Production Management System 2 Production Management System Strategic and Operation Decisions 1
DECISIONS IN OPERATIONS/PRODUCTION MANAGEMENT EFFECTIVNESS Are we doing the right things? STRATEGIC DECISIONS Production system design OPERATIONAL DECISIONS Production system run EFFICIENCY Are we doing the things right?
Strategic Decisions in Production Management STRATEGIC DECISIONS (PRODUCTION SYSTEM DESIGN) Focoused EFFECTIVNESS Are we doing the right things ? Phase Operations/production system design Objectives Product, process, capacity, localization, layout and work system design Product design (What products? ) Process design (How to produce? What processes to choose? Make or buy?) Capacity planning (How much to produce? ) Localization choice (Where to produce? ) Facility layout design (What layout to choose? How facilities should be arranged?) Work system design (Job Design and Work Measurement )
Operational decisions Focoused EFFICIENCY Are we doing the things right ? Phase Operation of Production System Objectives Production Planning and Control in order to manufacture required products Aggregate Production Planning (SOP) – what output levels for the forthcoming periods? Master Production Scheduling – what, how much and when to produce the final products? Material Requirements Planning – what, how much, when to produce and to purchase? Production Control – production orders scheduling, dispatching and coordination Purchasing Control – purchasing orders scheduling, dispatching and coordination
PRODUCTION MANAGEMENT SYSTEM Production Planning and Control System Production Control Purchasing Control Production Planning (aggregate) Master Production Schedule Material Requirements Planning Strategic Planning LONGTERM PLANNING CONTROL STAGE (execution) MIDTERM PLANNING SHORTTERM PLANNING PLANNING STAGE
Characteristics of Production Planning Levels OBJECTIVE OF PLANNING FACILITY PLANNING HORIZONT PLANNING PERIOD Strategic Planning Product mix Production program Company > year (few years) year Production Planning Product families Enterprise < year month Master Production Scheduling Final products Plant < few months few weeks week, day Materials Requirements Planning Produced and purchased components Department/cell/ work centre
Production planning levels in organisation Long range STRATEGIC PLANNING SOP AGGREGATE PRODUCTION PLANNING MPS MASTER PRODUCTION SCHEDULING MRP MATERIAL REQUIREMENTS PLANNING PAC PRODUCTION ACTIVITY CONTROL - DETAILED SCHEDULING Short range High specific