A Manufacturing and Planning Control System (MPCS) is a comprehensive framework

used by manufacturing companies to manage and optimize their production processes.

It integrates various components such as production planning, scheduling, inventory
management, quality control, and resource allocation to ensure efficient operations and
timely delivery of products.
Manufacturing planning and control (MPC) systems components and business
Hierarchy.
1. strategic planning
2. tactical planning and
3. operational control

The planning hierarchy of a Manufacturing and Planning Control System (MPCS)

typically consists of three main levels: strategic planning, tactical planning, and
operational planning. Each level addresses different time horizons and focuses on
specific aspects of manufacturing operations. Here's an overview of each level:

1. Strategic Planning:
 Long-term Horizon: Strategic planning involves setting long-term goals and objectives
for the manufacturing organization, typically spanning several years.
 Focus on Resources and Capacity: It addresses questions such as facility expansion,
investment in new technologies, market expansion, and overall business strategy.
 Key Decisions: Major decisions made at this level include selecting product lines,
determining production capacities, establishing partnerships, and setting overall
manufacturing policies.
1. 1. Mission and Vision: The mission statement outlines the organization's purpose,
values, and core competencies, while the vision statement describes its desired future
state and long-term goals.
1.2 Environmental Analysis: This includes assessing strengths, weaknesses,
opportunities, and threats (SWOT analysis), as well as analyzing industry trends, market
dynamics, regulatory changes, and competitive landscapes.
1.3 Goal Setting: Based on the environmental analysis, organizations set specific,
measurable, achievable, relevant, and time-bound (SMART) goals that align with their
mission and vision.
1.4 Strategy Formulation: Once goals are established, organizations develop strategies
to achieve them. This involves identifying alternative courses of action, evaluating their
feasibility and potential outcomes, and selecting the most suitable strategies to pursue.
Common strategic approaches include differentiation, cost leadership, market
expansion, diversification, and innovation.
 1.5 Resource Allocation: Strategic planning involves determining the allocation of
resources, including financial, human, and technological resources, to support the
implementation of chosen strategies.
1.6 Implementation Planning: After selecting strategies and allocating resources,
organizations develop detailed implementation plans that outline specific actions,
timelines, responsibilities, and performance metrics. Effective implementation planning
ensures that strategies are executed efficiently and effectively, with clear accountability
and monitoring mechanisms in place.
1.7 Monitoring and Evaluation: Organizations establish key performance indicators
(KPIs) and metrics to track performance, identify deviations from the plan, and make
adjustments as needed to stay on course or adapt to changing circumstances.
1.8 Review and Adaptation: Strategic plans are dynamic documents that may need to
be revised or updated periodically in response to internal or external changes, shifts in
priorities, or new opportunities and challenges. Organizations conduct regular reviews
of their strategic plans, solicit feedback from stakeholders, and make adjustments to
ensure continued relevance and alignment with organizational goals.

2. Tactical Planning:
 Medium-term Horizon: Tactical planning focuses on a shorter time horizon compared
to strategic planning, typically spanning months to a year.
 Operational Detailing: It translates the strategic goals into actionable plans by
determining specific production targets, resource allocations, and production schedules.
 Balancing Supply and Demand: Tactical planning involves balancing the demand for
products with the available production capacity and resources.
 Inventory Management: This level also addresses inventory management strategies,
including decisions related to inventory levels, procurement schedules, and distribution
plans.
3. Operational Planning:
 Short-term Horizon: Operational planning deals with day-to-day operations and
immediate future activities, typically spanning weeks to a few months.
 Detailed Scheduling: It involves detailed scheduling of production activities, including
machine scheduling, workforce scheduling, and material flow planning.
 Real-time Adjustments: Operational planning adapts to real-time changes in demand,
supply disruptions, machine breakdowns, and other unforeseen events.
 Quality Control: This level includes implementing quality control measures and ensuring
compliance with quality standards during the production process.
S&OP - It's a strategic process that helps organizations align their sales and operational
activities to meet customer demand efficiently while also achieving business objectives. S&OP
integrates sales forecasts, production plans, inventory levels, and other key factors to create a
unified plan that balances supply and demand across the entire organization.

