In an assemble-to-order (ATO) manufacturing environment, the master production schedule (MPS) typically focuses on components and subassemblies. Here's the explanation:
* ATO Environment: In an ATO system, products are assembled only after an order is received. The final products are built using standard components and subassemblies that are stocked in advance.
* Master Production Schedule (MPS):
* Focus on Components and Subassemblies: The MPS in an ATO environment is driven by the need to ensure that all necessary components and subassemblies are available when customer orders are placed.
* Inventory Management: By scheduling the production of components and subassemblies, the company can manage its inventory levels effectively and ensure quick assembly of final products once orders are received.
* Efficiency and Responsiveness:
* Lead Time Reduction: By having components and subassemblies ready, the company can significantly reduce the lead time for fulfilling customer orders.
* Flexibility: This approach allows for greater flexibility in responding to variations in customer demand without the need for maintaining high levels of finished goods inventory.
* Process Flow: The MPS will detail the production schedule for components and subassemblies, ensuring that these parts are manufactured and available to meet the assembly requirements dictated by
* customer orders.
References
* Vollmann, T. E., Berry, W. L., Whybark, D. C., & Jacobs, F. R. (2005). Manufacturing Planning and Control Systems for Supply Chain Management.
* Heizer, J., Render, B., & Munson, C. (2017). Operations Management: Sustainability and Supply Chain Management.