Question

How can an organization leverage its Master Production Scheduling and Material Requirements Planning strategies to gain a competitive advantage? Find and describe a company that has gained a competitive advantage in the marketplace based on their superior MPS or MRP capabilities.

Answer 1

Master Production Scheduling (MPS) pertains to areas of planning within manufacturing such as consumer demand, capacity planning, material flow, and inventory planning. This software creates a plan that production is able to follow while also accounting for unforeseen obstacles and hindrances. Instead of being a production planning software that only accounts for consumer needs, it also targets meeting any capabilities pertaining to the entire manufacturing operation. As master production scheduling has become key for manufacturing operations, there are many advantages that can boost efficiency within the operation. Advantages are:

• Communication Tool - One of the main benefits of master production scheduling is the communication tool capability pertaining to plans within manufacturing. The software provides concise information about any manufacturing plans and allows manufacturers to have a clear understanding of what is to expect, which is then interpreted throughout the entire organization.
• Aid Supply Chain - Another of one the key benefits within master production scheduling (MPS), the software help prioritize requirements within supply chain. This is conducted through analyzing all requirements and then choosing what needs to be completed first. This will aid supplier relationships through utilization of real-time demand and on-time delivery, ultimately combatting any other inefficiencies within the supply chain.
• Stabilize Production - Within MPS, stabilizing production is the goal. Having a steady flow of production is extremely important in terms of efficiency and on-time deliveries. This component is conducted through analyzing production and locating any areas where there are potential bottlenecks or other forms of hindrances.
• Timely delivery of manufactured goods to your customers (increased by 17%). Optimal use of manufacturing resources (equipment downtime reduced 14%). Decrease in capital cost due to decreased inventory levels and optimal use of production resources.