The Master Production Schedule (MPS) is a key component of production planning and control that specifies the quantity and timing of production for each finished product. It serves as a detailed plan that guides the production activities within an organization.
The primary purpose of the MPS is to synchronize the production process with customer demand, inventory levels, and available production resources. It takes into account factors such as sales forecasts, customer orders, lead times, and production capacities to determine the production schedule. The MPS is typically created based on the sales forecast and serves as an input for material requirements planning (MRP) and production scheduling.
Here are some key aspects and considerations related to the Master Production Schedule:
1. Time Horizon: The MPS typically covers a medium-term time horizon, often ranging from a few weeks to several months. The specific time frame depends on the nature of the industry, product characteristics, and demand patterns. The MPS may be updated periodically to reflect changes in demand, production capabilities, or other relevant factors.
2. Demand Forecast: The MPS is based on the demand forecast, which estimates the expected customer demand for finished products. The demand forecast considers historical sales data, market trends, customer orders, and other relevant information. It provides the basis for determining the required production quantities.
3. Available-to-Promise (ATP) Quantity: The MPS takes into account the available-to-promise (ATP) quantity, which represents the portion of production capacity that can be allocated to new customer orders without affecting existing commitments. The ATP quantity considers the production schedule, existing customer orders, and inventory levels.
4. Production Constraints: The MPS considers various production constraints and limitations that may impact the production process. These constraints can include factors such as machine capacities, labor availability, tooling requirements, raw material availability, and lead times. By incorporating these constraints into the MPS, organizations ensure that production plans are feasible and realistic.
5. Safety Stock and Inventory Levels: The MPS considers the desired safety stock levels and inventory targets for finished products. Safety stock is an additional quantity of inventory maintained as a buffer to accommodate demand variability, lead time uncertainties, and unexpected events. The MPS helps in managing the production schedule to maintain adequate inventory levels while minimizing excess inventory or stockouts.
6. MPS Updates: The MPS is subject to periodic updates to reflect changes in demand, production capacities, or other relevant factors. This allows organizations to adapt their production plans and schedules to changing conditions. The frequency of MPS updates depends on the business requirements and the nature of the industry.
The Master Production Schedule serves as a critical tool for production planning and control, providing a detailed plan for production activities. By effectively managing the MPS, organizations can align their production process with customer demand, optimize resource utilization, minimize lead times, and ensure the timely availability of finished products.
