Manufacturing Planning and

Control

ISSUE

“The fundamental problem of operations management is balancing capacity and demand …”

Marketing Planning

StrategicPlanning

FinancialPlanning

Aggregate ProductionPlanning

ResourcePlanning

DemandManagement

Master ProductionSchedule (MPS)

Rough-Cut Capacity Planning (RCCP)

Material Requirements

Planning (MRP)

Capacity Requirements

Planning

Production ActivityControl

CapacityControl

Manufacturing Planning and Control

Processes in Production Planning and Control

• DEMAND MANAGEMENT• AGGREGATE PRODUCTION PLAN• MASTER PRODUCTION SCHEDULE• CAPACITY REQUIREMENT PLAN• MATERIAL REQUIREMENT PLAN• OPERATIONS SCHEDULING• SHOP FLOOR CONTROL• INPUT OUTPUT CONTROL

INTERFACES TO PRODUCTION PLANNING AND CONTROL

• TO ARRIVE AT MPS WE NEED FIRM ORDERS FROM CUSTOMERS OR FORECAST OF DEMAND FROM Sales /CUSTOMERS

• TO ARRIVE AT CAPACITY REQUIREMENT PLANNING WE NEED TO KNOW THE AVAILABILITY OF THE MACHINE CAPACITY WITH RESPECT TO THE DEMAND LOAD ON THE CAPACITY

• TO ARRIVE AT THE MATERIAL REQUIREMENT PLAN WE NEED THE MPS,ENGG DESIGN CHANGES,BILL OF MATERIAL AND INVENTORY RECORDS

• MRP OUTPUTS PLANNED ORDER SCHEDULES FOR INVENTORY AND PRODUCTION CONTROL

MASTER PRODUCTION SCHEDULE

• MASTER PRODUCTION SCHEDULER SHOULD: -INCLUDE ALL DEMANDS FROM PRODUCT SALES WAREHOUSE REPLENISHMENT SPARES AND INTER PLANT REQUIREMENT -KEEP SIGHT OF AGGREGATE PLAN -KEEP CUSTOMER ORDER PROMISES IN MIND -IDENTIFY AND COMMUNICATE ALL PROBLEMS

CAPACITY PLANNING

• CAPACITY IS A MEASURE OF ABILITY TO PROVIDE CAPABILITY TO MEET MKT DEMAND

• CAPACITY DECISIONS USE FOLLOWING STEPS: -MEASURE DEMAND -MEASURE FINITE CAPACITY -RECONCILE CAPACITY& DEMAND -EVALUATE ALTERNATIVES INCLUDING SUBCONTRACTING

Managing Capacity

• Disaggregate the capacity management problems …

• Example:– Resource requirements planning -- check the

production plan in aggregate units. Done before MPS

– Rough cut capacity planning -- check the master schedule in shop hours and MPS reworked if required.

– Capacity requirements planning -- check the materials plan in shop hours By default infinite capacity is assumed. A separate exercise done on finite capacity loading on shop floor .

MATERIAL REQUIREMENT PLANNING

• MRP DRIVEN BY MPS• WHAT MATRL TO BE ORDERED FROM

OUTSIDE AND WHAT MATRL TO BE MFG INHOUSE TAKING INTO ACCOUNT CURRENT INVENTORY LEVELS

• MRP RUN RESULTS IN CALCULATION OF NET REQMNT AND RELEASE OF PURCHASE ORDER OR WORK ORDER

• MRP USES A BILL OF MATERIAL FOR PRODUCTS TO CALCULATE REQMNTS

OPERATIONS SCHEDULING

• SCHEDULING INVOLVES PREPARATION OF TIME TABLE FOR WORK THAT NEEDS TO BE DONE TO MEET CLIENT DATES OR TO ACHIEVE DESIRED OBJECTIVE

• EFFECTIVE SCHEDULING DONE TO AVOID BOTTLENECKS AND TO OPTIMIZE UTILISATION OF SHOP FLOOR RESOURCES

• SHEDULING RULES REQUIRED TO OPTIMIZE OPERATIONS

SCHEDULING RULES

• FIRST COME FIRST SERVED

• EARLIEST DUE DATE

• SHORTEST PROCESSING TIME

• LONGEST PROCESSING TIME

• LAST ARRIVED FIRST PROCESSED

• LEAST SLACK TIME

• LEAST CHANGEOVER COST

OPERATIONS SCHEDULING

• SCHEDULING SYSTEMS USE EITHER FINITE OR INFINITE LOADING TECHNIQUES TO DETERMINE HOW MACHINE CAPACITY SHOULD BE USED

• INFINITE CAPACITY OCCURS WHEN WORK IS ASSIGNED TO A WORK CENTRE BASED ON WHAT IS NEEDED .IT IS PRESUMED THAT CAPACITY IS ALWAYS AVAILABLE AND NO CONSIDERATION IS GIVEN DIRECTLY TO WHETHER THERE IS SUFFICIENT CAPACITY AT THE RESOURCES REQD TO DO WORK. IN INFINITE LOADING SYSTEMS LEAD TIME IS ESTIMATED BY TAKING MULTIPLE OF OPERATING TIME(SETUP +RUN TIME) PLUS QUEUE DELAY IN MATRL MOVEMENT

• FINITE LOADING SCHEDULES IN DETAIL EACH RESOURCE USING THE SETUP AND RUNTIME REQD FOR EACH ORDER .SYSTEM DETERMINES EXACTLY WHAT EACH RESOURCE WILL DO AT EACH MOMENT OF THE DAY

SCHEDULING AND CONTROL FUNCTIONS

• ALLOCATING ORDERS TO WORK CENTRES

• DETERMINING SEQUENCE OF ORDER OPERATIONS

• DISPATCHING OF ORDERS

• SHOP FLOOR CONTROL OF ORDERS INVOLVING CONTROLLING PROGRESS OF ORDERS AND EXPEDITING LATE AND CRITICAL ORDERS