Operations Management: An Integrated Approach, 5th Edition

MASTER PRODUCTION SCHEDULING

Your company's aggregate plan specifies the resources authorized for use by the company's operations group. These resources include the size of the workforce, level of inventory held, number of planned shortages, authorized level of overtime and under-time, aggregate number of units or services to be produced in-house, and number of units or services to be subcontracted.

The master production schedule (MPS) is often stated in product or service specifications rather than dollars. It shows how many products or services are planned for each time period, based on the resources authorized in the aggregate plan. In manufacturing, the master scheduler develops the schedule based on the available capacity. In service companies, the office manager, department manager, or assistant manager might develop the schedule.

Master production schedule (MPS)

The anticipated build schedule.

Master scheduler

The person responsible for managing, developing, reviewing, and maintaining the master schedule.

The MPS is the anticipated build schedule for manufacturing specific end products or providing specific services. The key distinction here is that the MPS is a statement of production or services and is not a statement of demand—a plan to satisfy customer demand while considering ...