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ME 2402 Production Planning & Control

Dr. S.RAVI PROFESSOR DEPT. OF MECHANICAL ENGINEERING SRIRAM ENGINEERING COLLEGE

Production Planning and Control Introduction
• • • • Coordination of materials with suppliers Efficient utilization of people and machines Efficient flow of materials Communication with customers

PPC Class Notes-Chapter1

Production Planning and Control Introduction A Typical Manufacturing Systems SUPPLIERS Raw Materials Materials Machines People CUSTOMERS Finished Products PPC Class Notes-Chapter1 .

Activities Supported by PPC • • • • • • Materials Planning Purchasing Raw Material Inventory Control Capacity Planning Scheduling Machine and People WIP Inventory Control PPC Class Notes-Chapter1 .

Activities Supported by PPC (Cont’d) • Coordinate Customer Orders • Finished Goods Inventory Control PPC Class Notes-Chapter1 .

excessive inventories. high rate of part obsolescence. low equipment and people utilization.Costs and Benefits of PPC Systems PPC requires a large # of indirect people Companies with ineffective PPC system will have poor customer service. large number of expediters PPC Class Notes-Chapter1 .

Execution of Plans PPC Class Notes-Chapter1 .Hierarchical Planning 1. Overall Manufacturing Planning 2. Detailed Materials and Capacity Planning 3.

Production Planning and Control General Framework Resources Planning Rough-cut Capacity Planning Detailed Capacity Planning Production Planning Master Production Scheduling Demand Management Detailed Material Planning Material and Capacity Plans Shop Floor Systems Purchasing PPC Class Notes-Chapter1 .

Overall Manufacturing Planning Hierarchical Planning Cont’d Demand Management • Forecasting • Order Promising • Order Processing • Order Entry • Spare Parts PPC Class Notes-Chapter1 .1.

1.Overall Manufacturing Planning Hierarchical Planning Cont’d Production Planning Monthly Plans for Product Families Master Production Scheduling (MPS) Weekly Plans for Individual Products MPS must sum up to Production Plan PPC Class Notes-Chapter1 .

1.Overall Manufacturing Planning Hierarchical Planning Cont’d Resource Planning • Long-Range Capacity Requirements • Number of Machines • Number of Employees • Overtime • Shifts • Plants PPC Class Notes-Chapter1 .

1.Overall Manufacturing Planning Hierarchical Planning Cont’d Rough-Cut Capacity Planning Capacity Requirements for Master Production Scheduling • Overall Factor • Capacity Bills • Resource Profiles PPC Class Notes-Chapter1 .

MRP determines time-phased requirements (period-by-period) for all purchased and manufactured parts such as raw materials.Materials & Capacity Planning Hierarchical Planning Cont’d Materials Planning Production rates can be used in simpler manufacturing systems.2. components. etc. parts. subassemblies. Materials Requirements Planning (MRP) can be used in more complex systems. PPC Class Notes-Chapter1 .

PPC Class Notes-Chapter1 .2.Materials & Capacity Planning Hierarchical Planning Cont’d Detailed Capacity Planning Labor Hours Required Machine Capacity Required In an MRP environment. this task is accomplished by using the Capacity Requirements Planning (CRP) technique.

3. Execution of Plans Hierarchical Planning Cont’d Shop Floor Control • Conventional Approach. Process Layout Similar machines are grouped into workcenters Use workorders to schedule the jobs through workcenters / departments Schedule machine and other workcenters Determine start and completion times of orders Update the schedule PPC Class Notes-Chapter1 .

Product Sequencing.3. Manufacturing Cells Similar parts are grouped into families Corresponding machine cells are formed Use production rates Use schedules to control production (Family Sequencing. etc.) Use Kanban System (Pull. Cell Loading. Cell Scheduling. Execution of Plans Hierarchical Planning Cont’d Shop Floor Control (Cont’d) • Recent Trend. Just-in-Time) to control production PPC Class Notes-Chapter1 .

Execution of Plans Hierarchical Planning Cont’d Purchasing • Purchasing Plan • Vendor Search • Quotation • Order Release • Order Follow-up • Vendor Capacity PPC Class Notes-Chapter1 .3.

Planning vs. Control • Plans are made • Results are compared with plans (control) • Results are OK  Wait until next control period • Results are not OK  Go to Step 1 (Revise plans) PPC Class Notes-Chapter1 .

Control planning Plans no control OK? yes Revise Stop PPC Class Notes-Chapter1 .Planning vs.

houses. trucks. TV. planes. watches. drugs. food.Matching PPC with the Needs of the Firm Number of Subparts Just-in-Time MRP CPM/PERT Repetitive Flow Seconds Minutes Days Weeks Months Time between successive units Examples: Oil. ships PPC Class Notes-Chapter1 .

food. petroleum PPC Class Notes-Chapter1 . Flow-Oriented Manufacturing Systems Very short time between successive units A few components needed Flow rate is the measure Ex: Chemical.Matching PPC with the Needs of the Firm 1.

Repetitive-Nature Manufacturing Systems Short time between successive units Assemble similar products Flow Rate or Assembly Rate is the measure Ex: Televisions. Watches. Cars PPC Class Notes-Chapter1 . Radios.Matching PPC with the Needs of the Firm (Cont’d) 2.

Just-in-Time High production volume Low Product Variety Reduced Inventory and Leadtime Ex: Cars. Jewelry. Copy Machines PPC Class Notes-Chapter1 .Matching PPC with the Needs of the Firm (Cont’d) 3. Computers.

Materials Requirements Planning (MRP) Batch production High product variety Low production quantity Ex: Electric Motors. Fans PPC Class Notes-Chapter1 .Matching PPC with the Needs of the Firm (Cont’d) 4.

Matching PPC with the Needs of the Firm (Cont’d) 5. ships PPC Class Notes-Chapter1 . CPM/PERT Long leadtimes Low production quantity Ex: Airplanes.

Forces for Change Typical Responses Marketplace dictates Technology Products Processes Systems Techniques Company strategy Shorter Product Life Cycles Time Based Competition Quality Requirements Manufacturing Strategy Flexibility/Responsiveness Reduced Overhead costs Manufacturing processes MPC system Simplification Automation Production Cells MRP JIT PPC Class Notes-Chapter1 .