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

S a le s a n d O p e r a tio n s P la n R e s o u r c e P la n n in g

M a s t e r P r o d u c t i o n S c h e d u le R o u g h C u t C a p a c ity P la n n in g

M a t e r ia ls R e s o u r c e p la n n in g C a p a c it y R e q u ir e m e n t s P la n

S h o p F lo o r C o n t r o l In p u t/O u tp u t
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?
You’re the Master
Scheduler…
• W2 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.