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• Starting Inventory = 0 • Lot Size = 50 • Lead time = 0
W2 Inc. Continued
Per i o d 1 2 345 6 7
De m a n2 2 2 1 3 2 d 5 5 50 5 5 5
Av a il
Summary
• MPS breaks the Sales & Operations plan into product families
Example Continued
Brainstorming Exercise
• How can an MPS system be used in your Firm?
You’re the Master Scheduler…
• W2 Inc. is scheduling production for a new product called the Widget 5000
Sales and Operations Plan
Resource Planning
Master Production Schedule Rough Cut Capacity Planning
Materials Resource planning Capacity Requirements Plan
Marketing Operations
• Marketing communicates demand through customer orders and forecasts
• Operations communicates capacity through inventory levels and constraints
Master Production Schedule
Overview
• Define Master Production Schedule • Explain MPS • Discuss How MPS Works • Example From “Real Life” • Brainstorm: How Can MPS Help Your
W2 Inc. MPS for Widgets Lot Size = 25 units Lead Time = 0 periods
Period
1234
5
Demand 30 30 30 30 30
Available 20 15 10 5
0
MPS
50 25 25 25 25
Jet Spray Corp. Example
• Maintains Desired Level of Customer Service
Inventory ConБайду номын сангаасrol
• Proactive approach to inventory control
– Items are scheduled to arrive when needed
– Safety stock has less importance
Planning Organization
Shop Floor Control
Input/Output
How MPS Works
• Information needed for MPS logic
– Lot Size – Lead Time – Product Demand – Starting Inventory
How MPS Works Cont.
Firm? • Practice MPS Logic
What is MPS?
• Master Production Schedule – States the requirements for individual end items by date and
quantity. -APICS
MPS Explained
• Jet Spray Corporation
– Markets dispensers for hot & cold beverages
– Uses an integrated system that includes:
• MRP • Capacity Planning • Shop floor control • MPS • Inventory Management
Resource Availability Control
• Production shortfalls will be known ahead of time and alternative plans can be made.
Customer Service
• Proactively control ability to deliver goods to customers
Explanation Continued
• Proactively control ability to deliver goods to customers
• Resource availability control • Proactively control inventory
levels
Disaggregate the Sales and Operations Plan
• The production plan is broken into product families
Promotes Valid Order Promises
• By validating the capacity for the MPS through rough cut capacity planning, alterative plans can be made when there are more orders than production
• Breaks down, or disaggregates, the production plan into product families
• Promotes valid order promises • Provides a communication
medium between Marketing/Sales and Operations
W2 Inc. Continued
Per i o d 1 2 345 6 7
De m a n2 2 2 1 3 2 d 5 5 50 5 5 5
Av a il
Summary
• MPS breaks the Sales & Operations plan into product families
Example Continued
Brainstorming Exercise
• How can an MPS system be used in your Firm?
You’re the Master Scheduler…
• W2 Inc. is scheduling production for a new product called the Widget 5000
Sales and Operations Plan
Resource Planning
Master Production Schedule Rough Cut Capacity Planning
Materials Resource planning Capacity Requirements Plan
Marketing Operations
• Marketing communicates demand through customer orders and forecasts
• Operations communicates capacity through inventory levels and constraints
Master Production Schedule
Overview
• Define Master Production Schedule • Explain MPS • Discuss How MPS Works • Example From “Real Life” • Brainstorm: How Can MPS Help Your
W2 Inc. MPS for Widgets Lot Size = 25 units Lead Time = 0 periods
Period
1234
5
Demand 30 30 30 30 30
Available 20 15 10 5
0
MPS
50 25 25 25 25
Jet Spray Corp. Example
• Maintains Desired Level of Customer Service
Inventory ConБайду номын сангаасrol
• Proactive approach to inventory control
– Items are scheduled to arrive when needed
– Safety stock has less importance
Planning Organization
Shop Floor Control
Input/Output
How MPS Works
• Information needed for MPS logic
– Lot Size – Lead Time – Product Demand – Starting Inventory
How MPS Works Cont.
Firm? • Practice MPS Logic
What is MPS?
• Master Production Schedule – States the requirements for individual end items by date and
quantity. -APICS
MPS Explained
• Jet Spray Corporation
– Markets dispensers for hot & cold beverages
– Uses an integrated system that includes:
• MRP • Capacity Planning • Shop floor control • MPS • Inventory Management
Resource Availability Control
• Production shortfalls will be known ahead of time and alternative plans can be made.
Customer Service
• Proactively control ability to deliver goods to customers
Explanation Continued
• Proactively control ability to deliver goods to customers
• Resource availability control • Proactively control inventory
levels
Disaggregate the Sales and Operations Plan
• The production plan is broken into product families
Promotes Valid Order Promises
• By validating the capacity for the MPS through rough cut capacity planning, alterative plans can be made when there are more orders than production
• Breaks down, or disaggregates, the production plan into product families
• Promotes valid order promises • Provides a communication
medium between Marketing/Sales and Operations