Production planning and control (PPC) is a necessity for manufacturing facilities around the globe that are seeking to maintain a competitive advantage in the market. PPC is a term used to describe two essential components of manufacturing: production planning and production control.
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The production planning portion handles the activities necessary before production actually begins, such as materials planning, capacity planning, and operations scheduling. The production control portion oversees the actual production process by ensuring that the production team is able to meet its production targets and is operating according to schedule.
Planning and control are interdependent components that are interrelated to each other. This means that one needs the other in order to work. Planning is a useless tool without having a production control process to take action and ensure that the plan is executed successfully. Production control provides feedback on the accuracy of the production plan, which helps in the modification of existing plans and the creation of future plans. On its end, control is dependent on planning as the standards of performance are laid out during the planning process.
As these processes are related, production planning and production control need to be integrated together in order to be executed effectively. In this blog, we are going to discuss the overall objectives of production planning and control and why the implementation of an advanced planning and scheduling (APS) software is essential.
A software that is becoming extremely common to handle production planning and control strategies is PlanetTogether's advanced planning and scheduling (APS) software. This type of software provides insight into the current operations and allows the planning and scheduling to occur concurrently to increase the efficiency of the operations.
PlanetTogether APS comes packaged with features such as finite scheduling, resource planning, production scheduling, and performance tracking and analysis. This software is easily integrated with manufacturing facilities that utilize ERP, MRP, and MPS software to plan and schedule their production.
Advanced Planning and Scheduling Softwares have become a must for modern-day manufacturing operations as customer demand for increased product assortment, fast delivery, and downward cost pressures become prevalent. These systems help planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans. APS Systems can be quickly integrated with an ERP/MRP software to fill the gaps where these systems lack planning and scheduling flexibility, accuracy, and efficiency.
The implementation of an Advanced Planning and Scheduling (APS) Software will take your manufacturing operations to the next level of production efficiency by taking advantage of the operational data you already possess in your ERP system. APS is a step in the right direction of efficiency and lean manufacturing production enhancement. Try out a free trial or demo!
Demand planning is a business process of outlining and management of customer demand for products and services. Planning of a customer demand consists of a statistical forecast using the most appropriate model. As a result of the demand planning process, a company gets a sales plan that initiates a service-planning process, production, inventory planning, and revenue planning.
Material requirements planning (MRP) is a process that includes a production planning, scheduling, and inventory control system used to manage manufacturing processes. In order to calculate what material is required and when an order can go into production, an MRP process takes into account information on the Bill of Materials (BOM), production plan, and material plan. Streamline allows you to generate a plan of material requirements based on the demand forecasts of finished products and a bill of materials (BoM).
Material requirements planning (MRP) is a system for calculating the materials and components needed to manufacture a product. It consists of three primary steps: taking inventory of the materials and components on hand, identifying which additional ones are needed and then scheduling their production or purchase.
MRP is the system most companies use to track and manage all of these dependencies and to calculate the number of items needed by the dates specified in the master production schedule. To put it another way, MRP is an inventory management and control system for ordering and tracking the items needed to make a product.
To address these shortcomings of MRP, many manufacturers use advanced planning and scheduling (APS) software, which uses sophisticated math and logic to provide more accurate and realistic estimates of lead times. Unlike most MRP systems, APS software accounts for production capacity, which can have a significant impact on availability of materials.
The seeds of MRP were planted early in the 20th century with the development of new models for optimizing manufacturing. In 1913, American production engineer Ford Whitman Harris developed the calculation known as economic order quantity, the amount that minimizes the cost of ordering and storing a good. Concurrently, the mass-production system implemented by Henry Ford showed the value of having strict controls over the flow of materials through an assembly line. Another key driver of industrial efficiency came from the scientific management theories of Frederick Taylor, which included techniques for production planning and control and for improving the efficiency of material handling.
It wasn't until the 1960s, however, that the field got its modern name. That's when a small group of influential engineers championed an integrated system of computerized planning they dubbed material requirements planning. In 1964, IBM engineer Joseph Orlicky developed and formalized MRP after he studied the Toyota Production System, which was the model for the lean production methodology. Then, in 1967, Orlicky's IBM colleague, Oliver Wight, co-wrote a book on production and inventory control with George Plossl, a mechanical engineer and management consultant. The three continued to collaborate and today are usually cited as the pioneers of MRP.
It's important to note that MRP and lean production are not the same, despite their connection in Orlicky's pioneering work. In fact, they are considered by many practitioners to be antithetical, though some say MRP can help with lean production. MRP is considered a \"push\" production planning system -- inventory needs are determined in advance, and goods produced to meet the forecasted need -- while lean is a \"pull\" system in which nothing is made or purchased without evidence of actual -- not forecasted -- demand.
Orlicky died in 1986. A second edition of his book, updated by Plossl, was released in 1994. The current version, Orlicky's Material Requirements Planning, Third Edition is a 2011 update by consultants Carol Ptak and Chad Smith. It adds advice on how to use MRP to run a \"demand-driven\" planning process that uses actual sales orders, rather than the typical MRP method of a sales forecast, to calculate material requirements. Called demand-driven material requirements planning (DDMRP), this newer \"pull\" approach is controversial and viewed by some as a violation of important principles established by Orlicky.
An extension of MRP, developed by Wight in 1983 and called manufacturing resource planning (MRP II), broadened the planning process to include other resources in the company, such as financials, and added processes for product design, capacity planning, cost management, shop floor control and sales and operations planning, among many others.
OpenBOM provides fully integrated CAD, Item and BOM, production planning, vendor, and purchasing management to support PDM/PLM functions, inventory planning, procurement, contract manufacturing, and RFQ processes.
The masterproduction schedule is a production planning tool that defines how much of aproduct needs to be manufactured at different periods. This simple schedule canbe used as a basis for further planning and scheduling throughout the business.
Master Production Schedule (MPS) is the part of production planning that outlines which products need to be manufactured, in which quantity, and when. A master production schedule does not usually go into detail regarding the materials to be used in production, employees assigned to tasks, etc. Rather, it is like a contract between the sales department and the manufacturing department that balances supply and demand by defining the necessary quantities to produce and the timeframes of production.
The Master Production Schedule is a vital tool in Make-to-Stock manufacturing environments where a demand forecast drives production planning. As an MPS is often used as the main driver of production activity, it needs to be accurate and viable for it to have a positive effect on the profitability of a business.
A standard master production schedule is a long-term plan made for each product separately. It is done with a planning horizon of 3 months to 2 years, with a minimum time bucket (smallest timeframe specified) of 1 week.
When planningproduction, you always need to keep in mind how much exactly you are able toproduce in a given period. If you take in orders that require you to produce athousand chairs in a month, but you only have the means to produce 500, youwill let down your customers and your company. That is why you would alwayswant to account for:
The MPS is a great tool for planning and preparing early for surges in demand. However, there are physical and practical limitations to the quantities you can store in stock. Even if you had the production capacity, it may not be possible to utilize it if your stock is full. Or beyond a certain inventory level, too much cash may be tied up in inventory.
The master production schedule is one of the jumping-off points for manufacturing resource planning (MRP II). Apart from the MPS, however, MRP II uses additional inputs such as inventory statuses, BOMs, routings, material requirements and costs, financial records, staffing and machine capacity, etc. This allows the MRP II system to create a highly detailed plan for all of the different resources related to production and provide you with a real-time overview of your business. 350c69d7ab