Production Planning and Control Systems
Aggregate Production Planning and the Master Production Schedule
Material Requirements Planning
Inputs to the MRP System
How MRP Works
MAP Outputs and Benefits
Shop Floor Control
Factory Data Collection System
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.
The activities in a modem PPC
system and their interrelationships are depicted in Figure 26.1. As the figure
indicates, PPC ultimately extends to the company's supplier base and customer
base. This expanded scope of PPC control is known as supply chain management.
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