Master Production Schedule: Creation, Use & Outputs

Master Production Schedule: Creation, Use & Outputs
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  • 0:02 The Master Production Schedule
  • 1:45 Creating It
  • 2:29 Its Outputs
  • 2:43 Using It
  • 3:19 Lesson Summary
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Lesson Transcript
Instructor: Yuanxin (Amy) Yang Alcocer

Amy has a master's degree in secondary education and has taught math at a public charter high school.

After watching this video lesson, you will learn how creating a master production schedule can help you in the running of your business. Learn how it can keep you on track to meet all the various deadlines that your business has.

The Master Production Schedule

Imagine that you are the owner of a company that makes coffee cups with common names on them. In order to keep up with demand, your company has what is called a master production schedule. This schedule shows the amount of items needed for each week. It includes your inventory, your staffing, your finances, your receivables, etc. It includes pretty much everything and anything related to the running of your business.

Week 1 Week 2 Week 3 Week 4
Product A 350 400 550 250
Product B 100 150 50 90
Available staff 5 7 10 4
Available funds $2,000 $3,000 $1,000 $5,000
Ink supply needed 10 gallons 11 gallons 15 gallons 8 gallons

Look at this master production schedule that you have just created for your coffee cup business. It shows what you need for each week for the upcoming month. For the first week of the next month, this master production schedule shows that you need to produce 350 product As and 100 product Bs. For week 2, you need to make 400 product As and 150 product Bs, etc. As you can see, this schedule shows you how many products you need to make along with the number of employees that you need to have on hand each week. You have one line for each product that you make.

It also shows you the materials you need to make your products along with how much money you expect to have on hand each week. Here, too, you have one line for each supply that you use. This sample is very basic, but you can get very detailed with it for your business including every little thing that happens in your business. The more products and materials you have and use, the longer your master production schedule.

For your coffee cup business, your master production schedule would include the number of cups to be made each week along with how much material is needed to make the cups each week. You also have the number of employees needed each week so you can make the necessary amount of product. You also include the forecasted amount of available funds.

Creating It

To create a master production schedule, you need to have on hand several pieces of information. You need to know how many outstanding orders you have, the forecasted demand for your products for the coming weeks, the capacity of your manufacturing team, how much inventory you have on hand, and your employee needs, such as vacation time in the coming weeks.

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