Lecture 7 - Production Planning System (Revisited). The contents of this chapter include all of the following: Manufacturing planning and control system, sales and operations planning (SOP), making production plan, developing production plan, market to stock production plan, market to order production plan, production planning hierarchy, inventory cost, type of inventory, production settings. | Lecture 7 Production Planning System (Revisited) Books Introduction to Materials Management, Sixth Edition, J. R. Tony Arnold, ., CFPIM, CIRM, Fleming College, Emeritus, Stephen N. Chapman, ., CFPIM, North Carolina State University, Lloyd M. Clive, ., CFPIM, Fleming College Operations Management for Competitive Advantage, 11th Edition, by Chase, Jacobs, and Aquilano, 2005, .: McGraw-Hill/Irwin. Objectives Manufacturing Planning and Control System Sales and operations planning (SOP) Making production plan Developing production plan Market to stock production plan Market to order production plan Production planning hierarchy Inventory cost Type of inventory Production settings Manufacturing’s Objectives The goal of manufacturing is to produce The right goods Of the right quality In the right quantities At the right time At minimum cost Four Basic Questions What must we get? What do we already have? What does it take to make it? What are we going to make? Priority The APICS | Lecture 7 Production Planning System (Revisited) Books Introduction to Materials Management, Sixth Edition, J. R. Tony Arnold, ., CFPIM, CIRM, Fleming College, Emeritus, Stephen N. Chapman, ., CFPIM, North Carolina State University, Lloyd M. Clive, ., CFPIM, Fleming College Operations Management for Competitive Advantage, 11th Edition, by Chase, Jacobs, and Aquilano, 2005, .: McGraw-Hill/Irwin. Objectives Manufacturing Planning and Control System Sales and operations planning (SOP) Making production plan Developing production plan Market to stock production plan Market to order production plan Production planning hierarchy Inventory cost Type of inventory Production settings Manufacturing’s Objectives The goal of manufacturing is to produce The right goods Of the right quality In the right quantities At the right time At minimum cost Four Basic Questions What must we get? What do we already have? What does it take to make it? What are we going to make? Priority The APICS Dictionary defines priority as “the relative importance of jobs, ., the sequence in which jobs should be worked on.” Priority refers to what is needed, how much is needed, and when it is needed. Capacity The APICS Dictionary defines capacity as “the capability of a worker, machine, work center, plant or organization to produce output per time period.” Production Plan Master Production Schedule (MPS) Material Requirements Plan (MRP) Production Activity Control (PAC) Resource Requirements Plan (RRP) Rough-Cut Capacity Plan (RCCP) Capacity Requirements Plan (CRP) Input/Output Control Operation Sequencing Strategic Business Plan Priority Management Techniques Capacity Management Techniques Manufacturing Planning and Control System Strategic Business Plan A statement of the major goals and objectives the company expects to achieve over the next 2-10 years or more. broad/general direction low level of detail long-range forecasts responsibility of senior management includes participation
