Ch 25 Production Planning and Control

Sections: 1. Aggregate Production Planning and the Master Production Schedule 2. Material Requirements Planning 3. Capacity Planning 4. Shop Floor Control 5. Inventory Control 6. Extensions of MRP

©2008 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected under all copyright laws as they currently exist. No portion of this material may be reproduced, in any form or by any means, without permission in writing from the publisher. For the exclusive use of adopters of the book Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover.

Production Planning and Control 
Concerned with the logistics problems in manufacturing:  Managing the details of what, when, and how many products to produce  And obtaining the raw materials, parts, and resources to produce them  PPC solves these logistics problems by managing information  PPC is the integrator in computer integrated manufacturing

©2008 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected under all copyright laws as they currently exist. No portion of this material may be reproduced, in any form or by any means, without permission in writing from the publisher. For the exclusive use of adopters of the book Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover.

Production Planning 

Concerned with: 1. Deciding which products to make, how many of each, and when they should be completed 2. Scheduling the delivery and/or production of the parts and products 3. Planning the manpower and equipment resources needed to accomplish the production plan

©2008 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected under all copyright laws as they currently exist. No portion of this material may be reproduced, in any form or by any means, without permission in writing from the publisher. For the exclusive use of adopters of the book Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover.

Activities in Production Planning 
Aggregate production planning ± planning the production output levels for major product lines  Must be coordinated with product design, production, marketing, and sales  Master production planning ± specific schedule (master production schedule) of the quantities of individual models in each major product line  Material requirements planning (MRP) ± detailed schedule of raw materials and parts production for models in master schedule  Capacity planning ± planning labor and equipment resources to achieve the master schedule
©2008 Pearson Education, Inc., Upper Saddle River, NJ. All rights reserved. This material is protected under all copyright laws as they currently exist. No portion of this material may be reproduced, in any form or by any means, without permission in writing from the publisher. For the exclusive use of adopters of the book Automation, Production Systems, and Computer-Integrated Manufacturing, Third Edition, by Mikell P. Groover.

in any form or by any means. NJ. For the exclusive use of adopters of the book Automation. it attempts to take corrective action to address the deficiencies  Major topics in production control:  Shop floor control  Manufacturing execution systems  Inventory control  Manufacturing resource planning  Enterprise resource planning ©2008 Pearson Education. This material is protected under all copyright laws as they currently exist. by Mikell P. . and Computer-Integrated Manufacturing.Production Control  Concerned with determining whether the necessary resources to implement the production plan have been provided  If not. Third Edition.. without permission in writing from the publisher. Production Systems. All rights reserved. Inc. Upper Saddle River. Groover. No portion of this material may be reproduced.

All rights reserved. This material is protected under all copyright laws as they currently exist. Inc. . without permission in writing from the publisher.. in any form or by any means. Production Systems. No portion of this material may be reproduced. For the exclusive use of adopters of the book Automation. Upper Saddle River. Groover. NJ. and Computer-Integrated Manufacturing. Third Edition. by Mikell P.Activities in a Production Planning and Control System ©2008 Pearson Education.

by Mikell P. No portion of this material may be reproduced. Third Edition. without permission in writing from the publisher. For the exclusive use of adopters of the book Automation. Inc.. Groover. This material is protected under all copyright laws as they currently exist. and Computer-Integrated Manufacturing. . Production Systems. All rights reserved. Upper Saddle River.Aggregate Production Planning Planning the production output levels for major product lines  High-level corporate planning activity  Must be coordinated with the plans of the sales and marketing departments  Includes products that are currently in production  Must consider current and future inventory levels of those products  Also includes new products currently being developed  Marketing plans for current and new products must be reconciled against total capacity resources of the company ©2008 Pearson Education. in any form or by any means. NJ.

.. by Mikell P. For the exclusive use of adopters of the book Automation. No portion of this material may be reproduced. All rights reserved. without permission in writing from the publisher. Inc. Production Systems.Aggregate Production Plan  Indicates production output levels for the major product lines of the company ©2008 Pearson Education. in any form or by any means. NJ. This material is protected under all copyright laws as they currently exist. and Computer-Integrated Manufacturing. Upper Saddle River. Third Edition. Groover.

