The Master Scheduling Process

Master Scheduling Process

·         Develop build schedules for specific products

·         Master Production Schedule is the output to this process

o   MPS:  set of planning numbers that drive detailed scheduling and planning



Master Scheduling

Sales Operations Planning


Anticipated build schedule

Supply Rate

Item Planned

End Item/Planning BOM

Product Family


Critical workcenters


Planning Horizon

Longest Cumulative Lead Time

Longest Resource/Plant LT

Time Periods



Planning Focus

Product Mix

Product Volume

Process Output

Master Production Schedule

Production Plan



Relation to Master Planning of Resources

·         Production plan is how much needs to be produced by month of a product family

·         The Master Production Schedule breaks down that month by week and quantities per individual product


Master Scheduling Applications

·         MPS development

·         Projects backlog/inventory levels

·         Order Promising

·         Drives detailed scheduling/planning

·         Helps assign priorities



Master Scheduling Process

1.       Develop preliminary MPS

2.       Evaluate MPS using RCCP (Rough-Cut Capacity Planning)

3.       Revise MPS

4.       Re-evaluation of MPS using RCCP

5.       Publish MPS



Master Scheduling Process vs. Master Production Schedule

·         Master Scheduling process creates the Master production schedule


Inputs to the master scheduling process

·         Detailed Forecasts

·         Production plan from S&OP

·         Inventory/backlog targets

·         Time fence policies

·         Interplant/intraplant orders

·         Customer orders

·         Service parts forecasts/orders

·         Distribution requirements

·         Planning bills of material

·         Actual production/supply levels


Outputs from Master Scheduling Process

·         MPS

·         Projected Finished Goods inventory levels for Make-to-stock items

·         Projected Sub-Assembly inventory levels for Assemble-to-order items

·         Projected Finished Goods backlog levels for Make-to-order and Engineer-to-order items

·         Order Promising info

·         Product availability info



Projected available balance:

·         First Period

o   PAB = Current on-hand quantity + MPS – Customer Orders

·         After first period but before demand time fence

o   PAB = Prior Period PAB + MPS – Customer Orders

·         After Demand Time Fences

o   PAB = Prior Period PAB + MPS – (Greater of Forecast or customer orders)


Available to Promise:

·         Non Cumulative First Period

o   ATP = On-hand balance + MPS – Sum of customer orders before next MPS

·         Non-Cumulative All future periods that contain an MPS planned receipt

o   ATP = MPS – Sum of customer orders before next MPS

·         Cumulative First Period

o   ATP = On- hand quantity + MPS receipt quantity – Customer Orders in this period

·         Cumulative All other periods

o   ATP = Previous Period’s ATP + MPS receipt quantity – Customer orders in this period

·         Look Ahead (Backward ATP)

o   If period 1 has an ATP of 2 and the next two period’s demand create a negative ATP of 2 units in period 2, then the necessary quantity of 2 units would be “borrowed” from current period.  Zeros out the ATP for each period.


Types of bills of material used in master scheduling

·         Modular BOM

o   Options for customized products (Dell Computer)

·         Common Parts BOM

o   Common components that can be sold with different models of a product (regular, deluxe, or heavy-duty gas ranges)

o   Kitting Bill:  subset of common parts bill because involves small parts for assembly/installation (e.g. garage door and opener)

·         Super BOMS

o   Most widely used BOM

o   Catalog number is made up of abbreviated characteristics/components of end item

o   Each option for each component in BOM is given a percentage of how often it’s usually chosen


Advantages of Planning Bills

·         Reduced # of end items: items not assembled until demanded

·         Increased forecast accuracy:  higher product family level

·         Facilitates order entry (configurator)

·         Increased scheduling and planning accuracy:  MPS at the component level, FAS at finished goods level, less FGs and better customer service

·         Permits two-level scheduling

·         Increased computer processing flexibility/efficiency


Master Scheduler Responsibilities

·         Understand forecasting process

·         Manage supply constraints

·         Participate in S&OP

·         Monitor consistency in production plan

·         Create/upkeep MPS

·         Execute policies:  Time fences, safety, stock, subcontracting, and lot-sizing

·         Identify, negotiate, and resolve conflicts

·         Maintain planning bills

5 Comments (+add yours?)

  1. Eiji
    Sep 14, 2013 @ 02:31:05

    dear cam,

    thanks for this important help in your studies.

    i’m studying for MPR exam by two books:

    and Material Management by tony arnold.

    However, i realized that some concepts of your personal notes and the data chem software are not covered by this two books. Which books have you used in order to study and make your personal note.


  2. penny
    Oct 08, 2013 @ 03:53:08

    We are going to set up planning boms in our Micrsoft ERP system, need help to know best practice. Any help or direction to a web site would be grateful.


  3. Shevonne
    Jun 05, 2016 @ 18:42:42

    This is awesome!…thanks for sharing


  4. Suraj
    Oct 19, 2016 @ 01:04:21


    These are pretty good notes! Thanks a lot for sharing.


  5. mansoorbagheri
    Nov 08, 2016 @ 07:53:40



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