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(CHAPTER 7) PRODUCTION PLANNING AND CONTROL (Master Production Schedule…
(CHAPTER 7)
PRODUCTION PLANNING AND CONTROL
Organizational Strategy
and Production Planning
decision making
organizational structure
planning structure
Planning Process
Long Range
5 years
product & market plan
financial plan
resource plan
Medium Range
6 - 8 month
aggregate planning
item forecasting
master production schedule (MPS)
capacity planning
short range
1 day
material requirement planning (MRP)
capacity requirement planning
final assembly scheduling
production planning & control
purchase planning & control
Aggregate Planning (AP)
combining resources
general
overall terms
determining production
quantity
timing
objectives
minimize
planning cost
fluctuations
work force
inventory levels
service performance standard
strategies
changing invetory levels
varying work force
varying production rates
subcontracting
part-time workers
influencing demand
back ordering
counter-seasonal product mixing
phases
prepare demand forecast
specify organization policies
smoothing capacity utilization
production alternatives
changing production rate
same work force
size work force
absorbing demand
inventories
back ordering
subcontract
part-time workers
Graphical / Charting Methods
Popular and easy
trial-and-error
5 steps
Determine demand
each period
Determine capacity
regular
OT
hired
Find
production costs
hire / layoff costs
inventory holding costs
consider
company policy
workers
stock levels
dev. alt. plans
examine total cost
select best cost
Master Production Schedule (MPS)
Specify
what to made
when to made
accordance with AP plan
Inputs
financial plans
customer demand
engineering
supplier performance
process moves
planning to execution
tested for feasibility
result of production planning process
terms of specific prod.
reasonable length o time
rolling schedule
not forecast o demand
Material Requirement Planning (MRP)
to assembled operations
answers suppliers questions
what item required
how many
when
Dependent demand
demand item related
another item
given quantity
end item
demand part
component
effective use
master production schedule
specifications BOM
inventory availability
purchase orders outstanding
lead times
benefits
better response
customer orders
market changes
improve utiliziation
facilites
labor
reduced inventory levels
BOM
item above (parents)
item below (children)
Material Resource Planning II (MRP II)
expanded MRP
Financial planning
marketing
engineering
purchasing
manufacturing
MRP system
augmented inventory data
labor hours
material cost
capital cost
virtually any resource
scheduling
establish timing
use of equipment
facilities
human activities
yield
cost savings
increases productivity
sequencing
determine order o jobs
jobs
FCFS -1st come 1st serve
SPT - Shortest processing time
EDD - Earliest due date
LPT - Longest processing time
Critical Ratio (CR)
index number
found by dividing
time remaining
workdays remaining
performs well
average job lateness
low CR 1st
high CR 2nd
Johnson's Rule
list all jobs
choose shortest activity time
eliminated from list
repeat toward center sequence
workstation
area person works
Bottlenecks
limit output
due to frequent changes
Management techniques
increase capacity constraint
cross-trained
employees
maintenance
alternative routings
moving inspection and test
scheduling to match bottleneck capacity