Essentially, MPS manufacturing is an ERP manufacturing process in which you use master production plans to predict production plans related to actual purchasing activities in your organization. With this precise coordination, organizations enable their sales teams to determine production availability at a given time and generate accurate committable dates when interacting with customers.
Smart manufacturing strategies can take MPS strategies to another level by increasing the amount of data at the disposal of a company.
Here's how the strategy works:
Data related to the availability of raw materials is stored in the inventory management component of the enterprise resource planning system, thus providing visibility into inventory at a given time.
Material requirements for different products are managed in an ERP setup, providing the sales team with the insights they need to calculate the supply required for customer orders.
The supplier management system provides visibility into the delivery time and cost of acquiring goods from different sources to gain insight into the expected supply chain timeline leading up to the order.
The representatives who interact with the customer can use the reporting tools and raw data in the ERP setup to predict production capacity at a given time and accurately estimate when the necessary assets can be used for production.
Once these details have been determined, users can view existing production work orders on individual production lines to determine when capacity will be available.
From there, sales orders can be created with precise commitmentable dates that take into account raw material availability, existing inventory, and production schedules.
Once the sale is completed, an ERP system can be used to coordinate work orders across departments and ensure that stakeholders across the organization have the information they need to get the job done.
All of this coordination is possible because the MPS manufacturing strategy provides a central location for companies where their production plans can be updated in real-time. When MPS strategies are combined with the data availability of smart technologies, companies can implement lean manufacturing more deeply than in the past because they can minimize excess inventory of raw materials and finished goods.