What is a Master Production Schedule (MPS)?

MPS is a crucial component of the production planning process that helps organizations develop a detailed plan for manufacturing finished goods over a specific time period. The aim of MPS is to align production with customer demand while considering the constraints and capacities of the production amenities. Master SAP modules, enhance your business acumen, and fuel your career growth with SAP Training in Pune at SevenMentor. Here’s a detailed overview of What is a master production schedule (MPS)?

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1. Objective of MPS:

• Balancing Supply and Demand: MPS goals to balance the production of finished goods with customer demand, ensuring that enough products are available to meet customer requirements without excessive inventory.

2. Key Components of MPS:

• Production Planning Horizon: MPS specifically covers a medium-term planning horizon, often spanning a few weeks to several months.
• Forecasted Demand: It utilizes forecasted demand for finished goods derived from the demand management and forecasting processes.

3. Inputs to MPS:

• Sales Forecasts: Forecasts of customer demand for finished goods.
• Inventory Levels: Current inventory levels of finished goods.
• Capacity Constraints: Information about the production capacity of the manufacturing facilities.
• Lead Times: Time required for manufacturing, procurement, and delivery.

4. MPS Planning Process:

• Demand Review: It assesses forecasted demand and current orders to determine the production requirements.
• Inventory Status: It can check the current inventory levels of finished goods.
• Capacity Planning: It evaluates the capacity of production facilities and identifies any constraints or limitations.

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5. Finite Capacity Scheduling:

• Consideration of Constraints: Unlike rough-cut capacity planning, MPS considers finite capacities and detailed production constraints.
• Realistic Production Plans: It generates realistic production plans by accounting for resource limitations.

6. Adjustments and Changes:

• Periodic Review: It is typically reviewed and adjusted periodically to accommodate changes in demand or production capabilities.
• Exceptions Handling: It addresses exceptions and unforeseen events that may impact the production plan.

7. Output of MPS:

• Master Production Schedule: The output of MPS is a detailed schedule specifying the quantity and timing of each finished good to be produced within the planning horizon.
• Planned Order Releases: Generates planned orders for the production of finished goods.

8. Integration with MRP:

• Material Requirements Planning (MRP): The MPS output serves as a key input for MRP, which then calculates the material requirements for components and raw materials needed to fulfill the master production schedule.
  Explore more about What is the Difference Between MRP And CBP?

 

9. Rough-Cut Capacity Planning vs. Detailed Scheduling:

• Rough-Cut Capacity Planning: Generally performed at the beginning of the planning process, providing an overview of capacity constraints.
• Detailed Scheduling: It involves more detailed and finite capacity scheduling, considering specific production constraints.

10. Adjustment Strategies:

• Leveling: It adjusts production quantities to distribute workload evenly over time.
• Chase Demand: It aligns production closely with actual demand, adjusting output as needed.

11. Monitoring and Control:

• Key Performance Indicators (KPIs): It monitors KPIs such as adherence to the production schedule, on-time delivery, and production efficiency.
• Exception Handling: Addresses deviations from the plan and takes corrective actions.

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12. Continuous Improvement:

• Feedback Loops: It establishes feedback mechanisms to continuously improve the accuracy and effectiveness of the MPS process.
• Collaboration: It involves collaboration between production, sales, and other relevant departments for effective planning.

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Master Production Scheduling is a dynamic process that needs regular reviews and adjustments to respond to changes in demand, supply chain disruptions, and other variables. It plays a vital role in achieving operational efficiency and customer satisfaction by ensuring that the right products are available at the right time.

Author:-

Prahlad Pawar

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