Master Production Schedule

Overview
Define Master Production Schedule
Explain MPS
Discuss How MPS Works
Example From Real Life
Brainstorm: How Can MPS Help Your
Firm?
Practice MPS Logic
What is MPS?
Master Production Schedule
States the requirements for
individual end items by date and
quantity. -APICS
MPS Explained

Breaks down, or disaggregates,

the production plan into product
families
Promotes valid order promises
Provides a communication
medium between
Marketing/Sales and Operations
Explanation Continued
Proactively control ability to
deliver goods to customers
Resource availability control
Proactively control inventory
levels
Disaggregate the Sales and
Operations Plan

The production plan is broken

into product families
Promotes Valid Order Promises

By validating the capacity for

the MPS through rough cut
capacity planning, alterative
plans can be made when there
are more orders than production
Marketing Operations

Marketing communicates
demand through customer
orders and forecasts
Operations communicates
capacity through inventory
levels and constraints
Resource Availability
Control
Production shortfalls will be
known ahead of time and
alternative plans can be made.
Customer Service
Proactively control ability to
deliver goods to customers
Inventory Control
Proactive approach to inventory
control
Items are scheduled to arrive when
needed
Safety stock has less importance
Planning Organization

Sales and Operations Plan Resource Planning

Master Production Schedule Rough Cut Capacity Planning

Materials Resource planning Capacity Requirements Plan

Shop Floor Control Input/Output

How MPS Works
Information needed for MPS
logic
Lot Size
Lead Time
Product Demand
Starting Inventory
How MPS Works Cont.
2
W Inc. MPS for Widgets
Lot Size = 25 units
Lead Time = 0 periods
Period 1 2 3 4 5
Demand 30 30 30 30 30
Available 20 15 10 5 0
MPS 50 25 25 25 25
 Jet Spray Corp. Example

Jet Spray Corporation

Markets dispensers for hot & cold
beverages
Uses an integrated system that includes:
MRP
Capacity Planning
Shop floor control
MPS
Inventory Management
Example Continued
Brainstorming Exercise
How can an MPS system be
used in your Firm?
Youre the Master
Scheduler
2
W Inc. is scheduling production
for a new product called the
Widget 5000
Starting Inventory = 0
Lot Size = 50
Lead time = 0
 2
W Inc. Continued

Period 1 2 3 4 5 6 7

Demand 25 25 25 0 15 35 25

Available

MPS 50
Summary
MPS breaks the Sales &
Operations plan into product
families
Maintains Desired Level of
Customer Service
Allows proactive control of
inventory
Bibliography
Sources:
Cox III, James F., and Blackstone Jr., John
H., eds. APICS Dictionary. 1998

Vollman, Thomas E., William L. Berry, D.

Clay Whybark, (1997) Manufacturing
Planning and Control Systems (4th ed.).
New York McGraw-Hill

APICS. (2000). Basics of Supply Chain

Management. Virginia.