Firm customer orders 2. Inc. For the exclusive use of adopters of the book Automation. and in what quantities  Master production schedule includes three categories of items: 1. No portion of this material may be reproduced. Upper Saddle River. This material is protected under all copyright laws as they currently exist. by Mikell P. Spare parts ©2008 Pearson Education. Groover.. when they should be completed and delivered. NJ. Forecasted demand 3. Production Systems. Third Edition. and Computer-Integrated Manufacturing. All rights reserved.Master Production Schedule The specific schedule of individual products and models that is derived from the aggregate production plan  It is a list of the products to be manufactured. . in any form or by any means. without permission in writing from the publisher.

Groover. by Mikell P. For the exclusive use of adopters of the book Automation. This material is protected under all copyright laws as they currently exist. in any form or by any means. without permission in writing from the publisher. Inc. . Third Edition. Upper Saddle River. and Computer-Integrated Manufacturing.. No portion of this material may be reproduced. quantities and times ©2008 Pearson Education. All rights reserved. Production Systems.Master Production Schedule Specific schedule of individual products. NJ.

No portion of this material may be reproduced.Material Requirements Planning (MRP) Computational technique that converts the master production schedule for end products into a detailed schedule for the raw materials and components used in the end products  Useful for dependent demand items. Groover. This material is protected under all copyright laws as they currently exist. not independent demand items  Independent demand items  Final products and spare parts  Dependent demand items  Component parts used in final products ©2008 Pearson Education. All rights reserved. For the exclusive use of adopters of the book Automation. in any form or by any means.. Third Edition. and Computer-Integrated Manufacturing. . Inc. Upper Saddle River. by Mikell P. Production Systems. without permission in writing from the publisher. NJ.

Upper Saddle River. by Mikell P. All rights reserved. .Structure of an MRP System ©2008 Pearson Education. Third Edition. NJ. This material is protected under all copyright laws as they currently exist. and Computer-Integrated Manufacturing.. without permission in writing from the publisher. For the exclusive use of adopters of the book Automation. in any form or by any means. Groover. Production Systems. No portion of this material may be reproduced. Inc.

Master production schedule  Expressed in terms of time buckets 2. Inventory record file (item master file) ± includes:  Item master data ± part number. and Computer-Integrated Manufacturing. in any form or by any means. Groover.Inputs to the MRP System 1. without permission in writing from the publisher. Upper Saddle River. Inc. For the exclusive use of adopters of the book Automation. NJ. This material is protected under all copyright laws as they currently exist. All rights reserved. . Production Systems. lead times  Inventory status ± time-phased record of inventory status  Subsidiary data ± purchase orders. Bill of materials file ± product structure and list of component parts in each product 3.. Third Edition. engineering changes ©2008 Pearson Education. by Mikell P. order quantities. No portion of this material may be reproduced.

Upper Saddle River. by Mikell P. Third Edition. in any form or by any means. Groover. NJ. Inc. All rights reserved. For the exclusive use of adopters of the book Automation. No portion of this material may be reproduced.Typical Product Structure ©2008 Pearson Education. Production Systems. .. and Computer-Integrated Manufacturing. without permission in writing from the publisher. This material is protected under all copyright laws as they currently exist.

NJ. Upper Saddle River. Groover. Production Systems. All rights reserved. in any form or by any means. This material is protected under all copyright laws as they currently exist. For the exclusive use of adopters of the book Automation. by Mikell P. and Computer-Integrated Manufacturing. Third Edition.. Inc. without permission in writing from the publisher. . No portion of this material may be reproduced.Inventory Record File ©2008 Pearson Education.

without permission in writing from the publisher. Production Systems. Upper Saddle River. and Computer-Integrated Manufacturing. Third Edition. For the exclusive use of adopters of the book Automation. by Mikell P. All rights reserved. NJ. No portion of this material may be reproduced. This material is protected under all copyright laws as they currently exist. in any form or by any means. . Groover.. Inc.Complicating Factors in MRP  Net requirements = gross requirements less on-hand inventories and less quantities on order  Common use items ± raw materials and components used on more than one product  Lead times ± scheduled delivery of end products must be translated into time-phased requirements of components and materials by factoring in lead times  Ordering lead times ± time between purchase requisition and receipt from vendor  Manufacturing lead times ± time between order release and completion ©2008 Pearson Education.

