MANUFACTURING PLANNING MANUFACTURING PLANNING & CONTROL SYSTEM& CONTROL SYSTEM

Make the right goods at the right time at top qualityand do so as economically as possible.

Manufacturing Planning and Manufacturing Planning and Control (MPC)Control (MPC)

1. Production planning

2. Implementation and Control

3. Inventory Management

Manufacturing Planning and Control is responsible for the planning and control of the flow of material through the manufacturing processThe primary activities carried out are as follows:

A good planning systemA good planning system

• What are we going to make ?

• What does it take to make it ?

• What do we have ?

• What do we need ?

PRIORITY(Demand)

Capacity(Resources)

PRIORITY-CAPACITY RELATIONSHIP

Priority relates to what product are needed, how many are needed, and when they are needed.

Capasity is the capability of manufacturing to produce goods and services.Eventally it depends on the resources of the company : the machinery, labor, and financial resource , and the availability of material from suppliers.

MPCMPC

• 5 Mayor level :

- Strategic business plan

- Production Plan

- Master Production Schedule

- Material Requirements Plan

- Purchasing and Production Activity Control

STRATEGICBUSSINESS

PLAN

ProductionPlan

Financial Plan

MarketingPlant

EngineeringPlan

Strategic businessplan

Production plan

Master prod schedule

Material req plan

Prod activity cont.& puchasing

Planning

implementation

Master Plan

ManufacturingPlanning and Control system

PRODUCTION PLANPRODUCTION PLAN

• Quantity of each product group that must be produced in each period

• Desired Inventory levels

• Resources of equipment, labor, and material needed in each period

• Availability of the resources needed

Master Production ScheduleMaster Production Schedule

• Plan for the production of individual end items.

• Level of detail for the MPS is higher than for the production plan

Material Requirements PlanMaterial Requirements Plan

• Plan for Production and Purchase of the components used in making the items in the master production schedule.

• The levels of detail is high

Purchasing and Production Activity Purchasing and Production Activity ControlControl

• Represent the implementation and control phase of the production planning and control system.

• Purchasing is responsible for establishing and controlling the flow of raw materials into factory.

• Production and Activity Control is responsible for planning and controlling the flow of work through the factory.

Capacity ManagementCapacity Management

• At each level in the manufacturing planning and control system, the priority plan must be tested against the available resources and capacity of the manufacturing system.

MPS

RRP

I/O Cont.

Ops. Seq

CRP

RCCP

ManajemenPermintaan

STRAG BIS

Perencanaan.Produksi

MRP

PAC

Perencanaan Prioritas

Perencanaan Kapasitas

Purchasing

RRP = Resource Requirement PlanningRCCP = Rough-Cut Capacity PlanningCRT = Capacity Requirement Planning

MRP II System

Business Planning

Marketing Planning

Production Planning

Master ProductionScheduling

Material RequirementPlanning

Production Activity Control- Order release- Operation scheduling- Dispatching- Expediting- Production reporting

Performance Measurement

Purchasing- Vendor selection- Order placement- Vendor scheduling- Order follow-up

Demand Management - Forecasting - Distribution Requirement Planning - Order Entry

Final AssemblyScheduling

Resource Planning

Rough-Cut CapacityPlanning

Capacity RequirementPlanning

Operation Management Execution

Top

Management

Planning

Operation

Management

Planning

MANUFACTURING RESOURCE MANUFACTURING RESOURCE PLANNING ( MRP II )PLANNING ( MRP II )

• MRP II provides coordination between marketing and production, marketing, finance, and production agree on a total workable plan expressed in the production plan.

• Fully integrated planning and control system.

ENTERPRISE RESOURCE ENTERPRISE RESOURCE PLANNING ( ERP )PLANNING ( ERP )

• ERP is similar to the MRP II system except it dose not dwell on manufacturing. The whole enterprise is teken into account.

• APICS : An accounting oriented information system for identifying and palnning the enterprise – wide resources needed to make, ship, and account for customer orders.

Demand ManagementDemand Management

Four mayor activities :

• Forecasting.

• Order Processing.

• Making delivery promises.

• Interfacing between manufacturing planning & control and the marketplace.

Forecasting Forecasting

Forecasting adalah sebuah prediksi mengenai apa yang akan terjadi di masa yang akan datang.

Tiga Kategori Forecasting :

• Qualitative

• Extrinsic

• Intrinsic

Qualitative techniquesQualitative techniques

• Projections based on judgement, intuition and informed opinions.

• By their nature, they are subjective.

Extrinsic TechniquesExtrinsic Techniques

• Projection based on external indicators which relate to the demand for company’s products.

• Example : sales of automobile tires are proportional to gasoline comsumption.

