MRP and MPS are industry terms for material requirements planning and master production schedule. MRP determines how much material to order, while MPS determines when materials will be used. MRP uses BOM and inventory to decide which materials to order, while MPS shows the timing of the production schedule. They work together to ensure maximum efficiency. MPS works through only one level of the BOM, while MRP accounts for all materials needed. Using both techniques makes a manufacturing plant more efficient and lean.
MRP and MPS are industry terms that stand for material requirements planning and master production schedule, and there are several key differences between them. MRP is used to determine how many materials to order, while MPS is used to determine when materials will be used to produce a final item.
Materials requirements planning is a technique for planning and maintaining inventory. It is used to decide how much material needs to be ordered in order to have the right inventory on hand to keep the production schedule operating at peak efficiency. MRP uses the BOM needed to produce a product, along with knowledge of existing inventory and the master production schedule, to decide which materials to order.
The MRP list is used to produce the list of what was produced and the quantity of materials in the manufacturing facility used to produce the latest batch of products according to the master production schedule. A material requirements planning list can be reviewed, either by computer or by a person who is knowledgeable about MPS, and then used to determine what needs to be ordered for inventory to complete the next production run without any shortages of material or time lost due to the order.
The master production schedule, on the other hand, is the actual listing showing the timing of the production schedule. It also shows how much each machine can produce and how many shifts are used. By basing MPS on MRP lists, equipment operators can be confident that they will not have excess inventory after a production run or insufficient materials to complete the cycle on time. MRP and MPS therefore work together to ensure maximum efficiency.
An important difference between MRP and MPS is that a master production schedule works through only one level of the BOM for a product. This means that it does not account for all the BOMs needed to make a product, whereas the material requirements planning protocol will account for all the materials needed to produce a product, including those in different or separate BOMs. By using the two different strategies together, a manufacturing plant can make itself more efficient and lean than if it did not use MPS and MRP techniques.
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