Long-term plans only matter if you can execute them. In this Supply Chain Byte, Lisa Anderson explains why Master Production Scheduling (MPS) is the critical link between strategic planning processes like SIOP (Sales Inventory Operations Planning) and day-to-day execution through MRP and scheduling.
MPS helps manufacturers translate longer-term customer requirements into a realistic production plan and provides an important foundation for AI-enabled advanced planning systems.
Lisa highlights three things manufacturers should focus on when implementing MPS:
- Make sure the process and setup produce practical results
- Educate and train users to manage exceptions
- Let the system handle roughly 80% of the planning work so planners can focus on the difficult 20%
There have been a significant number of clients interested in MPS and advanced planning and scheduling (APS) capabilities. All have at least a minimal form of MPS in their ERP system whereas some have an APS system as well; however, 100% of them are using Excel to put together plans and schedules. The optimal plan does far more than providing what to produce, transfer, or purchase. It wills support growth plans and maximizes customer service, margins, and cash flow.
We have found that every client can achieve substantially improved results by focusing on the planning process. For example, one client turned around service issues and prepared for peak season with a focus on MPS and the basics. In essence, what safety stock, order policies, forecast upgrades, and other variables will result in the best schedule so that the planners could focus on exceptions and drive results. Another client also dramatically improved OTIF (on-time-in-full) while reducing lead times and improving operational performance by focusing on the rollout of MPS and APS inclusive of sales forecasting, production planning, distribution planning (DRP), supply chain network analysis, SIOP, and APS features so they could optimize production among sites, create transportation lanes and reduce freight costs, and drive add additional value for customers. To learn more about how to roll out these improvements, refer to our Supply Chain Chat on MPS.
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