Production Planning and
Control Systems
CHAPTER
CONTENTS
Aggregate Production Planning and the Master
Production Schedule
Material
Requirements Planning
Inputs to
the MRP System
How MRP
Works
MAP
Outputs and Benefits
Capacity
Planning
Shop Floor
Control
Order Release
Order Scheduling
Order Progress
Factory Data Collection System
Inventory Control
Order Point Inventory Systems
Work in Process Inventory Costs
Manufacturing Resource Planning (MRP II)
Just ln Tirne Production Systems
Pull System of Production Control
Small Batch Sizes and Reduced Setup Times
Stable and Reliable Production Operations
Production planning and control (PPC) is
concerned with the logistics problems that are encountered in manufacturing, that is, managing the details of
what and how many products to produce and when, and obtaining the raw
materials, parts, and resources to product those products. PPC: solves these
logistics problems by managing
information. The computer is essential for processing the tremendous amounts of
data involved to define the products and the manufacturing resources to produce
them and to reconcile these technical details with the desired production
schedule. In a very real sense. PPC is the integrator in computer integrated
manufacturing
Planning
and control in PPC must
themselves be integrated functions.!t is insufficient to plan production if
there is no control of the factory resources
achieve the plan, And it is ineffective to control production if there
is no plan against which to compare factory progress. Both planning and control
must be accomplished .ano they must be coordinated with each other and with
other functions in the manufacturing firm. such a, process planning, concurrent
engineering. and advanced manufacturing planning (Chapter 25). Now, having
emphasized the integrated nature of PPC.
let us nevertheless try to explain what is involved in each of the two
function" production planning and production control.
Production planning IS concerned with: (1) deciding which
products to make, how many of each,
and when they should he completed: (2) scheduling the delivery and/or
production of the pans and products: and (3) planning the manpower and equipment
resources needed to accomplish the production plan. Activities within the scope
of production planning include
Aggregate
production planning. This involves planning the production output levcts
for major product lines produced by the firm. These plans must be coordinated
among various functions in the firm, including product design, production,
marketing and sales
Master
production planning. The aggregate production plan must be converted
into a master production schedule
(\1PS) which is a specific plan of the quantities to be produced of individual
models within each product line.
Material
requirements planning (MRP) is a planning technique, usually implemented by computer that translates the MPS of
end products into a detailed schedule for the raw materials and parts used in
those end products
Capacity
planning is concerned with determining the labor and equipment resources needed to achieve the master schedule.
Production
planning activities divide into two stages: (1) aggregate planning which
results in the MPS, and (2) detailed planning. which includes MRP and capacity planning. Aggregate planning involves planning
6 months or more into the future. whereas detailed planning is concerned with
the shorter term (weeks to months)
Production control is
concerned with determining whether the necessary resources 10 implement the production plan have heen provided, and if not.
it attempts to take corrective action to address the deficiencies. A, its name
suggests, production control includes various systems and techniques for
controlling production and inventory in the factory. The major topic, covered
in this chapter are:
Shop
floor control. Shop floor control systems compare the progress and
status of production orders in the factory to the production plans (MPS and
parts explosion accomplished by MRP)
• Inventory control. Inventory
control includes it variety
of techniques fur managing the
inventory of a firm. One of the important tools in inventory control is the economic
order quantity formula
Manufacturing
resource planning. Also known as MRP II. manufacturing resource planning combines MRP and capacity
planning as well as shop Iloor control and other functions related to PPC
Just In time
production systems. The term "just in time" refers 10 a
scheduling discipline in which materials and parts are delivered to the next
work cell or production line station just prior to their heing used. This type
of discipline tends to reduce inventory and other kinds of waste in
manufacturing.
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