Manufacturing planning and control (MPC) systems coordinate all aspects of manufacturing including materials, scheduling, and customers. The key steps in MPC include strategic business planning, sales and operations planning, master production scheduling, material requirements planning, and production activity control. These steps work together to manage costs, quantities, schedules, and ensure materials and components are available when needed to efficiently produce products. Effective MPC is critical for business success.

1. An Introduction to
Manufacturing Planning
& Control (MPC)

2. Manufacturing Planning & Control (MPC)
 A Manufacturing Planning and
Control(MPC) system is concerned
with planning and controlling all
aspects of manufacturing, including
Materials,
Scheduling machines and people
Coordinating suppliers and customers.
 An effective MPC system is critical to
the success of any Business.

3. Manufacturing Planning & Control (MPC)
 Manufacturing planning and control are
administrative processes that are inextricably
linked.
 Without both sides of the equation, a business can
run into challenges turning raw materials into
actual products.
 Production planning and control coordinates
different processes, departments and people to
ensure they are all making efficient and cost-
effective use of time.
 Production planning is the process through which a
business determines its production needs and
plans for how to meet those needs.

4. Manufacturing Planning & Control (MPC)
 Such planning is an ongoing process that
begins before production starts and
encompasses every aspect of production.
 It includes planning the purchase and
maintenance of tools and materials for
production, ranging from metal and wires
to large machines.
 It includes planning for sufficient personnel
to complete and oversee each step of the
process. It also includes knowledge of how
much demand there is for a specific
product, how much people will pay for it
and how much it costs to make.

5. MPC manage these aspects
of manufacturing
 Costs, both internal and external.
 Quantities.
 Needed materials and machinery.
 Schedules, including the manufacturing
sequence and production timetable.
 Start and completion dates.
 Job assignments.
 Processes.

6. Objectives of Manufacturing
Planning & Control (MPC)
 Acquiring materials
 Continuous production
 Effective use of resources
 Meeting deadlines
 Improved communication
 Keeping costs down
 Quality control
 Inventory control
 Morale boost

7. Steps to execute Manufacturing
Planning & Control (MPC)
Strategic Business Plan ( SBP)
Sales & Operations Plan ( S& OP)
Master Production Schedule ( MPS)
Material Requirements Planning (
MRP)
Purchasing & Production Activity
Control (PAC)

8. Strategic Business Plan ( SBP)
 Strategic planning is an organization's process of
defining its strategy, or direction, and making decisions
on allocating its resources to pursue this strategy.
 It may also extend to control mechanisms for guiding
the implementation of the strategy.
 Also outlines an organization's overall direction,
philosophy, and purpose,
 It examines its current status in terms of its strengths,
weakness, opportunities, and threats (see SWOT
Analysis),
 It sets long-term objectives, and
 It formulates short-term tactics to reach them.

11. Sales & Operations Plan ( S& OP)
 Sales and operations planning (S&OP) is an
integrated business management process through
which the executive/leadership team continually
achieves focus, alignment and synchronization
among all functions of the organization.
 Companies that have an effective sales and
operations planning process are improving their
visibility across their enterprise.
 They are able to improve product management,
improve promotional planning and minimize
unnecessary build-ups of inventory.

12. Sales & Operations Plan ( S& OP)
 The Sales and Operations Planning process is about
turning strategy into revenue and is critical to the
success of any supply chain.
 It is a process that binds together the various
functions that support the effective planning and
delivery of products and services to your
customers.
 Done well, Sales and Operations Planning will have a
positive impact on every key performance indicator
in the business.
 Any part of the process done poorly will decouple
the entire supply chain, negatively affecting the
Voice of the Customer and financial performance.

14. Master Production Schedule (MPS)
 MPS is the process that helps manufacturers
plan which products and related quantities to
produce during certain periods.
 MPS is proactive in that it actually drives the
production process in terms of what is
manufactured and what materials are
procured.
 MPS also serves a bridge to sales as it informs
them about what is available to promise to
customers and when deliveries can be made.

15. MPS is a Crucial Planning Function
 As part of a fully integrated ERP system, MPS typically
provides a crucial planning function, extracting actual
supply and demand data, as well as forecasts, to deliver
accurate and timely production plans that help
manufacturers achieve their production objectives and
minimize procurement costs.
 MPS also takes into account the manufacturing capacity
of the plant in its calculations.
 Once production orders have been analysed and
approved, the MRP process is initiated and purchase
orders can be generated.
 MPS also provides protection against shortages,
unexpected scheduling snafus and inefficient allocation
of resources.