Planned order releases  Purchase orders ± to buy raw materials and parts  Work orders ± to make parts and products 2. Report of planned order releases in future periods 3. Exception reports 8. No portion of this material may be reproduced. For the exclusive use of adopters of the book Automation. Groover.. Third Edition. Inc.MRP Outputs 1. Cancellation notices 5. Performance reports 7. by Mikell P. and Computer-Integrated Manufacturing. All rights reserved. Production Systems. Inventory forecasts ©2008 Pearson Education. Inventory status reports 6. without permission in writing from the publisher. Rescheduling notices 4. in any form or by any means. NJ. Upper Saddle River. . This material is protected under all copyright laws as they currently exist.

2. 3. Reduction in inventory Quicker response to changes in demand Reduced setup and changeover costs Better machine utilization Improved capacity to respond to changes in master production schedule 6. Groover. Upper Saddle River. by Mikell P. 5. . without permission in writing from the publisher. For the exclusive use of adopters of the book Automation. Aid in developing the master schedule ©2008 Pearson Education. NJ. in any form or by any means.MRP Benefits Reported by Users 1. Third Edition. All rights reserved. Inc. Production Systems. and Computer-Integrated Manufacturing.. 4. No portion of this material may be reproduced. This material is protected under all copyright laws as they currently exist.

in any form or by any means. For the exclusive use of adopters of the book Automation.. Inc. Upper Saddle River. by Mikell P. Application was not appropriate  Usually because product structure did not fit data requirements of MRP 2. and Computer-Integrated Manufacturing. MRP computations based on inaccurate data 3. Master production schedule was not coupled with capacity planning  MRP generated an unrealistic schedule of work orders that overloaded the factory ©2008 Pearson Education.Why Some MRP Systems Do Not Succeed 1. Third Edition. NJ. This material is protected under all copyright laws as they currently exist. No portion of this material may be reproduced. All rights reserved. Production Systems. without permission in writing from the publisher. . Groover.

No portion of this material may be reproduced. For the exclusive use of adopters of the book Automation. . Upper Saddle River. Third Edition.Capacity Planning Concerned with determining labor and equipment resources required to meet the current master schedule as well as long-term future production needs of the firm  Also serves to identify the limitations of the available production resources so that an unrealistic master schedule is not planned  Accomplished in two stages: 1. This material is protected under all copyright laws as they currently exist. All rights reserved. in any form or by any means. and Computer-Integrated Manufacturing. NJ.. Capacity requirements planning ± detailed capacity calculation for individual departments and work cells ©2008 Pearson Education. Inc. Rough-cut capacity planning ± to assess feasibility of master production schedule 2. without permission in writing from the publisher. Production Systems. by Mikell P. Groover.

Production Systems. For the exclusive use of adopters of the book Automation. by Mikell P. Upper Saddle River. in any form or by any means. NJ. Groover. All rights reserved. and Computer-Integrated Manufacturing.. Inc.Two Stages of Capacity Planning ©2008 Pearson Education. without permission in writing from the publisher. Third Edition. No portion of this material may be reproduced. . This material is protected under all copyright laws as they currently exist.

taking in work during slack periods      ©2008 Pearson Education. in any form or by any means. without permission in writing from the publisher.Short Term Capacity Adjustments Employment levels ± hiring vs. Third Edition. and Computer-Integrated Manufacturing. Inc.. Upper Saddle River. No portion of this material may be reproduced. For the exclusive use of adopters of the book Automation. All rights reserved. Production Systems. by Mikell P. layoffs Temporary workers Number of work shifts per period Labor hours per shift ± overtime or reduced hours Inventory stockpiling ± to smooth production and maintain steady employment  Order backlogs  Subcontracting ± letting jobs during busy periods. This material is protected under all copyright laws as they currently exist. . NJ. Groover.

