mpc midterm

8/19/2019 MPC Midterm

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IDM4201: Manufacturing Planning and Control by 5510101

ReferenceBerry, L., Jacobs, R., Vollmann, T., & Whybark, D. (2005). Manufacturing Planning and

Control for Supply Chain Management. McGraw-Hill. 5th edition.

WEEK 1

Introduction and Chapter 1

Introduction This subject is about a study of production system focusing on materials planning and control through a firm.

Chapter 1 This chapter lays the groundwork for the rest of the book. Defining and adjusting the Manufacturing planning and control system

to support the manufacturing activity are and ongoing challenge.

The framework of this subject

Each chapter will represent part by part of this framework

Chap6

Chap4

Chap5

Chap2

Chap7

Set of activities and systems for overall direction setting

Systems of detail materials and capacity planning

Show the MPC execution systems

Chap8






Principles of Chapter 1

-The framework for the MPC is general and all 3 phases (Front end, Engine and Back end) must be performed but

specific applications must reflect particular firm conditions and objectives.

-In Supply chain environments, the MPC must coordinate the planning and control efforts.

-MPC systems should support the strategy and tactics pursued by the company

-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

-An effective MPC can contribute to competitive performance by lowering costs and providing greater responsiveness to the market.

-In firms that have an integrated ERP system and database, the MPC system should integrate with and support cross-functional planning through

the ERP system.

A Manufacturing Planning and Control system is a methodology designed to manage

1. Efficiently the flow of material

2. The utilization of people and equipment,

3. To respond to customer requirements

By utilizing the capacity of a company’s suppliers, internal facilities, and customers to meet customer demand.






To have clear understanding here is a picture to show the material flow

WEEK2

Chapter 2

This chapter is talking about demand management which is located in the front end of ERP system.


-Demand management concerned about how a firm integrates information from and

about its customers, internal and external to the firm, into MPC system.

-All potential demands on manufacturing capacity are corrected and coordinated.

-DM includes activities range from forecasted customers through converting

specific customer orders into promised delivery dates, to balance demand withsupply or another word balance customers needs with capabilities of firm






Demand management involves with the market place

communication.

There are 2 types of Demand which are Independent demand and Dependent demand.

Most of Customer Demand cases are independent demand which is difficult to control. For example, when you go in 7-11 store, you may

or you may not buy a product and when you decide to buy a product, the decision is independent of mfg. So in the manufacturing perspective, it

calls “Independent Demand”, the manufacturer has to forecast this kind of demand to produce the products.

Independent Demand is motivated by price strategy, advertising in many type of media, location on shelf and other marketing tools.

Customer Order Decoupling Point (Order Penetration Point)

While Dependent demand occurs when there are contracts between manufacturer and customers. So there is an exact amount of products that the

factory must produce.

At the point of demand changes from independent to dependent. It is the point at which the firm, (as opposed to the customer,) becomes

responsible for determining the timing and quantity of materials to be purchased made, or finished in order to tell a promised delivery date

For the operation, there are 4 MPC environments which are Engineered to order, Made to order, Assemble to order and Made to stock.

Similar to






WEEK3 Chapter 4 Calculation Part There are 4 strategies for planning

Forecast sales (in million $)/ price per unit

=Units that must be sold to get this sales

Also Inv. BB must equal to EB

Forecast sales (in million $)/ price per unit

=Units that must be sold to get this sales

The different number in employee of every

month, If it higher than last month so the

company hires more employee. If it is lesser

than last month, the comp. lay off.

Summation of cost in chase strategy

In chase strategy, unit sales must equal to

unit produced.






It is the policy of the comp.

Calculation is backward. Compute this first

to know the product that must be kept for

the next month

Calculate from BB-Sales+X(operation)=Inv.

