Production, Planning and Control
Dr. Sindhuja
• The most important business module – Production. Why?...
Objectives
• The ultimate objective of production planning and control, is to contribute to the profits of the enterprise. • this is accomplished by keeping the customers satisfied through the meeting of delivery schedules. • Specific objectives of production planning and control are to establish routes and schedules for work that will ensure the optimum utilization of materials, workers, and machines • and to provide the means for ensuring the operation of the plant in accordance with these plans.
Components of PP
• SOP: Sales and operations planning • DRP: Distribution Requirements Planning • MRP: Materials Requirement
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• It is tightly integrated with modules such as MM and SD thru the use of MRP which is also part of PP
Flow of Production Planning
Customer order management Demand management
I/P MRP BOM
Purchase requisition
Planned order
A
A
Define work center
Routing
Goods issue
Release order
Order confirmation
Order settlement
Flow of PP
• Demand generation thru demand management calculates the quantities to produce and the time for the final assembly • data from demand management is transferred to MRP. The data from demand mgt can come from Customer Sales Order (firm) or Planned Order (forecast).
• MRP checks for the availability of material at various stages of BOM.
– In case material is not available MRP generates planned order and Purchase requisition for production of components in house and procurement from vendor respectively.
• The planned orders are converted into production order by the planner and the purchase requisition are converted into purchase order by the purchaser.
• Production in charge converts the planned order to production order and carries out the production activities once the order is released for production. • Production is carried out as per the operation steps provided in the routing. • Work centers are also mentioned with each operation in the routings where these operations are to be carried out. • Once the
The major role of the procurement department is to get the products in the door, with little concern for price, to satisfy the needs of production and engineering. There are no basic systems in place to control materials once they arrive. The expediter often typed up purchase orders for rush items, and in other cases, picked up the items and told the supplier they would receive an order confirmation from the Blozis Company supply department. Once returning to Blozis, and distracted by other issues he would forget to ask supply for a confirming order. This caused distress for the supply department clerks, as they would need to process invoices for which it had no corresponding orders. Purchase orders were often made up to match invoices if the material had obviously been received from the supplier, after the fact.
Produce and store at the manufacturing plant Pick, load, and ship to a warehouse/distribution center Unload
The Customer relationship, Order fulfillment, and Supplier relationship processes need to be analyzed from the perspective of process structure, process improvement, layout, and capacity.
The existing production schedule will be maximized with the use of a Materials Requirement Planning System. “To determine an acceptable feasible schedule to be released to the shop, trial master production schedules are run through the MRP program. The resulting planned
Now that a supplier has been selected the buyer will place a detailed order (Grewal, p. 215). The details included in the order are meant to confirm the terms/need. The supplier will reply to the buyer confirming the order.
- this approach allows users to use releases directly to suppliers, but Purchasing still responsible for determining what items should be on a blanket purchase order. This type is for repetitive orders from a supplier and usually in effect for a year.
M&L Manufacturing makes various components for printers and copiers. The company supplies these items to a major manufacturer. The company also distributes these and similar items to office supply stores and computer stores as replacement parts for printers and desktop copiers. In all, the company manufactures about 20 different items to distribute. The two markets (the major manufacturer and the replacement market) require somewhat different handling. Product for the major manufacturer can be shipped in bulk. However, the products for the retail segment must be packaged individually which requires additional handling and expense. Instead of using forecasting for production planning the operations manager decides which
Purchasing-Information gained from planning stage used to purchase raw material for products and packaging from supplier.
Receiving quotations, reviewing for quantity and other discounts and while the purchase order is negotiated.
Verifying the purchasing requests (approved by purchasing manager) with their corresponding documents, such as purchase requests forms (approved by purchasing clerk), to reduce the likelihood of unapproved transactions in the purchasing department.
The concept of demand forecasting more accurately measures and predicts the changes and opportunities in the supply chain.
Production manager: responsible to ensure that all the products are on time and with the quantity needed
Moreover, production planning and control is useful to meet demand in order to obtain the maximum profit. In this task, I lead my team to conduct forecasting of customers demand for one year period and to develop an aggregate planning, master production schedule (MPS), rough cut capacity planning (RCCP), material requirement planning (MRP) and capacity requirement planning (CRP). These activities are part of the effective and integrated manufacturing planning and control processes which is known as MRP II (Manufacturing Resource Planning), the predecessor of enterprise resource planning (ERP). The relationship of these processes can be seen in Figure 1. Our project was related to processes of top management planning and operation management execution in this figure.
Dealing with suppliers to make sure that stock quality and quantity meet the standards of daily operation;
The Customer service agent gets the information about Production order and conveys the same to customer