Master Production Scheduling (MPS) and MRP 1

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Master production scheduling (MPS) and

Material Requirement planning(MRP)


 A master production schedule (MPS) is a product-wise plan for manufacturing products.
When a firm uses an MRP (material requirements planning) system, the MPS provides the
top-level input requirements.
 Aggregate planning aims at an overall plan without distinguishing products. But master
production plan/schedule aims to prepare a product-wise schedule which is consistent
with the aggregate planning.
 A aggregate planning problem provides a basis for decision-making regarding specific
production dates, available capacity, total demand, lead time, or inventory constraints.
 A plan in terms of specific products that are to be produced in certain quantities by certain
dates which is known as master production schedule/disaggregation schedule.
MPS specifies:
 The sizing and timing of production orders for specific items
 The sequencing of individual jobs
 The short-term allocation of resources to individual activities and
operation.

Existing MPS/disaggregation techniques:


 Cut-and-fit methods
 Mathematical programming methods
 Heuristic methods
Master Production Schedule (MPS)
 Specifies what is to be made and when
 Must be in accordance with the aggregate production plan
 Aggregate production plan sets the overall level of output in broad terms
 As the process moves from planning to execution, each step must be tested
for feasibility
 The MPS is the result of the production planning process
 MPS is established in terms of specific products
 Schedule must be followed for a reasonable length of time
 The MPS is quite often fixed or frozen in the near term part of the
plan
 The MPS is a rolling schedule
 The MPS is a statement of what is to be produced, not a forecast of
demand
The Planning Process

Change
production
plan?
The Planning Process
Material Requirements Planning
Benefits of MRP
 Better response to customer orders
 Faster response to market changes
 Improved utilization of facilities and labor
 Reduced inventory levels
MRP Management:
 MRP is a dynamic system
 Facilitates re-planning when changes occur
 System nervousness can result from too many changes
 Time fences put limits on re-planning
 Pegging links each item to its parent allowing effective
analysis of changes
MRP and JIT
 MRP is a planning system that does not do detailed scheduling
 MRP requires fixed lead times which might actually vary with
batch size
 JIT excels at rapidly moving small batches of material through
the system
Finite Capacity Scheduling (FCS):
 MRP systems do not consider capacity during normal planning
cycles
 Finite capacity scheduling (FCS) recognizes actual capacity
limits
 By merging MRP and FCS, a finite schedule is created with
feasible capacities which facilitates rapid material movement
• MRP Inputs
Extensions of MRP
Closed-Loop MRP:
– MRP system provides input to the capacity plan, master
production schedule (MPS), and production planning
process
Capacity Planning
– MRP system generates a load report which details capacity
requirements
– This is used to drive the capacity planning process
– Changes pass back through the MRP system for
rescheduling
MRP in Services
• Some services or service items are directly linked to
demand for other services
• These can be treated as dependent demand services or items
 Restaurants
 Hospitals
 Hotels
MRP is designed to answer three Questions:
What is needed?
How much is needed?
When is it needed?
MRP
The main theme of MRP is “getting the right materials
to the right place at the right time”.

 Ensure materials are available for production


 Maintain the lowest possible material and product levels in
store
 Plan manufacturing activities, delivery schedules and
purchasing activities.

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