Introduction to Production Planning

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Presentation transcript:

Introduction to Production Planning

The role of hierarchical production planning in modern corporations: An MRP-based “push” framework (borrowed from Heizer and Render)

Production Planning through Time-based Decomposition Corporate Strategy Aggregate Unit Demand Aggregate Planning (Plan. Hor.: ½-2 years, Time Unit: 1 month) Capacity and Aggregate Production Plans End Item (SKU) Demand Master Production Scheduling (Plan. Hor.: a few months, Time Unit: 1 week) SKU-level Production Plans Manufacturing and Procurement lead times Materials Requirement Planning (Plan. Hor.: a few months, Time Unit: 1 week) Component Production lots and due dates Part process plans Shop floor-level Production Control (Plan. Hor.: a day or a shift, Time Unit: real-time)

A CONWIP-based “pull” framework (borrowed from Hopp & Spearman)

Reading Assignment The slides provided at the course webpage. The following material from your text: Sections 5.1 to 5.3.1 Chapter 8 (Sections 11.1 to 11.4)