Quản trị kinh doanh - Manufacturing planning and control

Manufacturing Planning and ControlMPC 6th EditionChapter 2Demand ManagementThe Demand Management (DM) process determines how a firm integrates information from customers (both internal and external) into the MPC system.Activities include demand determination, converting customer orders into delivery promises, and balancing supply with demand.AgendaWhat is DM?Benefits of DMRole of DMShaping DM to match the manufacturing environmentInformation and DMDay-to-Day DMPrinciplesDemand Management in MPC Demand management provides a link toThe marketplaceSister plantsWarehousesOther internal and external customersDemand management functionsInformation gatheringCommunicating with customersIdentifying all sources of demandDemand Management in the MPC SystemResource PlanningSales and operations planningDemand managementMaster production schedulingMarketplace (customers and other demand sourcesFRONT ENDMPC BoundaryPlanning and ControlDemand management coordinates demand quantities and timing with the planning and control activities of the companyPlanning occurs mainly in the SOP moduleControl determines how capacity will be converted into productsExecutionThe company executes the plan as actual demand information becomes availableThe control function determines how the plans will be modified to accommodate forecast errors and other changes in assumptionsMost control functions are located in the MPS moduleForecast versus PlanForecasts are estimates of what might occur in the marketplacePlans specify how the firm will respond to these forecastsThe plan may look significantly different from the forecast–because of other considerations (staffing, capacity, etc.)Managers can’t be held responsible for forecast errors, but should be held responsible for failing to execute the planIndependent versus Dependent DemandThe source of demand determines its typeIndependent – Customer demand that is not directly influenced by the actions of the firm (e.g. customer orders)Dependent – Demand that is driven by the plans and activities of the firm (e.g. components, warehouse demand)Demand Management and MPC EnvironmentDM must conform to the strategy of the firm, capabilities of manufacturing, and needs of customersThese define the MPC environment MPC environment is defined by customer order decoupling pointThe point where demand changes from independent to dependentAlternatively, order penetration pointMake-to-StockCustomer demand is filled from finished goods inventory (cosmetics, grocery items) Key focus of demand management is maintenance of finished goods inventoriesPhysical distribution is a key concernAssemble-to-OrderCustomer requirements are met by a combination of standard options (personal computers, fast food)Primary task of demand management is to define the customer’s order in terms of components and options (configuration management)Make-to-OrderItems built to customer specifications, starting with raw materials (airplanes)Primary task of demand management is gathering information about customer needs and coordinating with manufacturingEngineer-to-OrderFirm works with the customer to design the product, then produces the product, starting with raw materials (ships, bridges)Primary task of demand management is gathering information about customer needs and coordinating with engineering and manufacturingMPC EnvironmentsSuppliersRaw materialsWork-in-processFinished goodsMake-to-StockAssemble-to-OrderMake-to-OrderEngineer-to-OrderIndependentDependentIndependentDependentIndependentDependentIndependentDependentDecoupling PointsMPC EnvironmentInventory LocationKey Demand Management Tasks by EnvironmentTasksMake-to-StockAssemble-to-OrderMake-to-Order/Engineer-to-OrderInformationProvide forecastsConfiguration managementProduct specificationsPlanningProject inventory levelsDetermine delivery datesProvide engineering capacityControlAssure customer service levelsMeet delivery datesAdjust capacity to customer needsDemand Management Communication ActivitiesConnectionMake-to-StockAssemble-to-OrderMake-to-Order/Engineer-to-OrderSOPDemand forecastsDemand forecasts, product family mixDemand forecasts, engineering detailMPSActual demandMix forecasts, actual demandFinal configurationCustomer(s)Next inventory replenishmentConfiguration issues, delivery dateDesign status, delivery dateCustomer InteractionsDemand management converts customer orders into detailed MPC actionsMake-to-Stock–resupply of inventoryAssemble-to-Order–conversion of customer request to promise dateMake(Engineer)-to-Order–conversion of customer request to product specifications and promise dateInformation Use in DMMake-to-Knowledge–replacing forecasts with knowledge of customer requirementsInformation channels (EDI, information sharing, etc.) enhance knowledge of customers’ inventory, requirements, and plansData Capture and MonitoringData is needed in two categoriesOverall market data–needed for sales and operations planningDetailed product mix–used for master production scheduling and customer order promisingIt is important to capture actual data wherever possibleData Capture and MonitoringData is needed in two categoriesOverall market data–needed for sales and operations planningDetailed product mix–used for master production scheduling and customer order promisingIt is important to capture actual data wherever possibleCustomer Relationship ManagementMake-to-Stock–capturing customer demand can help determine demand and mix trendsAssemble-to-Order/Make-to-Order–customer information can provide information concerning design and mix preferencesOutbound Product FlowPhysical distribution of products is planned using information from the demand management functionShort-term transportation schedules are developed using information such as customer delivery promise dates, inventory resupply shipments, interplant shipments, etc.Demand Management ElementsOrganization–responsibility for DM activities can be distributed throughout the firmFlexibility requires rules to avoid conflicts and unintended consequencesMonitoring–data must be accurate, timely, and appropriateCommunication is critical when inputs or outputs changeBalancing supply and demand–intelligence on actual conditions provides the basis for changes to plansCollaborative Planning, Forecasting, and Replenishment (CPFR)Designed to improve competitiveness by facilitating communication between suppliers and retailersGoal: reducing variance between supply and demandDeveloped by the Voluntary Interindustry Commerce Standards AssociationCPFR Steps1Establish collaborative relationship–may require process redesign2Create joint business plan3Create sales forecast4Identify exceptions to the sales forecast5Resolve/collaborate on exception itemsCPFR Steps6Create order forecast7Identify exceptions to order forecast8Resolve/collaborate on exception items9Generate orderPrinciplesDemand management systems and procedures must be in alignment with the market environmentAll product resource demands must be identified and accounted for when forecastingData capture must include not only sales, but also knowledge, trends, systems performance, and demand management performancePrinciplesImplementing CPFR can lead to important organizational and business process improvements for both the customer and supplierThe CPFR process can improve customer service, sales, inventory, and margin performance for both the customers and supplier in a supply chainQuiz – Chapter 2Demand Management (DM) includes which of the following activities?ForecastingProduct shippingEntering customer ordersThe customer order decoupling point is best defined as ____________In an Assemble-to-Order environment, the most likely point where customer order decoupling would take place is ______________Sales and Operations Planning can be completed at which of the following levelsProduct FamilyRegionOrganizational UnitThe main goal of a Collaborative Planning, Forecasting, and Replenishment (CPFR) process is to _________________