MASTER PRODUCTION SCHEDULE (MPS) - Production and Operations Management

Master scheduling follows aggregate planning. It expresses the overall plans in terms of specific end items or models that can be assigned priorities. It is useful to plan for the material and capacity requirements.

Flowchart of aggregate plan and master production schedule is shown in the following figure. Time interval used in master scheduling depends upon the type, volume, and component lead times of the products being produced. Normally weekly time intervals are used. The time horizon covered by the master schedule also depends upon product characteristics and lead times. Some master schedules cover a period as short as few weeks and for some products it is more than a year.

Functions of Master Production Schedule

Functions of MPS
Master Production Schedule (MPS) gives a formal detail of the production plan and converts this plan into specific material and capacity requirements. The requirements with respect to labor, material and equipment are then assessed. The main functions of MPS are:

  1. To translate aggregate plans into specific end items: Aggregate plan determines level of operations that tentatively balances the market demands with the material, labor and equipment capabilities of the company. A master schedule translates this plan into specific number of end items to be produced in specific time period.
  2. Flowchart of aggregate plan and master schedule

    Flowchart of aggregate plan and master schedule

  3. Evaluate alternative schedules: Master schedule is prepared by trial and error. Many computer simulation models are available to evaluate the alternate schedules.
  4. Generate material requirement: It forms the basic input for material requirement planning (MRP).
  5. Generate capacity requirements: Capacity requirements are directly derived from MPS. Master scheduling is thus a prerequisite for capacity planning.
  6. Facilitate information processing: By controlling the load on the plant. Master schedule determines when the delivery should be made. It coordinates with other management information systems such as, marketing, finance and personnel.
  7. Effective utilization of capacity: By specifying end item requirements schedule establishes the load and utilization requirements for machines and equipment.

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Production and Operations Management Topics