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A master production schedule (MPS) is a plan for individual commodities to produce in each time period such as production, staffing,

inventory, etc. [1] It is usually linked to manufacturing where the plan indicates when and how much of each product will be demanded.[2] This plan quantifies significant processes, parts, and other resources in order to optimize production, to identify bottlenecks, and to anticipate needs and completed goods. Since an MPS drives much factory activity, its accuracy and viability dramatically affect profitability. Typical MPS's are created by software with user tweaking. Due to software limitations, but especially the intense work required by the "master production schedulers", schedules do not include every aspect of production, but only key elements that have proven their control effectivity, such as forecast demand, production costs, inventory costs, lead time, working hours, capacity, inventory levels, available storage, and parts supply. The choice of what to model varies among companies and factories. The MPS is a statement of what the company expects to produce and purchase (i.e. quantity to be produced, staffing levels, dates, available to promise, and projected balance).[1] [3] The MPS translates the business plan, including forecast demand, into a production plan using planned orders in a true multi-level optional component scheduling environment. Using MPS helps avoid shortages, costly expediting, last minute scheduling, and inefficient allocation of resources. Working with MPS allows businesses to consolidate planned parts, produce master schedules and forecasts for any level of the Bill of Material (BOM) for any type of part.

Material requirements planning (MRP) is a production planning and inventory control system used to manage manufacturing processes. Most MRP systems are software-based, while it is possible to conduct MRP by hand as well. An MRP system is intended to simultaneously meet three objectives:

Ensure materials are available for production and products are available for delivery to customers. Maintain the lowest possible material and product levels in store Plan manufacturing activities, delivery schedules and purchasing activities.

The scope of MRP in manufacturing [edit] The basic functions of an MRP system include: inventory control, bill of material processing, and elementary scheduling. MRP helps organizations to maintain low inventory levels. It is used to plan manufacturing, purchasing and delivering activities.

MRP and MPS are industrial terms that stand for material requirement planning and master production schedule, and there are several key differences between them.

MRP is used to determine how many materials to order, while MPS is used to determine when materials will be used to produce an end item. Materials requirement planning is a technique for inventory planning and maintenance. It is used to decide how much material is needed to order to have the right inventory on hand to keep the production schedule operating at maximum efficiency. MRP uses the bill of material required to produce a product, along with knowledge of existing inventory and the master production schedule, to decide what materials to order. The MRP list is used to produce the list of what was produced and how much of the materials in the production facility were used to produce the last run of product per the master production schedule. A material requirement planning list can be reviewed, either by computer or by an individual who is knowledgeable about the MPS, and then used to determine what must be ordered for inventory to complete the next production run without any material shortages or lost time due to ordering. The master production schedule, on the other hand, is the actual list that shows the timing of the production schedule. It also shows how much each machine can produce and how many shifts are being utilized. By basing the MPS on the MRP lists, the operators of the equipment can be assured that they will have neither excess inventory after a production run nor insufficient materials to complete the run on time. The MRP and MPS, therefore, work together to ensure maximum efficiency. One important difference between MRP and MPS is that a master production schedule operates through only one layer of the bill of materials for a product. This means that it does not take into account all of the bills of material needed to make a product, while the material requirement planning protocol will take all of the materials required to produce a product into account, including those across different or separate bills of material. By using the two different strategies together, a production facility can make itself more efficient and lean running than if it did not use MPS and MRP techniques.