Chapter 6

Master Production
Scheduling
Vollmann, Berry, Whybark, Jacobs
What is the MPS?

 The MPS translates the Sales &

Operations Plan (SOP) into a plan for
producing specific products in the
future.
 The MPS is the translation of the SOP
into producible products that make up
the output.
At the operational level . .

 The MPS is developed to be

compatible with the Materials
Requirement Planning (MRP) system
and to provide the information for
coordination with sales.
 The MPS is a statement of planned
future output.
As a statement of output, the
MPS

 Forms the basic communication

between the market and
manufacturing.

 Is stated in product specification terms

(part numbers) for which there are Bill
of Materials (BOM).
 MPS can be stated in
terms of?

 End-item product designations

 Options or modules from which a

variety of end products could be
assembled.

 Numbers of units of an “average” final

product
Conversion of MPS is

 Controlled by a separate Final

Assembly Schedule (FAS) which is
defined at the very last moment.
For the Make-to-Stock firm

 The items are produced in batches,

carrying finished goods inventories for
most, if not all, end-items.
For the Make-to-Order firm
 In general, it carries no finished goods
inventory and builds each customer
order as needed.
 The MPS unit is defined as the
particular end-item composing a
customer order.
 Production often starts before a
complete product definition or BOM
has been determined.
For the Assembly-to-order
firm

 The MPS unit is typified by an almost

limitless number of possible end-item
configurations all made from
combinations of basic components
and subassemblies. Probably will not
start final assembly until order arrives.
 Linkages to other firm
activities
 It receives information from the SOP
which in turn receives info from Demand
Management (Forecasting) and resource
planning.
 In addition it is linked to ERP (planning)
and rough-cut capacity (make sure we
can make it) planning.
 It generates information for MRP
MPS Techniques

 Time phased record

 Rolling through time

 Order promising
 Available to promise (ATP)
Bill of Materials Structuring
for the MPS

 It is an engineering document that

specifies the ingredients (or
subordinate components) required
physically to make each part number
or assembly.
Single-level BOM

 Comprises only those subordinate

components that are immediately
required (not the components of the
components).
Indented BOM

 Is a list of components, from the end

item, down to the raw materials (it
does show components of the
components).
 Other definitions

 BOM files are those computer records

designed to provide desired output
formats.
 BOM Structure relates to the architecture
of the BOM files
 BOM Processor is a computer software
package that organizes and maintains
linkages in the BOM as dictated by the
BOM structure.
 More definitions
 Product Structure a company should have
one and only one set of BOM records.
 Low-Level Code number should be
designated for each part, component,
subassembly or finished item in the BOM.
These numbers indicate where in the
product structure a particular item is with
respect to the end item.
 Modular BOM
 When the combinations of end-item product
are many, it is better to use the MPS at the
option or module level. The MPS is stated in
the terms in which the product is sold not
built.
 The most widely used is called the super
bill.(6.14)
 Final Assembly Schedule
(FAS)

 FAS job is to convert MPS records into FAS

records as we roll through time. (6.17)
 The Master Production
Scheduler

 Its useful to think of the MPS as a set of

firm planned orders. The scheduler
needs to convert planned orders to firm
planned orders and to manage the
“timing” and amounts of the firm planned
orders.
 The Job of the Master PS
 Primary responsibility for making any
additions or changes to the MPS records.
 Has also has responsibility for
disaggregating the production plan to create
the MPS and that the sum of the detailed
MPS matches the Production Plan (SOP).
 The Job of the Master PS

 Responsible for launching the FAS.

 Making sure that there is only one unified
database for the MPS
 Measure actual performance against the
MPS and production plan (SOP)
Examples

 Ethan Allen 6.21, 6.22

 Jet Spray 6.23
 MPS Stability
 A stable MPS translates into stable
component schedules, which means
improved performance in plant operations.
 Too many changes – lower productivity

 Too few changes – lower customer service

levels.
 Increasing MPS stability
 Strike a balance where stability is
monitored and managed by:
 Use firm planned order treatment for the
MPS quantities
 Frozen time periods for the MPS and
 Time fencing to establish clear guidelines
for the kinds of changes that can be made.
 6.24
 Frozen Schedule

 This means that for the more recent time

buckets it will be very difficult (but still
negotiable) to change the sequence in
which the orders will be processed.
 Time Fencing

 This is an extension of the freeze concept.

 Many companies set time fences that

specify periods in which various types of
change can be handled.
 In the Demand fence the forecast is
ignored in calculating the available
(difficult to change the MPS).
 The planning fence indicates the time at
which the scheduler should be planning
 Managing the MPS

 Start by having a realistic MPS

 Stability and proper buffering are

important to remove all the excuses for
not attaining the performance for which
the proper budget has been provided.
 The Overstated MPS

 The overstated MPS erodes belief in the

formal system.
 Always force the sum of the MPS to equal
the production plan.
 Mfg & Mkt should work diligently to
respond to product mix changes but within
the budget.
 MPS Measures

 Measure MPS in concrete terms that

reflect the firm’s fundamental goals.
 Measure customer service (hit promised
dates, Quality, etc.).
 Compare production vs. plan

 Keep records of backorder supply time to

improve them.