Master Production Schedule
A Master Production Schedule (MPS) is a plan for individual commodities to be produced in each time period such as production, staffing, inventory, etc. It is usually linked to manufacturing where the plan indicates when and how much of each product will be produced.
The MPS is a statement of what the company expects to produce and when, taking into account factors like demand forecasts, production costs, inventory levels, and lead times. It is often considered a contract between marketing, which generates the demand forecast, and production, which executes the plan.
The MPS breaks down the production plan into specific details. It separates the planning horizon into time buckets, which could be days, weeks, or months, depending on the specific needs of the business. For each time bucket, the MPS lists the amount of each product that will be produced and the resources needed to produce it.
An effective MPS balances the needs of customers (demand), the abilities of the production facility (supply), and the financial objectives of the business. It should also take into account any constraints on production, such as limited capacity or materials.
An MPS is a crucial part of the overall planning system in a manufacturing business, as it helps coordinate all the different parts of the production process. It provides the basis for making decisions about purchasing, staffing, inventory, and production levels.
Example of a Master Production Schedule
Let’s use an example of a furniture manufacturing company named “Modern Designs.” Modern Designs produces three types of products: Chairs, Tables, and Sofas.
Here is a very simplified Master Production Schedule for the month of August:
This table outlines the production plan for Modern Designs for the month of August. Each week, the company has set a target for how many of each product type they plan to manufacture.
Let’s say in the first week of August, the company plans to manufacture 200 chairs, 100 tables, and 50 sofas. These numbers are determined based on various factors like demand forecast, availability of raw materials, labor capacity, etc.
The MPS is flexible and can be updated as required based on changes in demand, availability of resources, and other factors. It helps the company plan its operations effectively and efficiently, ensuring that it can meet its production goals while making the best use of its resources.