production planning & control. ppc class notes-chapter1 production planning and control...
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Production Planning & Production Planning & ControlControl
Production Planning & Production Planning & ControlControl
PPC Class Notes-Chapter1
Production Planning and ControlIntroduction
• Coordination of materials with suppliers
• Efficient utilization of people and machines
• Efficient flow of materials• Communication with customers
PPC Class Notes-Chapter1
Production Planning and Control
Introduction
A Typical Manufacturing Systems
SUPPLIERS CUSTOMERS Raw Materials Finished Products
Materials Machines
People
PPC Class Notes-Chapter1
Inputs to the Production Plan
Aggregate Production Plan
MarketingCustomerDemand
EngineeringDesign
Completion
ManagementReturn on
InvestmentCapital
HumanResourcesManpowerPlanning
ProcurementSupplier
Performance
FinanceCash Flow
ProductionCapacityInventory
PPC Class Notes-Chapter1
The Planning ProcessProduction Plan
Execute MaterialPlans
Master ProductionSchedule
MaterialRequirements
Plan
CapacityRequirements
Plan
Execute CapacityPlans
Realistic??No
Yes
PPC Class Notes-Chapter1
Activities Supported by PPC
• Materials Planning• Purchasing• Raw Material Inventory Control
• Capacity Planning• Scheduling Machine and People• WIP Inventory Control
PPC Class Notes-Chapter1
Activities Supported by PPC
(Cont’d)• Coordinate Customer Orders• Finished Goods Inventory Control
PPC Class Notes-Chapter1
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
1.Overall Manufacturing
PlanningHierarchical Planning Cont’d
Demand Management• Forecasting• Order Promising• Order Processing• Order Entry• Spare Parts
PPC Class Notes-Chapter1
1.Overall Manufacturing
PlanningHierarchical Planning Cont’d
Resource Planning• Long-Range Capacity Requirements• Number of Machines• Number of Employees• Overtime• Shifts• Plants
PPC Class Notes-Chapter1
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
Bill-of-Material Product Structure Tree
PPC Class Notes-Chapter1
Time-Phased Product Structure
1 2 3 4 5 6 7 8
D
G2 weeks
1 weekF
E
3 weeks
2 weeks
A1 week
C1 week
B
2 weeks to produce
E
D
Must have D and E completed here so production can begin
on B
2 weeks
1 week