Master Production Scheduling MPS Grid

Skill Dynamics

25 Apr 202101:04

Summary

TLDRThe team discusses the MPS grid, focusing on customer orders, projected available balance (PAB), and available to promise (ATP). They address the need to start production one week before completion due to a one-week production lead time. The script mentions a current order of 6,000 units for week ten and the importance of planning production in the MPS grid to meet customer demands. A link is provided to download detailed descriptions of each field in the MPS grid.

Takeaways

📈 The team is discussing the Master Production Schedule (MPS) grid, which is a planning tool for managing production.
📊 Currently, there are only orders for six thousand units in week ten, indicating a need for more orders.
🔍 The Projected Available Balance (PAB) is calculated based on production and shipments to predict what will be available at the end of each week.
📝 The Available to Promise (ATP) represents the additional customer orders that can be accepted for a given week.
🛠️ The amount of production planned (comfort maxes) needs to be entered into the MPS grid.
⏱️ Due to a one-week production lead time, production must start one week prior to the completion week.
🔢 Producing 25,000 units in week eight implies that the production run must begin in week seven.
🔗 A link is provided to download a detailed description of each field in the MPS grid for further understanding.
📚 The script suggests that understanding the MPS grid and its fields is crucial for effective production planning and order fulfillment.
📈 The discussion highlights the importance of aligning production schedules with customer orders to optimize inventory and meet demand.

Q & A

What is the MPS grid discussed in the transcript?
-The MPS grid, or Master Production Schedule grid, is a planning tool used to manage production schedules. It helps in coordinating production with customer orders and available resources.
What does the term 'customer orders' refer to in the context of the transcript?
-In the transcript, 'customer orders' refers to the confirmed orders received from customers that need to be fulfilled within specific time frames.
What is the significance of the projected available balance (PAB) mentioned in the discussion?
-The projected available balance (PAB) is a forecast of the inventory level at the end of each week, considering production and shipments. It helps in planning future production and fulfilling customer orders.
What is the meaning of 'available to promise' in the script?
-The 'available to promise' refers to the quantity of additional customer orders that can be accepted for a specific week without exceeding the production capacity or inventory limits.
Why is it necessary to start production one week before completion, as mentioned in the transcript?
-According to the transcript, production lead time is one week, which means that to have finished goods ready by the end of a week, production must begin one week prior.
Where should the amount of 'comfort maxes' be recorded in the master production schedule?
-The amount of 'comfort maxes' should be recorded in the master production schedule field, which tracks the planned production levels.
What is the implication of producing 25,000 units in week eight, as discussed in the script?
-Producing 25,000 units in week eight implies that the production run for these units must start in week seven to account for the one-week production lead time.
What is the purpose of the link mentioned in the transcript to download a detailed description?
-The link in the transcript is provided to allow users to download a more comprehensive explanation of each field in the MPS grid, enhancing their understanding of the planning tool.
How does the master production schedule help in aligning production with customer demand?
-The master production schedule helps align production with customer demand by planning production levels based on projected available balance and available to promise, ensuring that customer orders can be fulfilled on time.
What is the importance of understanding the fields in the MPS grid for a production manager?
-Understanding the fields in the MPS grid is crucial for a production manager as it aids in making informed decisions regarding production planning, resource allocation, and order fulfillment.

Outlines

00:00

📈 Master Production Scheduling and Customer Orders

The team discusses the Master Production Schedule (MPS) grid, focusing on customer orders and projected available balance (PAB). They mention having orders for only six thousand in week ten and express hope for more orders soon. The PAB is described as the expected balance at the end of each week, based on production and shipments. The available to promise (ATP) is the additional customer orders that can be taken for that week. The discussion also covers the timing of production runs, noting that due to a one-week production lead time, production for week eight must start in week seven. A link is provided to download a detailed description of each field in the MPS grid.

Mindmap

Keywords

💡MPS Grid

The MPS Grid, or Master Production Schedule Grid, is a planning tool used in manufacturing and operations management to schedule production activities. It helps in aligning production with customer demand and inventory levels. In the script, the team is discussing the MPS Grid, indicating that it is central to their production planning process.

