1. Production Planning & Control

2. Production Planning and Control Introduction
Coordination of materials with suppliers
Efficient utilization of people and machines
Efficient flow of materials
Communication with customers
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3. Production Planning and Control Introduction
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4. Inputs to the Production Plan
Marketing
Customer
Demand
Production
Capacity
Inventory
Finance
Cash Flow
Aggregate Production Plan
Human
Resources
Manpower
Planning
Procurement
Supplier
Performance
Management
Return on
Investment
Capital
Engineering
Design
Completion
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5. PPC Class Notes-Chapter1
The Planning Process
Production Plan
Master Production
Schedule
Material
Requirements
Plan
Capacity
Requirements
Plan No
It is probably best to walk the students through each step of this process.
For most products we can create a master production schedule. And, once we have a master production schedule, MRP is the next logical step.
Realistic??
Yes
Execute Capacity
Plans
Execute Material
Plans
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6. Activities Supported by PPC
Materials Planning
Purchasing
Raw Material Inventory Control
Capacity Planning
Scheduling Machine and People
WIP Inventory Control
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7. Activities Supported by PPC (Cont’d)
Coordinate Customer Orders
Finished Goods Inventory Control
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8. Costs and Benefits of PPC Systems
PPC requires a large # of indirect people
Companies with ineffective PPC system will have poor customer service, excessive inventories, low equipment and people utilization, high rate of part obsolescence, large number of expediters
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9. 1.Overall Manufacturing Planning Hierarchical Planning Cont’d
Demand Management
Forecasting
Order Promising
Order Processing
Order Entry
Spare Parts
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10. 1.Overall Manufacturing Planning Hierarchical Planning Cont’d
Resource Planning
Long-Range Capacity Requirements
Number of Machines
Number of Employees
Overtime
Shifts
Plants
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11. Bill-of-Material Product Structure Tree
Bicycle(1)
P/N 1000
Handle Bars (1)
P/N 1001
Frame Assembly (1)
P/N 1002
Wheels (2)
P/N 1003
Frame (1)
P/N 1004
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12. Time-Phased Product Structure1 2 3 4 5 6 7 8 D G
2 weeks
1 week F E
3 weeks A C B
2 weeks to produce
Must have D and E completed here so production can begin on B
This slide has been animated to demonstrate backward scheduling - item A is scheduled first, then the remaining items are scheduled so as to produce A at the proper time.
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