ASSIGNMENT

Q) What are the steps of manufacturing and control system? Kindly elaborate with example

The steps of manufacturing and control system are:

 Strategic business plan.
 Production plan (sales and operations plan).
 Master production schedule.
 Material requirements plan.
 Purchasing and production activity control.

Each level varies in purpose, time span, and level of detail.

STRATEGIC BUSINESS PLAN 

A strategic business plan focuses on long-term growth objectives, rather than near-term operating goals
and addresses different business strategy types. A strategic plan includes many elements a business can
utilize to attract financing and manage company objectives. It is a statement of the broad direction of the
firm and shows the kind of business—product lines, markets, and so on—the firm wants to do in the
future. The plan gives general direction about how the company hopes to achieve these objectives.
Strategic business plans are usually reviewed every six months to a year.

THE PRODUCTION PLAN

Given the objectives set by the strategic business plan, production management is concerned with the
following:
 The quantities of each product group that must be produced in each period.
 The desired inventory levels.
 The resources of equipment, labor, and material needed in each period.
 The availability of the resources needed.

The level of detail is not high. For example, if a company manufactures children’s bicycles, tricycles, and
scooters in various models, each with many options, the production plan will show major product groups,
or families: bicycles, tricycles, and scooters.

THE MASTER PRODUCTION SCHEDULE

The master production schedule (MPS) is a plan to produce individual end items. It breaks down the
production plan to show, for each period, the quantity of each end item to be made. For example, it might
show that 200 Model A23 scooters are to be built each week. Inputs to the MPS are the production plan,
the forecast for individual end items, sales orders, inventories, and existing capacity. The level of detail
for the MPS is higher than for the production plan.

THE MATERIAL REQUIREMENTS

Plan The material requirements plan (MRP) is a plan for the production and purchase of the components
used in making the items in the master production schedule. It shows the quantities needed and when
manufacturing intends to make or use them. Purchasing and production activity control use the MRP to
decide the purchase or manufacture of specific items. The level of detail is high. The material
requirements plan establishes when the components and parts are needed to make each end item

PURCHASING AND PRODUCTION ACTIVITY CONTROL

Purchasing and production activity control (PAC) represent the implementation and control phase of the
production planning and control system. Purchasing is responsible for establishing and controlling the
flow of raw materials into the factory. PAC is responsible for planning and controlling the flow of work
through the factory. The planning horizon is very short, perhaps from a day to a month. The level of detail
is high since it is concerned with individual components, workstations, and orders. Plans are reviewed
and revised daily.