In another word, Inv.-BB+Sales=X(operation)






It is the operation that must be producedeach month equally. Calculate from

Summation of units sales-BB of inv. + EB of

Inv. Then divide with the total working days

per year

Days of supply is like how many days that inv. In

current month will be ready for sale in next month. If

the production stop producing in the next month

Sum all the units sales that must be

Days of supply is calculated by using rule of

3(บัญญัตไตรยางศ). For example, days of supply in Jan. is

from 329.3(Inv. In Jan)x 21(working days in Feb)/266.7(sales inFeb.)






This one is like the application from all 3

above, if you understand the previous

strategies, you will be able to

understand this.






Chapter 4


-Controlling the operations plan

-OP is not a forecast; it must be a managerial statement of desired production output.

-OP should be a part of the sales and operations planning process (SOP) so it will be in complete agreement with the other functional plans (sales

plan, budget, and …) that make up the business plan.

-The trade-offs required to frame the OP must be made prior to final approval of the plan.

-Top-mgt involves in SOP process, should be directly related to strategic planning.

-The MPC system should be used to perform routine activities and provide routine data, so mgt. time can be devoted to important tasks.

-The MPC system should be used to facilitate what-if analyses at the SOP level.

-Reviews of performance against SOP are needed to prompt re-planning when necessary.






To extend the figure, SOP is related to many

departments including Marketing, Strategic

planning and Financial planning.






WEEK 4

Chapter 5

This chapter is about manufacturing planning scheduling (MPS).

In this chapter there are calculation parts also, it will relate to the next chapter (chapter 6).

This case is used when there is no MPS or lots size provided.

Calculate by adding all forecast minus with on

hand then divide with no. of period

(5+5+8+10+15)-20 /5 =4.6 round up to 5. After

that put it on every period, it is the production

that must be produced every period.

Calculate by using the formula of PABL.

The solutions of PABL table are

Period 1 = 5+20-5

Period 2 = 5+20-5

Period 3 = 5+20-8

Period 4 = 5+17-10

Period 5 = 5+12-15






In this case, the question provides lot size (to put in MPS) and safety stock so we have to consider these 2 factors.

The solution of this table can be looked in another page.

With the same formula, calculate PABL first

Period 1 = 0+20-5

Period 2 = 0+15-5

Period 3 = 30+10-8

Period 4 = 0+32(comes from MPS 30+ 2 left)-10

Period 5 = 0+22-15






Period 6 = 30+7-20

Compare

between

forecast

and actual

sales,

choose

the higher

one to

calculate

in PABL

formula


Period 1 = 0+20-10

Period 2 = 0+10-5

Period 3 = 30+5-8

Period 4 = 0+27-10

Period 5 = 0+17-15

Period 6 = 30+2-15


Period 1 = 0+20-10

Period 2 = 30+10-20

Period 3 = 30+20-20

Period 4 = 0+30-20

Period 5 = 30+10-15

Period 6 = 0+25-20






With the ATP formula, calculate ATP then

Period 2 = 0+15-8

Period 3 = 30+0-(17+0)

Period 5 = 30+0-10

Period 6 = 30+0-35


Period 2 = 0+15-8

Period 3 = 30+7-17

Period 4 = 0+20-10

Period 5 = 30+10-15

Period 6 = 30+25-35







-MPS unit should reflect the company’s approach to the business environment in which it operates

-MPS function should use the common ERP database if such a system is implemented in the firm.

-Common systems, time- phase processing, and MPS techniques facilitate effective scheduling regardless of the firm’s environment.

-Customer order promising should be closely linked to the MPS.

-ATP information should be derived from MPS and provided to the sales department.

-A final assembly schedule should be used to convert the anticipated build schedule into the final build schedule.

-The master production scheduler must keep the sum of the parts (the MPS) equal to the whole (the operations plan).






WEEK 5

Chapter 6

This chapter we are talking about Material Requirements Planning (MRP) which related to the last chapter. It is the plan to buy raw materials to

use in the operation.

To get product A, it requires part B 1 piece, part C 2 pieces and part D 1 piece. Additionally, to get part B, it needs part E and F to compose the

B part.