This material is protected under all copyright laws as they currently exist. without permission in writing from the publisher. in any form or by any means. Third Edition.. No portion of this material may be reproduced. Upper Saddle River. For the exclusive use of adopters of the book Automation. and Computer-Integrated Manufacturing. Groover. NJ. by Mikell P. Inc. Production Systems.Long Term Capacity Adjustments      New equipment investments New plant construction Purchase of existing plants from other companies Acquisition of existing companies Plant closings ©2008 Pearson Education. . All rights reserved.

and acquiring current information on the status of the orders  Manufacturing execution system (MES) . Inc. . No portion of this material may be reproduced. by Mikell P. monitoring and controlling the progress of the orders through the plant. Groover. For the exclusive use of adopters of the book Automation.Shop Floor Control Concerned with releasing production orders to the factory. Production Systems.. real-time inventory control. NJ. This material is protected under all copyright laws as they currently exist. All rights reserved. Third Edition.the computer software that supports shop floor control  Typically includes capability to respond to on-line inquiries about the status of orders in the shop  Other MES functions may include generation of process instructions. in any form or by any means. without permission in writing from the publisher. and labor tracking ©2008 Pearson Education. Upper Saddle River. and Computer-Integrated Manufacturing.

in any form or by any means. This material is protected under all copyright laws as they currently exist. . Production Systems. NJ.Three Phases in Shop Floor Control ©2008 Pearson Education. Third Edition. by Mikell P. Inc. All rights reserved. and Computer-Integrated Manufacturing. without permission in writing from the publisher. Upper Saddle River. Groover. No portion of this material may be reproduced. For the exclusive use of adopters of the book Automation..

Production Systems. Inc. For the exclusive use of adopters of the book Automation. NJ.Three Phases of Shop Floor Control 1. Third Edition. in any form or by any means. and Computer-Integrated Manufacturing.. . by Mikell P. Groover. Order release 2. Order progress ©2008 Pearson Education. No portion of this material may be reproduced. This material is protected under all copyright laws as they currently exist. Upper Saddle River. Order scheduling 3. All rights reserved. without permission in writing from the publisher.

Groover. For the exclusive use of adopters of the book Automation. This material is protected under all copyright laws as they currently exist.. NJ. Inc. and Computer-Integrated Manufacturing. No portion of this material may be reproduced. without permission in writing from the publisher.Order Release Provides documentation to process a production order through the factory  Documentation (shop packet):  Route sheet ± process plan  Material requisitions ± to draw raw materials from inventory  Job cards .to authorize transport of parts between work centers  Parts list (if assembly) ©2008 Pearson Education. in any form or by any means. . All rights reserved. Production Systems. Third Edition. Upper Saddle River. by Mikell P.to report direct labor hours expended on order and track progress of order  Move tickets .

This material is protected under all copyright laws as they currently exist. For the exclusive use of adopters of the book Automation. Job sequencing ± determining the sequence in which orders will be processed through each work center ©2008 Pearson Education. Upper Saddle River. Groover. Machine loading ± allocating orders to work centers  Shop loading ± loading all machines in the plant 2.. Inc. All rights reserved. and Computer-Integrated Manufacturing.Order Scheduling Assigns production orders to work centers in the plant  Executes the dispatching function in production planning and control  Solves two problems in production control: 1. NJ. Third Edition. . No portion of this material may be reproduced. in any form or by any means. Production Systems. by Mikell P. without permission in writing from the publisher.

Production Systems. Groover. NJ. This material is protected under all copyright laws as they currently exist.. and Computer-Integrated Manufacturing. in any form or by any means. No portion of this material may be reproduced. without permission in writing from the publisher. Third Edition. . Inc. All rights reserved. Upper Saddle River. by Mikell P.Priority Control Sets appropriate priority levels for production orders  Possible dispatching rules in priority control:  First-come-first-serve  Earliest due date  Shortest processing time  Least slack time  Slack time = time remaining until due date minus processing time remaining  Critical ratio  Ratio of time remaining until due date divided by processing time remaining ©2008 Pearson Education. For the exclusive use of adopters of the book Automation.

