Master production scheduling is pivotal in helping manufacturers plan their production processes. It empowers them to decide which products to produce, in what quantities, and when to produce them. This proactive approach drives production by aligning manufacturing with demand, ensuring efficient resource utilization and cost-effective materials procurement.
In this article, we delve into the world of Master Production Scheduling (MPS), the third crucial component of inventory planning, following Bills of Materials (BOM) and Material Requirements Planning (MRP).
Demystifying the Master Production Schedule
A Master Production Schedule, as its name suggests, orchestrates what products to manufacture, their production timing, and the required quantities. It integrates data from finished goods BOM and current inventory to create an MRP for raw materials procurement.
The MPS serves as a communication bridge between sales and manufacturing, forming a contractual agreement that allows sales to commit to deliverables within the production capacity. Furthermore, the MPS remains adaptable, accommodating changes in demand or capacity.
When to Create a Master Production Schedule
The ideal timeframe for creating an MPS typically spans from three months to two years ahead. During this planning, several factors for each product are considered, including:
- Initial inventory levels
- Expected orders based on sales forecasts
- Existing planned orders
- The required production volume to maintain supply and demand equilibrium
- Safety stock to prevent inventory shortages
The Crucial Role of Master Production Scheduling
Integrated within an ERP system, MPS leverages current supply and demand data and forecasts to deliver accurate production plans. These plans not only help manufacturers achieve production objectives but also minimize procurement costs. The MPS takes manufacturing capacity into account and accommodates shortages, scheduling errors, and unforeseen challenges.
Key Functions of Master Production Scheduling Software
Master production scheduling software facilitates:
- Smooth production flow
- Reduced product lead times
- Enhanced internal communication
- Priority establishment and adherence
- Logical manufacturing plans
- Improved customer service levels
- Optimal resource utilization
- Effective inventory management
MPS in operations management balances sales and marketing demand and available resources.
Components of a Master Production Schedule
Before creating an MPS, a demand plan is essential. It uses historical sales data to forecast future customer orders and includes safety stock to guard against unexpected large orders. The key components of an MPS are:
- Product list
- Product sub-lists
- Timeframes (months and weeks)
- Production quantities based on product types and variations
Identifying with Master Production Schedule
The MPS aids operations by identifying:
- Required production quantities
- Necessary production staff
- Promised quantities to customers
- Projected product balances post-order fulfillment
- Ways to enhance manufacturing operations
- Strategies to align business planning with manufacturing
This means to increase production efficiency and minimize errors.
Master Production Scheduling Techniques
MPS demands a detailed yet focused approach. It's essential to balance detail and manageability, favoring fewer product alternatives. Different techniques apply to various manufacturing environments:
- Make-to-stock environments: Focus on finished goods schedules.
- Make-to-order environments: Tailor schedules to actual customer orders.
- Assemble-to-order environments: Operate at the subassembly level.
Each approach revolves around simplifying production planning for maximum efficiency.
MPS and MRP Relationship
The Master Production Schedule serves as the driving force behind the Material Requirements Plan (MRP). Together with the BOM, MPS determines the necessary components for manufacturing and purchase. While both MPS and MRP generate planned production lists and purchase orders, they differ in focus. MPS prioritizes finished goods, optimizing resource allocation for maximum profitability and meeting customer delivery deadlines.
Rough Cut Capacity Planning and MPS
Rough Cut Capacity Planning (RCCP) complements MPS by addressing long-term production capacity. If capacity falls short of planned production, adjustments are needed either in capacity or the MPS. These two planning tools collaborate closely, ensuring production runs smoothly.
Benefits of a Master Production Schedule
A well-executed MPS brings several advantages, including:
- Adaptation to demand fluctuations while minimizing waste
- Prevention of shortages and scheduling errors
- Efficient allocation of production resources
- Precise cost control and material requirement estimates
- Reduction in lead times
- Enhanced communication with sales teams
- Improved human resources planning based on projected labor needs
MPS in a Manufacturing ERP System
A Master Production Schedule forms the core of a manufacturing ERP system, linking planning and manufacturing. It interfaces with various modules, such as Accounting, CRM, Inventory, and Purchasing, streamlining operations and enabling dynamic data exchange for seamless planning.
Common MPS Output Reports
MPS generates essential reports, including:
- Available-to-Promise: Quantities available for promise
- Demand Tracking Report: Historical shipment and order data
- Forecast Data Report: Summary of historical demand and forecast accuracy
- Period Summary Forecast: Forecast by product group and period
- Item Demand and Forecast: Historical data and future demand
- Build Schedule Report: Assembly schedules
- Schedule vs. Actual Output: Comparing actual and scheduled outputs
Master Production Scheduling is a linchpin in modern manufacturing, optimizing production, resources, and communication. When efficiently employed within an ERP system, it transforms manufacturing into a dynamic and responsive process, enabling businesses to thrive in a rapidly changing world.