Master Production Scheduling (MPS) – Basic Techniques http://www.pom.edu/mpc/lectures_in_manufacturing_planning.htm lect

1. Master Production Scheduling (MPS) – Basic Techniqueshttp://www.pom.edu/mpc/lectures_in_manufacturing_planning.htmlecture session 6 • MPS: Role in the MPC System • MPS Defined • MPS Approaches • Single Level MPS Time-Phased Record • Customer Order Processing • Rolling through Time (Transactions)

2. Manufacturing Planning and Control System

3. MPS Defined • Anticipated Build Schedule – a statement of production not market demand • The MPS is: • Stated in terms of product specifications • Concerned with product mix while Sales and Operations Planning is concerned with volume • The MPS is the basis for: • Making customer delivery promises • Utilizing plant capacity effectively • Attaining the strategic objectives in the sales and operations plan • Resolving trade-offs between manufacturing and marketing

4. MPS Approaches • Make – to – Stock • Make – to – Order • Assemble – to – Order

5. Period Product A 1 2 3 4 5 6 Gross requirements Scheduled receipts Projected available balance Planned order release Q = lot for lot; LT = 0; SS = 10 Single Level MPS Record Example • The Zero Manufacturing Company ships Product A from the firm's plant warehouse to satisfy East Coast demand. Currently, the sales forecast for Product A at the Murphysboro plant is 30 units per period. • Product A is considered a make-to-stock item. • Plant warehouse on hand inventory = 50 units • Safety Stock = 10 units • Lot Size = L4L • Open Order for 30 units due in period 1 • The master production scheduler has heard that an MRP record which uses the forecast for gross requirements and has a lead time of zero can be used for master production scheduling. Complete the following MRP record. How can this be used for master production scheduling?

6. Single Level MPS Record Processing One way viewing an MPS is as the set of planned order releases and scheduled receipts in a record such as above. The problem is that any errors in forecast will be reflected in the on-hand balance. All changes will come in the planned orders. Use of firm planned orders will reduce this instability.

7. Customer Order Promising Example The MPS planner at Murphy Motors uses MPS time-phased records for planning end item production. The planner is currently working on a schedule for the P24. The production lot size is 70 and the safety stock is 5.

8. Customer Order Promising Example • Complete the MPS time-phased record for P24. • Can Murphy accept the following orders? Update the MPS time-phased record for accepted orders.

9. Customer Order Processing Procedure

10. Customer Order Processing Procedure • The convention of the greater of forecast or orders is used in determining the projected available balance.

11. Rolling Through Time – Transactions Example The following MPS time phased record has been prepared at the start of period 1.

12. Rolling Through Time – Transactions Example The following events occurred during period 1: • Actual demand during period 1 was 25 units. • Marketing forecasted that 40 units would be needed for period 9. • An order for 10 in period 2 was accepted. • An order for 20 in period 4 was accepted. • An order for 6 in period 3 was accepted. • The MPS in period 1 was produced as planned.

13. Rolling through Time -Transactions/ Processing • Update the record below after rolling through time. Beginning On Hand Period 1 = 20 Period 1 Actual Demand = -25 MPS Receipt Into Stock =+50 Beginning on Hand Period 2 = 45