Third Edition. Production Systems. number that should have been completed  Exception reports ± overdue jobs. Groover. by Mikell P. No portion of this material may be reproduced. All rights reserved. and Computer-Integrated Manufacturing. . without permission in writing from the publisher. WIP. other exceptions ©2008 Pearson Education. Upper Saddle River. This material is protected under all copyright laws as they currently exist. NJ. Inc.Order Progress Monitors the status of the orders in the plant. in any form or by any means. For the exclusive use of adopters of the book Automation. and other parameters that indicate production progress and performance  Purpose is to provide information useful to manage the factory based on data collected from the factory  Reports generated by order progress module:  Work order status reports ± whether orders are on schedule or behind  Progress reports ± number of orders completed vs..

. Inc. by Mikell P. Groover. All rights reserved. in any form or by any means. Upper Saddle River. To provide current information to production foremen. and automated devices throughout plant for collecting data on shop floor operations  Includes methods to compile and process the data  Functions of factory data collection system: 1. To supply status and performance data to the shop floor control system 2. NJ. This material is protected under all copyright laws as they currently exist. Third Edition. and Computer-Integrated Manufacturing. without permission in writing from the publisher. terminals. . For the exclusive use of adopters of the book Automation.Factory Data Collection System Consists of the various paper documents. and production control personnel ©2008 Pearson Education. plant management. Production Systems. No portion of this material may be reproduced.

Third Edition.Types of Data Collected      Direct labor time on each order Parts scrapped or needing rework Piece counts completed at each work center Equipment utilization and downtime Time clocks for employees ©2008 Pearson Education. This material is protected under all copyright laws as they currently exist. NJ. Groover. Inc. by Mikell P. No portion of this material may be reproduced. For the exclusive use of adopters of the book Automation.. Production Systems. and Computer-Integrated Manufacturing. . without permission in writing from the publisher. Upper Saddle River. All rights reserved. in any form or by any means.

All rights reserved. without permission in writing from the publisher. Production Systems. NJ.examples:  Job traveler ± workers must record their time spent. and turned in  Prepunched cards ± similar to tear strips ©2008 Pearson Education.. onto log sheet that travels with shop packet  Employee time sheets ± workers fill out daily time sheet indicating orders worked on. For the exclusive use of adopters of the book Automation.. in any form or by any means. Third Edition. . Upper Saddle River. Groover. pieces completed  Operation tear strips ± preprinted sheets that can be separated from shop packet. and Computer-Integrated Manufacturing.Manual (Clerical) Data Input Techniques Production workers read and fill out paper forms indicating order progress data . Inc. piece counts. No portion of this material may be reproduced. etc. rejects. by Mikell P. This material is protected under all copyright laws as they currently exist. filled out.

Inc. NJ. Production Systems. All rights reserved. Third Edition. This material is protected under all copyright laws as they currently exist. without permission in writing from the publisher. . in any form or by any means. by Mikell P. Upper Saddle River.. Groover. No portion of this material may be reproduced. and Computer-Integrated Manufacturing. For the exclusive use of adopters of the book Automation.Automated and Semi-Automated Data Collection Systems  Hardware and technology includes:  Specialized keypads or conventional keyboards  Optical bar code readers  Other AIDC systems  Configurations:  One centralized terminal  Satellite terminals  Workstation terminals ©2008 Pearson Education.

by Mikell P. . Production Systems. in any form or by any means. Third Edition. For the exclusive use of adopters of the book Automation. and Computer-Integrated Manufacturing.Inventory Control  Concerned with achieving an appropriate compromise between two opposing objectives: 1.. Minimizing the cost of holding inventory  Implies keeping inventory to a minimum 2. This material is protected under all copyright laws as they currently exist. No portion of this material may be reproduced. Inc. without permission in writing from the publisher. Groover. Maximizing customer service  Implies keeping large stocks on hand so the customer can immediately take possession ©2008 Pearson Education. All rights reserved. Upper Saddle River. NJ.

