Manufacturing Planning and Control | Guide For MPC
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MANUFACTURING PLANNING AND CONTROLThere are
MANUFACTURING PLANNING AND CONTROL
There are five major levels in the manufacturing planning and control (MPC) system:
• Strategic business plan.
• Production plan.
• Master production schedule.
• Material requirements plan.
• Purchasing and production activity control.
Each level varies in purpose, time span, and level of detail. As we move from strategic planning to production activity control, the purpose changes from general direction to specific detailed planning, the time span decreases from years to days, and the level of detail increases from general categories to individual components and workstations.
STRATEGIC BUSINESS PLAN
The strategic business plan is a statement of the major goals and objectives the company expects to achieve over the next 2 to 10 years or more. It is a statement of the broad direction of the firm and shows the kind of business—product lines, markets, and so on—the firm wants to do in the future. The plan gives general direction about how the company hopes to achieve these objectives. It is based on long-range forecasts and includes participation from marketing, finance, production, and engineering.
PRODUCTION PLAN
Given the objectives set by the strategic business plan, production management is concerned with the following:
• The desired inventory levels.
• The resources of equipment, labor, and material needed in each period.
• The capacity needed.
The level of detail is not high. For example, if a company manufactures children’s bicycles, tricycles, and scooters in various models, each with many options, the production plan will show major product groups, or families: bicycles, tricycles, and scooters. For effective planning, there must be a balance between priority and capacity. Along with the market and financial plans, the production plan is concerned with implementing the strategic business plan. The planning horizon is usually 6 to 18 months and is reviewed perhaps each month or quarter.
MASTER PRODUCTION SCHEDULE
The master production schedule (MPS) is a plan for the production of individual end items. It breaks down the production plan to show, for each period, the quantity of each end item to be made. For example, it might show that 200 Model A23 scooters are to be built each week. Inputs to the MPS are the production plan, the forecast for individual end items, sales orders, inventories, and existing capacity. The level of detail for the MPS is higher than for the production plan. Whereas the production plan was based upon families of products (tricycles), the master production schedule is developed for individual end items (each model of tricycle). The planning horizon usually extends from 3 to 18 months but primarily depends on the purchasing and manufacturing lead times.
MATERIAL REQUIREMENT PLANNING
The material requirements plan (MRP) is a plan for the production and purchase of the components used in making the items in the master production schedule. It shows the quantities needed and when manufacturing intends to make or use them. Purchasing and production activity control use the MRP to decide the purchase or manufacture of specific items. The level of detail is high. The material requirements plan establishes when the components and parts are needed to make each end item. The planning horizon is at least as long as the combined purchase and manufacturing lead times. As with the master production schedule, it usually extends from 3 to 18 months.
PURCHASING AND PRODUCTION ACTIVITY CONTROL
Purchasing and production activity control (PAC) 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 the factory. PAC is responsible for planning and controlling the flow of work through the factory. The planning horizon is very short, perhaps from a day to a month. The level of detail is high since it is concerned with individual components, workstations, and orders. Plans are reviewed and revised daily.
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There are five major levels in the manufacturing planning and control (MPC) system:
• Strategic business plan.
• Production plan.
• Master production schedule.
• Material requirements plan.
• Purchasing and production activity control.
Each level varies in purpose, time span, and level of detail. As we move from strategic planning to production activity control, the purpose changes from general direction to specific detailed planning, the time span decreases from years to days, and the level of detail increases from general categories to individual components and workstations.
STRATEGIC BUSINESS PLAN
The strategic business plan is a statement of the major goals and objectives the company expects to achieve over the next 2 to 10 years or more. It is a statement of the broad direction of the firm and shows the kind of business—product lines, markets, and so on—the firm wants to do in the future. The plan gives general direction about how the company hopes to achieve these objectives. It is based on long-range forecasts and includes participation from marketing, finance, production, and engineering.
PRODUCTION PLAN
Given the objectives set by the strategic business plan, production management is concerned with the following:
• The desired inventory levels.
• The resources of equipment, labor, and material needed in each period.
• The capacity needed.
The level of detail is not high. For example, if a company manufactures children’s bicycles, tricycles, and scooters in various models, each with many options, the production plan will show major product groups, or families: bicycles, tricycles, and scooters. For effective planning, there must be a balance between priority and capacity. Along with the market and financial plans, the production plan is concerned with implementing the strategic business plan. The planning horizon is usually 6 to 18 months and is reviewed perhaps each month or quarter.
MASTER PRODUCTION SCHEDULE
The master production schedule (MPS) is a plan for the production of individual end items. It breaks down the production plan to show, for each period, the quantity of each end item to be made. For example, it might show that 200 Model A23 scooters are to be built each week. Inputs to the MPS are the production plan, the forecast for individual end items, sales orders, inventories, and existing capacity. The level of detail for the MPS is higher than for the production plan. Whereas the production plan was based upon families of products (tricycles), the master production schedule is developed for individual end items (each model of tricycle). The planning horizon usually extends from 3 to 18 months but primarily depends on the purchasing and manufacturing lead times.
MATERIAL REQUIREMENT PLANNING
The material requirements plan (MRP) is a plan for the production and purchase of the components used in making the items in the master production schedule. It shows the quantities needed and when manufacturing intends to make or use them. Purchasing and production activity control use the MRP to decide the purchase or manufacture of specific items. The level of detail is high. The material requirements plan establishes when the components and parts are needed to make each end item. The planning horizon is at least as long as the combined purchase and manufacturing lead times. As with the master production schedule, it usually extends from 3 to 18 months.
PURCHASING AND PRODUCTION ACTIVITY CONTROL
Purchasing and production activity control (PAC) 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 the factory. PAC is responsible for planning and controlling the flow of work through the factory. The planning horizon is very short, perhaps from a day to a month. The level of detail is high since it is concerned with individual components, workstations, and orders. Plans are reviewed and revised daily.
your searches
manufacturing planning and control
material requirement planning
master production schedule
production plan
capacity management
what is design capacity
what is effective capacity
what is actual capacity
manufacturing planning easy
manufacturing planning explain
manufacturing planning process
manufacturing planning design
manufacturing planning and controlling system
manufacturing planning and scheduling
manufacturing planning software
manufacturing resource planning in Hindi
manufacturing process planning
material requirement planning in operations management
master production schedule in Hindi
master production schedule example
master production plan
master production schedule in Malayalam
material requirement planning in Malayalam
production planning and supply chain managemen
production planning course
manufacturing planning course
#supplychain #production #supplychaindoctrine
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