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GLOBAL PURCHASING & MATERIALS HANDLING CHAPTER III PRODUCTİON PLANNİNG SYSTEM MASTER SCHEDULİNG MATERİAL REQUİREMENTS PLANNİNG

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Page 1: P RODUCTION PLANNING What do we need to produce? Process Machinery & Equipment Labor Skills Material 1

GLOBAL PURCHASING & MATERIALS HANDLING

CHAPTER III

PRODUCTİON PLANNİNG SYSTEM

MASTER SCHEDULİNG

MATERİAL REQUİREMENTS PLANNİNG

Page 2: P RODUCTION PLANNING What do we need to produce? Process Machinery & Equipment Labor Skills Material 1

PRODUCTİON PLANNİNG

What do we need to produce?

Process

Machinery & Equipment

Labor Skills

Material1

Page 3: P RODUCTION PLANNING What do we need to produce? Process Machinery & Equipment Labor Skills Material 1

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

Page 4: P RODUCTION PLANNING What do we need to produce? Process Machinery & Equipment Labor Skills Material 1

QUESTİONS OF A PLANNİNG SYSTEM

Priority(Demand)

Capacity(Resources)

3

Page 5: P RODUCTION PLANNING What do we need to produce? Process Machinery & Equipment Labor Skills Material 1

QUESTİONS OF A PLANNİNG SYSTEM

Priority:

What is needed?When?How much?

(Market)

Capacity:

Capability to produce what is needed

and when? 4

Page 6: P RODUCTION PLANNING What do we need to produce? Process Machinery & Equipment Labor Skills Material 1

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

Page 7: P RODUCTION PLANNING What do we need to produce? Process Machinery & Equipment Labor Skills Material 1

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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Page 8: P RODUCTION PLANNING What do we need to produce? Process Machinery & Equipment Labor Skills Material 1

PLANNİNG HİERARCHYStrategic

Business Plan

ProductionPlan

Master ProductionSchedule

MaterialRequirements

Plan

Production ActivityControl andPurchasing

MasterPlan

Planning

Implementation

8

Page 9: P RODUCTION PLANNING What do we need to produce? Process Machinery & Equipment Labor Skills Material 1

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

Page 10: P RODUCTION PLANNING What do we need to produce? Process Machinery & Equipment Labor Skills Material 1

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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Page 11: P RODUCTION PLANNING What do we need to produce? Process Machinery & Equipment Labor Skills Material 1

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

Page 12: P RODUCTION PLANNING What do we need to produce? Process Machinery & Equipment Labor Skills Material 1

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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Page 13: P RODUCTION PLANNING What do we need to produce? Process Machinery & Equipment Labor Skills Material 1

DEMAND CURVE

Demand

Number of Units

Time 17

Page 14: P RODUCTION PLANNING What do we need to produce? Process Machinery & Equipment Labor Skills Material 1

CHASE PRODUCTİON CURVE

Demand

Number of Units

Time

Chase Production

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Page 15: P RODUCTION PLANNING What do we need to produce? Process Machinery & Equipment Labor Skills Material 1

LEVEL PRODUCTİON CURVE

Demand

Number of Units

Time

Level Production

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Page 16: P RODUCTION PLANNING What do we need to produce? Process Machinery & Equipment Labor Skills Material 1

LEVEL PRODUCTİON CURVE

Demand

Number of Units

Time

Level Production

CREATE Inventory

USE Inventory

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Page 17: P RODUCTION PLANNING What do we need to produce? Process Machinery & Equipment Labor Skills Material 1

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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

Page 18: P RODUCTION PLANNING What do we need to produce? Process Machinery & Equipment Labor Skills Material 1

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BOM

Page 19: P RODUCTION PLANNING What do we need to produce? Process Machinery & Equipment Labor Skills Material 1

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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

Page 20: P RODUCTION PLANNING What do we need to produce? Process Machinery & Equipment Labor Skills Material 1

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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

Page 21: P RODUCTION PLANNING What do we need to produce? Process Machinery & Equipment Labor Skills Material 1

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BOM