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Manufacturing Planning and ControlVollman/Berry/Whybark/Jacobs: Manufacturing Planning and Control for Supply Chain Management, 5/e (2005)http://www.pom.edu/mpc/index.htm
Chapter 1
Vollmann, Berry, Whybark & Jacobs
Definition
A Manufacturing Planning and Control system is a methodology designed to manage efficiently the flow of material,
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.
A Context for Thinking about Manufacturing Planning and Control (MPC)
What are processes?
Processes define how we do things! Step 1 Step 2 Step 3 etc.
So, what is the role of MPC?
The MPC system tells the processes what to work on.Plans the resources that processes use (i.e. people, equipment, material).Plans for what processes will be doing in the future.
Definition
Mfg Planning andControl System
Manage theefficient flow ofmaterials
Plan the use ofpeople
Efficient useof our capacityand that of oursuppliers.
Possibly even our customers.
Driven by customerdemand and otherCustomer requirements
Often part of a company’s ERP system.
Agenda What influences the MPC system
design? What are the typical support
activities? (LT, MT, ST) Performance indicators MPC Framework (FE, E, BE) Matching MPC system with Needs Classification Schema Evolution & Responses
Key Areas of Influence on MPC system design
Degree of InternationalizationSempre più elevato per la spinta ad esternalizzare il
processo di produzione e concentrarsi su progettazione e mercato. Nike. Macintosh. Dell (cfr. Chase).
Role of the customer in the systemVariabilità della dimensione e tipologia della domanda che
richiede flessibilità produttiva ottenuta abbassando scorte, tempi di risposta e costo delle transazioni nel sistema informativo con SC molto diversificate e sparse
Increasing use of Information Technology.Necessario per supportare Lean SC con dati e procedure
comuni per unità organizzative funzionalmente, geograficamente e culturalmente disparate e differenti
Long Term (Piano di Produzione=>MPS)
The system is responsible for providing information to make decisions on (cfr. Variabili strategiche, p.13 Seminario)): The appropriate amount of capacity (intende
quantità per ogni tipo di capacità produttive) - including supplier capacity - to meet the market demands of the future.
Provide the appropriate mix of human resource capabilities (profili tecnici e/o professionali), technology, and geographic locations.
Intermediate Term
The fundamental issue is matching supply and demand in terms of both volume and product mix.Planning for the right logistics.Providing customers with information on
correct quantities and location to meet market needs.
Planning of capacity to determine employment levels, budgets, overtime and subcontracting needs, etc.
Short Term
There is a need for detailed scheduling of resources to meet production requirements.Involves time, people, material,
equipment and facilities.Involves people working on the right
things.Involves tracking the use of resources
and execution results.Provide problem-solving support.
Performance Indicators
Output results Equipment utilization Cost associated with different
departments, products, labor utilization, and project conditions.
Measures of customer satisfaction such as late deliveries, product returns, quantity and quality errors.
Costs and Benefits of MPC systems
The costs of an MPC are substantial but so can be the
Rewards (see examples).
Common to see ERP system costs measured at 5-10% of cost of goods sold.
An MPC System Framework
Front End (cfr. p.14 e segg. del Seminario) Set of activities and systems for overall direction
setting (Demand Management, Sales & Operations Planning, Resource Planning and MPS)
Engine Material Requirements Plans (MRP): Systems for
detailed material and capacity planning. Back End
Depicts the MPC execution systems
ResourcePlanning
Sales and operationsplanning
Demandmanagement
Master productionscheduling
Detailed capacityplanning
Detailed materialplanning
Shop-floorsystems
Suppliersystems
Enterprise R
esource Planning (E
RP
) S
ystem
Front End
Engine
Back end
Manufacturing Planning and Control System
Material Requirements Plans (MRP)
Front End
Demand ManagementPrevisione di domanda del cliente finale. Ordini. Rapporti
interaziendali. Specifiche su parti di ricambio.
Sales & Operations PlanningCoordinamento delle risorse produttive disponibili per
rispondere ai piani di vendita (sales/marketing planes).
Resource PlanningPrevisione delle risorse produttive e loro coordinamento
Master Production Schedule (MPS)Cosa bisogna produrre e in quali tempi
ResourcePlanning
Sales and operationsplanning
Demandmanagement
Master productionScheduling (MPS)
Detailed capacityplanning
Detailed materialplanning
Material andcapacity plans
Shop-floorsystems
Suppliersystems
Enterprise R
esource Planning (E
RP
) S
ystem
Front End
Engine
Back end
Manufacturing Planning and Control System
Front EndSet of activities and systems for overall direction setting (Demand Management, Sales & Operations Planning, Resource Planning and MPS)
Engine
Detailed Capacity Planning (DCP)Determina in dettaglio quali risorse produttive (persone,
macchine, …) occorrono per la produzione
Detailed Material Planning (DMP)Determina in dettaglio quali parti e materie prime occorrono per
la produzione in base alla “esplosione” (BOM: Bill Of Materials) dei prodotti finali
Material Requirements Plans (MRP):Determina in dettaglio in quali tempi occorrono le parti e le
materie prime, in base al coordinamento delle risorse produttive e ai BOM dei prodotti finali
ResourcePlanning
Sales and operationsplanning
Demandmanagement
Master productionscheduling
Detailed capacityplanning
Detailed materialplanning
Material andcapacity plans
Shop-floorsystems
Suppliersystems
Enterprise R
esource Planning (E
RP
) S
ystem
Front End
Engine
Back end
Manufacturing Planning and Control System
EngineSystems for detail material and capacity planning.
