MPS & MRP Run in Dynamics NAV

Introduction:

Every manufacturing company perform supply planning, typically once a week, to calculate how many production orders and purchase orders to execute to fulfil that week’s sales demand. MPS and MRP help us achieve our goal. Let’s check how?

What is MPS ?

MPS (Master Production Schedule) is the calculation of a master production schedule based on actual demand and the production forecast on the master product i.e Finished Good

E.g: If we manufacture a bicycle then bicycle is a Finished Good(FG) , Hence, we need to run MPS for the bicycle to meet the demand

What is MRP?

MRP (Material Requirement Planning) is the calculation of material requirements based on actual demand for components and the production forecast on the component level

E.g: If we manufacture a bicycle then the wheels of the bicycle are the components, Hence, we will run MRP for the component i.e for the wheels

Why do we need MPS and MRP ?

Manufacturing companies who produce tons of items daily always need to prepare for the future demand.

MPS helps the manufacturing companies to have a check on their current inventory  and gives them an idea by how much quantity they will require to increase production to meet the demands of the future for Finished goods.

MRP helps the manufacturing companies to have a check on their current inventory of the components and gives them an idea by how much quantity they will require Purchase according to the Prod. BOM to meet demands of the Finished Good (FG)

E.g Let’s take an Item KK2Q with Inventory as 335. Here the Item is a Finished Good(FG)

The Production forecast is viewed weekly and the forecast is 1000 for the next 4 weeks

When we run MPS on our Planning worksheet, we get the below

• MPS for KK2Q uses the forecast we had in NAV and suggest  us that we need to create Production order for the 4 weeks
• The Quantity on the first line is 665 as we have 335 in Inventory
• Once we click on Carry out Action Message, Firm Planned Production order will be created in the system automatically

Similarly we can run MRP on the component level.

Conclusion:

• MPS and MRP gives the company a platform for supply planning to calculate how many production orders and purchase orders to execute to fulfil that week’s sales demand.
• Production order supply the Finished Goods(FG)
• Purchase orders supply the components that are required according to the production BOM to produce the end items.
• MPS runs weekly while MPR runs daily to meet the demand for FG

New blog coming up on the setup to run MPS and MRP. Stay tuned