Intrinsic TechniquesIntrinsic TechniquesA 12-month demand historyA 12-month demand history

Month Demand Month Demand

January 92 July 84

February 83 August 81

March 66 September 75

Aprill 74 October 63

May 75 November 91

June 84 December 84

Intrinsic TechniquesIntrinsic Techniques

Based on single month :

• Demand this month will be the same as last month 84

• Demand this month wil be the same as demand the same month last year 92

Intrinsic TechniquesIntrinsic Techniques

• Avarage demand : 79

• Moving avarages, exp 3-month moving average,

• Forecast January (63+91+84)/3 = 79

• Suppose that January demand turned out to be 90 instead of 79,

• Forecast February (91+84+90)/3 = 88

Rata-rata Bergerak Rata-rata Bergerak TertimbangTertimbang

• Misal untuk bulan Oktober (90), September (110) dan Agustus (130); diberi bobot tertimbang masing-masing 3, 2, 1 maka ramalan pada bulan Nopember adalah :

• (3(90) + 2(110) + 1(130) )/ (3 + 2 + 1) = 103.3

Intrinsic TechniquesIntrinsic TechniquesExponensial SmoothingExponensial Smoothing

Perioda Bulan Pesanan Ramalan α = 0.1

Ramalan α = 0.3

1 Januari 120 --- ---

2 Februari 90 120.0 120.0

3 Maret 100 117.0 111.0

4 April 75 115.3 107.7

5 Mei 110 111.3 97.9

6 Juni 50 111.2 101.5

7 Juli 75 105.1 86.1

8 Agustus 130 102.1 82.8

9 September 110 104.9 97.0

10 Oktober 90 105.4 100.9

11 November -- 103.9 97.6

Penghalusan EksponensialPenghalusan Eksponensial

• Permintaan bulan Februari D2 = 90

• Ramalan bulan Februari F2 = 120• F3 = α D2 + (1-α) F2

= (0.1) (90) + (0.9) (120)

= 117

• F4 = α D3 + (1-α) F3

= (0.1) (100) + (0.9) (117)

= 115.3

Exponensial Smoothing

Seasional IndexSeasional Index

Seasional sales history

Year Quarter

1 2 3 4 Total

1 122 108 81 90 401

2 130 100 73 96 399

3 132 98 71 99 400

Average 128 102 75 95 400

Seasional IndexSeasional Index

• Seasional Index = (period avg demand) / (avg demand for all periods)

• SI = 128 / 100 = 1.28 untuk kwartal-1

• SI = 102 / 100 = 1.02 untuk kwartal-2

• SI = 75 / 100 = 0.75 untuk kwartal-3

• SI = 95 / 100 = 0.95 untuk kwartal-4

• The company forecast an annual demand next year of 420 units

Seasional IndexSeasional Index

• Forecast average quarterly demand

= 420 / 4 = 105 units

Expected first-quarter demand

= 1.28 x 105 = 134.4 units

Expected second-quarter demand

= 1.02 x 105 = 107.1 units

…

STRATEGI PERENCANAAN STRATEGI PERENCANAAN PRODUKPRODUK

• LEVEL METHOD

• CHASE STRATEGY

• HYBRID / COMPROMISE

• SUBCONTRACTOR

0

2

4

6

8

10

1 2 3 4 5 6 7 8 9 10 11 12

Series1

0

2

4

6

8

10

1 2 3 4 5 6 7 8 9 10 11 12

Series1

CHASE

0

2

4

6

8

10

1 2 3 4 5 6 7 8 9 10 11 12

Series1

Series2

LEVELING PRODUCTION

0

2

4

6

8

10

1 2 3 4 5 6 7 8 9 10 11 12

Series1

Series2

HYBRID / COMPROMISE

Permintaan Produksi Inventori

PERIODA 0 1 2 3 4 5 6 7 8 9 10 11 12

PERMINTAAN TOTAL   5 5 5 15 25 35 35 35 35 25 15 5

INVENTORY 30                        

DESKRIPSI0 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL

1. Permintaan Total 5 5 5 15 25 35 35 35 35 25 15 5 2402. Rencana Produksi (LP) 20 20 20 20 20 20 20 20 20 20 20 20 2403. Inventori (LP) 30 45 60 75 80 75 60 45 30 15 10 15 30 5404. Rencana Produksi (CS) 5 5 5 15 25 35 35 35 35 25 15 5 2405. Inventori (CS) 30 30 30 30 30 30 30 30 30 30 30 30 30 3606. Rencana Produksi (Com) 0 0 0 0 40 40 40 40 40 40 0 0 2407. Inventori (Com) 30 25 20 15 0 15 20 25 30 35 50 35 30 300

DESKRIPSI0 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL

1. Permintaan Total 10 10 10 20 20 20 30 30 30 70 55 352. Rencana Produksi (LP)3. Inventori (LP) 04. Rencana Produksi (CS)5. Inventori (CS) 06. Rencana Produksi (Com)7. Inventori (Com) 0

PERIODA WAKTU ( BULAN)

PERIODA WAKTU ( BULAN)

Permintaan Produksi Inventori

Total CostTotal Cost

• If the cost of carrying inventory is $5 per case per periode based on ending inventory, what is the total of carrying inventory

• If the cost changing production level is $20, What is the total cost of the plan

PROBLEMPROBLEM

• A Company wants to produce 10,000 units of an item over teh nest three months at a level rate. The first month has 20 working days, the second, 21 working days, and the third, 12 working days because of an annual shutdown. On the average, how much should the company produce each day to level production?

PROBLEMPROBLEM

• Amalgamated Fish Sinkers makes a product group of fresh fish sinkers and wants to develop a production plan for them. The expected opening inventory is 100 cases, and they want to reduce that to 80 cases by the end of the planning period. The number of working days is the same for each period. There are no back orders. The expected demand for the fish sinkers per period is as follows: 110, 120, 130. 120, 120.

• a. How much should be produced each period?• b. What is the ending inventory for each period?• c. If teh cost of carrying inventory is $5 per case per

period based on ending inventory, what is the total cost of carrying inventory?

• d. What will be the total cost of the plan?