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Manufacturing planning & control (mpc) system
Manufacturing planning & control (mpc) system
Manufacturing planning & control (mpc) system
Manufacturing planning & control (mpc) system
Manufacturing planning & control (mpc) system
Manufacturing planning & control (mpc) system
Manufacturing planning & control (mpc) system
Manufacturing planning & control (mpc) system
Manufacturing planning & control (mpc) system
Manufacturing planning & control (mpc) system
Manufacturing planning & control (mpc) system
Manufacturing planning & control (mpc) system
Manufacturing planning & control (mpc) system
Manufacturing planning & control (mpc) system
Manufacturing planning & control (mpc) system
Manufacturing planning & control (mpc) system
Manufacturing planning & control (mpc) system
Manufacturing planning & control (mpc) system
Manufacturing planning & control (mpc) system
Manufacturing planning & control (mpc) system
Manufacturing planning & control (mpc) system
Manufacturing planning & control (mpc) system
Manufacturing planning & control (mpc) system
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Manufacturing planning & control (mpc) system

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The presentation about Manufacturing Planning & Control System

The presentation about Manufacturing Planning & Control System

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  • 1. Manufacturing Planning & Control System <ul><li>Major Tasks </li></ul><ul><ul><li>restate business objectives in operations management terms </li></ul></ul><ul><ul><li>ensure feasibility of plans </li></ul></ul><ul><ul><li>identify gaps in current resources </li></ul></ul><ul><ul><li>help formulate connective action- Suppliers </li></ul></ul><ul><ul><li>prioritize activities - scheduling </li></ul></ul><ul><ul><li>facilitate feedback </li></ul></ul>
  • 2. Keys to MPC Manufacturing Planning and Control System <ul><li>A complete, current and accurate database </li></ul><ul><ul><li>one set of records </li></ul></ul><ul><ul><li>high emphasis on data accuracy </li></ul></ul><ul><ul><li>quick correction of error in db </li></ul></ul><ul><ul><li>accessible to all who need data </li></ul></ul><ul><li>System discipline </li></ul><ul><li>Transparent logic </li></ul>
  • 3. Production Plan <ul><li>First step in the planning process </li></ul><ul><li>One of three high level plans </li></ul><ul><ul><li>Business Plan </li></ul></ul><ul><ul><li>Sales Plan </li></ul></ul><ul><ul><li>Production Plan </li></ul></ul><ul><ul><ul><li>differences between sales plan and production plan is the inventory plan </li></ul></ul></ul><ul><ul><li>Long term perspective </li></ul></ul><ul><ul><li>Stated in aggregate units </li></ul></ul>
  • 4. Issues Considered <ul><li>Capacity management </li></ul><ul><ul><li>level </li></ul></ul><ul><ul><li>chase </li></ul></ul><ul><ul><li>mixed </li></ul></ul><ul><li>Requires coordination with marketing </li></ul><ul><li>Demand management </li></ul>
  • 5. <ul><li>Definition: document that defines the specific goods that specific shops will produce in definite quantities at definite times over a short-term horizon in accordance with the aggregate plan </li></ul><ul><li>The MPS represents an agreement between marketing and manufacturing </li></ul>Master Production Schedule
  • 6. Master Production Schedule <ul><li>A detailed disaggregation of production plan </li></ul><ul><li>Time-phased statement of how over the planning horizon resources will be used to meet agreed-to commitments </li></ul><ul><li>Tends to be: </li></ul><ul><ul><li>short time horizon </li></ul></ul><ul><ul><li>more detailed product information (BoMs) </li></ul></ul><ul><ul><li>more concern over capacity </li></ul></ul><ul><ul><li>corporate plan </li></ul></ul><ul><ul><li>quasi-contract </li></ul></ul><ul><ul><li>updated regularly </li></ul></ul>
  • 7. What is the MPS? <ul><li>Plan showing availability </li></ul><ul><li>Build schedule </li></ul><ul><li>Stated in BoM terms </li></ul>
  • 8. MPS Problems <ul><li>Overloaded </li></ul><ul><li>Front End Loaded </li></ul><ul><li>Unstable </li></ul><ul><li>Incomplete </li></ul><ul><li>Short Horizon </li></ul><ul><li>Wishlist </li></ul>
  • 9. Stability in MPS <ul><li>Balance need of OM for stability and marketing for change. </li></ul><ul><li>Why is stability important? </li></ul><ul><li>How introduced? </li></ul><ul><ul><li>timing fencing </li></ul></ul><ul><ul><li>time fences denote different reaction to changes and willingness to accommodate change </li></ul></ul><ul><ul><li>recognizes increasing cost of change as we near current time </li></ul></ul><ul><li>Different zones </li></ul><ul><ul><li>types of changes </li></ul></ul><ul><ul><li>who approves </li></ul></ul><ul><ul><li>who bears cost </li></ul></ul>
