Production, Capacity and Material Planning

Chapter 7

Production, Capacity and

Material Planning

Production, Capacity and Material

Planning

Production plan

quantities of final product, subassemblies, parts needed at distinct

points in time

To generate the Production plan we need:

end-product demand forecasts

Master production schedule

Master production schedule (MPS)

delivery plan for the manufacturing organization

exact amounts and delivery timings for each end product

accounts for manufacturing constraints and final goods inventory

Production Management

101

Production, Capacity and Material

Planning

Based on the MPS:

rough-cut capacity planning

Material requirements planning

determines material requirements and timings for each phase of

production

detailed capacity planning

Production Management

102

Production, Capacity and Material

Planning

Updates

Rough-Cut

Capacity

End-Item

Demand

Estimate

Master

Production

Schedule

(MPS)

Detailed

Capacity

Planning

Material

Requirements

Planning

(MRP)

Material

Plan

Purchasing

Plan

Shop Floor

Control

Shop

Orders

Updates

Production Management

103

Master Production Scheduling

Aggregate plan

demand estimates for individual end-items

demand estimates vs. MPS

inventory

capacity constraints

availability of material

production lead time

...

Market environments

make-to-stock (MTS)

make-to-order (MTO)

assemble-to-order (ATO)

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104

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