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

Manufacturing Planning and Control

MPC 6th Edition

Chapter 1

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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

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An MPC System Framework

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Resourceplanning

Sales and operationsplanning

Demandmanagement

Master productionscheduling

Detailed capacityplanning

Detailed materialplanning

Material andcapacity plans

Shop-floorsystems

Suppliersystems

Enterprise R

esource Planning (E

RP

) S

ystem

Front End

Engine

Back End

Manufacturing Planning and Control System

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Support ActivitiesLong 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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Support Activities Intermediate Term

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Support ActivitiesShort Term

There is a need for detailed scheduling of resources to meet production requirements.Key Point - People working on the right

thingsThe MPC system must track the use of

resources, monitor execution results, and provide information to managers, customers, and suppliers

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Key Areas of Influence on MPC system design

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Matching MPC System with the Firm needs

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MPC Classification Schema

Repetitive

Just-in-time

MRP

Project

Num

ber

of

subp

arts

Seconds Minutes Days Weeks Months

Time between successive units

Flow

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MPC Classification Schema

Flow (continuous production–chemical plants, food, etc.)

Repetitive (longer production cycles–automobiles)

Just-in-Time (shorter production cycles–TVs, personal computers)

MRP (management of complicated parts product–airplanes)

Project (unique, long duration–ships).

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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 marketplaceSystem focusPersonnel training

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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 cross-functional 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?