Master Production Scheduling (MPS) and Material Requirements Planning (MRP) are the parts of manufacturing planning systems and inventory planning system. These are two separate software systems which provides ways to streamline manufacturing process. And demand is the key driver for any inventory planning system so lets first this demand and after that we will know the difference and use of both Master Production Scheduling and Material Requirements Planning.
Demand drives any inventory planning and manufacturing system.
There are two types of demand i.e as follows
- Independent Demand Item :
The item refers to the direct customer’s demand means demand comes directly from customer and such items are also known as Top-level items. These items frequently have a Bill of Materials (BOM) and are sold.
- Dependent Demand Item :
The item which requires to be produced and such items are also known as Lower Level Items. Raw materials and sub assemblies which are required for production come under dependent demand items. These items Bill of Materials (BOM).
1. Material Requirements Planning (MRP) :
Material Requirements Planning plans about items that have dependent demand. MRP plans for items needed to be produced. It plans about what materials we have, how much we need, How much we expect to purchase and consume.
The below figure illustrates working of MRP :
2. Master Production Scheduling (MPS) :
Master Production Scheduling plans items that have independent demand. MPS plans for items based on customer’s direct demand/sales order and forecasts. inventory costs, production costs, capacity, working hours, inventory levels, available storage…etc are considered during production of elements. MPS does not run daily basis it runs on a weekly bases depending on the orders and forecast period.
The below figure illustrates working of MPS :
Let’s take one example and will understand use scenario of each :
MPS and MRP run separately just to meet change requests. Lets take one example Pen is a MPS item and different parts/components like cap, barrel, refill etc are MRP items. MRP runs more frequently to get action messages required to produce and maintain production schedule. and MPS does not run daily basis they runs in a week basis or more and deals with change requests by manufacturing newly changed product.
Difference between MRP and MPS :
|01.||MRP refers to Material Requirements Planning in manufacturing planning systems and inventory planning system.||MPS refers to Master Production Scheduling in manufacturing planning systems and inventory planning system.|
|02.||It plans items that have dependent demand.||It plans items that have independent demand.|
|03.||Demand is passed down as the product needs to be produced.||Demand is directly from the customer or forecasts or service orders.|
|04.||It runs daily to gather idea about required materials and plan accordingly.||It runs on weekly based on sales order/service order and forecasts for that period.|
|05.||Material Requirements Planning is the planning of critical product.||Master Production Scheduling is the planning of any kind of material.|
|06.||It runs after MPS.||It runs before MRP.|
|07.||Material Requirements Planning is used for multi level planning.||Master Production Scheduling is used for single level planning.|
|08.||Example of MRP items cap, barrel, spring and refill.||Example of MPS item is the pen.|