts may have a master production schedule that outlines the number of components they need to produce each month to meet demand. This schedule may also include information about the specific parts that need to be manufactured, the time frame for each part, and the quantity of each part that needs to be produced.
• An apparel company may have an MPS that outlines the types of garments that need to be produced each season. This schedule may include information about the type of fabric to be used, the colors and designs of the garments, and the quantity of each item that needs to be produced.
• A restaurant may have an MPS that outlines the types of dishes that need to be prepared each day. This schedule may include information about the ingredients that need to be purchased and the quantity of each dish that needs to be prepared.

Advantages of Master production schedule

Master production schedule (MPS) has many advantages which help organizations in their production planning and scheduling. These advantages include:

• Improved efficiency: MPS helps in synchronizing the production process and therefore allows for better utilization of resources. It also helps to reduce the waste of resources due to over-production or under-production.
• Reduced inventory costs: MPS enables the organization to plan the production in a way that reduces the amount of inventory needed, which results in lower inventory costs.
• Increased customer satisfaction: MPS allows the organization to meet customer requirements in a timely manner. This leads to increased customer satisfaction and loyalty.
• Improved visibility: MPS provides the organization with a better visibility into the production process, helping to identify potential problems and opportunities.
• Improved decision making: MPS provides the organization with the necessary data to make informed and timely decisions. This leads to improved decision making and better results.

Limitations of Master production schedule

The Master Production Schedule (MPS) is a detailed plan of production broken down by specific time intervals, such as days, weeks, or months. However, there are some limitations to MPS that should be considered:

• The MPS is often based on past performance and does not consider future market trends or customer needs. This can result in a production plan that does not meet customer demand.
• The MPS can be difficult to adjust if there are sudden changes in market conditions or customer needs.
• The MPS may not be able to account for unexpected delays or disruptions in the production process.
• The MPS is also limited by the accuracy of the data used to create the plan. If the data is inaccurate or out of date, the MPS will not be effective.

Other approaches related to Master production schedule

• Capacity planning - It is a process of determining the optimal production capacity required to meet customer demand.
• Production planning - It involves the determination of what products to produce, when to produce them, and how many to produce.
• Scheduling - It is the process of determining when each operation will be performed and the sequence in which each operation will be performed.
• Inventory Management - It is the process of managing the inventory of a business in order to ensure that there is enough inventory to meet customer demand.
• Quality Control - It is the process of ensuring that products and services meet the established quality standards.
• Cost Estimation - It is the process of estimating the cost of the production process.

In summary, other approaches related to master production schedule include capacity planning, production planning, scheduling, inventory management, quality control, and cost estimation. These approaches help organizations to effectively manage the production process and ensure that customer demand is met.

Master production schedule — recommended articles

Optimization of the production run-length — Production logistics subsystem — Departmental planning — Dependent demand — Production order — Operational control — MRP II — Production capacity curve — Target cost

References

• Zhao, X., & Lee, T. S. (1993). Freezing the master production schedule for material requirements planning systems under demand uncertainty. Journal of Operations Management, 11(2), 185-205.
• Sridharan, V., Berry, W. L., & Udayabhanu, V. (1987). Freezing the master production schedule under rolling planning horizons. Management Science, 33(9), 1137-1149.