Master Production Schedule (2)

8/9/2019 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.

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