Capacity Planning - Mps and Mrp

Questions Seminar 2: MPS and MRP

1. Compare the articles with the chapter in Vollman et al, what are the main differences or similarities between the two?

In the book; As usual, the principles and characteristics of MRP and MPS are stated at first. Furthermore, discussions about where and how to use the principles and characteristics in certain scenarios are also spotted. As well as the components to get assistance.

Moreover, a special example for MPS is given in the book as a case study to provide practical information. To provide more information about reality, the question “how those principles and characteristics can be used?” is also answered in the book. A point is made about how MPR is frequently utilized in a wrong way and the framework gets the opportunity to assume the fault for it.

In the article, instead of focusing providing practical information, the article is focused on detailed calculations. Furthermore, a point is made about FLEX issue, which was not given in the book. Article was more like a research from a detailed/theoretical point of view.

1. Some companies try to increase output simply by increasing the MPS. Discuss this approach.

Three kind of information must be issued if MPS is to be increased,

1. Economy; budget must be checked since any company mustn’t plan more production then can be afforded.

1. Production; it must be checked if the issued volume of production is possible on the issued time. Also it’s not necessary to postpone/ignore increasing production if the (customer) demands exists and budget is enough.

1. Sales; Sales department must check the possibility before promising what/how much/when can the products be produced.

Increasing MPS can possibly lead to significant priorities evolved by MPR. The problem is undermining the belief in the formal system and periodically/slowly digging the informal one which contains both the hot list and the black book. Especially when MPS is identical with the production plan, it comes to be more operative. Moreover, a general production quantity with a budget which covers the certain production and it’s capacity must exist.

1. How does the system coordinate the individual item records and provide back schedule information?

MPR bonds, Lead Time, Bill of Material and Explosion in a very effective way. With the fundamental-level records of MPR and a Gannt Chart it’s quite clear to see what will be done and what has to be done at when. BSI (Back Schedule Information) is an information which simply means starting production on the latest possible time; relating the time and current event of the schedule of what has to be done. In such scenario, the company doesn’t have to budget locked on specific products which are not needed at the moment that leaves budget temporarily for investment in other parts of the company. However, besides all these benefits, the system still needs a reliable lead time and an absolute BOM. The core characteristics to MPR is the blend of BSI and net explosion.