An example of a master production schedule.pdfVIP

MASTER PRODUCTION SCHEDULE (MPS) ? Anticipated build schedule for manufacturing end products (or product options) ? A statement of production, not a statement of market demand ? MPS takes into account capacity limitations, as well as desires to utilize capacity fully ? Stated in product specifications – in part numbers for which bill of material exist ? Since it is a build schedule, it must be stated in terms used to determine component- part needs and other requirements; not in monetary or other global unit of measure ? Specific products may be groups of items such as models instead of end items
The exact product mix may be determined with Final Assembly Schedule (FAS), which is not ascertained until the latest possible moment
If the MPS is to be stated in terms of product groups, we must create a special bill of material (planning bill) for these groups Task performed by a master production scheduler Construct and update the MPS
Involves processing MPS transactions, maintaining MPS records and reports, having a periodic review and update cycle (rolling through time), processing and responding to exception conditions, and measuring MPS effectiveness on a routine basis
On a day-to-day basis, marketing and production are coordinated through the MPS in terms of Order Promising
Order promising is the activity by which customer order requests receive shipment dates An effective MPS provides
Basis for making customer delivery promises
Utilising plant capacity effectively
Attaining the firm’s strategic objectives as reflected in the production plan and
Resolving trade-off between manufacturing and marketing ? Since MPS is the basis for manufacturing budgets, the financial budgets should be integrated with production planning/MPS activities ? When MPS is extended over a time horizon, is a better basis for capital budgeting ? Based on the production output specified in the MPS the day-to-day cash flow can be forecasted ? Th