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.