MASTER PRODUCTION

SCHEDULE
The MPS is an authoritative statement translating
the aggregate plan into how many, items are to
produced and when.
The MPS process deals with more detailed
information than the aggregate plan.
MPS determines what needs to be ultimately
produced and not what is demanded.
MPS is the process by which the disaggregation of
varieties is done.
MPS Explained
• Breaks down, or disaggregates, the
production plan into product families
• Promotes valid order promises
• Provides a communication medium
between Marketing/Sales and
Operations
For Example:- Shop – Floor workers need
detailed plans to achieve their goals.
Operation managers need to know specific
demands like the specification and sizes of
steel to buy, the types of beer and
container sizes to make brewery and so
forth.
The MPS provides this information.
The MPS represents the most important plan
in the resource-management system.
Because it becomes an agreement between
marketing and manufacturing that defines
the execution activities of the Operations
Management System.
This agreement is particularly important in
MAKE-TO-ORDER Systems. Since it reflects
the firm’s commitment to deliver products
by the dates promised to customers.
A trial MPS scheduled is developed. This is
called ROUGH-CUT capacity planning.
Three outputs are generated by this
process.
• Master Production Schedule (MPS)
• The Projected On Hand Inventory
(inventory available for the next
planning period)
• The Available-To-Promise Inventory (the
number of units the sales personnel can
still commit to the customers)
 FUNCTIONS OF MPS
•Translating aggregate plans into specific end items
•Evaluating alternative schedules
•Generating material requirement
•Generating capacity requirement
•Facilitating information processing
•Maintaining valid priorities
•Utilizing capacities effectively
1 Translating aggregate plans : This plan
translates the specific no of end products to be produced
in specific time period.the MPS represents a
manufacturing plan of what the firm intends to produce
and not the forecast of what the firm hope to produce

2 Evaluating alternative schedules : MPS is

made on trial and error basis. MPS can be done by
simulation using computers. Detailed material and
capacity required are then derived from the firm MPS.

3 Generating material requirement : The MPS

providing for purchasing and manufacturing the
necessary items in sufficient time to meet the final
assembly dates specified, based on the mps of the end
4 Generating capacity requirements : MPS
fulfill the capacity requirements of labour and equipment
capacities etc.
5 Facilitating information processing : by
controlling the workloads on work centre, the MPS
determines the delivery schedules for end products both
for make to stock and made to orders items.
6 Maintaining valid priorities : MPS maintaining
the priorities for various jobs. When customers change
their orders or material get scrapped sometimes MPS
need to be changed automatically so as the main
priorities are set first always
7 Utilizing capacity facilities : by specifying the
end items requirements over a time period, the MPS
establishes the load and utilization parameters for labour
 MASTER SCHEDULE
The master schedule provides details about the
quantities and delivery timings of a product,
but not the production plan.
For Example:- if acc. To the master schedule,
1200 cars of a particular model are to be
delivered to the customers in 1 week & 1000
cars of the model are already in the inventory,
then only 200 units have to be produced in this
week. On the other hand, if there are 1500
units of this model of the car in the inventory,
there may be no requirement of any production
in this week.
 INPUTS FROM MPS
The inputs to the MRP system comes from
the MPS.
The MPS expresses the overall production
plan and the span of time covered by it
is termed the Planning Horizon.
In the development of lot requirements,
component inventories are allocated
according to the sequence of all the end
item lots.
The MRP deals with this through level-by-
level and time phasing techniques.