VBW Chapter 1 - California State University, Sacramento

VBW Chapter 1 - California State University, Sacramento

Introduction: Overview of Manufacturing Planning & Control Chapter 1 MPC System Defined MPC system provides information to efficiently manage the flow of materials, effectively utilize people and equipment, coordinate internal activities with those of suppliers, and communicate with customers about market requirements. (VBW, 2) Typical MPC Support Tasks Capacity

requirements and availability Facility/equipment Material utilization planning Inventory control Production planning

Production scheduling Typical MPC Support Tasks (Continued) Production Supply Meet activity control (tracking) chain planning and communication customer requirements Respond

Provide to errors and problems and share information with other functions Why MPC? Improve competitiveness in cost, quality, lead time, flexibility, and services by reducing the organizational slacks in terms of resource utilization and customer requirements. MPC System Framework

Overall direction for MPC links production with engineering, marketing, and finance through the firms strategic planning. Three MPC phases: 1. Creating the overall production plan. 2. Performing the detailed planning of material and capacity needs. 3. Executing these plans. MPC SYSTEM (VBW, Figure 1.1) Resource

planning Detailed capacity planning Shop-floor systems Production planning Demand management Master production scheduling

Front end Detailed material planning Material and capacity plans Engine Vendor systems Back end MPC Classification Schema Business MPC

The Strategy system design complexity of the product as expressed in the number of sub-parts The repetitive nature of production See Figure 1.2

Business Strategy Cost Differentiation quality (design, conformance, service), flexibility (product, process, volume), time, Focus (cost or differentiation) Production Systems Inventory Policy make-to-stock, make-

to-order, assemble-to-order Process Type continuous (flow shop), repetitive (batch), intermittent (job shop), cellular, project Concluding Principles MPC systems should support the firms strategy and tactics. Different manufacturing processes often

dictate the need for different designs of the MPC system. An effective MPC system can contribute to competitive position by lowering costs and providing better response to the market. Concluding Principles (VBW, 11) All three phases of the MPC framework must be performed, but specific applications must reflect a companys characteristics and objectives.

The MPC systems design will vary, depending on the distinctive needs of the firm and the current state of its MPC system. The system should evolve to meet changing requirements in the market, technology, products, and manufacturing processes. Professional Organizations The Educational Society for Resource Management (American Production & Inventory Control Society) www.apics.org

Institute for Supply Management www.ism.ws The Production and Operations Management Society www.poms.org APICS Professional Certification Certified in Production & Inventory Management (CPIM)

Five exam modules (Basic of Supply Chain Management, Master Planning of Resources, Detailed Scheduling and Planning, Execution and Control of Operations, Strategic Management of Resources) Requires certification maintenance APICS Professional Certification Certified in Integrated Resource Management

(CIRM) Five exam modules (Enterprise Concepts and Fundamentals, Identifying and Creating Demand, Designing Products and Processes, Delivering Products and Services, Integrated Enterprise Management)

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