Master Production Schedule (MPS)
Demand forecasting and master production planning
The MRP MPS (Master Production Schedule) module is a master production planning tool that helps forecast demand and plan production/purchasing before actual orders arrive.
This module enables time-based demand forecasting, automatic production/purchase suggestions, safety stock management, and tracking variance between forecast and actual demand.
Key Features
Key points
• Time-based demand forecasting (day/week/month)
• Automatic production/purchase suggestions based on forecast
• Safety stock management
• Create Manufacturing Orders and Purchase Orders from forecast
• Track variance between forecast and actual demand
• Analyze direct and indirect demand
When to Use MPS
Key points
• Make to Stock production
• Need to order materials before orders arrive
• Seasonal inventory management
• Long-term production planning
• Products with long lead times
Important Terminology
| Fields | Trường dữ liệu | Description |
|---|---|---|
| Master Production Schedule | Kế hoạch sản xuất chủ đạo | Overall production plan based on forecast |
| Forecast | Dự báo | Expected quantity to produce/sell |
| Demand | Nhu cầu | Actual demand from orders |
| To Supply | Cần cung ứng | Quantity to produce/purchase |
| Safety Stock | Tồn kho an toàn | Minimum inventory level to maintain |
| Replenish | Bổ sung | Create manufacturing/purchase orders |
| Actual Demand | Nhu cầu thực tế | Demand from Sales Orders |
| Indirect Demand | Nhu cầu gián tiếp | Demand from BoMs of other products |
Accessing MPS
The MPS interface displays as a table with products as rows, time periods as columns, and forecast/actual quantities in cells.
Steps
1. Go to Manufacturing → Planning → Master Production Schedule.
2. Select time period: Day, Week, or Month.
3. View the forecast table with products added to MPS.
Configuring Products for MPS
Steps
1. Go to Manufacturing → Planning → Master Production Schedule.
2. Click Add a Product to add products for planning.
3. Select product (must have BoM and Manufacture or Buy route).
4. Click the ⚙️ (Settings) icon to configure parameters.
MPS Parameters
| Fields | Trường dữ liệu | Description |
|---|---|---|
| Safety Stock | Tồn kho an toàn | Minimum inventory to maintain (e.g., 100 products) |
| Minimum to Supply | Tối thiểu cung ứng | Minimum quantity per replenishment (e.g., 50) |
| Maximum to Supply | Tối đa cung ứng | Maximum quantity per replenishment (e.g., 500) |
Creating Demand Forecast
Enter manual forecasts for each time period for the system to calculate replenishment suggestions.
Steps
1. In the MPS table, find the product to forecast.
2. In the future time column, click the Forecast cell.
3. Enter forecast quantity (e.g., Week 1: 200, Week 2: 300).
4. Press Enter or click outside to save.
5. System automatically calculates To Replenish.
MPS Indicators
MPS Indicators
| Indicator | Description |
|---|---|
| Starting Inventory | Beginning inventory |
| Forecast | Demand forecast |
| Actual Demand | Actual demand from SO/MO |
| Indirect Demand | Indirect demand from other BoMs |
| To Replenish | Replenishment suggestion |
| Ending Inventory | Ending inventory |
Color Alerts
Color Meanings
| Color | Meaning | Action |
|---|---|---|
| Green | Sufficient inventory, no issues | No action needed |
| Yellow | Inventory below safety stock | Consider replenishment |
| Red | Negative inventory, shortage | Replenish immediately |
Creating Manufacturing and Purchase Orders
Steps
1. Check To Replenish column for quantities > 0.
2. Click the Replenish button at the top.
3. System automatically creates Manufacturing Orders (if route = Manufacture) or Purchase Orders (if route = Buy).
4. Go to Manufacturing → Operations → Manufacturing Orders to view new MOs with origin = "MPS".
5. Or go to Purchase → Orders → Purchase Orders to view new POs.
Managing Safety Stock
Safety Stock is the minimum inventory level maintained to buffer against demand variability.
Key points
• Simple formula: Safety Stock = Average demand × Lead time × Safety factor
• Example: Demand 100/week, Lead time 2 weeks, Factor 1.5 → Safety Stock = 100 × 2 × 1.5 = 300
• Minimum to Supply: Minimum quantity per production/purchase (due to high setup costs or MOQ)
• Maximum to Supply: Maximum quantity per time (limit working capital, warehouse constraints)
Accurate Forecasting
Key points
• Based on history: Review same period last year, adjust for trends
• Based on plans: Upcoming marketing campaigns, large customer needs, special events
• Regular updates: Review forecast weekly, adjust with new information
• Compare with actual: Analyze forecast vs actual variance to improve
Optimizing Parameters
Key points
• Safety Stock too high: Capital tied up, storage costs. Too low: Stockouts, lost customers.
• Adjust based on actual stockout rates.
• Minimum to Supply: Balance setup costs and storage costs.
• Time period: Fast products plan weekly, slow products monthly.
Work Process
Establish periodic processes to manage MPS effectively.
Key points
• Weekly: Review next week forecast, adjust with new info, click Replenish to create MO/PO
• Monthly: Update 3-6 month forecast, analyze forecast vs actual variance from last month
• Adjust parameters (safety stock, min/max) based on analysis
• Report production plan to management
Handling Situations
Common Situations
| Situation | Solution |
|---|---|
| Large forecast variance | Analyze causes (marketing, competitors, market), adjust forecast method, temporarily increase safety stock |
| Sudden shortage | Create urgent MO/PO manually, consider increasing safety stock, contact suppliers to shorten lead time |
| Excess inventory | Reduce next period forecast, run promotions, consider reducing minimum to supply |