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Production Planning & Control

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Presentation on theme: "Production Planning & Control"— Presentation transcript:

1 Production Planning & Control

2 Production Planning and Control Introduction
Coordination of materials with suppliers Efficient utilization of people and machines Efficient flow of materials Communication with customers PPC Class Notes-Chapter1

3 Production Planning and Control Introduction
PPC Class Notes-Chapter1

4 Inputs to the Production Plan
Marketing Customer Demand Production Capacity Inventory Finance Cash Flow Aggregate Production Plan Human Resources Manpower Planning Procurement Supplier Performance Management Return on Investment Capital Engineering Design Completion PPC Class Notes-Chapter1

5 PPC Class Notes-Chapter1
The Planning Process Production Plan Master Production Schedule Material Requirements Plan Capacity Requirements Plan No It is probably best to walk the students through each step of this process. For most products we can create a master production schedule. And, once we have a master production schedule, MRP is the next logical step. Realistic?? Yes Execute Capacity Plans Execute Material Plans PPC Class Notes-Chapter1

6 Activities Supported by PPC
Materials Planning Purchasing Raw Material Inventory Control Capacity Planning Scheduling Machine and People WIP Inventory Control PPC Class Notes-Chapter1

7 Activities Supported by PPC (Cont’d)
Coordinate Customer Orders Finished Goods Inventory Control PPC Class Notes-Chapter1

8 Costs and Benefits of PPC Systems
PPC requires a large # of indirect people Companies with ineffective PPC system will have poor customer service, excessive inventories, low equipment and people utilization, high rate of part obsolescence, large number of expediters PPC Class Notes-Chapter1

9 1.Overall Manufacturing Planning Hierarchical Planning Cont’d
Demand Management Forecasting Order Promising Order Processing Order Entry Spare Parts PPC Class Notes-Chapter1

10 1.Overall Manufacturing Planning Hierarchical Planning Cont’d
Resource Planning Long-Range Capacity Requirements Number of Machines Number of Employees Overtime Shifts Plants PPC Class Notes-Chapter1

11 Bill-of-Material Product Structure Tree
Bicycle(1) P/N 1000 Handle Bars (1) P/N 1001 Frame Assembly (1) P/N 1002 Wheels (2) P/N 1003 Frame (1) P/N 1004 PPC Class Notes-Chapter1

12 Time-Phased Product Structure
1 2 3 4 5 6 7 8 D G 2 weeks 1 week F E 3 weeks A C B 2 weeks to produce Must have D and E completed here so production can begin on B This slide has been animated to demonstrate backward scheduling - item A is scheduled first, then the remaining items are scheduled so as to produce A at the proper time. PPC Class Notes-Chapter1

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