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GLOBAL PURCHASING & MATERIALS HANDLING
CHAPTER III
PRODUCTİON PLANNİNG SYSTEM
MASTER SCHEDULİNG
MATERİAL REQUİREMENTS PLANNİNG
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PRODUCTİON PLANNİNG
What do we need to produce?
Process
Machinery & Equipment
Labor Skills
Material1
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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?
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QUESTİONS OF A PLANNİNG SYSTEM
Priority(Demand)
Capacity(Resources)
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QUESTİONS OF A PLANNİNG SYSTEM
Priority:
What is needed?When?How much?
(Market)
Capacity:
Capability to produce what is needed
and when? 4
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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.
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MAJOR LEVELS OF PLANNİNG
Strategic Business Plan
Sales and Operations Plan
Master Schedule
Material Requirements Plan(MRP)
Purchasing and Production Activity Control
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PLANNİNG HİERARCHYStrategic
Business Plan
ProductionPlan
Master ProductionSchedule
MaterialRequirements
Plan
Production ActivityControl andPurchasing
MasterPlan
Planning
Implementation
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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
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SALES AND OPERATİONS PLAN
Strategic Business Plan
Marketing Plan ProductionPlan
Detailed Sales Plan
MasterProductionSchedule
SALES AND OPERATIONS PLAN
Annual
Monthly
Weeklyor
Daily
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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
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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.
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DEMAND CURVE
Demand
Number of Units
Time 17
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CHASE PRODUCTİON CURVE
Demand
Number of Units
Time
Chase Production
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LEVEL PRODUCTİON CURVE
Demand
Number of Units
Time
Level Production
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LEVEL PRODUCTİON CURVE
Demand
Number of Units
Time
Level Production
CREATE Inventory
USE Inventory
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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
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BOM
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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
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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
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BOM