MASTER PRODUCTION SCHEDULE

Aggregate planning provides us a set of parameters such as:

1.
2.
3.
4.
5.

aggregate inventory or backorder levels

no. of shifts to be operated
recruitment or lay of
anticipated amount of subcontracting
amount 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 Schedule

Functions of MPS:
1. To translate aggregate plans into specific end items
2. Evaluate alternate schedules
3. Generate material requirement
4. Generate capacity requirements
5. Efective utilization of capacity

Aggregate
product
plan

Firm orders
from known
customers

Forecasts
of demand
from random
customers

Master production
Schedule (MPS)

Material
planning

Vendor follow up
systems

Prodn.Activity
control

Rough cut
capacity planning

THE MASTER PRODUCTION

SCHEDULING
Capacity
CompanyProductEconomic
Constraints Policies Charact.
Considerations

Placed Orders

orecasted Demand
urrent and Planned
vailability, eg.,
nitial Inventory,
nitiated Production,
Subcontracted quantities

Master Production
Schedule:
When & How Much
to produce for each
product

MPS

Planning
Horizon

Time
unit
Capacity
Planning

Master Production Schedule (MPS): Planned production quantities for enditems 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
Product: personal stapler no. 12468
Planned order releases

Week
1
1000

2
1000

3
1000

4
0

5
0

6
1500

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.

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.
Creating The Master Schedule
When we examine the available
information for PG1, we see that;
For MPS Item1, the POH quantity of
week 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 of
week 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 of
week 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.
11

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 pl

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

Aggregate
product
plan

Firm orders
from known
customers

Engineering
design
changes

Master production
Schedule (MPS)

Bill of
material
file

Primary reports
Planned order schedule for
inventory and production
control

Material
planning
(MRP
computer
program)

Forecasts
of demand
from random
customers

Inventory
transactions

Inventory
record file

Secondary reports
Exception reports
Planning reports
Reports for performance
control