16. The Benefits of MPS
 Ability to make adjustments to fluctuations in
demand and still minimize waste
 Helps prevent shortages and scheduling
mishaps
 Improves efficiency in the location of
production resources
 Provides more effective cost controls and
more accurate estimates of material
requirements and delivery dates
 Reduces lead times throughout the year
 Provides an effective communication conduit
with the sales team for planning purposes

17. Master scheduling
 is the detailed planning process that tracks
manufacturing output and matches this against
customer orders that have been placed.
 The process where the master schedule is
generated and reviewed and adjustments are made
to the master production schedule to ensure
consistency with the production plan.
 The master production schedule (the line on the
grid) is the primary input to the material
requirements plan.
 The sum of the master production schedules for the
items within the product family must equal the
production plan for that family.

18. OBJECTIVES OF MASTER SCHEDULING
 The master scheduler considers the
following objectives when developing the
MS:
 Achieve the desired customer service level
either by maintaining finished goods
inventory or by scheduling completion of
the item or service to meet the customer's
delivery needs.
 Make the best use of the company's
resources: material, labor, and equipment.
 Ensure that the inventory investment is at
the appropriate level.

19. Master Scheduling

20. Master Scheduling

21. Material Requirements Planning (MRP)

22. Material Requirements Planning (MRP)
 Material requirements planning (MRP)
is a system for calculating the
materials and components needed to
manufacture a product.
 It consists of three primary steps:
taking inventory of the materials and
components on hand, identifying
which additional ones are needed and
then scheduling their production or
purchase.

23. MRP Basics
 MRP uses information from the bill of materials (a
list of all the materials, subassemblies and other
components needed to make a product, along with
their quantities), inventory data and the master
production schedule to calculate the required
materials and when they will be needed during the
manufacturing process.
 MRP is useful in both discrete manufacturing, in
which the final products are distinct items that
can be counted -- such as bolts, subassemblies or
automobiles -- and process manufacturing, which
results in bulk products -- such as chemicals, soft
drinks and detergent -- that can't be separately
counted or broken down into their constituent
parts.

24. Objectives of Material
Requirements Planning
 The primary objective of MRP is to make sure that materials and
components are available when needed in the production process
and that manufacturing takes place on schedule.
 Effective inventory management and optimization is another goal
of MRP.
 While MRP is designed to ensure adequate inventory at the
required times, a company can be tempted to hold more
inventory than is necessary, thereby driving up inventory costs.
 MRP can also improve manufacturing efficiency by using accurate
scheduling to optimize the use of labour and equipment.
 MRP can help achieve a better matching of supply and demand.
This achievement, in turn, can reduce product costs and increase
revenues as customer demand is fully met and no revenue
opportunities are lost from missed ship dates or inventory
shortfalls.

25. Production Activity Control (PAC)
 is responsible for executing the master production
schedule and the material requirements plan.
 At the same time, it must make good use of labour
and machines, minimize work-in-process inventory,
and maintain customer service.
 The material requirements plan authorizes PAC:
 To release work orders to the shop for manufacturing.
 To take control of work orders and make sure they are
completed on time.
 To be responsible for the immediate detailed planning of
the flow of orders through manufacturing, carrying out
the plan, and controlling the work as it progresses to
completion.
 To manage day-to-day activity and provide the necessary
suppor

27. Vendor Order Management
 Vendor Order management is the collection
of processes and actions involved in the
successful delivery of a product to a client.
 Vendor order management is the process of
taking purchase requests from customers and
organizing, tracking, and fulfilling them. It is
the administration of all business processes
related to orders for products or services.
 Put simply; it means keeping track of orders
and managing customers, individuals,
processes, and whatever we need to fulfil
them.

29. The Benefits of Order
Management
 Management by exception
 Dashboard reports
 Supplier scorecards
 Real-time information
 Automated customer, agent, and supplier
communication
 Streamlined EDI integration
 Customized supply chain milestone management
 Vendor/PO consolidation management
 Dedicated team of Shapiro supply chain experts

30. References:-
 https://bizfluent.com/about-5142109-production-
planning-control-definition.html
 http://www.businessdictionary.com/definition/strategi
c-business-plan.html
 https://www.optiproerp.com/blog/inventory-
management-101-master-production-schedule-mps-
explained/