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RESOURCE PLANNING. SALES & OPN PLANNING. DEMAND MANAGEMENT. MANUFACTURING PLANNING & CONTROL. MASTER PDN SCHEDULE. Front End. DETAILED CAPACITY PLANNING. DETAILED MATERIAL PLANNING. Simplified – The “Big” Picture.

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manufacturing planning control

RESOURCE

PLANNING

SALES & OPN

PLANNING

DEMAND

MANAGEMENT

MANUFACTURING PLANNING & CONTROL

MASTER PDN

SCHEDULE

Front End

DETAILED

CAPACITY

PLANNING

DETAILED

MATERIAL

PLANNING

Simplified – The “Big” Picture

E N T E R P R I S E R E S O U R S E P L A N N I N G S Y S T E M - E R P

Engine

MATERIAL &

CAPACITY

PLANS

SHOP FLOOR

SYSTEMS

SUPPLIER

SYSTEMS

Back End

mpc classification schema

MPC CLASSIFICATION SCHEMA

PROJECT

SMALL BATCH – JOB SHOP

LARGE BATCH PROCESSING (MRP)

NUMBER OF SUBPARTS

REPETITIVE (LINE)

CONTINUOUS

FLOW

SECONDS

MINUTES

DAYS

WEEKS

MONTHS

TIME BETWEEN SUCCESSIVE UNITS

Examples: Oil, Food, Drugs, Watches, TVs, Trucks, Planes, Houses, Ships

manufacturing planning control1

Sources

Force for Change

Typical Response

MANUFACTURING PLANNING & CONTROL

Marketplace Dictates

Company Strategy

Shorter Product Life Cycles

Time-based competition

Supply Chain Partnerships

Quality Requirements

Technology

Products

Processes

Systems

Techniques

Manufacturing Strategy

Flexibility/responsiveness

Reduced overhead costs

Evolutionary Responses to Change

Manufacturing Processes

Automation

Production cells

Simplification

MPC System

MRP

JIT

Cross-company Linkages

customer order de coupling

(Based upon the Manufacturing Environment)

Customer Order De-coupling

WIP Parts & Matls

Raw Material

Finished goods

Inventory

Location

Supplier

Customer Order

De-coupling Point

Engineer to Order (ETO)

Assemble to Order (ATO)

Make-to-Order (MTO)

Make-to-Stock (MTS)

Environment

sales and operations planning s op

Strategic Planning (Business Planning)

SALES AND OPERATIONS PLANNING (S&OP)

Sales and Operations Planning

(Volume)

Marketing Planning

Financial Planning

Merges Aggregate Planning with Sales Involvement

Resources Planning

Demand Management

Sales Plan

Operations Plan

Master Production Schedule

(Mix)

Rough-cut

capacity planning

Front End

MPC Boundary

scope of erp
Scope of ERP

Enterprise Resource Planning

Enterprise planning Models

Manufacturing

and Logistics

Manufacturing

Planning and Control

Sales & Operations

Planning (Front End)

Material & Capacity

Planning (Engine)

Material & Vendor

Management (Back End)

Enterprise performance measures

Human Resource management

Data warehouse

Finance

Report generation

Sales & Marketing

Transaction processing

sales and operations planning s op1

SALES AND OPERATIONS PLANNING (S&OP)

Sales and Operations Planning

(Volume)

Resources Planning

Demand Management

Master Production Schedule

(MPS)

Merges Aggregate Planning with Sales Involvement

E N T E R P R I S E R E S O U R S E P L A N N I N G S Y S T E M - E R P

Rough-cut

capacity planning

Front End

Engine

Detailed Material Planning (MRP)

manufacturing planning control2

RESOURCE

PLANNING

SALES & OPN

PLANNING

DEMAND

MANAGEMENT

MANUFACTURING PLANNING & CONTROL

MASTER PDN

SCHEDULE

Front End

Routing

file

BOM

Inventory

Status

DETAILED MATERIAL

PLANNING (MRP)

Materials Requirements Planning

E N T E R P R I S E R E S O U R S E P L A N N I N G S Y S T E M - E R P

TIME-PHASED

REQUIREMENTS (MRP)

RECORDS

DETAILED

CAPACITY PLANNING

Engine

MATERIAL &

CAPACITY PLANS

Back End

SUPPLIER

SYSTEMS

SHOP FLOOR

SYSTEMS

manufacturing planning control3

SALES & OPN

PLANNING

DEMAND

MANAGEMENT

MANUFACTURING PLANNING & CONTROL

Distribution

Requirements

Planning

(DRP)

CUSTOMERS

MASTER PDN

SCHEDULE

Front End

DETAILED

MATERIAL

PLANNING

DRP LINKS TO MPC

Engine

VENDORS

SUPPLIER

SYSTEMS

Back End

Internal MPC Boundary

manufacturing planning control4

Strategic Planning (Business Planning)

