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The production plan

January 9, 2008

The production plan or master production schedule (MPS) means different things to different departments and individuals:

Sales department- a commitment from the production department to have the required SKUs

Customer- No out of stocks (OOS) and improved availability

Production department- a commitment for the sales department and good equipment utilization

Finance department- low stock holding and improved cash flow

Human resource department- labour efficiency and productivity

Senior management- a commitment from all departments to adhere to the plan

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