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Lecture Manufacturing planning and control for supply chain management (6/e) - Chapter 12: Strategy and MPC system design

In this chapter, the following content will be discussed: MPC system design and firm strategy, MPC design options, choosing the right options, choices in practice, integrating MRP and JIT, extended MPC integration, principles. | Manufacturing Planning and Control MPC 6th Edition Chapter 12 Strategy and MPC System Design Two key issues arise in the design of Manufacturing Planning and Control (MPC) systems. First, linking MPC system design to the firm’s business strategy for competing in the marketplace. Second, many firms must also integrate MRP and JIT systems, either in new or existing MPC systems. Agenda Master Production Scheduling (MPS) Options Make-to-Order–MPC system includes pre-production engineering and design activities as well as manufacturing and supplier operations Used when the product is custom-built to individual specifications Customer order is the unit of control in MPS Order backlog is the critical measurement Planning bills of material are used extensively Major source of uncertainty is customer time requirements Master Production Scheduling (MPS) Options Assemble-to-Order–Component inventory is held (to reduce lead times) and assembled according to customer requirements Used when . | Manufacturing Planning and Control MPC 6th Edition Chapter 12 Strategy and MPC System Design Two key issues arise in the design of Manufacturing Planning and Control (MPC) systems. First, linking MPC system design to the firm’s business strategy for competing in the marketplace. Second, many firms must also integrate MRP and JIT systems, either in new or existing MPC systems. Agenda Master Production Scheduling (MPS) Options Make-to-Order–MPC system includes pre-production engineering and design activities as well as manufacturing and supplier operations Used when the product is custom-built to individual specifications Customer order is the unit of control in MPS Order backlog is the critical measurement Planning bills of material are used extensively Major source of uncertainty is customer time requirements Master Production Scheduling (MPS) Options Assemble-to-Order–Component inventory is held (to reduce lead times) and assembled according to customer requirements Used when manufacturing lead time exceeds customer expectations, variety and cost of end products precludes holding finished items in inventory, and/or modules or options can be combined to satisfy unique customer requirements Key control point is final assembly schedule (FAS) Planning bills of material are used to represent “average” product Main source of uncertainty is product mix Master Production Scheduling (MPS) Options Make-to-Stock–common when customers place short lead-time (or immediate) orders for standard products MPS is stated in end items, which are produced to forecast demand Customer orders are filled directly from stock Procedures for monitoring accuracy of demand forecasts are required Main source of uncertainty is forecast errors Detailed Material Planning Options Two main approaches: time-phased and rate-based MRP approach JIT approach Shop-Floor System Options Push (MRP) versus Pull (JIT) Large database with high volume of transactions Simplified control and minimal flow times MPC