MANUFACTURING PLANNING & CONTROL

Distribution

Requirements

Planning

(DRP)

Sales and Operations Planning

(Volume)

Distribution

Requirements

Planning

(DRP)

Master Production Schedule

(Mix)

CUSTOMERS

VENDORS

Manufacturing Requirements

Planning

E N T E R P R I S E R E S O U R S E P L A N N I N G S Y S T E M - E R P

PHYSICAL DISTRIBUTION

PHYSICAL SUPPLY

TRANSFORMATION

distribution requirements planning

SUPPLY CHAIN MANAGEMENT

DISTRIBUTION REQUIREMENTS PLANNING

Through manufacturing

And distribution chain

To Customer

From Supplier

Distribution Inventory

Finished Factory Inventory

Raw Material Inventory

In-process Inventory

Selling from Inventory

customers

suppliers

Pro- curement orders

MPS orders

Shop orders

Factory orders

Distribution orders

Customer orders

manufacturing planning control5

RESOURCE

PLANNING

SALES & OPN

PLANNING

DEMAND

MANAGEMENT

MANUFACTURING PLANNING & CONTROL

MASTER PDN

SCHEDULE

Front End

DETAILED

CAPACITY

PLANNING

DETAILED

MATERIAL

PLANNING

With JIT

Engine

MATERIAL &

CAPACITY

PLANS

SHOP FLOOR

SYSTEMS

SUPPLIER

SYSTEMS

Back End

manufacturing planning control6

Long Range

RESOURCE

PLANNING

SALES & OPN

PLANNING

DEMAND

MANAGEMENT

MANUFACTURING PLANNING & CONTROL

ROUGH-CUT

CAPACITY

PLANNING

MASTER PDN

SCHEDULE

Medium Range

CAPACITY

REQUIREMENTS

PLANNING

DETAILED

MATERIAL

PLANNING

Hierarchy of Capacity Planning

Short Range

FINITE LOADING

INPUT/OUTPUT

ANALYSIS

SHOP FLOOR

SYSTEMS

VENDOR

SYSTEMS

manufacturing planning control7

RESOURCE

PLANNING

SALES & OPN

PLANNING

DEMAND

MANAGEMENT

MANUFACTURING PLANNING & CONTROL

ROUGH-CUT

CAPACITY

PLANNING

MASTER PDN

SCHEDULE

DETAILED CAPACITY

PLANNING

DETAILED MATERIAL

PLANNING

Hierarchy of Capacity Planning

MATERIAL AND

CAPACITYPLANS

ORDER RELEASE

PURCHASING

PRODUCTION ACTIVITY CONTROL (PAC)

SHOP FLOOR SCHEDULING

AND CONTROL (SFC)

VENDOR SCHEDULING AND

FOLLOW-UP SYSTEMS

logistics

RAW MATL

CUSTOMER

LOGISTICS

STORAGE

STORAGE

TRANSPORTATION

TRANSPORTATION

TRANSPORTATION

PROCESSING

CUSTOMER

INTRODUCTION TO BUSINESS LOGISTICS (LMGT 1319)

WAREHOUSING & DISTRIBUTION CTR MANAGEMENT (LMGT 1325)

INTRODUCTION TO MATERIALS MANAGEMENT (LMGT 1321)

PRODUCTION & OPERATIONS MANAGEMENT (LMGT 1331)

MATERIALS REQUIREMENTS PLANNING (LMGT 1349)

slide16

SS = Ls2D + D2s2L

high

ROP =

ROP =

DL + Ls2D

DL + Ls2D + D2s2L

Demand Variability

ROP =

ROP = DL

DL + D2s2L

0

Lead Time Variability

low

high

slide17

QUALITY

  • CUSTOMERS
  • RATE
  • SUPPLIERS
  • IN THREE
  • MAJOR
  • CATEGORIES
  • QUALITY
  • COST
  • TIME

COST

TIME

slide18

QUALITY

10

9

0

0

3

COST

TIME

6

10

10

  • LEGS ARE GRADUATED ON A SCALE OF 0-10
  • CUSTOMERS RATE SUPPLIERS
  • BASED ON BUSINESS RELATED QUESTIONAIRE
  • (SURVEY)
slide19

QUALITY

10

0

COST

TIME

10

10

THE GOAL

10s IN ALL CATEGORIES

slide20

Q - C

Q - T

C - Q

C - T

T - Q

T - C

THIS IS CALLED

THE

BUSINESS

TRIAD

QUALITY

COST

TIME

QUALITY-COST-TIME ARE INVARIABLY TIED TOGETHER IN PRODUCTION