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Master Production Schedule (MPS)

The master schedule (or master production schedule or MPS) - sets the quantity of
each end item (finished product) to be completed in each time period (week or month or quarter)
of the short-range planning horizon.
Master production schedules MPS) are developed by reviewing market forecasts,
customer orders, inventory levels, facility loading and capacity information regularly.
The MPS is a plan for future production of end items over a short-range planning horizon
that usually spans from a few weeks to several months. it is an important link between
marketing and production.

Objectives of MPS are:


1. To schedule end items to be completed promptly and when promised to customers.
2. To avoid overloading or under-loading of the production facility so that production capacity is
efficiently utilized and low production costs result.

Steps in Master Production Schedule


The process of master production scheduling involves the planning of activities
determine whether or not an operation can achieve the production objectives mentioned in the
MPS.
The following are the sequential steps involved in the master productions scheduling
process:
1. Determining the gross requirements of sub-components (total demand in units materials,
components and sub-components (total demand in units of the end-product) for each
product in the product line, using MRP.
2. Obtaining the net requirements for each unit of materials, components and sub-
components, after taking into consideration inventory on hand and inventory on order.
3. Revising the preliminary master production schedule to accommodate the inadequacy of
materials in inventory, if any.
4. Converting adjusted net requirements into planned order releases (the order quantity for
a specific time period) to determine unit or lot-sized production during the planning
horizon.
5. Developing load reports from the planned order releases. The load report contains
information on the amount of work assigned to individual workers, machines and
workstations.
6. In the event of a mismatch between available capacity and required capacity, the MPS is
modified or additional capacity is added.

Advantages of Master Production Schedule


 it is simple and easy to understand,
 it can be kept running (i.e., current),
 it involves less cost to make it and maintain,
 it can be maintained by non-technical staff, and
 A certain percentage of total weekly capacity can be allocated for rush orders.

Disadvantages of Master Production Schedule


 it provides only overall picture,
 It does not give detailed information.

Applications of Master Production Schedule


It finds applications in the following:
1. in big firms, for the purpose of loading the entire plant,
2. in research and development organizations, and
3. For the overall planning in boundaries, computer centres, repair shops, etc.

SPECIFICATION OF PRODUCTION REQUIREMENTS

From the discussion uptill now, we have seen that production planning involves selection
of production process, selection of raw-materials, selection of various machines and tools,
deciding process layout, etc. One other important function of production planning is to provide
specifications for various production requirements. For example,

 Specifications regarding quality and quantity of raw materials which are to be arranged.
 Specifications with regards to man power on different machines, man-hour required for a
particular job or process.
 Specifications regarding maintenance of various machines.
 Specifications with regards to purchasing of materials and its payments.
 Specifications with regards to inventory control-how much of what material has to be
maintained in store.
 Specifications with regards to quality of product to be produced, etc.
The important thing to note is that the specifications provided through production planning
and control department should be practically achievable.
This means that these specifications should not be so strict that production suffers and
wastages increases. On the other hand, they should not be so liberal that quality of the product
suffers at the hands of quantity. The specifications should not result in increase in
manufacturing costs or delay in the production. A proper balance must be maintained between
quality and cost as well as quality and time-schedule.