Master Production Scheduling

The process of master production scheduling involves the planning of activities to determine whether or not an operation can achieve the production objectives mentioned in the MPS. Material Requirements Planning (MRP) and Capacity Requirements Planning (CRP) are the two planning activities that are a part of the master production scheduling process. CRP determines whether the existing production capacity is sufficient to achieve the objectives of the MPS. Figure 9.4 illustrates the process of master production scheduling. The following are the sequential steps involved in the master production scheduling process:

Figure : The Master Production Scheduling Process

1. Determining the gross requirements of materials, components and sub- components (total demand in units of the end-product) for each product in the product line using MRP.

2. Obtaining the net requirements for each unit of materials, components, and sub- components, after taking into consideration inventory on hand and inventory on order.

3. Revising the preliminary master production schedule to accommodate the inadequacy of materials in inventory, if any.

4. Converting adjusted net requirements into planned order releases (the order quantity for a specific time period) to determine unit or lot-sized production during the planning horizon.

5. Developing load reports from the planned order releases. The load report contains information on the amount of work assigned to individual workers, machines and workstations. 

6. In the event of a mismatch between available capacity and required capacity, the MPS is modified or additional capacity is added.

Master production scheduling is generally based on the results of demand forecasts. These results are not always accurate, and the actual production output is not always the same as the actual market demand. To accommodate these imbalances, operations managers modify the master production schedule by

• Modifying the size or composition of the product or service temporarily

• Allowing the inventory level to increase when the demand for the product is low and decrease when the demand is higher

• Deferring routine maintenance and diverting labor capacity to manufacturing

• Subcontracting the additional capacity requirements

• Altering the prices of products to influence the demand level                          

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