💡Customer Orders

Customer orders refer to the demand from customers for products or services. These orders drive the production schedule and inventory management. The script mentions that there are orders for six thousand in week ten, highlighting the importance of tracking and fulfilling customer demand.

💡Projected Available Balance (PAB)

The Projected Available Balance is a forecast of the inventory level expected at the end of a specific period, considering planned production and shipments. It is crucial for inventory planning and ensuring that the business has enough stock to meet customer orders. In the script, PAB is discussed as a key metric for understanding what the company expects to have at the end of each week.

💡Available to Promise (ATP)

Available to Promise is the amount of additional customer orders that a company can accept for a specific product in a given time frame, based on current and projected inventory levels. It is a critical concept in sales and operations planning, ensuring that sales commitments are feasible. The script refers to ATP as the amount of additional orders the company can take for a particular week.

💡Comfort Maxes

Comfort Maxes likely refers to the maximum production capacity that a company is comfortable committing to, considering factors like resource availability and production efficiency. It is a strategic decision that impacts the master production schedule. The script mentions the amount of Comfort Maxes that will actually be produced, indicating its role in planning production runs.

💡Master Production Schedule (MPS)

The Master Production Schedule is a comprehensive plan that outlines the production quantities of end items over a planning horizon, typically a year. It is a key component of production planning and control and is used to guide the release of production orders. The script discusses the MPS in the context of starting production runs, emphasizing its role in coordinating production activities.

💡Production Run

A production run is a sequence of manufacturing operations to produce a specific quantity of a product. It is planned and scheduled based on customer orders and inventory requirements. The script mentions starting a production run one week before it is complete, illustrating the lead time considerations in production planning.

💡Lead Time

Lead time is the period between the placement of an order and the delivery of the product. It is a critical factor in production planning as it affects the timing of production runs and customer satisfaction. The script refers to the production lead time of one week, which influences when the team must start production to meet customer orders.

💡Inventory Management

Inventory management involves the oversight and control of the inventory levels of a business. It includes activities like purchasing, stockholding, and the sale of inventory. The script's discussion of PAB and ATP shows the importance of inventory management in ensuring that the company can meet customer demand without overstocking.

💡Manufacturing Operations

Manufacturing operations are the processes involved in producing goods, from the procurement of raw materials to the final production of the finished product. The script's focus on the MPS Grid and production runs highlights the importance of coordinating manufacturing operations to meet customer orders and maintain inventory levels.

💡Sales and Operations Planning (S&OP)

Sales and Operations Planning is a business process that aligns sales forecasts, inventory levels, and production plans to ensure that a company can meet customer demand while optimizing resources. The script's discussion of customer orders, PAB, and ATP are all elements of S&OP, which is essential for strategic decision-making in the company.

Highlights

The team continues their discussion of the MPS grid.

There are customer orders for 6,000 units in week ten, but more orders are expected soon.

Projected Available Balance (PAB) is what the team expects to have at the end of each week, based on production and shipments.

Available to Promise (ATP) is the amount of additional customer orders that can be taken for each week.

The team discusses where to input the amount of products Maxes will actually produce, which is in the Master Production Schedule (MPS) field.

Production lead time is one week, meaning production must start one week before it's completed.

Producing 25,000 units in week eight requires starting production in week seven.

Clarification is given about using the Master Production Schedule grid for tracking production timelines.

The team anticipates the need for more orders in the upcoming weeks to match the projected production.

The MPS grid helps in planning and adjusting production runs based on actual orders and forecasts.

The discussion emphasizes balancing production capabilities with customer demand and available resources.

Managing production runs efficiently ensures timely fulfillment of customer orders.

Understanding lead times is crucial for aligning production schedules with shipment deadlines.

Team members stress the importance of accurate data in the MPS grid for forecasting and planning.

A link to download a detailed description of each field in the MPS grid is provided.