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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 Resource Sales and operations Demand
planning planning management

Enterprise Resource Planning (ERP) System

Master production
scheduling Front End

Detailed capacity Detailed material

planning planning
Engine
Material and
capacity plans

Shop-floor Supplier Back End

systems systems

Manufacturing Planning and Control System

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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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Support Activities
Intermediate Term

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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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Key Areas of Influence on
MPC system design

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Matching MPC System with
the Firm needs

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Number of subparts
MPC Classification Schema

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 production–chemical
plants, food, etc.)
 Repetitive (longer production cycles–
automobiles)
 Just-in-Time (shorter production cycles–
TVs, personal computers)
 MRP (management of complicated parts
product–airplanes)
 Project (unique, long duration–ships).

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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 cross-
functional 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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