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Master Production Scheduling

The document explains Master Production Scheduling (MPS) as a crucial component of supply chain management that balances customer demand with manufacturing capacity. It outlines the purpose, key components, and the role of time fences and shop floor control in executing the production plan. Additionally, it discusses capacity planning strategies to manage production growth effectively.

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Mandeep Kang
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0% found this document useful (0 votes)
19 views3 pages

Master Production Scheduling

The document explains Master Production Scheduling (MPS) as a crucial component of supply chain management that balances customer demand with manufacturing capacity. It outlines the purpose, key components, and the role of time fences and shop floor control in executing the production plan. Additionally, it discusses capacity planning strategies to manage production growth effectively.

Uploaded by

Mandeep Kang
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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This document is about Master Production Scheduling (MPS) and its role in supply chain

management. I will break it down step by step so you can understand each concept.

1. Introduction to Master Production Scheduling (MPS)

The Master Production Schedule (MPS) is a detailed plan that specifies:

 What products to produce


 How many to produce
 When to produce them

The goal of MPS is to balance customer demand with manufacturing capacity. It helps prevent
overproduction and stock shortages.

2. How MPS Fits into Production Planning

MPS is part of a broader Inventory Management System, which includes:

 Sales and Operations Planning (S&OP) → High-level demand planning


 Aggregate Planning → Defines overall production strategy
 Material Requirements Planning (MRP) → Determines raw material needs
 Shop Floor Control (SFC) → Manages day-to-day manufacturing

3. Purpose of MPS

An effective MPS:

 Helps planning, purchasing, and manufacturing teams manage production


 Ensures on-time delivery to customers
 Improves efficiency and resource allocation
 Links business forecasting with operational execution

4. Key Components of MPS

The MPS covers:

 Planned production over the next 6–8 weeks


 Forecasted demand based on customer orders
 Projected on-hand inventory (stock available after production)
 Capacity constraints (machine, labor, material availability)

A sample MPS table might include:


Week Starting Demand Production Inventory
Nov. 2 30 48 44
Nov. 9 30 48 62

5. Time Fences in MPS

Time fences define how flexible the production plan is:

 Frozen Zone → Fixed orders, no changes allowed


 Slushy Zone → Some flexibility, planner can adjust
 Liquid Zone → Fully flexible, system can adjust as needed

This prevents frequent last-minute changes that could increase costs.

6. Orders in MPS

MPS includes different types of orders:

 Planned Order → Suggested order, system-generated


 Firm Planned Order → Locked order, only planner can change
 Released Order → Confirmed order, materials allocated

7. Shop Floor Control (SFC)

SFC is responsible for executing the MPS on the factory floor.


It manages:

 Labor and equipment utilization


 Order prioritization (urgent orders vs. regular production)
 Tracking production progress

8. Measuring Performance: Schedule Attainment

Schedule Attainment = (Orders Completed on Time) / (Total Scheduled Orders)


A low percentage means production delays and inefficiencies.

For example:

Order ID Scheduled Qty Completed Qty On Time?


108 1800 1850 No
110 1400 1402 Yes

If only 70% of orders were completed on time, corrective actions are needed.

9. Capacity Planning
Capacity refers to how much production a factory can handle.

 Design Capacity → Maximum possible production


 Effective Capacity → Adjusted for breaks, maintenance, and downtime

Formula:
Effective Capacity = Design Capacity × Utilization % × Efficiency %

Example:

 Design Capacity = 16,320 units/year


 Utilization = 87%
 Efficiency = 75%
 Effective Capacity = 10,649 units/year

10. Strategic vs. Tactical Capacity Planning

 Strategic Planning → Long-term decisions like buying new machines


 Tactical Planning → Adjusting work shifts, overtime, subcontracting

11. Strategies for Adding Capacity

Companies can add capacity by:

1. Leading Demand → Increase capacity before demand grows


2. Matching Demand → Increase capacity as demand rises
3. Lagging Demand → Increase capacity after demand exceeds supply

Each has trade-offs:

 Leading → Avoids shortages but may increase costs


 Lagging → Saves costs but risks lost sales

Summary

✅ MPS ensures smooth production flow


✅ Time fences control last-minute changes
✅ SFC executes the production plan
✅ Capacity planning ensures feasibility
✅ Different strategies help manage production growth

Would you like a more detailed explanation of any section? 🚀

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