SAP PP Master Production Schedule (MPS)

What is MPS (Master Production Schedule) in SAP PP?

Master Production Schedule (MPS) is a high-level production planning tool in SAP PP that focuses on planning critical or high-value materials first. These are usually items that are very important for business — such as top-selling finished goods, bottleneck components, or long-lead materials.

Unlike regular MRP (Material Requirements Planning), which plans all materials, MPS focuses only on selected key materials. Because of this selective planning, companies can ensure that crucial products are always planned carefully, accurately, and with minimal risk.

Why do we use MPS?

Companies use MPS for several important reasons:

  • It helps avoid shortages of business-critical products.
  • It ensures stable production schedules, especially for materials that influence customer commitments.
  • It protects important materials from frequent MRP changes, keeping planning more stable.
  • It balances production capacity by planning prioritized materials separately.
  • It allows planners to “lock” or “freeze” certain plans so they don’t get overwritten by daily MRP runs.

What are the prerequisites for using MPS?

Before working with MPS, make sure the following setups are ready:

  • Material Master settings - In the MRP 3 view → Set MPS Indicator = 1 or 2 This tells SAP that this material should be included in Master Production Scheduling.
  • Forecast or independent demand - Use MD61 or planning tools to upload forecasts for MPS-controlled materials.
  • BOM (Bill of Material) and Routing - MPS materials must have correct BOM & routing.
  • Work centers and capacities - If MPS is used for capacity-critical items, capacity data should be maintained.
  • MRP/MPS configuration - In SPRO → MRP → Create MPS group (optional)

How Does MPS Work?

  1. Mark the material as an MPS item - In the material master (MRP 3 view), enable the MPS indicator.
  2. Create demand (forecast/PIR) - Use MD61 to enter planned independent requirements for an MPS material.
  3. Run MPS instead of full MRP - Use:
    • MD41 → Single-Item, Single-Level MPS
    • MD42 → Single-Item, Multi-Level MPS
    • MD43 → Multi-Item MPS Run
    This run plans only MPS materials, not the entire product structure.
  4. Review MPS proposals - The system creates: Planned Orders, Purchase Requisitions, Rescheduling proposals, Exceptions messages.
  5. Convert Planned Orders to Production Orders - Once the planner is happy with the MPS quantities & dates, the planned order can be converted to production order manually or automatically.
  6. Run full MRP later - After stabilizing the MPS results, planners run the normal MRP for the remaining materials.

    7. Advantages

    • Better control over important materials
    • Reduces planning errors
    • Protects production from sudden demand changes
    • Prevents shortages of high-impact items
    • Supports stable shop-floor scheduling
    • Helps management meet long-term targets

    Disadvantages

    • Requires more manual monitoring
    • Needs experienced planners
    • Planning workload increases
    • Not suitable for all materials