Explain the difference between MRP & MPS. Though both components gives you
the requirement list, what we gain out of MPS run rather than running MRP. What
is the main idea behind this?
The following might help in explaining the difference between MPS and its
counter part MRP.
Master Production Schedule (MPS) :
MPS operates within only one level of the BOM, While MRP can be utilized
throughout all levels of a material’s BOM. If a MPS is run on a material, the
necessary orders are planned at that level. Dependent requirements (if any) are
placed on the next BOM level down, and then the process stops.
Main Idea : Master production scheduling (MPS) is a form of MRP that
concentrates planning on the parts or products that have the great influence on
company profits or which dominate the entire production process by taking
critical resources. These items are marked as ‘A’ parts (MPS items) and are
planned with extra attention. These items are selected for a separate MPS run
that takes place before the MRP run. The MPS run is conducted without a BOM
explosion so that the MRP controller can ensure that the Master schedule items (MSI)
are correctly planned before the detailed MRP run takes place.
The master production schedule is a line on the master schedule grid that
reflects the anticipated build schedule for those items assigned to the master
scheduler. The master scheduler maintains this schedule, and in turn, it becomes
a set of planning numbers that drives material requirements planning. It
represents what the company plans to produce expressed in specific
configurations, quantities, and dates. The master production schedule is not a
sales item forecast that represents a statement of demand. The master production
schedule must take into account the forecast, the production plan, and other
important considerations such as backlog, availability of material, availability
of capacity, and management policies and goals. Syn: master schedule.
Material Requirements Planning (MRP) :
A set of techniques that uses bill of material data, inventory data, and the
master production schedule to calculate requirements for materials. It makes
recommendations to release replenishment orders for material. Further, because
it is time-phased, it makes recommendations to reschedule open orders when due
dates and need dates are not in phase. Time-phased MRP begins with the items
listed on the MPS and determines
(1) the quantity of all components and materials required to fabricate those
(2) the date that the components and material are required. Time-phased MRP
is accomplished by exploding the bill of material, adjusting for inventory
quantities on hand or on order, and offsetting the net requirements by the
appropriate lead times.
MRP Interview Questions:
What is the need of mrp list if stock requirement list is already there?
The MRP list displays the result of the last planning run. Changes that have
occurred between planning runs are ignored in the MRP list. In contrast to
this, the system displays all changes in stock, receipts and issues, which have
currently occurred, in the stock/requirements list.
Which tcode are used to run MRP?
- MD01 is generally used to run the MRP for all the materials in a plant
normally just before go-live.
- MD02 is used to run MRP for materials which have a BOM i.e multi-level.
- MD03 is used to run MRP for materials which do not have a BOM i.e single