[WIP] Production Planning System

Key Term

Advanced planning and scheduling

aggregate production plan

backlog

backorder

business plan or strategic business plan

capacity

chase strategy

enterprise resource planning (ㄷ게)

Green production

Hoshin Production

hybrid strategy

key performance indicators (KPI)

Level production plan

manufacturing resource plan(MRP2)

master production schduel(MPS)

material requirement plan( MRP)

Priority

Production activity control (PAC)

Production leveling

production plan

resource bill

resource planning

remanufacturing

reverse supply chain

risk management

sales and operation planning

 

key question

1. what are we going to make or provide to customers?

2. what does it take to make it?

3. what do we have?

4. what do we need?

 

this question is related to priority and capacity.

specially regarding capacity, capacity is the quantiry of the work that labor and equipment can perform in a given period.

in the long and short term, manufacturing must devise plans to balance the demands of the marketplace with its resources and capacity.

 

manufacturing planning and control system

• five major levels in the manufacturing planning and control system:
• strategic buisiness plan(a business plan based on the strategy)
• production plan(sales & operation plan)
• master production schedule
• material requirement plan
• purchasing and production activity control.

at each level, three questions must be answered:

• what are the priorities - how much of what is to be produced and when?
• what is the available capacity - what resources do we have?
• how can diffrences between priorities and capacity be resolved?

the strategic plan

the strategic plan of firm is a statement of the major goals and objectives the company expects to achieve in the future.

the development of the strategic plan is the responsibility of senior management. using information from marketing , finanace, production, and other functions the strategic plan provides a framework that sets the goals and objectives  for futher planning by the marketing, fininace, and production department.

tactical work plans are established for the visions to allow all parts of the organization to move systematically toward the overal goal - hoshin planning.

the basic steps include:

1. making the plan fro what you wish to improve or accomplish.

2. establing subgoals

3. communicating the plan in the organization.

4. measuring your results.

5. analyzing data form the measures and taking corrective action as needed.

6. repeating as nessary

 

the first recent development impacting strategic planning is sustainability.

recycling and reusing material is also a major part of sustainability. sometimes this activity is described as remanufactuirng or reverse logistics.  

 

the second one is risk management. 

for a good way, risk management is focused on establishing systems and measurements to try to quickly recognize risks and establish strategic mechanisms to minimize impacts from negative risks and take advantage of positive risks(opportunities).

 

effective strategic planning depends on obtaining appropriate measurments and feedback on how well the tactics related to the plan are working towards the overall set of strategic goals for the organization.

these measures are sometimes referred to as key performance indicators(KPI).

it is important that one measure or subset of measures do not contradict with others - that they provide an overall balance in indicating financial, societal, and enviormental goals.

the set of KPIs that are balanced are often referred to as a balanced scorecard. and detailed approaches have been  develped to both establish and manage balanced scorecard.

the scorecard tends to balance measures dealing with business processess, financial measures, customer focused mearsures, and learning and growth.

 

the strategic businedd plan(business plan)

once the strategic plan has been established, the plan is often restated in financial terms, including projected revenues, a projected balance sheet, and a projected income statement. this financially based plan is often called the business plan or sometimes the strategic business plan.

 

the production plan

given the objectives set by the strategic business plan, production management is concerned with the following:

the quantities of each product group that must be produced in each period.

the desired inventory levels.

the resources of equipment, labor, materials needed in each period.

the availability of the resources needed.

 

production plan tends to combine product groups or product families rather than individual products, it is sometimes referred to as the aggregate production plan.

production planners must devise