A Manufacturing Planning and Control system provides information and support, which enables managers to efficiently direct the flow of material, manage the utilization of people and equipment, and respond to customer requirements by utilizing the capacity of suppliers, internal facilities, and, in some cases, customers.
MPC is often a module in an ERP system.
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Manufacturing Planning and ControlMPC 6th EditionChapter 1DefinitionA Manufacturing Planning and Control system provides information and support, which enables managers to efficiently direct the flow of material, manage the utilization of people and equipment, and respond to customer requirements by utilizing the capacity of suppliers, internal facilities, and, in some cases, customers.MPC is often a module in an ERP system. AgendaSimplified MPC frameworkSupport activities of an MPC systemMatching the MPC system to requirementsMPC Classification schemaEvolution of MPC systemsPerformance indicatorsAn MPC System FrameworkFront EndActivities and systems for overall direction settingEngineSystems for detailed material and capacity planningBack EndMPC execution systemsResourceplanningSales and operationsplanningDemandmanagementMaster productionschedulingDetailed capacityplanningDetailed materialplanningMaterial andcapacity plansShop-floorsystemsSuppliersystemsEnterprise Resource Planning (ERP) SystemFront EndEngineBack EndManufacturing Planning and Control SystemSupport ActivitiesShort TermThere is a need for detailed scheduling of resources to meet production requirements.Key Point - People working on the right thingsThe MPC system must track the use of resources, monitor execution results, and provide information to managers, customers, and suppliersSupport Activities Intermediate TermThe fundamental issue is matching supply and demand in terms of both volume and product mix.Planning for the right logisticsMaintaining appropriate inventory levelsProviding delivery information to customersCommunicating requirements to suppliersPlanning capacity to determine employment levels, budgets, overtime and subcontracting needs, etc.Support ActivitiesLong TermThe system is responsible for providing information to determine:The appropriate amount of capacity (including supplier capacity) to meet the market demands of the future.Provide the appropriate mix of human resource capabilities, technology, and geographic locations.Key Areas of Influence on MPC system designDegree of supply chain integrationCustomer roles and expectationsNeeds of managementMatching MPC System with the Firm needsThe MPC system should change as competitive conditions, customer expectations, supplier capabilities, and internal needs change.The trend is towards on-line data access and systems–replacing inventory with speedier information exchangePhysical changes (outsourcing, etc.)The MPC system must change to match the firm’s strategyMPC Classification SchemaRepetitiveJust-in-timeMRPProjectNumber of subpartsSecondsMinutesDaysWeeksMonthsTime between successive unitsFlowMPC Classification SchemaFlow (continuous production–chemical plants, food, etc.)Repetitive (longer production cycles–automobiles)Just-in-Time (shorter production cycles–TVs, personal computers)MRP (management of complicated parts product–airplanes)Project (unique, long duration–ships).Evolution of MPC SystemsThe MPC system must adapt to meet changing company needsPeriodic MPC system audits compare system responses to the requirements of the marketplaceSystem focusPersonnel trainingPerformance IndicatorsEquipment utilizationOutput resultsCosts associated with different departments, products, labor utilization, and project conditionsMeasures of customer satisfaction such as late deliveries, product returns, quantity errors, and qualityPrinciplesThe framework for the MPC is general, and all 3 phases must be performed, but specific applications must reflect particular firm conditions and objectives.In supply chain environments, the MPC must coordinate the planning and control efforts.MPC systems should support the strategy and tactics pursued by the company.Different Manufacturing processes dictate the need for different MPC designs.PrinciplesThe MPC should evolve to meet changing requirements in the market, technology, products, and processes.The MPC should be comprehensive in supporting the management of all manufacturing resources.An effective MPC can contribute to competitive performance by lowering costs and providing greater responsiveness to the market.In firms that have an integrated ERP system and database, the MPC system should integrate with and support cross-functional planning through the ERP system.Quiz – Chapter 1In the MPC process, capacity decisions (equipment, facilities, suppliers, etc.) are most likely to occur in what time horizon?In the MPC process, detailed scheduling decisions are most likely to occur in what time horizon?Master Production Scheduling (MPS) and Resource Planning are a part of which MPC phase?Measurement and Control are a part of which MPC phase?Products that are part of a one-time production process (e.g. bridges or aircraft carriers) would most likely use which form of MPC?
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