MANUFACTURING PLANNING & CONTROL SYSTEM Make the right goods at the right time at top quality and do so as economically as possible.

Manufacturing Planning and Control (MPC) Manufacturing Planning and Control is responsible for the planning and control of the flow of material through the manufacturing process The primary activities carried out are as follows: Production planning Implementation and Control Inventory Management

A good planning system What are we going to make ? What does it take to make it ? What do we have ? What do we need ?

PRIORITY-CAPACITY RELATIONSHIP (Demand) Capacity (Resources) Priority relates to what product are needed, how many are needed, and when they are needed. Capasity is the capability of manufacturing to produce goods and services. Eventally it depends on the resources of the company : the machinery, labor, and financial resource , and the availability of material from suppliers.

MPC 5 Mayor level : - Strategic business plan - Production Plan - Master Production Schedule - Material Requirements Plan - Purchasing and Production Activity Control

STRATEGIC BUSSINESS PLAN Production Plan Financial Plan Marketing Plant Engineering Plan

Strategic business plan Master Plan Production plan Planning Master prod schedule Material req plan Manufacturing Planning and Control system implementation Prod activity cont. & puchasing

PRODUCTION PLAN Quantity of each product group that must be produced in each period Desired Inventory levels Resources of equipment, labor, and material needed in each period Availability of the resources needed

Master Production Schedule Plan for the production of individual end items. Level of detail for the MPS is higher than for the production plan

Material Requirements Plan Plan for Production and Purchase of the components used in making the items in the master production schedule. The levels of detail is high

Purchasing and Production Activity Control Represent the implementation and control phase of the production planning and control system. Purchasing is responsible for establishing and controlling the flow of raw materials into factory. Production and Activity Control is responsible for planning and controlling the flow of work through the factory.

Capacity Management At each level in the manufacturing planning and control system, the priority plan must be tested against the available resources and capacity of the manufacturing system.

Perencanaan Kapasitas Perencanaan Prioritas STRAG BIS RRP Manajemen Permintaan Perencanaan. Produksi RCCP MPS CRP MRP Purchasing Ops. Seq PAC I/O Cont. RRP = Resource Requirement Planning RCCP = Rough-Cut Capacity Planning CRT = Capacity Requirement Planning

Performance Measurement MRP II System Business Planning Marketing Planning Production Planning Master Production Scheduling Material Requirement Planning Production Activity Control Order release Operation scheduling Dispatching Expediting Production reporting Performance Measurement Purchasing Vendor selection Order placement Vendor scheduling Order follow-up Demand Management - Forecasting - Distribution Requirement - Order Entry Final Assembly Resource Planning Rough-Cut Capacity Capacity Requirement Operation Management Execution Top Management Operation

MANUFACTURING RESOURCE PLANNING ( MRP II ) MRP II provides coordination between marketing and production, marketing, finance, and production agree on a total workable plan expressed in the production plan. Fully integrated planning and control system.

ENTERPRISE RESOURCE PLANNING ( ERP ) ERP is similar to the MRP II system except it dose not dwell on manufacturing. The whole enterprise is teken into account. APICS : An accounting oriented information system for identifying and palnning the enterprise – wide resources needed to make, ship, and account for customer orders.

Demand Management Four mayor activities : Forecasting. Order Processing. Making delivery promises. Interfacing between manufacturing planning & control and the marketplace.

Forecasting Forecasting adalah sebuah prediksi mengenai apa yang akan terjadi di masa yang akan datang. Tiga Kategori Forecasting : Qualitative Extrinsic Intrinsic

Qualitative techniques Projections based on judgement, intuition and informed opinions. By their nature, they are subjective.

Extrinsic Techniques Projection based on external indicators which relate to the demand for company’s products. Example : sales of automobile tires are proportional to gasoline comsumption.

