Manufacturing Planning and Control

MPC 6th Edition Chapter 1

McGraw-Hill/Irwin

Copyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Definition
A Manufacturing Planning and Control system provides information and support, which enables managers to efficiently direct the flow of material, manage the utilization of people and equipment, and respond to customer requirements by utilizing the capacity of suppliers, internal facilities, and, in some cases, customers. MPC is often a module in an ERP system.
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Agenda
Simplified MPC framework Support activities of an MPC system

Matching the MPC system to requirements

MPC Classification schema Evolution of MPC systems Performance indicators
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An MPC System Framework

Activities and systems for overall direction setting Systems for detailed material and capacity planning MPC execution systems
Back End

Front End

Engine

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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 and capacity plans

Shop-floor systems

Supplier systems

Back End

Manufacturing Planning and Control System

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Support Activities Short Term

There is a need for detailed scheduling of resources to meet production requirements.
Key Point - People working on the right things The MPC system must track the use of resources, monitor execution results, and provide information to managers, customers, and suppliers

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Support Activities Intermediate Term

The fundamental issue is matching supply and demand in terms of both volume and product mix.
Planning capacity to determine Communicating employment requirements to levels, budgets, suppliers overtime and subcontracting needs, etc.

Maintaining Planning for the appropriate right logistics inventory levels

Providing delivery information to customers

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Support Activities Long Term

The system is responsible for providing information to determine:
The appropriate amount of capacity (including supplier capacity) to meet the market demands of the future. Provide the appropriate mix of human resource capabilities, technology, and geographic locations.

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Key Areas of Influence on MPC system design

Degree of supply chain integration

Customer roles and expectations

Needs of management
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Matching MPC System with the Firm needs

The MPC system should change as competitive conditions, customer expectations, supplier capabilities, and internal needs change.
The trend is towards on-line data access and systemsreplacing inventory with speedier information exchange

Physical changes (outsourcing, etc.)

The MPC system must change to match the firms strategy

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MPC Classification Schema

Number of subparts

Project MRP Just-in-time Repetitive

Flow
Seconds Minutes Days Weeks Months

Time between successive units

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MPC Classification Schema

Flow (continuous productionchemical plants, food, etc.) Repetitive (longer production cycles automobiles) Just-in-Time (shorter production cycles TVs, personal computers) MRP (management of complicated parts productairplanes) Project (unique, long durationships).

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Evolution of MPC Systems

The MPC system must adapt to meet changing company needs Periodic MPC system audits compare system responses to the requirements of the marketplace

System focus Personnel training

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Equipment utilization

Output results

Performance Indicators

Costs associated with different departments, products, labor utilization, and project conditions

Measures of customer satisfaction such as late deliveries, product returns, quantity errors, and quality
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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. In supply chain environments, the MPC must coordinate the planning and control efforts. MPC systems should support the strategy and tactics pursued by the company. Different Manufacturing processes dictate the need for different MPC designs.

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Principles

The MPC should evolve to meet changing requirements in the market, technology, products, and processes. The MPC should be comprehensive in supporting the management of all manufacturing resources. 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, the MPC system should integrate with and support crossfunctional planning through the ERP system.
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Quiz Chapter 1

In the MPC process, capacity decisions (equipment, facilities, suppliers, etc.) are most likely to occur in what time horizon? In the MPC process, detailed scheduling decisions are most likely to occur in what time horizon? Master Production Scheduling (MPS) and Resource Planning are a part of which MPC phase? Measurement and Control are a part of which MPC phase? Products that are part of a one-time production process (e.g. bridges or aircraft carriers) would most likely use which form of MPC?
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