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Master Production ScheduleOverviewDefine Define MMaster aster P Production roduction S SchedulecheduleExplain MPSExplain MPSDiscuss How MPS WorksDiscuss How MPS WorksExample From“Real Life”Example From“Real Life”Brainstorm:How Can MPS Help Your Brainstorm:How Can MPS Help Your Firm?Firm?Practice MPS LogicPractice MPS LogicWhat is MPS?Master Production Schedule States the requirements for individual end items by date and quantity.-APICSMPS ExplainedBreaks down,or disaggregates,the production plan into product familiesPromotes valid order promisesProvides a communication medium between Marketing/Sales and OperationsExplanation ContinuedProactively control ability to deliver goods to customersResource availability controlProactively control inventory levelsDisaggregate the Sales and Operations PlanThe production plan is broken into product familiesPromotes Valid Order PromisesBy validating the capacity for the MPS through rough cut capacity planning,alterative plans can be made when there are more orders than productionMarketing OperationsMarketing communicates demand through customer orders and forecastsOperations communicates capacity through inventory levels and constraintsResource Availability ControlProduction shortfalls will be known ahead of time and alternative plans can be made.Customer ServiceProactively control ability to deliver goods to customersInventory ControlProactive approach to inventory controlItems are scheduled to arrive when Items are scheduled to arrive when neededneededSafety stock has less importanceSafety stock has less importancePlanning OrganizationHow MPS WorksInformation needed for MPS logicLot SizeLot SizeLead TimeLead TimeProduct DemandProduct DemandStarting InventoryStarting InventoryHow MPS Works Cont.PeriodPeriod1 12 23 34 45 5DemandDemand30303030303030303030AvailableAvailable2020151510105 50 0MPSMPS50502525252525252525W2 Inc.MPS for WidgetsLot Size=25 unitsLead Time =0 periodsJet Spray Corp.ExampleJet Spray CorporationJet Spray Corporation Markets dispensers for hot&cold Markets dispensers for hot&cold beveragesbeverages Uses an integrated system that includes:Uses an integrated system that includes:MRPMRP Capacity PlanningCapacity Planning Shop floor controlShop floor control MPSMPS Inventory ManagementInventory ManagementExample ContinuedBrainstorming ExerciseHow can an MPS system be used in your Firm?Youre the Master SchedulerW2 Inc.is scheduling production for a new product called the Widget 5000Starting Inventory=0Lot Size=50Lead time=0W2 Inc.ContinuedPerPeri io od d 1 1 2 2 3 3 4 4 5 5 6 6 7 7DeDemma an nd d2 25 52 25 52 25 50 01 15 53 35 52 25 5AvAva ail ila ab bl le e MPMPS S5 50 0 SummaryMPS breaks the Sales&Operations plan into product familiesMaintains Desired Level of Customer ServiceAllows proactive control of inventoryBibliography Sources:Sources:Cox III,James F.,and Blackstone Jr.,John Cox III,James F.,and Blackstone Jr.,John H.,eds.H.,eds.APICS Dictionary.APICS Dictionary.1998 1998 Vollman,Thomas E.,William L.Berry,D.Vollman,Thomas E.,William L.Berry,D.Clay Whybark,(1997)Clay Whybark,(1997)Manufacturing Manufacturing Planning and Control SystemsPlanning and Control Systems(4(4thth ed.).New ed.).New York McGraw-Hill York McGraw-Hill APICS.(2000).APICS.(2000).Basics of Supply Chain Basics of Supply Chain Management.Management.Virginia.Virginia.