production planning hierarchy
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Production Planning and Control HierarchyProduction Planning and Control HierarchyStrategic and Business Planning
Demand Management
Sales and Operations Planning (S&OP)
Master Production Scheduling (MPS)
Material Requirements Planning (MRP I)
Capacity Requirements Planning (CRP) Vendor Requirements Planning (VRP)
Realistic?
Make Buy
Shop Floor Control (SFC) Purchase Planning and Control
Yes Yes
No No
Rough Cut Capacity Planning
Vendor/Material Limitations
Management Decisions
Realistic?
Supply Chain Management
Just in Time
Push and Pull Mfg
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Production/Manufacturing/OperationProduction/Manufacturing/Operation
Definition:
Production/manufacturing/Operation/IE** is the process of converting raw materials or semi-finished products into finished products that have valuevalue in the market place.
This process involves the inputs of resourcesinputs of resources such as labour, equipment, material, information, capital or energy, while the outputsoutputs are finished products, scrap or waste.
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Production System
Raw materials
Capital/Energy
Labour
Equipment
Information
Finished products
Scrap
Waste
OutputsInputs
Inputs and OutputsInputs and Outputs
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Planning and ControlPlanning and Control
Definition:
Planning is the act of looking aheadahead and setting a set of actionsactions to achieve an objectiveobjective. Production Planning is about matchingmatching needed production to available resources.
Control involves making events conform to conform to planplan, i.e., compare actual vs. planned
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Production Planning and ControlProduction Planning and Control
Definition:
Production Planning and Control (PPC) is the set of functions concerned with the effective utilization of limited resources and the management of material flow through these resources, so as to satisfy customer demands and create profits.
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Modes of ProductionModes of Production
1. Primary industries (extraction)Extraction of materials from their natural source
e.g. Agriculture, hunting, fishing, mining, forestry
2. Secondary industries (construction, manufacturing, public utility)e.g. Refinement, conversion, fabrication, assembly
3. Tertiary industries (services)e.g. transportation, sales, trade, distribution, government, education, health, retailing, catering
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Total Employment by SectorTotal Employment by Sector
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Total Employment by IndustryTotal Employment by Industry
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Production Planning & Control DecisionsProduction Planning & Control Decisions
• What should be produced, how much, and when (forecasting/demand management, aggregate planning/sales & operations planning, master production scheduling)?
• How much can we produce (capacity requirements planning)?
• How much do we have and how much do we need (inventory management / material requirement planning / just in time)?
• When should we produce (scheduling/shop floor control)?