Manufacturing Planning and Control

Vollman/Berry/Whybark/Jacobs: Manufacturing Planning and Control for Supply Chain Management, 5/e (2005) http://www.pom.edu/mpc/index.htm

Chapter 1 Vollmann, Berry, Whybark & Jacobs

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.

A Context for Thinking about Manufacturing Planning and Control (MPC)
What are processes? Processes define how we do things! Step 1  Step 2  Step 3  etc. So, what is the role of MPC? The MPC system tells the processes what to work on. Plans the resources that processes use (i.e. people, equipment, material). Plans for what processes will be doing in the future.

Often part of a company’s ERP system.Definition Mfg Planning and Control System Plan the use of people Manage the efficient flow of materials Driven by customer demand and other Customer requirements Efficient use of our capacity and that of our suppliers. Possibly even our customers. .

BE)  Matching MPC system with Needs  Classification Schema  Evolution & Responses  . E. ST)  Performance indicators  MPC Framework (FE. MT.Agenda What influences the MPC system design?  What are the typical support activities? (LT.

Dell (cfr. Macintosh. tempi di risposta e costo delle transazioni nel sistema informativo con SC molto diversificate e sparse  Increasing use of Information Technology. geograficamente e culturalmente disparate e differenti .  Role of the customer in the system Variabilità della dimensione e tipologia della domanda che richiede flessibilità produttiva ottenuta abbassando scorte. Chase). Necessario per supportare Lean SC con dati e procedure comuni per unità organizzative funzionalmente. Nike.Key Areas of Influence on MPC system design  Degree of Internationalization Sempre più elevato per la spinta ad esternalizzare il processo di produzione e concentrarsi su progettazione e mercato.

  .Typical Support Activities  Long Term Intermediate Term and Short Term.

.Long Term (Piano di Produzione=>MPS) The system is responsible for providing information to make decisions on (cfr. Provide the appropriate mix of human resource capabilities (profili tecnici e/o professionali). technology. and geographic locations.including supplier capacity .13 Seminario)):   The appropriate amount of capacity (intende quantità per ogni tipo di capacità produttive) . p. Variabili strategiche.to meet the market demands of the future.

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

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

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

  Common to see ERP system costs measured at 5-10% of cost of goods sold. .Costs and Benefits of MPC systems The costs of an MPC are substantial but so can be the  Rewards (see examples).

p. Depicts the MPC execution systems  Engine   Back End  . Resource Planning and MPS) Material Requirements Plans (MRP): Systems for detailed material and capacity planning. Sales & Operations Planning. del Seminario)  Set of activities and systems for overall direction setting (Demand Management.An MPC System Framework  Front End (cfr.14 e segg.

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

Rapporti interaziendali. Specifiche su parti di ricambio. Ordini.  Sales & Operations Planning Coordinamento delle risorse produttive disponibili per rispondere ai piani di vendita (sales/marketing planes).  Resource Planning Previsione delle risorse produttive e loro coordinamento  Master Production Schedule (MPS) Cosa bisogna produrre e in quali tempi .Front End  Demand Management Previsione di domanda del cliente finale.

Sales capacity plans & Operations Planning.Resource Planning Sales and operations planning Master production Scheduling (MPS) Demand management Enterprise Resource Planning (ERP) System Front End Front End Detailed capacity Detailed material planning Set of activities and systems for planning Engine overall direction Material and setting (Demand Management. Resource Planning and MPS) Shop-floor systems Supplier systems Back end Manufacturing Planning and Control System .

Engine  Detailed Capacity Planning (DCP) Determina in dettaglio quali risorse produttive (persone. in base al coordinamento delle risorse produttive e ai BOM dei prodotti finali . macchine. …) occorrono per la produzione  Detailed Material Planning (DMP) Determina in dettaglio quali parti e materie prime occorrono per la produzione in base alla “esplosione” (BOM: Bill Of Materials) dei prodotti finali  Material Requirements Plans (MRP): Determina in dettaglio in quali tempi occorrono le parti e le materie prime.

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

Back End (execution systems)  Supplier systems Coordinamento tempi e quantità delle parti e delle materie prime con I fornitori  Shop-floor systems Coordinamento e scheduling dettagliato delle operazioni per le attività produttive .

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

Providing information at the level where decision are made. in appropriate time and frames. supplier capabilities. Physical changes influenzano l’MPC:  Outsourcing mfg (manufacturing). Di conseguenza anche l’importanza relativa dei vari moduli dell’MPC cambia nel tempo. and internal needs change the MPC should change. customer expectations. directly from the shop floor Firms competing in product variety strength MPS and DMP Firms competing on delivery speed need to improve execution.Matching MPC System with the Firm needs (A DYNAMIC PROCESS)  As competitive conditions. . etc.      The trend is towards on-line data access and systems (principale cambio tecnologico: intra e inter unità organizzative).  Hollowing (ricercando) out of corporation (?).

e cadenza dei prodotti) Da destra a sinistra diminuiscono: tempi dei cicli e di risposta. immagazzinato e simili Number of Subparts MRP Project Managment Repetitive (Beni discreti) Flow (quantità) Seconds Minutes Just-in-time Days Weeks Months Time between successive units .MPC Classification Schema (enfasi degli approcci dell’MPC a seconda della complessità. cioè numerosità dei componenti.

etc. food.) Number of Subparts Project MRP Just-in-time Repetitive Flow Seconds Minutes Days Weeks Months Time between successive units .MPC Classification Schema Flow (chemical plants.

high volume consumer products (i.e.MPC Classification Schema Number of Subparts Repetitive Mfg. TVs) MRP Just-in-time Repetitive Project Flow Seconds Minutes Days Weeks Months Time between successive units . (automobiles.

g. Focus on minimizing inventory in the supply chain. MRP Just-in-time Repetitive Project Flow Seconds Minutes Days Weeks Months Time between successive units . fashion items).MPC Classification Schema Number of Subparts Just-in-Time systems (feedback management for shorter life cycle products – e.

machines.MPC Classification Schema Number of Subparts MRP (feedforward management for management of complicated longer life products. i. electronic equipment).e. MRP Just-in-time Repetitive Project Flow Seconds Minutes Days Weeks Months Time between successive units .

MPC Classification Schema Project (unique. one of a kind (satellites). Number of Subparts Project MRP Just-in-time Repetitive Flow Seconds Minutes Days Weeks Months Time between successive units . long term). buildings.

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

the MPC must coordinate the planning and control efforts.  In SC environments.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.  .  MPC systems should support the strategy and tactics pursued by the company.

 The MPC should be comprehensive in supporting the management of all manufacturing resources.Principles Different Manufacturing processes dictate the need for different designs of the MPC. and processes.  . technology.  The MPC should evolve to meet changing requirements in the market. products.

technology.  The MPC must evolve to meet changing requirements in the market.  Major problem – the conflict between the flexible and changing needs of companies and the inflexibility of ERP systems.Principles Different Manufacturing processes and Supply Chains need different designs of the MPC. … one size does not fit all.  . products. and processes.

 ERP Companies SAP  Oracle  Microsoft  My Interest in the Topics  Syllabus – Next Class  .

the MPC system should integrate with and support cross-functional planning through the ERP system.Principles 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.

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