MS 401
Production and Service Systems Operations
Spring 2009-2010
Manufacturing Planning and Control (MPC)
Slide Set #7
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Note: This lecture is from VBWJ’s book
The rest of the lectures will follow VBWJ’s book
(with the exception of Aggregate Production
Planning, which is slide set #8)
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What is MPC?
• MPC: Manufacturing Planning and Control
• MPC system provides information to efficiently manage
• the flow of materials
• the utilization of people and equipment
• the coordination of internal activities with those of suppliers
• communication with customers about market requirements
• MPC is costly to set up and operate
• An effective MPC system creates competitive advantage by
– decreasing costs
– increasing responsiveness
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Typical Activities that MPC Support
• Long term
– overall capacity planning (internal and with suppliers)
• Intermediate term
– providing the exact material and production capacity to match
supply and demand
• maintaining inventories
• determining the employment levels
– communicating with customers and suppliers
• Short term
– detailed scheduling of resources and tracking their usage
– responding to internal and external problems/changes
– calculation and reporting of performance indicators
• utilization rates, delivery performance etc.
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The MPC Framework
Resource
planning
Sales and operations
planning
(Aggregate planning)
Master production
scheduling (MPS)
Detailed capacity
planning
Demand
management
Front End
Detailed material
planning (using MRP)
Engine
Material and capacity
plans
Shop floor
systems
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Supplier
systems
Back End
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MPC Framework: Front End
1. The Front End: The set of activities for overall direction
setting for manufacturing planning and control
– demand management
•
forecasting
– sales and operations planning (also called “aggregate planning”)
•
to balance the marketing plans with available production resources
– master production schedule (MPS): disaggregated version of the
sales and operations plan (aggregate production plan)
– resource planning
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MPC Framework: Engine and Back End
2. The Engine: Includes activities on detailed material and
capacity planning
– material requirements planning (MRP)
•
determines the period-by-period plans for all components required
– detailed capacity planning
3. The Back-End: Includes execution systems
– shop floor systems
– supplier systems
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(complexity of product)
Number of subparts
MPC Classification Schema
Different MPC
Approaches
Project
MRP
Just-in-time
Repetitive
Flow
Seconds
Minutes
Days
Weeks
Months
Time between successive units
(repetitive nature of production)
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MPC needs to Respond to Changes in Environment
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Key Developments to Influence MPC
• Internationalization
–
• The role of the customer
–
• Increasing use of information technology
– classical MPC: individual factory level
– enterprise resource planning (ERP) systems allow coordinated
decision making across different locations and functions
• most MPC systems now are imbedded in an ERP system
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