Manufacturing Planning and Control Framework

1. Manufacturing Planning and ControlFramework

2. Definition A Manufacturing Planning and Control system is a methodology designed to manage efficiently the flow of material, the utilization of people and equipment, and to respond to customer requirements by utilizing the capacity of our suppliers, that of our internal facilities, and in some cases that of our customers to meet customer demand.

3. Long Term The system is responsible for providing information to make decisions on: • The appropriate amount of capacity (including supplier capacity) to meet the market demands of the future. • Provide the appropriate mix of human resource capabilities, technology, and geographic locations.

4. Intermediate Term The fundamental issue is matching supply and demand in terms of both volume and product mix. • Planning for the right logistics. • Providing customers with information on correct quantities and location to meet market needs. • Planning of capacity to determine employment levels, budgets, overtime and subcontracting needs, etc.

5. Short Term There is a need for detailed scheduling of resources to meet production requirements. • Involves time, people, material, equipment and facilities. • Involves people working on the right things. • Involves tracking the use of resources and execution results. • Provide problem-solving support.

6. Performance Indicators • Output results • Equipment utilization • Cost associated with different departments, products, labor utilization, and project conditions. • Measures of customer satisfaction such as late deliveries, product returns, quantity and quality errors.

7. Resource Planning Sales and operations planning Demand management Enterprise Resource Planning (ERP) System Master production scheduling Front End Detailed capacity planning Detailed material planning Engine Material and capacity plans Shop-floor systems Supplier systems Back end Manufacturing Planning and Control System

8. An MPC System Framework • Front End • Set of activities and systems for overall direction setting (Demand Management, Sales & Operations Planning, Resource Planning and MPS) • Engine • Systems for detail material and capacity planning. • Back End • Depicts the MPC execution systems

9. Matching MPC System with Firm’s needs • As competitive conditions, customer expectations, supplier capabilities, and internal needs change the MPC should change. • The trend is towards on-line data access and systems. • Physical changes • Outsourcing mfg., etc. • Firms competing on delivery speed need to improve execution.

10. MPC Classification Schema Number of Subparts Project MRP Just-in-time Repetitive Flow Seconds Minutes Days Weeks Months Time between successive units

11. MPC Classification Schema • Flow (chemical plants, food, etc.) • Repetitive Mfg. (automobiles, watches, personal computers) • Just-in-Time systems (shorter production cycles) • MRP (management of complicated parts product) • Project type (unique; long time).

12. Principles • The framework for the MPC is general and all 3 phases must be performed but specific applications must reflect particular firm conditions and objectives. • In SC environments, the MPC must coordinate the planning and control efforts. • MPC systems should support the strategy and tactics pursued by the company. • Different Manufacturing processes dictate the need for different designs of the MPC. • The MPC should evolve to meet changing requirements in the market, technology, products, and processes. • The MPC should be comprehensive in supporting the management of all manufacturing resources. • An effective MPC can contribute to competitive performance by lowering costs and providing greater responsiveness to the market. • In firms that have an integrated ERP system and database, the MPC system should integrate with and support cross-functional planning through the ERP system.