Master production schedule plays an important role in manufacturing industries. To fulfill the orders on time, companies need to plan their production.
This article tells all about Master Production Schedule including its benefits, its importance, different methodologies, and example.
Master Production Scheduling (MPS) is a process in manufacturing to decide which products to produce and how much quantity is required to meet the requirement in a given interval of time.
It is dynamic as it expedites the production process.
Definition of Master Production Schedule
Master Production, as the name suggests, decides what products need manufacturing and what is the accurate time to manufacture that product.
The Bill of Materials BOM then identifies the raw materials required for the production of finishing goods.
Importance of Master Production Schedule(MPS)
MPS is an integral part of an Enterprise Resource Planning system. It provides the most effective and most prominent planning functionality by extracting the actual demand and supply data to deliver the most precise production plans.
These plans assist manufacturers in quickly achieve their production goals and minimize the cost incurred on the procurement.
While performing calculations of operating expenses, the Master Production Schedule pays special heed to the manufacturing capacity of the production plant.
Automatic initiation of Material Resource Planning management process and generation of the purchase order takes place soon after the analysis and the approval of the production orders.
Aside from all these implications, MPS acts as a protective barrier against shortages, unexpected scheduling snafus, and inefficient allocation of resources.
Inputs to MPS
Following are the inputs into the master production schedule
- Forecast demands
- Known orders
- Key capacity constraints
- Inventory level
- Spares demand
- Safety stock requirements
- Exhibition promotion requirements
- R & D demands
- Sister plant demand
Different methedologies for Master Production Scheduling
The Master Production Schedule needs to devise a final plan for what needs manufacturing using all the currently available resources.
If the MPS emphasizes too many items, then the plan proposed by MPS does not apply to the manufacturers.
Apart from that, if the plan proposed by MPS isn’t detailed enough, the production capacity suffers.
As a general rule of thumb, master scheduling is only applicable in the particular case where the smallest number of product alternatives are available.
Make to Stock Environments
In this specialized kind of scenario, a minimal quantity of items is assembled to form a more significant number of components.
In this scenario, the Master Production schedule would be the schedule of finishing useful items.
Make-to-Order or Build-to-Order Environments
In this case, various finishing goods are made from a minimal quantity of raw materials. One of the great examples of this case is the manufacturing process of automobile vehicles.
The main aim of the Master Production Schedule in the Make-to-Order environment would be the periodic arrangement of the actual customer orders.
Assemble-to-order environments utilize raw materials for the effective production of subassemblies and the essential components.
These components and sub-assemblies work in harmony to form a variety of finishing goods.
In this specialized kind of environment, the Master Production schedule should emphasize at the subassembly level.
MPS in each of these scenarios emphasize the specific area.
Benefits of Master Production Schedule
- It provides an effective and most reliable communication conduit with the sales team to ameliorate the planning process.
- Effectively reduce the time incurred in the manufacturing process throughout the year.
- MPS acts as an effective barrier against the shortage of raw material and any unexpected mishap.
- Make necessary adjustments to address the fluctuation in demands while reducing the waste properly.
- MPS smartly managed the cost incurred on manufacturing on behalf of the business owner and make the most precise calculation about the requirements of raw material.
- Enhances the overall efficiency in the location of production resources.
- MPS acts as a foundation to construct, improve, and track the sales forecast.
- MPS helps the organization’s account department to reach income and expenses by providing account statements like profit & loss statements and also the balance sheets.
- Helps in the calculation of inventory levels.
Functions of Master Production Scheduling (MPS)
The automated software system of Master Production Scheduling possesses too many attributes.
Before implementing the automated system of Master Production Scheduling, it is generally regarded as the right practice to analyze the critical aspects of this automated system that facilitate production.
Here are the critical functionalities of the Master Production Scheduling automated system.
This specific portion of the software speculates the amount of material, labor, and specialized equipment required to meet the manufacturing goal.
Provide Alternative Production Routes
The automated system of Master Production Scheduling produces a trial and error schedule that gives an alternative route to accomplish the production.
This would tackle any unexpected mishap that would arise within the completion of production.
Utilization of Available Resources
Automated software of Master Production Scheduling establishes the relationship between the load and utilization for the machinery and equipment deployed in the manufacturing process.
This allows for the best utilization of all the available resources and a more efficient flow of production.
Establish Capacity Requirement
Automated software of Master Production Scheduling facilitates capacity planning through establishing proper capacity requirements.
Master Production Scheduling facilitates the manufacturers to obtain the right knowledge about the requirement of capacity.
Aid in Information Processing
MPS determines the best appropriate time for delivery. It consistently coordinates with the various management information systems.
Master Production Schedule Example
Master Production Schedule (MPS) transforms the business plans into the smart management of the impact of seasonality, promotion, and fluctuating demand.
Here is a typical real-life example of the Master Production Schedule.
A pump manufacturer sells ready-to-made products, to successfully manage the sells the pump manufacturer needs to assemble these products before shipping them within 48 hours after taking orders.
The time required for the completion of the production process is one day. Still, numerous components and subassemblies are required for the successfully manufacturing of the pump, these subassemblies, and internal components enhance the production time from 2 days to 2 months.
To successfully manufacture a pump within 48 hours, the pump manufacturer must have access to all the components required for the manufacturing of finishing products.
This is where the real-life implementation of the Master Production Schedule comes in.
How is production planning different from the master production schedule (MPS)?
Production planning is the phase that comes before the master production schedule. Production planning defines the higher production level and little details.
Production planning determines how many products should be produced. But MPS defines and decides the number of products to be produced in a given time interval.
Master Production Schedule is generally regarded as the heart of manufacturing Enterprise Resource Planning because it correlated manufacturing and planning.
The MPS management system has been extensively used as a useful tool for the most precise calculation of resources required to fulfill production plans.