Master Production Plan
A Master Production Schedule (MPS) is a plan for individual commodities to produce in each time period such as production, staffing, inventory, etc. It is usually linked to manufacturing where the plan indicates when and how much of each product will be demanded. The plan quantifies significant process parts and other resources in order to optimize production, to identify bottlenecks, and to anticipate needs and completed goods. Since MPS drive much factory activity, its accuracy and viability dramatically affect profitability. Typical MPS’s are created by software with user tweaking. The MPS translates the business plan, including forecast demand, into a production plan using planned orders in a true multi-leveled optional component scheduling environment. Using 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. In MPS, 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. A Master Production Schedule may be necessary for organizations to synchronize their operations and become more efficient. An effective MPS ultimately will: 1. Give production planning purchasing and manage the information to plan and control manufacturing. 2. Tie overall business planning forecasting to detail operations. 3. Enable manufacturing to make legitimate delivery commitments to warehouses and customers. 4. Increase the efficiency and accuracy of a company’s manufacturing. The Master Production Schedule is a great tool for manufacturing companies because it brings all of the different types of necessary information in to one report. It also takes the balance sheet and combines it with the MPS to give managers more information for...
Please join StudyMode to read the full document