p roduction planning what do we need to produce? process machinery & equipment labor skills...

GLOBAL PURCHASING & MATERIALS HANDLING

CHAPTER III

PRODUCTİON PLANNİNG SYSTEM

MASTER SCHEDULİNG

MATERİAL REQUİREMENTS PLANNİNG

PRODUCTİON PLANNİNG

What do we need to produce?

Process

Machinery & Equipment

Labor Skills

Material1

QUESTİONS OF A PLANNİNG SYSTEM

What are we going to make?

What does it take to make?

What do we have?

What do we need?

2

QUESTİONS OF A PLANNİNG SYSTEM

Priority(Demand)

Capacity(Resources)

3

QUESTİONS OF A PLANNİNG SYSTEM

Priority:

What is needed?When?How much?

(Market)

Capacity:

Capability to produce what is needed

and when? 4

CAPACİTY

Capacity is the capability of

manufacturing in a period of time.

Capacity is up to resources of company as

machinery, labor, financial resources and

availability of materials form suppliers.

5

MAJOR LEVELS OF PLANNİNG

Strategic Business Plan

Sales and Operations Plan

Master Schedule

Material Requirements Plan(MRP)

Purchasing and Production Activity Control

6

PLANNİNG HİERARCHYStrategic

Business Plan

ProductionPlan

Master ProductionSchedule

MaterialRequirements

Plan

Production ActivityControl andPurchasing

MasterPlan

Planning

Implementation

8

CAPACİTY MANAGEMENT

At each level of the planning and control

system, reconcilation with resources must be

made.

Inadeqaute resources=missed production

schedules

Resources significantly exceed planned

production=idle resources and extra cost.12

SALES AND OPERATİONS PLAN

Strategic Business Plan

Marketing Plan ProductionPlan

Detailed Sales Plan

MasterProductionSchedule

SALES AND OPERATIONS PLAN

Annual

Monthly

Weeklyor

Daily

13

SALES AND OPERATİONS PLANNİNG

It can be used to update the strategic plan.

It provides a tool to manage change.

It enforces functional plans to be realistic and

coordinated.

It represents a plan to achieve company objectives

It provides management visibility of production,

inventory and backlogs. 14

BASİC PRODUCTİON PLAN STRATEGİES

Chase:Vary production rates to meet changes in

demand Often used when inventory cannot be used or when resources

are flexible and inexpensive to change

Level:Establish average demand level and set production

rate to that level

Often used when resources difficult or very expensive to

change

Hybrid: A combination of two strategies.

16

DEMAND CURVE

Demand

Number of Units

Time 17

CHASE PRODUCTİON CURVE

Demand

Number of Units

Time

Chase Production

18

LEVEL PRODUCTİON CURVE

Demand

Number of Units

Time

Level Production

19

LEVEL PRODUCTİON CURVE

Demand

Number of Units

Time

Level Production

CREATE Inventory

USE Inventory

20

36

MRP Determine Requirements – Calculated to meet

product requirements defined in the MPS.

What to order

How much to order

When to order

When to schedule delivery

Keep priorities current

39

BOM

40

BOM The BOM shows all parts to make one of the

item

Each part has one, and only one, part number

A part is defined by form, fit, and function – any

change requires a new part number

41

BOM

Defines the product

Provides method for design change control

Planning: What is needed and when?

Order Entry,order configuration and pricing

Production:Parts needed to assemble

Costing: Material cost of goods sold

43

BOM