Master Production Schedule

Master Production Schedule

Aggregate planning provides us a set of parameters such as:

aggregate inventory or backorder levels no. of shifts to be operated recruitment or lay offanticipated amount of subcontractingamount of production.

This is not sufficient for smooth functioning of a firm

What is needed is a plan stated in terms of specific products that are to be produced in certain quantities by certain periods.

Master Production ScheduleFunctions of MPS:

To translate aggregate plans into specific end itemsEvaluate alternate schedulesGenerate material requirementGenerate capacity requirementsEffective utilization of capacity Firm orders from knowncustomersForecastsof demand from randomcustomersAggregateproductplanMaster productionSchedule (MPS)MaterialplanningVendor follow up systemsProdn.Activity controlRough cut capacity planning

The Master Production SchedulingMPSPlaced OrdersForecasted DemandCurrent and PlannedAvailability, eg.,Initial Inventory,Initiated Production,Subcontracted quantitiesMaster ProductionSchedule:When & How Muchto produce for eachproductCapacityConstraintsCompanyPoliciesEconomicConsiderationsProductCharact.PlanningHorizonTimeunitCapacityPlanningMaster Production Schedule (MPS): Planned production quantities for end-items in each time period of the planning horizon.

Planning horizon length of time over which to plan the production schedule. This length of time must exceed the cumulative lead time to replenish an end-item through all production stages.

Time period (or time bucket) smallest unit of time in which end-item production is scheduled. In practice, time buckets of one week are typical used. Master Production Schedule (MPS):

Example

Production of 1000 no. 12468 staplers is planned for weeks 1, 2, and 3, followed by no more stapler production until week 6 in which 1500 staplers will be produced.

11Creating The Master Schedule

When we examine the availableinformation for PG1, we see that;For MPS Item1, the POH quantity ofweek 31 does not meet the forecasted requirement of week 32. So, we need to schedule this item for week 32.For MPS Item2, the POH quantity ofweek 33 does not meet the forecasted requirement of week 34. So, we need to schedule this item for week 34.For MPS Item3, the POH quantity ofweek 34 does not meet the forecasted requirement of week 35. So, we need to schedule this item for week 35.Some companies may use a safety stock level. Item is rescheduled when POH drops down to the safety stock level.

The master schedule (MS) is a presentation of the demand, including the forecast and the backlog (customer orders received), the master production schedule (the supply plan), the projected on hand (POH) inventory.

Based on a average capacity of 180 units per week, we create our initial (first) plan : The POH for the first week equals the beginning inventory plus the MPS quantity minus the forecast requirements.For each week we expect to complete a total of 180 units of PG1 products.Now the question is, whether do we have sufficient capacity to carry out this plan?

The next step after preparing a MPS is MRP.

BILL OF MATERIALS (BOM) :

The BOM can be described as a list that specifies the Quantity of each item, ingredient or material needed to assemble, mix or produce an end product Firm orders from knowncustomersForecastsof demand from randomcustomersAggregateproductplanBill ofmaterialfileEngineeringdesignchangesInventoryrecord fileInventorytransactionsMaster productionSchedule (MPS)Primary reportsSecondary reportsPlanned order schedule for inventory and production controlException reportsPlanning reportsReports for performance controlMaterialplanning(MRP computer program)Sheet1Product: personal stapler no. 12468Week123456Planned order releases100010001000001500

Sheet2

Sheet3