and Computer-Integrated Manufacturing. . For the exclusive use of adopters of the book Automation. Inc. Third Edition. these costs are referred to as carrying costs or holding costs ©2008 Pearson Education. Investment costs  Cost of money tied up in inventory until the customer pays for the finished product 2. in any form or by any means. All rights reserved..Costs of Holding Inventory 1. No portion of this material may be reproduced. without permission in writing from the publisher. Upper Saddle River. Groover. Cost of possible obsolescence or spoilage  Reduction in value of inventory when it cannot be used  Collectively. by Mikell P. Production Systems. Storage costs  Cost of space to store the inventory 3. NJ. This material is protected under all copyright laws as they currently exist.

in any form or by any means. Third Edition. without permission in writing from the publisher. No portion of this material may be reproduced. by Mikell P. Inc. This material is protected under all copyright laws as they currently exist. For the exclusive use of adopters of the book Automation. All rights reserved.Order Point Inventory Systems  Concerned with two related problems that must be solved when managing inventories of independent demand items: 1. When should the order be placed?  Can be solved using reorder point methods ©2008 Pearson Education. . and Computer-Integrated Manufacturing. NJ.. Production Systems. Upper Saddle River. Groover. How many units should be ordered?  Often solved by using economic order quantity formulas 2.

Inc. and Computer-Integrated Manufacturing. NJ. This material is protected under all copyright laws as they currently exist. No portion of this material may be reproduced. Third Edition.Inventory Model in Make-To-Stock Inventory level over time in a typical make-to-stock situation ©2008 Pearson Education. For the exclusive use of adopters of the book Automation. in any form or by any means. . without permission in writing from the publisher. All rights reserved. Production Systems. by Mikell P. Upper Saddle River.. Groover.

No portion of this material may be reproduced. This material is protected under all copyright laws as they currently exist. For the exclusive use of adopters of the book Automation. in any form or by any means. Groover. without permission in writing from the publisher. and Computer-Integrated Manufacturing. Rate of production is significantly greater than the demand rate ©2008 Pearson Education.. .Economic Order Quantity Formula  Situations when EOQ formula is appropriate: 1. All rights reserved. Upper Saddle River. Inc. by Mikell P. Production Systems. NJ. Demand rate for the item is fairly constant 2. Third Edition.

Inc. Groover. For the exclusive use of adopters of the book Automation. No portion of this material may be reproduced. Cost of reordering or setup Equation for total inventory cost TIC Ch Q Csu Da TIC !  2 Q where Ch = holding cost.. This material is protected under all copyright laws as they currently exist. Csu = setup cost. and Da =annual demand for the item ©2008 Pearson Education. . Upper Saddle River. and Computer-Integrated Manufacturing. Cost of holding inventory 2. Third Edition. Production Systems. by Mikell P. NJ. Q = order quantity.Total Inventory Cost Equation   Total annual cost of inventory includes two terms 1. All rights reserved. without permission in writing from the publisher. in any form or by any means.

All rights reserved.EOQ Formula  By taking the derivative of TIC with respect to Q and setting the derivative equal to zero. Third Edition. This material is protected under all copyright laws as they currently exist. the minimum cost order quantity can be determined ! EO ! 2 a h su ©2008 Pearson Education. NJ.. No portion of this material may be reproduced. . without permission in writing from the publisher. Production Systems. Upper Saddle River. For the exclusive use of adopters of the book Automation. by Mikell P. Groover. Inc. and Computer-Integrated Manufacturing. in any form or by any means.

For the exclusive use of adopters of the book Automation. without permission in writing from the publisher. by Mikell P.Reorder Point Systems  The actual demand rate for the item is not constant throughout the order cycle  The time to reorder occurs when the actual inventory level falls below a point known as the reorder point ©2008 Pearson Education. Upper Saddle River. NJ. and Computer-Integrated Manufacturing. in any form or by any means. . Inc. Groover. Third Edition. No portion of this material may be reproduced. This material is protected under all copyright laws as they currently exist.. Production Systems. All rights reserved.