Intrinsic Techniques A 12-month demand history January 92 July 84 February 83 August 81 March 66 September 75 Aprill 74 October 63 May November 91 June December

Intrinsic Techniques Based on single month : Demand this month will be the same as last month  84 Demand this month wil be the same as demand the same month last year  92

Intrinsic Techniques Avarage demand :  79 Moving avarages, exp 3-month moving average, Forecast January (63+91+84)/3 = 79 Suppose that January demand turned out to be 90 instead of 79, Forecast February (91+84+90)/3 = 88

Rata-rata Bergerak Tertimbang Misal untuk bulan Oktober (90), September (110) dan Agustus (130); diberi bobot tertimbang masing-masing 3, 2, 1 maka ramalan pada bulan Nopember adalah : (3(90) + 2(110) + 1(130) )/ (3 + 2 + 1) = 103.3

Intrinsic Techniques Exponensial Smoothing Perioda Bulan Pesanan Ramalan α = 0.1 α = 0.3 1 Januari 120 --- 2 Februari 90 120.0 3 Maret 100 117.0 111.0 4 April 75 115.3 107.7 5 Mei 110 111.3 97.9 6 Juni 50 111.2 101.5 7 Juli 105.1 86.1 8 Agustus 130 102.1 82.8 9 September 104.9 97.0 10 Oktober 105.4 100.9 11 November -- 103.9 97.6

Penghalusan Eksponensial Exponensial Smoothing Penghalusan Eksponensial Permintaan bulan Februari D2 = 90 Ramalan bulan Februari F2 = 120 F3 = α D2 + (1-α) F2 = (0.1) (90) + (0.9) (120) = 117 F4 = α D3 + (1-α) F3 = (0.1) (100) + (0.9) (117) = 115.3 (

Seasional Index Seasional sales history Year Quarter 1 2 3 4 Total 122 108 81 90 401 130 100 73 96 399 132 98 71 99 400 Average 128 102 75 95

Seasional Index Seasional Index = (period avg demand) / (avg demand for all periods) SI = 128 / 100 = 1.28 untuk kwartal-1 SI = 102 / 100 = 1.02 untuk kwartal-2 SI = 75 / 100 = 0.75 untuk kwartal-3 SI = 95 / 100 = 0.95 untuk kwartal-4 The company forecast an annual demand next year of 420 units

Seasional Index Forecast average quarterly demand = 420 / 4 = 105 units Expected first-quarter demand = 1.28 x 105 = 134.4 units Expected second-quarter demand = 1.02 x 105 = 107.1 units …

STRATEGI PERENCANAAN PRODUK LEVEL METHOD CHASE STRATEGY HYBRID / COMPROMISE SUBCONTRACTOR

CHASE

LEVELING PRODUCTION

HYBRID / COMPROMISE

Permintaan Produksi Inventori PERIODA 1 2 3 4 5 6 7 8 9 10 11 12 PERMINTAAN TOTAL   15 25 35 INVENTORY 30

Permintaan Produksi Inventori

Total Cost If the cost of carrying inventory is $5 per case per periode based on ending inventory, what is the total of carrying inventory If the cost changing production level is $20, What is the total cost of the plan

PROBLEM A Company wants to produce 10,000 units of an item over teh nest three months at a level rate. The first month has 20 working days, the second, 21 working days, and the third, 12 working days because of an annual shutdown. On the average, how much should the company produce each day to level production?

PROBLEM Amalgamated Fish Sinkers makes a product group of fresh fish sinkers and wants to develop a production plan for them. The expected opening inventory is 100 cases, and they want to reduce that to 80 cases by the end of the planning period. The number of working days is the same for each period. There are no back orders. The expected demand for the fish sinkers per period is as follows: 110, 120, 130. 120, 120. a. How much should be produced each period? b. What is the ending inventory for each period? c. If teh cost of carrying inventory is $5 per case per period based on ending inventory, what is the total cost of carrying inventory? d. What will be the total cost of the plan?

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