Production management is vital for the profitable success of a manufacturing business. And, master production schedule (MPS) is one of the primary pillars of production management.
It’s a mandatory process because it helps to optimize and to evaluate the production of finished goods. It’s an overall plan to assess your production capacity.
It also details the product quantity to be produced within a specific time frame.
Master production planning is necessary to;
- Adjust demand fluctuations
- Improve production efficiency
- Prevent inventory stockouts
- Perform effective cost control
Before getting into the benefits of a master production schedule and how best ERP software – can help you piece it together, you must look into what’s master production schedule.
Master Production Schedule (MPS):
A master production schedule is a commonly used term in the manufacturing industry which refers to a centralized document that details;
- What to produce;
- How much to produce;
- When to produce;
- Batch size to be produced; and
- Manufacturing route to be followed.
In brief, it contains everything production-related and enables you to meet your business commitments, including manufacturing lead time.
Phases of Master Production Schedule:
Perfecting your master production schedule process needs you to follow the below-given steps.
- Make a demand plan by mapping customer demand
- Work on the required raw materials and components
- Get your supply chain aligned with production planning
- Develop your MPS proposal and see if it’s workable
- Apply rough-cut capacity planning to ensure MPS feasibility
- Determine whether your resource capacity can meet the demand.
Once your master production schedule gets into the action, you can evaluate whether or not it meets the customer demand, how effectively resources are working, and assess the inventory investment.
After implementing the master production schedule in your factory, every worker on the shop floor and production line will have a clear understanding of what they need to produce in a certain period – like daily or weekly.
A well-prepared and properly implemented master production schedule at your manufacturing plant will ensure everyone is working towards the same production goal.
Moreover, a master production schedule will assist you in forecasting your demand and supply relationships. It will put you in a better spot to decide when to increase or decrease the production without any problem.
Functions of Master Production Schedule:
The primary goal of a master production schedule is to save your time and resources by using the two efficiently for well-managed production flow.
It will give you more time and space to scale and improve your business operations. The other functions include;
- Interpreting production plans
- Assessing alternative schedules
- Facilitating capacity planning
- Realistic utilization of resources
- Simplifying information processing
- Making demand flow smoother
- Lowering manufacturing lead time
- Generating workable plans
Now, as you know what master production schedule stands for and what key roles it can play when used within your manufacturing business,
Let’s take a look at primary elements you must consider while developing a master production scheduling plan.
- All products and models you need to produce
- Create variation lists for each item to be produced
- Split the schedule in terms of the week, month and year
- Quantity of manufactured units or products in a week.
For long-term success, your master production schedule plan should be compatible with different types of production workflows, depending on the nature of the product you are going to manufacture in your factory.
For example, your MPS plan should be compatible with;
- MTS (Make-to-Stock)
- MTO (Make-to-Order)
- ATO (Assemble-to-Order)
ATO workflow means your master production plan should focus on producing and assembling the components and finished goods into final products to meet client demand and expectations.
However, remember that the products that are most likely to be profitable assets for your business will make up the majority of your resources for timely production and delivery. And, often, these are your most critical and high-in-demand resources with more significant potential and work capacity.
Benefits of Master Production Schedule:
Once you develop and put your master production scheduling plan together and start utilizing it within your production plant, you can reap the following advantages.
Effective Demand Planning:
Like production management, which helps forecast future demand, a master production schedule helps the manufacturers develop, optimize, and track demand planning more effectively.
This is best done using a manufacturing ERP because it will give you a better and in-depth understanding of your current and upcoming production runs.
Resource Capacity Planning:
Producing a specific quantity of units for a certain period needs accurately picked and allocated resources. With an effectively planned master production schedule.
Your human resource department can easily forecast the necessary resources required on the shop floor and assembly line ahead of production.
Materials Capacity Optimization:
You can maintain ideal inventory levels because the master production schedule helps you determine the materials and components you need to produce finished goods, thereby easily avoiding the stock outs.
With a clear overview of production requirements through MPS, you can also determine and optimize materials’ capacity to achieve the desired levels of inventory.
Perform Predictive Maintenance:
Besides an improved procurement process, you must know how much production is taking place currently and how much you will need to produce in the future.
With all this information in your access beforehand, you can efficiently perform predictive maintenance. It is significantly essential for effective production.
Easy Cash Flow Prediction:
The master production schedule is equally beneficial for your finance department. With this document containing an overall production plan, they can efficiently and accurately forecast the company’s cash flow.
Knowing the production demand and time to complete allows them to manage the cash flow more proficiently.
Pro Tip: Don’t confuse master production schedule with production planning; both are entirely different. The latter defines the production levels (finished goods production in terms of batches) and deals with the early phases of the manufacturing process. Contrarily, MPS is a continuous production optimization process that determines the number of products manufactured depending on the production inputs and constraints.
Don’t waste your time in the spreadsheet system and focus on scaling your manufacturing business by automating your master production schedule (MPS) with MIE Trak Pro – a leading ERP software for manufacturing.