future production of end items over a short range planning horizon that usually spans from a few weeks to several months . The mps sets the quantity of each end item(finished product) to be produced in each time period (week/month or quarter) of the short-range planning horizon. contd
MPS gives the information about the
quantities and timing of the planned production of a product. PROVIDES BASIS FOR:
Making good use of manufacturing resources
Making customer delivery promises Resolving tradeoffs between sales and manufacturing Attaining strategic objectives in the sales and operations plan MASTER PRODUCTION SCHEDULING TECHNIQUES Available = inventory position at end of week = starting inventory + MPS forecast 6. Disaggregate the Sales andDisaggregate the Sales and Operations PlanOperations Plan The production plan is brokenThe production plan is broken into product familiesinto product families 7. 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 8. 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 9. 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. 10. Customer ServiceCustomer Service Proactively control ability toProactively control ability to deliver goods to customersdeliver goods to customers 11. 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 importance As a statement of output, theMPS Forms the basic communication between the market and manufacturing. Is stated in product specification terms (part numbers) for which there are Bill of Materials (BOM). 7. For the Make-to-Stock firm The items are produced in batches, carrying finished goods inventories for most, if not all, end-items. 8. For the Make-to-Order firm In general, it carries no finished goods inventory and builds each customer order as needed. The MPS unit is defined as the particular end-item composing a customer order. Production often starts before a complete product definition or BOM has been determined. 9. For the Assembly-to-orderfirm The MPS unit is typified by an almost limitless number of possible end-item configurations all made from combinations of basic components and subassemblies. Probably will not start final assembly until order arrives. . Linkages to other firm activities It receives information from the SOP which in turn receives info from Demand Management (Forecasting) and resource planning. In addition it is linked to ERP (planning) and rough-cut capacity (make sure we can make it) planning. It generates information for MRP