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Presented By
Dr. Niraj Chaudahri
Assistant Professor,
Sanjivani College of Engineering ,
Dept.of MBA,
Kopargaon
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Sanjivani College of Engineering, Kopargaon
Department of MBA
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307 – Six Sigma For Operation
Introduction of MPS
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Master Production Schedule (MPS)
• Master Production Scheduling is the process
that helps manufacturers plan which products
and related quantities to produce during
certain periods. MPS is proactive in that it
drives the production process in terms of
what is manufactured and what materials are
procured.
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What is the Master Production Schedule?
• MPS decides what products are manufactured and
when. The required raw materials are then identified
by the finished goods BOM, the data from which is
then integrated with current inventory data to create
the MRP for raw materials procurement.
• The Master Production Schedule forms the basis of
communication between sales and manufacturing.
Using the MPS as a contract between sales and
production means that sales can make valid order
promises. the MPS is not a rigid plan. MPS is a
dynamic plan and can be changed when there are
changes in demand or capacity.
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Functions of Master Production Schedule
• Achieve desired customer service levels
• Make the most efficient use of resources
• Maintain a desirable level of inventory
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Objective of Master Production Schedule
• To make adjustments to fluctuations in demand
while minimizing waste
• To Prevents shortages and scheduling mishaps
• To Improves efficiency in the location of production
resources
• To Provides more effective cost controls and more
accurate estimates of material requirements and
delivery dates
• To Reduces lead times throughout the year
• To Provides an effective communication conduit with
the sales team for planning purposes
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Role of MPS in Management
• Available-to-Promise
• Demand Tracking Report
• Forecast Data Report
• Period Summary Forecast
• Item Demand and Forecast
• Build Schedule Report
• Schedule vs. Actual Output
• Where Used Report
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What is a strategic plan?
• A strategic plan is when you look at the long-term goals
you want to achieve. You would use strategic planning
when you want to reach a broad life or career goal. This
kind of plan gives you a general idea of how you're going
to reach your goals. Rather than listing all of the details,
it looks at the broader actions you may need to take.
• One advantage of a strategic plan is that you get a
chance to focus on bigger objectives. Rather than looking
at your daily efforts, you may revisit your plan once a
quarter. This would be an ideal plan when trying to
increase your revenue or boost your sales numbers.
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What is a tactical plan?
• A tactical plan is when you focus on the specific steps
you need to take in order to achieve a goal. This kind of
planning process focuses on the day-to-day actions you
need to complete. With a tactical plan, you need to
revisit your progress more frequently.
• A tactical plan is useful when you need to break a long-
term goal into smaller parts. For example, if you want
to find a new job, there are many short-term goals to
accomplish throughout the process. You need to create
a resume, find jobs to apply to,, interview for jobs and
negotiate a job offer. Each one of these smaller goals
requires a detailed plan for you to accomplish.
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VAT Analysis
• A VAT analysis involves creating buffers in areas where
constraints, or barriers, can affect the amount of
product a particular production process can produce.
A buffer acts as a type of backup plan that ensures a
production schedule proceeds as planned. The control
points within a production process become prime
areas for creating buffers since problems most likely
occur at points where a product enters a new phase of
the production process.
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VAT Analysis
• For example, a production process that falls within
the “V” structure category uses a few raw materials
to make several products. The raw materials follow
different production paths, or lines, for each product
type. Each product type also may have a different
shipping schedule, so production times for each
product line must coincide with that product’s
shipping schedule. The use of buffers helps to ensure
each production line produces a set amount of
product types according to each product’s delivery
schedule.
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Projected Available Balance (PAB)
• It is defined as the balance projected in the future, as
the available balance of the on-hand inventory. It is
derived after netting the requirements and adding
the scheduled receipts and planned orders that are
about to arrive.
• Once the projected availability has been determined
and there is a clear understanding of the remaining
inventory to be utilized, an MPS is released
accordingly. If the projected available balance,
• Is more than zero
• Or equal to zero
•
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Available To Promise (ATP)
• As its name implies, available to promise
refers to the available quantity of inventory a
business can commit to selling in the near
future. It does not include purchase order
allocation. For example, ecommerce retailers
use the ATP calculation to determine your
delivery due date.
• Calculating your ATP quantity is simple:
• ATP = Quantity On Hand + Supply – Demand
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Available To Promise (ATP)
• ATP is a type of inventory analysis that
enables businesses with complex operations
to keep a lean inventory while not
overextending their capabilities. It also
empowers salespeople to instantly find out
when they can deliver a potential customer’s
order. Without ATP, salespeople often have
to talk to multiple departments to confirm
the inventory is available and can be
delivered by the requested date.
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Final Assembly Schedule (FAS)
• This refers to a schedule of finished goods in a make-
to-order or assemble-to-order environment. It is
sometimes referred to as the finishing schedule. The
FAS is prepared to suit customer orders as constrained
by the availability of material and capacity.
• FAS schedules the operations required to complete
the product from subassemblies and components that
are stocked to the end-item level. FAS may be stated in
terms of customer orders or end product items.
