Operations Management: Master Production Scheduling -1

Scheduling is an important tool for manufacturing and engineering, where it can have a major impact on the productivity of a process. In manufacturing, the purpose of scheduling is to minimize the production time and costs, by telling a production facility what to make, when, with which resource, and on which equipment. Production scheduling aims to maximize the efficiency of the operation and reduce costs.

Production scheduling provides scheduler with powerful graphical interfaces which can be used to visually optimize real-time workloads in various stages of production, and pattern recognition allows the software to automatically create scheduling opportunities which might not be apparent without this view into the data.

For example, an airline might wish to minimize the number of airport gates required for its aircraft, in order to reduce costs, and scheduling software can allow the planners to see how this can be done, by analyzing time tables, aircraft usage, or the flow of passengers.


Master Production Schedule (MPS): An Overview

A Master Production Schedule (MPS) is a plan for production, staffing, inventory and resources. It is usually linked to manufacturing where the plan indicates when and how much of each product will be demanded. This plan quantifies significant processes, parts, and other resources in order to optimize production, to identify bottlenecks, and to anticipate needs and completed goods.

Master Production Scheduler’s schedules every possible aspect of production such as forecast demand, production costs, inventory costs, lead time, working hours, capacity, inventory levels, available storage, and parts supply. The MPS is a statement of what the company expects to produce and purchase (i.e. quantity to be produced, staffing levels, dates, available to promise and projected balance).

The MPS translates the business plan, including forecast demand, into a production plan using planned orders in a true multi-level optional component scheduling environment. Using MPS helps avoid shortages, costly expediting, last minute scheduling, and inefficient allocation of resources. Working with 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.

Scheduling Types

Companies use backward and forward scheduling to allocate plant and machinery resources, plan human resources, plan production processes and purchase materials.

Forward scheduling is planning the tasks from the date resources become available to determine the shipping date or the due date.

Backward scheduling is planning the tasks from the due date or required-by date to determine the start date and/or any changes in capacity required.


MPS Purpose & Relationship

The Master Schedule’s primary pur­pose
is to translate the strategic initiatives of top manage­ment into workable day-to-day actions that result in mak­ing and shipping products to customers, providing service and earning their satisfaction. MPS relationships between three important pro­cesses: Master Planning, Detail Planning and Planning Execution. Supporting these three processes is the Infor­mation System represented by the Bills of Material, Inven­tory, Process/Routings and other important data bases. Holding all these processes together are the linkages and feedback loops that show how information flows between each functional area. The gauge for finding out the effec­tiveness of the total process is Performance Measurement.

· Master Production Schedule Planning (MPS)

· Material Resource Planning (MRP)

· Capacity Requirements Planning (CRP)

Master scheduling (MS) calculates the quantity required to meet demand requirements from all sources. Material requirements planning (MRP) is used to calculate the quantity required. The MS enables marketing to make legitimate delivery commitments to field warehouses and final customers. It enables production to evaluate capacity requirements in a more detailed manner. It also provides the necessary information for production and marketing to agree on a course of action when customer requests cannot be met by normal capacity. Finally, it provides to management the opportunity to ascertain whether the business plan and its strategic objectives will be achieved.
Benefits of MPS  · Production plan with resource, schedule and available inventory (It all starts with what do we want to make, when do we want to make, what does it take to make it, What we have got)

· Increased visibility and operational control

· Process change-over reduction

· Translates a business plan with forecasted demand

· Inventory reduction, leveling

· Reduced production bottlenecks and idle equipment – Reduce manual and inconsistent scheduling efforts at each production level

· Increase production efficiency- Increased resource utilization and lowered manufacturing costs

· Labor load leveling

· Accurate delivery date quotes – Improved on-time delivery performance

· Real time information

   Contd in part 2 for MPS process and operations management 


About kadamb

At work I am a Microsoftian, Global Program Manager working in Partner Strategy & Business Management space. At home I am a Husband and Father of two cute kids; like spending time with family and friends. By nature I am optimistic, logical, extrovert and follow the values and faith. Love travel and visiting the entire world is my dream. Like reading and writing philosophical, sociological, spiritual or Emotional intelligence blogs to help humans understand the challenges in life and the way to happily live with that. In my another category I share my WORLD TRAVEL experience so that travelers could make informed decisions. In my business category I share the MANAGEMENT blogs which can be helpful for a MBA graduate or business executives.
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