The Master Production Schedule (MPS)
The MPS is the definitive, anticipated build schedule for a company's end products. It is not just a forecast; it is a plan of what will be produced, detailing the quantity of each specific product to be completed in each time period. It acts as the master plan that synchronizes the efforts of marketing, finance, and production.
The Bridge Between Planning and Execution
The MPS translates the high-level Aggregate Production Plan into a specific, actionable schedule for individual products. It is the crucial link that drives detailed material and capacity planning.
Aggregate Plan
(Product Families)
Master Production Schedule (MPS)
(Specific End Products)
MRP & Capacity Planning
(Components & Resources)
MPS Inputs & Outputs
Inputs: The Building Blocks
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Demand Forecast
Projections of future sales for each product, which sets the initial expectation for production needs.
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Actual Customer Orders
Firm, booked orders that must be fulfilled. These consume the forecast and represent confirmed demand.
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Inventory Levels
Current on-hand quantity of finished goods, which determines how much new production is needed.
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Capacity Constraints
Information about the production facility's limits (machine hours, labor availability) to ensure the plan is realistic (often checked via Rough-Cut Capacity Planning).
Outputs: The Actionable Plans
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The Final MPS Line
The specific quantities of each product to be produced in each time bucket. This becomes the primary input for Material Requirements Planning (MRP).
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Available-to-Promise (ATP)
A calculation that shows the uncommitted portion of a company's inventory and planned production. It allows the sales team to make accurate delivery promises to new customers.
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Projected Available Balance (PAB)
An estimate of the inventory expected to be on hand at the end of each time period, based on the current plan.
Beyond Mechanics: The Strategic Role of MPS
Resource Optimization
A well-crafted MPS prevents costly operational inefficiencies. It helps to level-load the production facility, avoiding periods of frantic overtime followed by idle time. This stable workload improves labor morale, equipment utilization, and overall cost control.
Financial Planning
The MPS is a direct input for financial forecasting. By detailing planned production, it allows the finance department to project revenue, estimate production costs, manage cash flow for purchasing, and evaluate inventory investment levels.
Customer Satisfaction
The MPS, through the Available-to-Promise (ATP) calculation, is the backbone of reliable customer service. It prevents the sales team from making promises the production floor can't keep, leading to accurate delivery dates, increased trust, and higher customer retention.
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