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MS 401 Production and Service Systems Operations Spring 2009-2010

MS 401 Production and Service Systems Operations Spring 2009-2010. Manufacturing Planning and Control (MPC) Slide Set #7. Note: This lecture is from VBWJ’s book. The rest of the lectures will follow VBWJ’s book (with the exception of Aggregate Production Planning, which is slide set #8).

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MS 401 Production and Service Systems Operations Spring 2009-2010

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  1. MS 401 Production and Service Systems Operations Spring 2009-2010 Manufacturing Planning and Control (MPC) Slide Set #7

  2. Note: This lecture is from VBWJ’s book The rest of the lectures will follow VBWJ’s book (with the exception of Aggregate Production Planning, which is slide set #8)

  3. What is MPC? • MPC: Manufacturing Planning and Control • MPC system provides information to efficiently manage • the flow of materials • the utilization of people and equipment • the coordination of internal activities with those of suppliers • communication with customers about market requirements • MPC is costly to set up and operate • An effective MPC system creates competitive advantage by • decreasing costs • increasing responsiveness

  4. Typical Activities that MPC Support • Long term • overall capacity planning (internal and with suppliers) • Intermediate term • providing the exact material and production capacity to match supply and demand • maintaining inventories • determining the employment levels • communicating with customers and suppliers • Short term • detailed scheduling of resources and tracking their usage • responding to internal and external problems/changes • calculation and reporting of performance indicators • utilization rates, delivery performance etc.

  5. The MPC Framework Sales and operations planning (Aggregate planning) Resource planning Demand management Front End Master production scheduling (MPS) Detailed capacity planning Detailed material planning (using MRP) Engine Material and capacity plans Shop floor systems Supplier systems Back End

  6. MPC Framework: Front End • The Front End: The set of activities for overall direction setting for manufacturing planning and control • demand management • forecasting • sales and operations planning (also called “aggregate planning”) • to balance the marketing plans with available production resources • master production schedule (MPS): disaggregated version of the sales and operations plan (aggregate production plan) • resource planning

  7. MPC Framework: Engine and Back End • The Engine: Includes activities on detailed material and capacity planning • material requirements planning (MRP) • determines the period-by-period plans for all components required • detailed capacity planning • The Back-End: Includes execution systems • shop floor systems • supplier systems

  8. Project Number of subparts (complexity of product) MRP Just-in-time Repetitive Flow Seconds Minutes Days Weeks Months Time between successive units (repetitive nature of production) MPC Classification Schema Different MPC Approaches

  9. MPC needs to Respond to Changes in Environment

  10. Key Developments to Influence MPC • Internationalization • The role of the customer • Increasing use of information technology • classical MPC: individual factory level • enterprise resource planning (ERP) systems allow coordinated decision making across different locations and functions • most MPC systems now are imbedded in an ERP system

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