Master Production Schedule (MPS): Objectives, Functions, and Inputs
Master Production Schedule (MPS)
Objectives, functions, inputs, and guidance from the MPS.
Functions of MPS
- Translate aggregate plans into specific items.
- Evaluate alternative programs.
- Generate capacity requirements.
- Facilitate information processing.
- Maintain valid priorities.
- Utilize capacity effectively.
Definition of MPS
Sets the quantity of each article to be produced, to be completed per week, in a short horizon planning. The range of the articles allows them to be sent to the client or stored as finished product.
Manufacturing: Discrete Assembly
Starts with many raw materials and components, which are combined into one or a few final MPS items. The process begins with the order and goes back to raw material availability. The main interest here is that these companies produce for inventory.
Manufacturing: Industrial Process
As opposed to discrete assembly, a few types of raw materials are transformed into multiple end items. The MPS begins at the level of raw materials.
MPS supplies horizon planning and policies.
Inputs of the MPS
The two principal inputs of the MPS come from:
- Forecasts
- Customer orders
Forecasts
Demand forecasts are a major thrust when performing inventory of items. Orders from customers can reduce the uncertainty. Under order, anticipate and compare these predictions with customer orders when available.
Time Horizon
The time horizon covered by the MPS depends on the type of product, production volume, and component delivery time.
The MPS has fixed (or attempts to have) flexible proportions. The term includes a fixed proportion of the minimum delivery time needed and is not open to change. The final product that has the longest delay time determines the minimum time that must cover a planning horizon.
Functional Interfaces
The operator needs information from other functional areas to develop an MPS with which we can achieve the objectives and targets incorporated into the production plan.
Development of MPS
- Know the sales of each product.
- Volume of production and shipment date.
- Based on demand:
Business days, number of production lines, labor shifts to be produced, production of products/boxes based on demand, raw material procurement.
Areas That Use the MPS
Finance uses it to estimate budgets and cash flow. Marketing uses it to project the effect of changes in the product mix on the company’s ability to meet customer demand and program delivery of items. Manufacturing uses it to estimate the effects of changes in the MPS on activity charges, where labor stake is crucial.
Key Functions for Completing the MPS Process
- Translate aggregate plans in order to evaluate specific programming alternatives.
- Generate material requirements based on requirements and maximum abilities.
- Facilitate information processing.
- Maintain valid priorities.
Techniques to Disaggregate the Aggregate Plan into MPS
- Adjustment, cutting, and programming methods.
- Mathematical and heuristic methods.
A good MPS must take into account capacity limitations and stay feasible, which is achieved by applying the following techniques:
- Capacity planning using aggregated factors (CPOF).
- Capability list.
- Freezing the MPS.
Exponential Smoothing
Defines the next forecast period as the forecast of the current period plus a percentage of the deviation between the predicted value for the current period and the actual value obtained.
Promise of Orders
For many products, customers do not expect immediate delivery of orders but place orders for delivery in the future. The delivery date is negotiated through a series of promises of the order, where the client does not question when the order can be shipped or specify a shipping date with the order.