In a Manufacturing Planning and Control System (MPCS), the planning hierarchy typically
consists of several levels that help align the manufacturing activities with broader
business objectives. Here's how the elements you provided fit into this hierarchy:
Business Plan:
The business plan sets the overarching strategic direction and goals for the organization.
It encompasses various aspects such as market analysis, financial projections, and
strategic initiatives. The business plan provides the foundation for all subsequent planning
activities within the manufacturing function.
Production Plan:
The production plan translates the strategic goals outlined in the business plan into
specific production objectives and targets. It includes decisions regarding what products
to produce, in what quantities, and when. The production plan integrates inputs from sales
forecasts, inventory levels, resource availability, and other factors to ensure that
production activities support the overall business strategy.
Master Production Schedule (MPS):
The MPS is a detailed plan that specifies the quantity and timing of production for
individual end products over a specific time horizon. It serves as a link between the
production plan and the detailed scheduling of manufacturing activities. The MPS takes
into account factors such as customer demand, inventory levels, capacity constraints, and
lead times to establish a feasible production schedule.
Material Requirements Planning (MRP):
MRP is a systematic approach to planning and controlling the materials needed for
production. It involves analyzing the bill of materials (BOM) for each product to determine
the quantities of raw materials, components, and subassemblies required at different
points in the production process. MRP helps ensure that materials are available when
needed to support the production schedule while minimizing inventory carrying costs.
Production Activity Control (PAC):
PAC involves the day-to-day management and coordination of production activities to
ensure that they are carried out as planned. It includes activities such as monitoring work
progress, resolving production issues, expediting orders, and adjusting schedules in
response to changing conditions. PAC aims to optimize resource utilization, minimize
delays, and maintain production efficiency.
In summary, the planning hierarchy in a Manufacturing Planning and Control System
starts with the business plan, which sets the strategic direction for the organization. The
production plan translates these strategic goals into specific production objectives, while
the MPS, MRP, and PAC provide progressively detailed plans and controls to ensure that
production activities are executed efficiently and effectively to meet customer demand
and achieve organizational objectives.

MRP VS MPS
MRP (Material Requirements Planning) and MPS (Master Production Scheduling) are
both critical components of Manufacturing Planning and Control (MPC) systems, but they
serve different purposes and operate at different levels of detail within the planning
hierarchy. Here's a comparison of MRP and MPS:

Purpose:
MRP: Material Requirements Planning (MRP) is focused on determining the materials
needed for production based on the master production schedule (MPS) and other factors
such as lead times, inventory levels, and production constraints. MRP ensures that the
right materials are available at the right time to support production activities while
minimizing inventory carrying costs and stockouts.
MPS: Master Production Scheduling (MPS) is focused on creating a detailed production
schedule for finished products over a specific time horizon. MPS specifies the quantity
and timing of production for each end product based on customer orders, forecasts, and
production capacity. It serves as a link between the production plan and the detailed
scheduling of manufacturing activities.
Level of Detail:
MRP: MRP operates at a more granular level compared to MPS. It involves analyzing the
bill of materials (BOM) for each end product to determine the quantities of raw materials,
components, and subassemblies needed at different points in the production process.
MRP breaks down the production schedule into individual material requirements,
considering factors such as lead times, lot sizes, and safety stock levels.
MPS: MPS operates at a higher level of aggregation compared to MRP. It focuses on
establishing the overall production plan for finished products, specifying the total quantity
to be produced for each product over a specific time period (e.g., weeks or months). MPS
does not deal with the detailed requirements of individual materials but rather provides a
framework for aligning production capacity with customer demand.
Time Horizon:
MRP: MRP typically operates over a shorter time horizon compared to MPS. It focuses
on short-term material planning, covering the time frame needed to procure and schedule
materials for production based on the current MPS and inventory levels.
MPS: MPS operates over a longer time horizon, covering the planning horizon specified
in the production plan. It establishes the overall production schedule for finished products
over this time horizon, providing visibility into future production requirements and capacity
utilization.
Dependency:
MRP: MRP depends on the MPS as an input. The material requirements generated by
MRP are based on the production schedule specified in the MPS, which serves as the
primary driver for determining when and how much material is needed for production.
MPS: MPS is developed independently of MRP but provides critical input to the MRP
process. The MPS specifies the production quantities and timing for finished products,
which drive the material requirements calculated by MRP.
In summary, while both MRP and MPS are essential components of MPC systems, they
serve different purposes and operate at different levels of detail within the planning
hierarchy. MRP focuses on material planning and requirements determination, while MPS
focuses on production scheduling and capacity planning for finished products.