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CPIM Exam – Basics of Supply Chain Management Practice Study Sheet
Chapter Three – Master Scheduling
• Master production schedule (MPS) 1) links production planning to what will be built 2) calculates capacity and resources needed 3) drives the materials requirements plan 4) drives priorities for manufacturing
• To build the master production schedule (MPS) you need the following information
1. the production plan
2. forecasts for individual end items
3. actual orders received from customers and for stock replenishment
4. inventory levels for individual end items
5. capacity constraints
• Objectives of MPS are to 1) maintain finished good inventory levels 2) make the best use of labor, materials & equipment 3) maintain inventory investment (WIP) at the required levels
• Develop a preliminary MPS, check MPS against capacity, resolve differences (this is called rough cut capacity planning)
• Rough cut capacity planning checks whether resources are available to support the preliminary master production schedule. Plan on a single product, not a group, and use the resource bill
• For make to stock, the MPS is a schedule of finished goods items, for make to order the MPS is a schedule of actual customer orders, for assemble to order, go to the base order
• Final Assembly Schedule (FAS) – schedule of what will be produced
• MPS is a plan for what production can and will do – it is not a sales forecast
• Available to Promise (ATP) is based on the MPS – portion of inventory that is not already committed and available to a customer. ATP = scheduled receipts + beginning inventory = actual orders scheduled
• Projected available balance (PAB) includes a calculation for customer orders. PAB = prior period PAB + MPS – greater of (customer orders or forecast demand)
• Frozen Zone – capacity and materials are committed to specific orders, senior mgmt approval required for changes.
• Slushy Zone – capacity and material are committed to less extent. Tradeoffs must be met between marketing and manufacturing
• Liquid Zone – any changes can be made to the MPS