Master production schedule

this is fruitful slides for operation management.

1. Master Production ScheduleMaster Production Schedule

2. OverviewOverview
•Define Define MMaster aster PProduction roduction SSchedulechedule
•Explain MPSExplain MPS
•Discuss How MPS WorksDiscuss How MPS Works
•Example From “Real Life”Example From “Real Life”
•Brainstorm: How Can MPS Help Your Brainstorm: How Can MPS Help Your
Firm?Firm?
•Practice MPS LogicPractice MPS Logic

3. What is MPS?What is MPS?
•MMaster aster PProduction roduction SSchedule – chedule –
States the requirements for States the requirements for
individual end items by date and individual end items by date and
quantity. -quantity. -APICSAPICS

4. MPS ExplainedMPS Explained
•Breaks down, or disaggregates, Breaks down, or disaggregates,
the production plan into product the production plan into product
familiesfamilies
•Promotes valid order promisesPromotes valid order promises
•Provides a communication Provides a communication
medium between medium between
Marketing/Sales and OperationsMarketing/Sales and Operations

5. Explanation ContinuedExplanation Continued
•Proactively control ability to Proactively control ability to
deliver goods to customersdeliver goods to customers
•Resource availability controlResource availability control
•Proactively control inventory Proactively control inventory
levelslevels

6. Disaggregate the Sales and Disaggregate the Sales and
Operations PlanOperations Plan
•The production plan is broken The production plan is broken
into product familiesinto product families

7. Promotes Valid Order PromisesPromotes Valid Order Promises
•By validating the capacity for By validating the capacity for
the MPS through rough cut the MPS through rough cut
capacity planning, alterative capacity planning, alterative
plans can be made when there plans can be made when there
are more orders than productionare more orders than production

8. Marketing Marketing  Operations Operations
•Marketing communicates Marketing communicates
demand through customer demand through customer
orders and forecastsorders and forecasts
•Operations communicates Operations communicates
capacity through inventory capacity through inventory
levels and constraintslevels and constraints

9. Resource Availability Resource Availability
ControlControl
•Production shortfalls will be Production shortfalls will be
known ahead of time and known ahead of time and
alternative plans can be made.alternative plans can be made.

10. Customer ServiceCustomer Service
•Proactively control ability to Proactively control ability to
deliver goods to customersdeliver goods to customers

11. Inventory ControlInventory Control
•Proactive approach to inventory Proactive approach to inventory
controlcontrol
–Items are scheduled to arrive when Items are scheduled to arrive when
neededneeded
–Safety stock has less importanceSafety stock has less importance

12. Planning OrganizationPlanning Organization
S h o p F l o o r C o n t r o l
M a t e r i a l s R e s o u r c e p l a n n i n g
M a s t e r P r o d u c t i o n S c h e d u l e
S a l e s a n d O p e r a t i o n s P l a n
I n p u t / O u t p u t
C a p a c i t y R e q u i r e m e n t s P l a n
R o u g h C u t C a p a c i t y P l a n n i n g
R e s o u r c e P l a n n i n g

13. How MPS WorksHow MPS Works
•Information needed for MPS Information needed for MPS
logiclogic
–Lot SizeLot Size
–Lead TimeLead Time
–Product DemandProduct Demand
–Starting InventoryStarting Inventory

14. How MPS Works Cont.How MPS Works Cont.
Period 1 2 3 4 5
Demand 30 30 30 30 30
Available20 15 10 5 0
MPS 50 25 25 25 25
W
2
Inc. MPS for Widgets
Lot Size = 25 units
Lead Time = 0 periods

15. Jet Spray Corp. ExampleJet Spray Corp. Example
•Jet Spray CorporationJet Spray Corporation
–Markets dispensers for hot & cold Markets dispensers for hot & cold
beveragesbeverages
–Uses an integrated system that includes:Uses an integrated system that includes:
•MRPMRP
•Capacity PlanningCapacity Planning
•Shop floor controlShop floor control
•MPSMPS
•Inventory ManagementInventory Management

16. Example ContinuedExample Continued

17. Brainstorming ExerciseBrainstorming Exercise
•How can an MPS system be How can an MPS system be
used in your Firm?used in your Firm?

18. You’re the Master You’re the Master
Scheduler…Scheduler…
•WW
22
Inc. is scheduling production Inc. is scheduling production
for a new product called the for a new product called the
Widget 5000Widget 5000
•Starting Inventory = 0Starting Inventory = 0
•Lot Size = 50Lot Size = 50
•Lead time = 0Lead time = 0

19. WW
22
Inc. Continued Inc. Continued
Period 1 2 345 6 7
Demand 2525250153525
Available           
MPS 50          

20. SummarySummary
•MPS breaks the Sales & MPS breaks the Sales &
Operations plan into product Operations plan into product
familiesfamilies
•Maintains Desired Level of Maintains Desired Level of
Customer ServiceCustomer Service
•Allows proactive control of Allows proactive control of
inventoryinventory

21. BibliographyBibliography
•Sources:Sources:
•Cox III, James F., and Blackstone Jr., John Cox III, James F., and Blackstone Jr., John
H., eds. H., eds. APICS Dictionary. APICS Dictionary. 1998 1998
•Vollman, Thomas E., William L. Berry, D. Vollman, Thomas E., William L. Berry, D.
Clay Whybark, (1997) Clay Whybark, (1997) Manufacturing Manufacturing
Planning and Control SystemsPlanning and Control Systems (4 (4
thth
ed.). New ed.). New
York McGraw-Hill York McGraw-Hill
•APICS. (2000). APICS. (2000). Basics of Supply Chain Basics of Supply Chain
Management.Management. Virginia. Virginia.