Back End (execution systems)
Supplier systemsCoordinamento tempi e quantità delle parti e delle materie prime
con I fornitori
Shop-floor systemsCoordinamento e scheduling dettagliato delle operazioni per le
attività produttive
ResourcePlanning
Sales and operationsplanning
Demandmanagement
Master productionscheduling
Detailed capacityplanning
Detailed materialplanning
Material andcapacity plans
Shop-floorsystems
Suppliersystems
Enterprise R
esource Planning (E
RP
) S
ystem
Front End
Engine
Back end
Manufacturing Planning and Control System
Back EndMPC execution systems – Track progress and collect data.
Matching MPC System with the Firm needs (A DYNAMIC PROCESS)
As competitive conditions, customer expectations, supplier capabilities, and internal needs change the MPC should change. Di conseguenza anche l’importanza relativa dei vari moduli dell’MPC cambia nel tempo.
The trend is towards on-line data access and systems (principale cambio tecnologico: intra e inter unità organizzative).
Physical changes influenzano l’MPC: Outsourcing mfg (manufacturing). Hollowing (ricercando) out of corporation (?), etc.
Providing information at the level where decision are made, in appropriate time and frames, directly from the shop floor
Firms competing in product variety strength MPS and DMP Firms competing on delivery speed need to improve
execution.
MPC Classification Schema(enfasi degli approcci dell’MPC a seconda della complessità, cioè numerosità dei componenti, e cadenza dei prodotti)
Flow(quantità)
Repetitive(Beni discreti)
Just-in-time
MRPProjectManagment
Num
ber
of
Sub
part
s
Seconds Minutes Days Weeks Months
Time between successive units
Da destra a sinistra diminuiscono: tempi dei cicli e di risposta, immagazzinato e simili
MPC Classification Schema
Flow
Repetitive
Just-in-time
MRP
Project
Num
ber
of
Sub
part
s
Seconds Minutes Days Weeks Months
Time between successive units
Flow (chemical plants, food, etc.)
MPC Classification Schema
Flow
Repetitive
Just-in-time
MRP
Project
Num
ber
of
Sub
part
s
Seconds Minutes Days Weeks Months
Time between successive units
Repetitive Mfg. (automobiles, high volume consumer products (i.e. TVs)
MPC Classification Schema
Flow
Repetitive
Just-in-time
MRP
Project
Num
ber
of
Sub
part
s
Seconds Minutes Days Weeks Months
Time between successive units
Just-in-Time systems (feedback management for shorter life cycle products – e.g. fashion items). Focus on minimizing inventory in the supply chain.
MPC Classification Schema
Flow
Repetitive
Just-in-time
MRP
Project
Num
ber
of
Sub
part
s
Seconds Minutes Days Weeks Months
Time between successive units
MRP (feedforward management for
management of complicated longer
life products, i.e. machines, electronic equipment).
MPC Classification Schema
Flow
Repetitive
Just-in-time
MRP
Project
Num
ber
of
Sub
part
s
Seconds Minutes Days Weeks Months
Time between successive units
Project (unique; long term), buildings, one of a kind (satellites).
MPC Classification Schema
Flow (chemical plants, food, etc.) Repetitive Mfg. (automobiles,
watches, personal computers) Just-in-Time systems (shorter
production cycles) MRP (management of complicated
parts product) Project type (unique; long time).
Principles
The framework for the MPC is general and all 3 phases must be performed but specific applications must reflect particular firm conditions and objectives.
In SC environments, the MPC must coordinate the planning and control efforts.
MPC systems should support the strategy and tactics pursued by the company.
Principles
Different Manufacturing processes dictate the need for different designs of the MPC.
The MPC should evolve to meet changing requirements in the market, technology, products, and processes.
The MPC should be comprehensive in supporting the management of all manufacturing resources.
Principles Different Manufacturing processes
and Supply Chains need different designs of the MPC. … one size does not fit all.
The MPC must evolve to meet changing requirements in the market, technology, products, and processes.
Major problem – the conflict between the flexible and changing needs of companies and the inflexibility of ERP systems.
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