A1262025014MqFfm

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MANUFACTURING RESOURCE
PLANNING
BUSINESS Plan
PLANNING
Manufacturing Plan
Marketing/
Finance
Sales Plan
Plan
Production Plan
Resources
Requirements
Forecasts
Plan
Long-Range
Master Production Plan
Rough Cut
Firm Orders
Capacity
Plan
Inventory Status
Material Requirements Planning
Capacity
Medium
Requirements
BOM
Range
Plan (CRP)
Planning Data
EXECUTION OF PLAN
Purchasing
Production

Activity
22
Control
23
Capacity
24
JIT
Short
I/O
Range
Line Balance
Final
Assembly

FINAL

ASSEMBLY
Schedule
(FAS)
ABC40 pac\pacovw-02.af3
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Planning Horizons
3
Planning and Control

• At each level, there are three questions
• What are the priorities?
• What capacity is available?
• How can differences be resolved?

4
Relationships of the Aggregate Plan
Product Decisions
Process Planning Capacity Decisions
Demand Forecasts, orders
Work Force
Computing
Raw Materials Available
Inventory On Hand
Aggregate Plan for Production
Suppliers Capacity
Finance
Master Production Schedule, and MRP systems
Space
Detailed Work Schedules
5
Developing a Production Plan

• Three basic strategies can be used
• Match or chase
• Level
• Combination or hybrid

6
Production Planning Strategy - Level Load
Business Cycle Production
Units
1 2 3 4 5 6 7 8
9 10 11 12 13
Time Periods
7
Production Planning Strategy - Chase
Business Cycle Production
Units
1 2 3 4 5 6 7 8
9 10 11 12 13
Time Periods
8
Production Planning Strategy - Hybrid
Business Cycle Production
Units
1 2 3 4 5 6 7 8
9 10 11 12 13
Time Periods
9
Manufacturing Strategies
10
Make-to-Stock
Time Period
1
2
3
4
5
6
Total
Forecast
600
Production Plan
450
Inventory
200
325
300
275
250
225
500 Beginning
-150 Backorder
Production Forecast Ending Inventory -
Beginning Inventory Assume Ending Inventory 200
11
Make-to-Order
Time Period
1
2
3
4
5
6
Total
Firm Order
600
Production Plan
300
Backlog
800
550
600
650
700
750
Beginning Backlog 500
Production Forecast - Ending Backlog
Beginning Backlog Assume Ending Backlog 800
12
Make to Stock
FAS MPS
MPS/FAS Builds Finished Items to Forecast
Lead-time for Manufacturing
Raw Materials/ Components
13
Assemble to Order
Configured End Items
FAS Final Assembly of Exact Configuration

Lead-time for Delivery
O
P
T
I
O
N
S
MPS Builds Components Subassemblies

Lead-time for Manufacturing
Raw Materials/ Components
14
Make to Order
FAS
Lead-time for Manufacturing
Raw Materials/ Components
MPS
15
MPS Time Fences
Demand Fence
Planning Fence
MTS
ATO
CAPACITY
MTO
Frozen
Slushy
Liquid
Current
Future
Time