Master production schedule

Master production schedule


What is Master Production Schedule or MPS?

A Master Production Schedule or MPS is the plan that a company has developed for production, inventory, staffing, etc. It sets the quantity of each end item to be completed in each week of a short-range planning horizon. A Master Production Schedule is the master of all schedules. It is a plan for future production of end items. MPS INPUTS: --> Forecast Demand --> Production Costs --> Inventory Costs --> Customer Orders --> Inventory Levels --> Supply --> Lot Size --> Production Lead Time --> Capacity MPS OUTPUT (production plan): --> Amounts to be Produced --> Staffing Levels --> Quantity Available to Promise --> Projected Available Balance

The Master Production Schedule gives production, planning, purchasing, and top management the information needed to plan and control the manufacturing operation. The application ties overall business planning and forecasting to detail operations through the Master Production Schedule.

The Master Production Schedule will drive detailed material and production requirements in the Material Requirements Planning module.

Due to software limitations, but especially the intense work required by the "master production schedulers", schedules do not include every aspect of production, but only key elements that have proven their control effectivity, such as forecast demand, production costs, inventory costs, lead time, working hours, capacity, inventory levels, available storage, and parts supply. The choice of what to model varies among companies and factories. The MPS is a statement of what the company expects to produce and purchase (i.e. quantity to be produced, staffing levels, dates, available to promise, projected balance).[1][2]

The MPS translates the business plan, including forecast demand, into a production plan using planned orders in a true multi-level optional component scheduling environment. Using MPS helps avoid shortages, costly expediting, last minute scheduling, and inefficient allocation of resources. Working with MPS allows businesses to consolidate planned parts, produce master schedules and forecasts for any level of the Bill of Material (BOM) for any type of part.

How an MPS works

By using several variables as inputs the MPS will generate a set of outputs used for decision making. Inputs may include forecast demand, production costs, inventory costs, customer orders, inventory levels, supply, lot size, production lead time, and capacity. Inputs may be automatically generated by an ERP system that links a sales department with a production department. For instance, when the sales department records a sale, the forecast demand may be automatically shifted to meet the new demand. Inputs may also be inputted manually from forecasts that have also been calculated manually. Outputs may include amounts to be produced, staffing levels, quantity available to promise, and projected available balance. Outputs may be used to create a Material Requirements Planning (MRP) schedule.

A master production schedule may be necessary for organizations to synchronize their operations and become more efficient. An effective MPS ultimately will:

  • Give production, planning, purchasing, and management the information to plan and control manufacturing[2]
  • Tie overall business planning and forecasting to detail operations[2]
  • Enable marketing to make legitimate delivery commitments to warehouses and customers
  • Increase the efficiency and accuracy of a company's manufacturing

MPS issues:

  • Width of the time bucket
  • Planning horizon
  • Rolling plan
  • Time fencing
  • Schedule freezing

Production plan

An example of a master production schedule for "product A".

Production Plan

See also


  1. ^ J E Beasley. "Master production schedule". Retrieved 2009-04-11. 
  2. ^ a b c "What is MPS?". Inventory Solutions Logistics Corp.. Retrieved 2009-04-11. 

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