pm 02- production planning system
DESCRIPTION
Talk about the all diagram in production area.TRANSCRIPT
What is the purpose of
production planning?
The purpose of planning
To ensure business profitability by organizing
the use of production factors
Processes
Machinery
Equipment
Labour skills
Material
to satisfy demand with the right products, at the
time required, with quality, and as economically
as possible
The purpose of planning
Demand Resources
What do we need to
know to do the plans?
Planning system questions
What are we going to make?
What do we already have?
What does it take to make it?
What do we need to get?
These are also known as questions of priority
and capacity
Planning system questions
Priority “The relative importance of jobs, i.e., the sequence in
which jobs should be worked on” —APICS Dictionary
In this case, what products, in what quantities and when are they needed
Capacity “The capability of a worker, machine, work center,
plant or organization to produce output per time period”
—APICS Dictionary
The capability of manufacturing to produce goods and services
The key is to match
Priorities Capacity What is needed,
When, How much
Capability to produce what is needed when its
needed
So, what does the
production planning
system look like?
Planning and Control Hierarchy
Material Requirements
Planning (MRP)
Master Production Schedule
(MPS)
Production Activity Control (PAC)
Sales and Operations Planning (S&OP)
Strategic Business
Plan
Tim
e S
co
pe
Level of Detail Low High
Short
Long
Master Plan
Planning Phase
Implementation phase
Planning and Control Hierarchy
Strategic Business Plan
Statement of the major goals and objectives to be achieved by the company over a long period, i.e. two to ten or more years
Defines markets, product lines, etc.
General direction about how objectives are going to be achieved
Based on long-range forecasts
Receives inputs from Marketing, Production, Engineering and Finance, and then provides them with direction and coordination
Planning and Control Hierarchy
Production Plan
Quantities of each
product that must be
produced in each period
Desired inventory level
Resources or equipment,
labor, and material
needed in each period
The availability of
resources needed
Sales & Operations Plan
Strategic Business Plan
Marketing Plan
Production Plan
Detailed Sales Plan
Master Production Schedule
J.R. Tony Arnold, Introduction to Materials Management, 4th edition, Prentice-Hall, 2004
Annual
Monthly
Weekly or daily
Planning and Control Hierarchy
Master Production Schedule (MPS)
Plan for the production of individual items
Breaks down the production plan to show the quantity of each item to be made during each period
The level of detail is higher than in the Production Plan
Break down from families of products to end items
Shorter time periods, e.g. weeks vs. months
Planning horizon extends from 3 to 18 months, but it depends mainly on purchasing and manufacturing lead times
Planning and Control Hierarchy
Material Requirement Planning (MRP)
Plan for the production or purchasing of specific components used in making the items in the MPS
High level of detail, establishing the times at which each component is needed to make each end item
Planning horizon is directly related to manufacturing and purchasing lead times
Planning and Control Hierarchy
Purchasing and Production Activity Control
(PAC)
This is the implementation and control phase
Production controls the flow of work through the factory detailing specific orders to produce items from the Material Requirements Plan
Purchasing controls the flow of raw materials into the factory detailing the items to be purchased rather than produced
Planning horizon is very short, usually from a day to a month, and it is reviewed daily
Planning and Control Hierarchy
Capacity Management
At each level of the planning and control system, reconciliation with resources must be made
There is a calculation of resources needed for the priority plan, and a process of finding methods to make capacity available
Inadequate resources = missed production schedules
Resources significantly exceed planned production = idle resources and extra cost
Must obtain the right resources or change the plan
Planning and Control Hierarchy
Material Requirements
Planning (MRP)
Rough-Cut Capacity Planning (RCCP)
Master Production Schedule
(MPS)
Capacity Requirements
Planning (CRP)
Production Activity Control (PAC)
Operation Sequencing
Resource Requirement
Planning (RRP)
Sales and Operations Planning (S&OP)
Capacity Management
Priority Management
Input/Output Control
Strategic Business
Plan
At each level, there are three questions:
What are the priorities?
What capacity is available?
How can differences be resolved?
Capacity Planning Levels
Resource Planning
Long-range capacity resource requirements
Translates priorities from the production plan into
some total measure of capacity, such as gross labor
hours
Adjusting capacity involves changing staff levels,
capital equipment, product design or other facilities
If it is not possible to create a resource plan for the
production plan, the production plan has to be
changed
Capacity Planning Levels
Rough-cut Capacity Planning (RCCP)
The primary source of information is the MPS
Its purposes include
Verifying the feasibility of the MPS
Provide warnings of bottlenecks
Ensure utilization of work centers
Advise vendors of capacity requirements
Capacity Planning Levels
Capacity Requirements Planning (CRP)
The primary source of information is the MRP
Shows a greater level of detail than RCCP
Its main concern are the individual orders at
work centers
Calculates work center loads and labor
requirements for each period
Is there a software that
can support the
production planning
process?
Manufacturing Resource Planning (MRP II)
“A method for the effective planning of all
resources of a manufacturing company”
—APICS Dictionary
Objective: to integrate the resources of an
organization
Manufacturing Resource Planning (MRP II) Business Plan
Sales and Operations Plan
Marketing Plan
Production Plan
Resources OK?
Master Schedule
Material Requirements Plan
Resources OK?
Production Activity Control
Performance Measures
Purchasing
Sales Plan
Fe
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MR
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J.R. Tony Arnold, Introduction to Materials Management, 4th edition, Prentice-Hall, 2004
Yes
Yes
No
No
