Exceed Your Customer’s Needs with Priority Planning
The Production Plan, Master Production Scheduling, and Material Requirements Planning are major components of Priority Planning used to ensure that customer expectations are met.
The Production Plan
Using objectives set by the business plan, the Production Plan takes into consideration the overall quantities of the items to be produced, desired inventory levels, and the availability of equipment, labor and material.
The focus is to develop a plan that will satisfy customer demand yet strike a balance between the market and the product availability over the planned production period(s).
The Master Production Schedule
The Master Production Schedule or MPS, whether formal or informal, is the planned or forecasted ‘build schedule’ the company will sell to the market place. These numbers should match and support the Production Plan.
The MPS is not a sales tool but, instead, is the product mix or the configurations that the company believes it will sell.
Material Requirements Planning
The Material Requirements Planning (MRP) software takes the company’s Master Production Schedule of its end item products and determines the net requirements for materials as well as what production work orders are needed to build products over discrete periods of time.
The Bottom Line.
The Production Plan, Master Production Schedule, and Material Requirements Planning programs are major components of Priority Planning that is used to that customer expectations are met. The Production Plan is developed from the company’s business plan. The Master Production Schedule is the company’s build schedule for its products. The Material Requirements Planning (MRP) system provides the ‘time-phased’ materials and work order needed to build products.
Inventory Management. “Can You Avoid the ‘Deadly Sins’ of Inventory Management?” The purchase and storage of raw materials typically represents the single largest investment for a manufacturing company. To learn more, please follow this link, Inventory Management.
Sourcing Strategies. The strategic sourcing process is a subset of procurement. It is procurement’s responsibility to find and develop competent suppliers that are qualified to provide the firm with its needed materials. For more on this topic, please follow this link, Strategic Sourcing.
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