Chapter 6 Production Planning and Control Systems
Chapter 6 Production Planning and Control Systems
• 25.1 Aggregate Production Planning and the Master Production Schedule 723
25.2 Material Requirements Planning 725
• • 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
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.
(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