Overview of Master Production Schedule (MPS) in MRP Type

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What is MPS (Master Production Schedule) ?

Master Production Schedule (MPS) is a production planning tool that summarizes and organizes which products need to be produced, how much they need to be produced and when they need to be produced. MPS; Without going into details such as production operations, rankings and employees, it works between the sales department and the production department and undertakes the task of balancing supply and demand within certain time periods.

The master production schedule (MPS) is an important tool of the make-to-stock strategy, where demand forecasting guides production planning. Since MPS is used as a key factor guiding production activities, it must provide a positive impact on the profitability of a business and be applicable correctly. In this way, it makes positive contributions to production activities.

MPS can be used in on-demand and mixed-model manufacturing operations. In this case, the inventories required for production can usually be planned using sales forecasts and master production plans. MPS includes a long-term plan created individually for each product. Planning can take from a few months to several years, but the minimum time frame specified is 1 week.

What are the Importance and Benefits of MPS ?

The master production schedule is important for manufacturers as it contributes greatly to achieving their production targets. It is useful for providing accurate and timely production plans. It also increases productivity by making master production schedules, supply chain management and resource planning easier.

One of the biggest problems of businesses is the disruptions arising from the management of production processes. The management of production processes is very broad and at the same time open to multiple scenarios. What problems does MPS provide by preventing problems that may arise in production processes? To give examples of these;

-With MPS you can create, improve and track sales forecasts.
-It prevents financial losses by determining inventory levels and preventing excessive and inadequate stocking.
-It allows you to make the necessary workforce, shift and cost planning.
-It allows optimizing the capacity of the installed base.
-Calculates production and maintenance costs.
-It helps in creating investment plans.
-MPS prepares plans for future targets.
-Finance departments can make estimates for cash flow by obtaining expected revenues and expenses thanks to the master production schedule.

Where can MPS (Master Production Schedule) be used ?

Although master production schedules are most often associated with make-to-stock workflows, they can support production planning in make-to-order, assembly, mass production, and mass customization environments. Here's a look at where MPS can be applied most effectively:

Make to Stock (MTS): MPS is used to align production plans with expected demand. Manufacturers can estimate the amount of product needed. In this way, overproduction or depletion of stocks can be prevented. It can reduce waste by optimizing inventory levels.

Manufacturing to Order (MTO): In MTO situations, where products are produced after a customer order is received, it allows manufacturers to plan their capacity and resources efficiently, ensuring on-time delivery to the customer.

Assembly to Order (ATO): The program helps plan assembly operations, ensuring components are ready when needed and final products are assembled on time.

Batch Production: In environments where similar products are produced in batches or batches, MPS helps determine the optimal batch size and sequence batches to maximize efficiency and minimize setup or changeover times.

Mass Customization: Manufacturers can build their stocks by pre-producing standard components and then customize these components when customer demands come in, meeting demands quickly and effectively with MPS.