How do you create and update a master production schedule?

1 Define the planning horizon

The planning horizon is the time span that the MPS covers, usually ranging from a few weeks to a few months. It should be long enough to capture the variations in demand and supply, but short enough to allow for adjustments and revisions. The planning horizon should also be divided into time buckets, which are the smallest units of time for planning purposes, such as days, weeks, or months.

2 Determine the demand and supply

The demand for each product is the sum of the customer orders, the forecasted sales, and the safety stock. The supply is the amount of inventory on hand, plus the planned production, minus the projected usage. The demand and supply data should be collected and updated regularly, and aligned with the time buckets of the planning horizon.

3 Calculate the net requirements

The net requirements are the difference between the demand and the supply for each product and time bucket. If the demand exceeds the supply, there is a net requirement. If the supply exceeds the demand, there is a surplus. The net requirements indicate how much and when to produce each product to meet the demand and avoid overstocking.

4 Generate the MPS

The MPS is a table that shows the planned production for each product and time bucket, based on the net requirements and the production constraints. The production constraints include the available capacity, the lot size, the production lead time, and the priority rules. The lot size is the quantity of each product that is produced in one batch. The production lead time is the time it takes to complete one batch. The priority rules are the criteria for sequencing the production of different products, such as first-come-first-served, shortest processing time, or due date.

5 Evaluate the MPS

The MPS should be evaluated for its feasibility, accuracy, and performance. Feasibility means that the MPS can be executed within the available capacity and resources. Accuracy means that the MPS reflects the actual demand and supply conditions. Performance means that the MPS meets the customer service level, minimizes the inventory cost, and maximizes the utilization of resources. The MPS can be evaluated using various metrics, such as fill rate, backorder rate, inventory turnover, and throughput.

6 Update the MPS

The MPS should be updated periodically to incorporate any changes in the demand, supply, or production conditions. The update frequency depends on the volatility of the market, the complexity of the production process, and the flexibility of the system. The update process involves revising the demand and supply data, recalculating the net requirements, regenerating the MPS, and reevaluating the MPS. The update process should also involve communication and coordination among all the stakeholders involved in the production planning and scheduling.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?