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

Demand

30

30

30

30

30

Available

20

15

10

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
W2 Inc. is scheduling production
for a new product called the
Widget 5000
Starting Inventory = 0
Lot Size = 50
Lead time = 0

W Inc. Continued
Period

Demand

25

25

25

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 McGrawHill
APICS. (2000). Basics of Supply Chain
Management. Virginia.