Upper Saddle River. the next order for quantity Q is placed ©2008 Pearson Education. This material is protected under all copyright laws as they currently exist. Groover. by Mikell P. NJ. . Inc.Operation of Reorder Point System When inventory level reaches the reorder point. and Computer-Integrated Manufacturing. No portion of this material may be reproduced. without permission in writing from the publisher. For the exclusive use of adopters of the book Automation.. Production Systems. All rights reserved. Third Edition. in any form or by any means.

No portion of this material may be reproduced. in any form or by any means. This material is protected under all copyright laws as they currently exist. NJ. All rights reserved. For the exclusive use of adopters of the book Automation. Production Systems. Third Edition. Groover. without permission in writing from the publisher. and Computer-Integrated Manufacturing. . by Mikell P. Upper Saddle River.Extensions of MRP  Manufacturing resource planning (MRP II)  Enterprise resource planning (ERP) ©2008 Pearson Education.. Inc.

Production Systems. and supporting activities needed to meet the master production schedule  Typical modules in MRP II:  Management planning ± aggregate production planning.. All rights reserved. order entry.Manufacturing Resource Planning (MRP II) Computer-based system for planning. by Mikell P. Inc. Third Edition. This material is protected under all copyright laws as they currently exist. in any form or by any means. without permission in writing from the publisher. master production scheduling  Customer service ± sales forecasting. resources. and Computer-Integrated Manufacturing. finished goods inventory  Operations planning ± MRP enhanced with capacity requirements planning  Operations execution ± purchasing. production scheduling and control. No portion of this material may be reproduced. NJ. shop floor control ©2008 Pearson Education. scheduling. Upper Saddle River. and controlling the materials. Groover. . For the exclusive use of adopters of the book Automation.

Groover. and Computer-Integrated Manufacturing.Enterprise Resource Planning (ERP) Defined as a computer software system that organizes and integrates all of the data and business functions of an organization through a single. central database  The functions include: Sales Marketing Purchasing Operations Logistics Distribution Inventory control Accounting Finance Human resources  ERP runs as a client-server system . No portion of this material may be reproduced. Production Systems. Third Edition. in any form or by any means. by Mikell P. NJ. Inc. Upper Saddle River. For the exclusive use of adopters of the book Automation.users access the system through their PCs  ERP operates company-wide. This material is protected under all copyright laws as they currently exist. without permission in writing from the publisher. .. not just plant-based ©2008 Pearson Education. All rights reserved.

All rights reserved. Third Edition. by Mikell P. Production Systems.ERP Uses a Single Database  Avoids problems such as  Data redundancy or conflicting data in different databases  Time delays in entering the data  Communication issues between different databases  Everyone in the organization has access to the same sets of data according to their individual job responsibilities  Not all of the data can be accessed by all employees ©2008 Pearson Education. .. No portion of this material may be reproduced. Inc. without permission in writing from the publisher. For the exclusive use of adopters of the book Automation. and Computer-Integrated Manufacturing. This material is protected under all copyright laws as they currently exist. NJ. Upper Saddle River. in any form or by any means. Groover.

.MRP II. employee personal data ©2008 Pearson Education. job descriptions.order input. Production and materials management . customer service.ERP Systems Include Multiple Software Modules    Each module is focused on a different business function or group of functions Modules are integrated through the ERP framework Modules can be classified into four main groups 1. accounts payable 4. Groover. process planning 2. All rights reserved. in any form or by any means. NJ. master production scheduling.payroll. No portion of this material may be reproduced. product returns 3. and Computer-Integrated Manufacturing. . Production Systems. benefits. Upper Saddle River. Sales and marketing . asset management. Third Edition. For the exclusive use of adopters of the book Automation. delivery. training. Finance and accounting . Inc. This material is protected under all copyright laws as they currently exist. without permission in writing from the publisher. cost control. invoicing. Human resources . by Mikell P.budgeting.

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