fusion point research Marketing Research Reports

Marketing to Production Schedule & Resource Planning Leaders in Manufacturing

Understanding Their Role

The master production schedule (MPS) specifies exactly how many units in various configurations need to be produced, and the machines, labor and resources allocated to make them.1 MPS guides many of the activities in a manufacturing facility, and the ability of schedulers to successfully plan has a direct impact on the profitability of an organization. Mistakes in MPS result in product shortages, excessive inventories and/or inefficient use of resources.2 While the longer-term production plan estimates a rough number of overall units needed in the future, the MPS must be much more specific about which individual products are needed including specific colors, sizes, features, accessories, etc. To ensure the MPS is feasible, schedulers use a process called rough-cut capacity planning (RCCP) to compare the production schedule with the current capabilities of the operation. RCCP determines if the critical machines, materials and skilled labor are available to meet the requirements of the MPS. RCCP reveals potential problems before they lead to downtime or missed  orders.3

 

Once the MPS is finalized, it feeds material requirements planning (MRP). The MRP is even more detailed, because it calculates all of the specific materials and sub-components needed to make the products in the master production schedule. In order to manufacture a finished product, the production line requires a specific number of sub-components (raw materials, parts, assemblies, dyes, adhesives, etc.,) be available at the time of production. Managers create a Bill of Materials (BOM) listing every sub-component necessary to make a finished product. The MRP uses these BOMs, matched to the production schedule and current work-in-progress (WIP) inventory levels to determine how many sub-components they need to order and when they need to arrive.4

“Mistakes in MPS result in product shortages, excessive inventories and/or inefficient use of resources.”

1 Professionals, Council of Supply Chain Management, and Nada Sanders. THE DEFINITIVE GUIDE TO MANUFACTURING AND SERVICE OPERATIONS . Edited by Jeanne Glasser Levine. 1st ed. Pearson Education LTD., 2013.

2 Bakliwal, V. K. Production and Operations Management. 1st. ed. MARK PUBLISHERS, C-390, Ist Floor, Amrapali Circle, Vaishali Nagar, Jaipur-302021, Ph.: 9413678649, E-mail: markpublishers@ymail.com: MARK PUBLISHERS, 2011.

3 Professionals, Council of Supply Chain Management, and Nada Sanders. THE DEFINITIVE GUIDE TO MANUFACTURING….

4 Ibid.

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Manufacturing managers use several layers of planning to ensure resources are aligned and production operations run efficiently. Master production scheduling (MPS) specifies the products to be manufactured and material requirements planning (MRP) identifies all of the parts, raw materials and other components needed to make a finished product.