Manufacturing

Planning and Control

MPC 6th Edition
Chapter 1

McGraw-Hill/Irwin

Copyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Definition
A Manufacturing Planning and Control
system provides information and support,
which enables managers to efficiently
direct the flow of material, manage the
utilization of people and equipment, and
respond to customer requirements by
utilizing the capacity of suppliers, internal
facilities, and, in some cases, customers.
MPC is often a module in an ERP system.
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Agenda

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An MPC System Framework

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Sales and operations

planning
Master production
scheduling

Detailed capacity
planning

Demand
management

Front End

Detailed material
planning
Engine
Material and
capacity plans

Shop-floor
systems

Supplier
systems

Back End

Enterprise Resource Planning (ERP) System

Resource
planning

Manufacturing Planning and Control System

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Support Activities
Long Term
The system is responsible for providing
information to determine:
The

appropriate amount of capacity

(including supplier capacity) to meet
the market demands of the future.
Provide the appropriate mix of human
resource capabilities, technology, and
geographic locations.

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Support Activities
Intermediate Term

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Support Activities
Short Term
There is a need for detailed scheduling of
resources to meet production
requirements.
Key

Point - People working on the right

things
The MPC system must track the use of
resources, monitor execution results, and
provide information to managers,
customers, and suppliers
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Key Areas of Influence on

MPC system design

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Matching MPC System with

the Firm needs

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MPC Classification Schema

Number of subparts

Project
MRP
Just-in-time
Repetitive
Flow
Seconds

Minutes

Days

Weeks

Months

Time between successive units

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MPC Classification Schema

Flow (continuous productionchemical
plants, food, etc.)
Repetitive (longer production cycles
automobiles)
Just-in-Time (shorter production cycles
TVs, personal computers)
MRP (management of complicated parts
productairplanes)
Project (unique, long durationships).

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Evolution of MPC Systems

The MPC system must adapt to meet
changing company needs
Periodic MPC system audits compare
system responses to the requirements
of the marketplace

System

focus
Personnel training

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Principles

The framework for the MPC is general, and all 3 phases

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 MPC designs.

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Principles

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 crossfunctional planning through the ERP system.
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Quiz Chapter 1

In the MPC process, capacity decisions (equipment,

facilities, suppliers, etc.) are most likely to occur in what
time horizon?
In the MPC process, detailed scheduling decisions are
most likely to occur in what time horizon?
Master Production Scheduling (MPS) and Resource
Planning are a part of which MPC phase?
Measurement and Control are a part of which MPC
phase?
Products that are part of a one-time production process
(e.g. bridges or aircraft carriers) would most likely use
which form of MPC?
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