Summary book production management
Manufacturing Planning and Control for Supply Chain Management
(Jacobs, Berry, Whybark, & Vollmann, 2011)
Jacobs, F. R., Berry, W. L., Whybark, D. C., & Vollmann, T. E. (2011). Manufacturing Planning and
Control for Supply Chain Management (6th ed.). McGraw-Hill/Irwin.
Content
Summary book production management...............................................................................................1
Manufacturing Planning and Control for Supply Chain Management (Jacobs, Berry, Whybark, &
Vollmann, 2011).................................................................................................................................1
Chapter 1 Manufacturing Planning and Control.................................................................................2
Chapter 2 Demand management.......................................................................................................5
Chapter 9 Just-in-time........................................................................................................................8
Chapter 4 Sales and Operations Planning.........................................................................................12
Chapter 4A Advanced Sales and Operations Planning......................................................................17
Chapter 7 Capacity Planning and Management................................................................................19
Chapter 8 Production Activity Control..............................................................................................21
Chapter 11 Order Point Inventory Control Methods........................................................................22
,Chapter 1 Manufacturing Planning and Control
The manufacturing planning and control (MPC) system is concerned with planning and controlling all
aspects of manufacturing, including managing materials, scheduling machines and people, and
coordinating suppliers and key customers. MPC systems design is not a one-time effort; MPC systems
need to continuously adapt and respond to changes in the company environment, strategy, customer
requirements, particular problems, and new supply chain opportunities.
The MPC system defined: The essential task of the MPC system is to manage efficiently
the flow of material, to manage the utilization of people and equipment, and to respond to customer
requirements by utilizing the capacity of our suppliers, that of our internal facilities, and (in some
cases) that of our customers to meet customer demand. It provides information, based on this
information managers can make effective decisions.
Typical MPC support activities in three time horizons:
- Long term: the system is responsible for providing information to make decisions on the
appropriate amount of capacity (including equipment, buildings, suppliers, and so forth) to
meet the market demands of the future. It helps to provide the appropriate mix of human
resource capabilities, technology, and geographical locations to meet the firm’s future needs.
The long term has to include the same kind of capacity planning for the key suppliers.
- Medium term: the fundamental issue addressed by the MPC system is matching supply and
demand in terms of both volume and product mix. It means providing the exact material and
production capacity needed to meet customer needs. This means planning for the right
quantities of material to arrive at the right time and place to support product production and
distribution. Another task is providing customers with information on expected delivery
times and communicating to suppliers the correct quantities and delivery times for the
material they supply.
- Short term: detailed scheduling of resources is required to meet production requirements.
This involves time, people, material, equipment, and facilities. As the day-to-day activities
continue, the MPC system must track the use of resources and execution results to report on
material consumption, labor utilization, equipment utilization, completion of customer
orders, and other important measures of manufacturing performance. The system needs to
communicate the measures with the managers, suppliers and customers.
Manufacturing Performance indicators:
- Output results
- Equipment utilisation
- Costs associated with different departments
- Products
- Labour utilisation
- Project completions
Measures of customer satisfaction
- late deliveries
, - product returns
- quantity errors
- and other mistakes
An MPC System Framework: It is most typical now to find the MPC system imbedded in
an enterprise resource planning (ERP) system.
MPC System Activities:
The first phase (front end): establishes the overall company direction for manufacturing planning and
control. Sales and operations planning balances the sales/marketing plans with available production
resources. The result is an agreed-on company game plan that determines the manufacturing role in
meeting company strategy. The master production schedule (MPS) states which end items or product
options manufacturing will build in the future. Resource planning provides the basis for matching
manufacturing plans and capacity.
The middle third (engine): encompasses the set of MPC systems for detailed material and capacity
planning. The master production schedule feeds directly into the detailed material planning module.
MRP determines (explodes) the period-by-period (timephased) plans for all component parts and
raw materials required to produce all the products in the MPS. This material plan can thereafter be
utilized in the detailed capacity planning systems to compute labor or machine center capacity
required to manufacture all the component parts.
The bottom third (back end): depicts MPC execution systems. The information is communicated with
own shop floor systems and the supplier systems.
The three-phase framework for manufacturing planning and control is supported by widely available
MPC systems and software, from master production scheduling to the back-end systems. This
software is not only integrated to follow the framework, it is also linked to other business activities in
the ERP systems of many firms. That means that the MPC systems provide inputs to the financial,
distribution, marketing, and human resources systems that require the information.
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