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Chapter 6 Production Planning and Control Systems

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Chapter 6 Production Planning and Control Systems

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Chapter 25 PRODUCTION PLANNING AND CONTROL SYSTEMS

• 25.1 Aggregate Production Planning and the Master Production Schedule 723
25.2 Material Requirements Planning 725

25.3 Capacity Planning 731


25.4 Shop Floor Control 733
25.5 Inventory Control 739
25.6 Manufacturing Resource Planning (MRP II) 744
25.7 Enterprise Resource Planning (ERP) 745
Production planning consists of:
• (1) deciding which products to make, in what quantities, and when they should be completed;
• (2) scheduling the delivery and/or production of the parts and products; and
• (3) planning the manpower and equipment resources needed to accomplish the production plan.
Activities within the scope of production planning include:

• • Aggregate production planning. This involves planning the production output levels for major product lines
produced by the firm. These plans must be coordinated
among various functions in the firm, including product design, production, marketing, and sales.
• Master production planning. The aggregate production plan must be converted into
a master production schedule (MPS), which is a specific plan of the quantities to be
produced of individual models within each product line.
• Material requirements planning (MRP). MRP is a planning technique that translates
the MPS of end products into a detailed schedule for the raw materials and parts
used in those end products.
• Capacity planning. This is concerned with determining the labor and equipment
resources needed to achieve the master schedule.
Production control

• • Shop floor control. Shop floor control systems compare the actual progress and status of production orders
in the factory with the production plans (MPS and MRP
schedule).
• Inventory control. Inventory control includes a variety of techniques for managing
the inventory of a firm. One of the important tools in inventory control is the economic order quantity
formula.
• Manufacturing resource planning. Also known as MRP II, manufacturing resource
planning combines MRP and capacity planning, as well as shop floor control and
other functions related to PPC.
• Enterprise resource planning. Abbreviated ERP, this is an extension of MRP II
that includes all of the functions of the organization, including those unrelated to
manufacturing.
25.1 AGGREGATE
PRODUCTION
PLANNING AND THE
MASTER PRODUCTION
SCHEDULE
25.2 MATERIAL
REQUIREMENT
S PLANNING
25.3 CAPACITY
PLANNING

• Capacity planning consists of


determining what labor and equipment
resources are required to meet the
current MPS as well as long-term future
production
needs of the firm.
• Capacity planning also identifies the
limitations of the available production
resources to prevent the planning
of an unrealistic master schedule
25.4 SHOP FLOOR
CONTROL
• The order release phase of shop floor control
provides the documentation needed to
process a production order through the factory

• The order scheduling phase follows directly from


the order release phase and assigns the
production orders to the various work centers in
the plant

• The order progress phase in shop floor control


monitors the status of the various orders in
the plant, work-in-process, and other measures
that indicate the progress of production.
25.4.4 Factory Data Collection System

Examples of the types of data on factory operations collected by the FDC system include:
• Piece counts completed at each work center
• Scrapped parts and parts needing rework
• Operations completed in the routing sequence for each order
• Direct labor time expended on each order
• Machine downtime.
methods
• Manual Data Input Techniques.

• Semiautomated Data Collection Systems:


• The data entry methods also include automatic identification and data collection
(AIDC, Chapter 12) technologies such as bar codes and radio frequency identification.
Certain types of data such as order number, product identification, and operation sequence
number can be entered with automated techniques using bar-coded or magnetized cards
included with the shop documents.
• Automated Data Collection Systems
Fully automated data collection has
become a reality as manufacturing industries pursue the implementation of smart factories
(Section 4.4), also known as Industry 4.0, in which equipment on the shop floor is digitally
connected to the Industrial Internet of Things (IIoT) so that information on the status of
production can be made available to management in real time.
25.6
• Manufacturing resource planning can be defined as a computer-based
MANUFACTURI system
NG RESOURCE for planning, scheduling, and controlling the materials, resources, and
supporting activities needed to meet the master production schedule
PLANNING (MRP
II)
25.7 ENTERPRISE
RESOURCE PLANNING

(ERP)

• Enterprise resource planning (ERP) is a computer software system that organizes and integrates all of the business
functions and associated data of an organization through a single,
central database

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