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April 25, 2017

4/25/2017 11:59:00 AM
Difference between MRP vs MPS

Difference between MRP vs MPS

Explain the difference between MRP & MPS.
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. 

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 items and 
(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.