Operations Management: An Integrated Approach, 5th Edition

MPS AS A BASIS OF COMMUNICATION

The MPS is a basis for communication between operations and other functional areas. It is stated in product or service specifications rather than dollars. Your company uses an effective MPS in making customer delivery promises, using company capacity wisely, achieving the company's objectives, and making trade-off decisions between marketing and operations. Figure D-1 shows the connections between the master scheduling role and other parts of the planning process. Let's examine these connections, beginning with demand management.

Demand management includes a company's forecasting, order-entry, order-promising, and physical distribution activities. Demand management captures all activities that use capacity. These demands can be customer orders for products or services, a forecast of demand for products and services, interplant requirements, service parts requirements, and/or distribution requirements. If a demand is excluded, it will not be scheduled for completion. Communications between the master scheduler and demand management are ongoing.

Demand management

The function of recognizing all demands for goods and services to support the marketplace.

FIGURE D-1 Master production schedule linkages

The production or aggregate plan supports the marketing ...