  • 10. MPS Principles <ul><li>The MPS must be in concert with the production plan </li></ul><ul><li>The MPS must drive the entire materials management system </li></ul><ul><li>Include all known requirements in the preparation of the MPS and the FAX </li></ul><ul><li>Minimize the number of items needed to adequately express the MPS and the FAS </li></ul>
  • 11. <ul><li>MPS – Master Production Schedule </li></ul><ul><ul><li>Short term </li></ul></ul><ul><li>(Aggregate) Production Plan </li></ul><ul><ul><li>families </li></ul></ul><ul><li>BOM – Bill of Material </li></ul><ul><li>Routing file </li></ul>Key Terms from Ch. 14
  • 12. Material Requirements Planning
  • 13. Brunswick Motors <ul><li>Applying MRP to Inventory </li></ul><ul><li>Planning & Scheduling </li></ul>
  • 14. MRP and Dependent Demand <ul><li>Dependent Demand </li></ul><ul><ul><li>demand that is derived </li></ul></ul><ul><ul><li>consists of WIP + Raw materials </li></ul></ul><ul><ul><li>concept of parent/component </li></ul></ul><ul><ul><li>independent demand in MPS </li></ul></ul><ul><li>Problem with Dependent Demand </li></ul><ul><ul><li>information generated </li></ul></ul><ul><ul><li>challenge - generating 100% CSL </li></ul></ul><ul><ul><li>past approach - s,Q </li></ul></ul><ul><ul><li>new approach - MRP </li></ul></ul>
  • 15. Prior to MRP <ul><li>Up to 1970s, extensive use of s,Q models </li></ul><ul><ul><li>why? Simple to use, limited information requirements, “optional” </li></ul></ul><ul><li>Why move to MRP? </li></ul><ul><ul><li>problems with s,Q models </li></ul></ul><ul><ul><ul><li>high levels of inventory </li></ul></ul></ul><ul><ul><ul><li>high stockouts </li></ul></ul></ul><ul><ul><ul><li>poor customer services </li></ul></ul></ul><ul><ul><li>“ Order launch & Expedite” </li></ul></ul>
  • 16. Why MRP? (2) <ul><li>S,Q ignored BoM information </li></ul><ul><ul><li>Item OQ OH </li></ul></ul><ul><ul><li>A 300 0 </li></ul></ul><ul><ul><li>B (comp) 250 0 </li></ul></ul><ul><ul><li>C 200 0 </li></ul></ul><ul><ul><li>D 250 0 </li></ul></ul><ul><ul><li>A uses 1 B; B uses 1 C; C uses 1 D </li></ul></ul><ul><ul><li>What happens if we receive an order for 50 units of A? </li></ul></ul>
  • 17. Other Factors <ul><li>Major changes </li></ul><ul><ul><li>high cost of inventory </li></ul></ul><ul><ul><li>increased availability of more powerful computers </li></ul></ul><ul><ul><li>decreasing cost of computers </li></ul></ul><ul><li>MRP now supported by extensive body of software </li></ul>
  • 18. MRP Elements <ul><li>Gross Requirements </li></ul><ul><li>On-Hand Inventory </li></ul><ul><ul><li>Allocations </li></ul></ul><ul><li>Scheduled Receipts </li></ul><ul><li>Net Requirements </li></ul><ul><li>Planned Order Releases </li></ul><ul><li>Time-phasing </li></ul><ul><li>Parent/Component </li></ul>
  • 19. MRP Elements <ul><li>Planning factors </li></ul><ul><li>System nervousness </li></ul><ul><li>Firm planning </li></ul><ul><li>Explosion </li></ul><ul><li>Time buckets </li></ul><ul><ul><li>Action bucket </li></ul></ul><ul><li>Rolling the Schedule </li></ul><ul><li>Net Change vs. Regenerative MRP </li></ul>
  • 20. Advantages of MRP <ul><li>Forward looking when planning (visibility) </li></ul><ul><li>Useful simulator </li></ul><ul><li>Provides valid, credible priorities </li></ul><ul><ul><li>priorities reflect actual needs, not implied needs. </li></ul></ul><ul><li>Provides mangers with control over the execution system </li></ul><ul><li>Forms basis for building credible, valid formal system </li></ul>
  • 21. Limitations of MRP <ul><li>only looks at materials, ignores capacity, shop floor conditions </li></ul><ul><li>requires user discipline </li></ul><ul><li>requires accurate information/data </li></ul><ul><li>requires valid MPS </li></ul><ul><li>not appropriate for all areas </li></ul><ul><ul><li>high volume production </li></ul></ul><ul><ul><li>projects </li></ul></ul>
  • 22. Types of MRP Systems <ul><li>MRP </li></ul><ul><li>Closed Loop MRP </li></ul><ul><li>MRP II </li></ul><ul><li>Distribution Requirements Planning </li></ul><ul><li>DRP II </li></ul><ul><li>Enterprise Requirement Planning </li></ul>
  • 23. The Curve <ul><li>42-50 A 23 </li></ul><ul><li>37-41 B 37 </li></ul><ul><li>31-36 C 30 </li></ul><ul><li>26-30 D 7 </li></ul><ul><li>>26 F 1 </li></ul><ul><li>Mean 2.75 </li></ul>

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