FE

DC (2)B

A






This one was drown from Bill of materials (BOM). The

principle of thinking is the same as last chapter.

Get OH minus with gross requirement then put it in PABL, when the number is

not enough just add up in Planned order released (It likes when you don’t

have enough inv. You have to buy it to continue the production). Then follow

the BOM move no. in planned order released into next level and calculate in

the same way.






Principle of chapter 6

-Effective use of an MRP system allows development of a forward-looking (planning) approach to managing material flows.

-The MRP system provides a coordinated set of linked product relationships, thereby permitting decentralized decision making on individual

part numbers.

-All decisions made to solve problems must be done within the system, and transactions must be processed to reflect the resultant changes.

-Effective use of exception messages allows focusing attention on the “vital few,” not on the “trivial many.”

-System records must be accurate and reflect the factory’s physical reality if they’re to be useful.

-Procedural inadequacies in processing MRP transactions need to be identified and corrected to ensure material plans are accurate






Chase Level 3 days supply

OCT NOV DEC JAN FEB MAR JAN FEB MAR APR

Sales

Forecast($)

Forecast(units)

Actual (units)Difference month

Difference cumulative

Operations

Plan (units)

(in employees)

No. of working days

Actual (units)

Difference month

Difference cumulative

Inventory

Plan (units)

(in $)

Actual

Days of supply

Hires

Layoff

Cost Hiring

LayoffInv.






WEEK 7

Chapter 7 Chapter 8

MPS must be given

Calculate from (33x0.95) + (17x1.85)

62.8x 60.3 % = 37.87

62.8x 30.4% = 19.09

62.8x 9.3% = 5.84

Calculate and fill in the table by using the same

calculation process. This chapter’s calculation isquite easy.

CPOF






CRP Notice the color at the BOM then

look at each table. Then follow the

step of calculation since 1 till 8.

Look at each work center

Then put number in the

correct work center. Ex. The

green one at WC200 equal

to 0.6 +0.1






Backlog is an accumulation over time of work waiting to be done or

Orders to be fulfilled

Backlog period n = backlog period n-1 + (Actual input – Actual output)

Backlog period 1 = 20 +(14-8)= 26 Backlog period 2 = 26+(13-10) =29 and so on

Actual - Planned

The previous one plus with the next

one, the yellow box would be 1+7 =8

The same way of calculation Deviation

would be

-3 -1 -2 0 -2

-3 -4 -6 -6 -8

26 29 25 23 31







-Capacity plans must be developed concurrently with material plans if the material plans are to be realized.

-The particular capacity planning technique(s) chosen must match the level of detail and actual company circumstances to permit making

effective management decisions.

-Capacity planning can be simplified in a JIT environment.

-The better the resource and production planning process, the less difficult the capacity planning process.

-The better the shop-floor system, the less short-term capacity planning is required.

-The more detail in the capacity planning system, the more data and database maintenance are required.

-It’s not always capacity that should change when capacity availability doesn’t equal need.

-Capacity not only must be planned, but use of that capacity must also be monitored and controlled.

-Capacity planning techniques can be applied to selected key resources (which need not correspond to production work centers).

-The capacity measure should reflect realizable output from the key resources.







This chapter talks about the back end of the ERP system.

-PAC system design must be in concert with the firm’s needs.

-Vendor cap. Should be planned and scheduled with as much diligence as are internal cap.

-LT must be managed

-Feedback from PAC should provide early warning and status inf. To other MPC modules.

-E-based systems can dramatically improve customer/vendor communication, reducing LT and OH cost.

-TOC scheduling provides improved performance by focusing on the constraining resources

-TOC implementation requires a change in plant culture in order to obtain the full benefits of this approach

-Traditional priority rules can play a role in non-bottleneck scheduling

-Stability in mfg. loads and cap. Plans facilitate shop-floor execution.

Note: Midterm exam include Ch 1, 2, 4 and 5 but I summarized all topic that Ajarn taught before midterm in this file.

mpc midterm

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