Question

ch 15 How is a master production schedule created, and how is it used?

Answer 1

Master Production Schedule :- A MPS is plan for individual products to be created in each time interval. It is basically the set-up using which the plan indicates when & how much of each commodity will be demanded & as per that production is carried out. There are various inputs to the schedule creation, such as Forecasting the demand, cost involved in productions, inventory cost, staffing, so that bottlenecks can be identified & a plan can be conducted which yields details about amount of inventories to be managed, staffing to be done etc.

How MPS is created:- As stated above, it is plan which creates outputs that helps in decision making. A set of assigned inputs acts as variable for MPS & a set of outputs is generated accordingly. Inputs might be directly generated with the help of an database & that helps in evaluating the demands with help of sales data. For Example, ERP shows sudden increase in sales of a particular commodity, this acts as input. Now as per sales forecast, the demand is increasing, this is the outcome of the schedule. Basis on the outcome, decision can be made whether we have to raise our production? If yes what is the amount & at what intervals. Inputs usually are production costs, supply, sales information, inventory/shelf cost, customer requirements etc. The outputs which could be yielded are quantity to be available in inventory, production rate, production of quantity etc.

How MPS is used:-

1. It gives an estimate of capacity planning of commodity.
2. Strategically align the departments like, planning, forecasting & production.
3. Increases effectiveness of company’s manufacturing & production.
4. Proper & practical decisions are made.
5. Helps in avoiding shortages.
6. Effecient allocation of resources.