Fundamentals of Production Planning and Control

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ISBN: 9780130176158 | 013017615X
Cover: Paperback
Copyright: 3/1/2005

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This focused book concentrates on planning and control; it answers the question: "what parts of operations management do we really need to know?" It does not bog the reader down with details, but allows them to concentrate on fundamental principles, such as the development and application of software solutions, inventory management, and lean production concepts. Topics include: forecasting, sales and operations, scheduling, materials requirements, capacity management, production control, "partnering" activities, and system integration.An excellent handbook for operations managers, production control workers, inventory control employees, and those involved in supply chain, logistics, and materials management.

Preface

CHAPTER 1 Overview of Planning and Control

(16)

1.1 Manufacturing versus Service Operations

(1)

1.2 Customer Influence in Design: Production Environmental Choices

(1)

1.3 Process Categories

(3)

1.4 Order Winners and Qualifiers

(2)

1.5 Business Environment Issues

(1)

1.6 Process Analysis and Information Flows

(2)

1.7 General Information Flows

(1)

1.8 Book Structure

(1)

Key Terms

(1)

Summary

(1)

Discussion Questions

(1)

References

(2)

CHAPTER 2 Forecasting Fundamentals

(28)

2.1 Fundamental Principles of Forecasting

(1)

2.2 Major Categories of Forecasts

(17)

Qualitative Forecasting

(4)

Quantitative Forecasting-Causal

(1)

Quantitative Forecasting-Time Series

(12)

2.3 Forecast Errors

(3)

2.4 Computer Assistance

(2)

Key Terms

(1)

Summary

(1)

References

Discussion Questions

(1)

Exercises

(5)

CHAPTER 3 Sales and Operations Planning

(26)

3.1 Purpose of Sales and Operations Planning

(1)

3.2 General Design of Sales and Operations Planning

(1)

3.3 Approaches to Sales and Operations Planning

(2)

Make-to-Stock View of an S&OP

(1)

Make-to-Order View of an S&OP

(1)

3.4 Strategies for Sales and Operations Planning

(4)

Some Techniques

(1)

Trade-off Approaches

(3)

3.5 Balancing Resources in Sales and Operations Planning

(3)

3.6 Discussion: A Simple Example

(3)

Chase

(1)

Level

(1)

Combination

(1)

3.7 Qualitative Issues

(3)

3.8 Some Business Environment Issues

(1)

Key Terms

(1)

Summary

(1)

References

(1)

Discussion Questions

(1)

Exercises

(6)

CHAPTER 4 The Master Schedule

(28)

4.1 Background and Links to the S&OP

(1)

4.2 Master Schedule Horizon

(1)

4.3 Time Fences

(2)

4.4 Sources of Demand

(1)

4.5 Basic Methodology

(2)

4.6 Impact of Product Environment

(1)

4.7 General Approach to Master Schedule Development

(1)

4.8 Available-to-Promise Logic

(3)

4.9 Planning Options in an ATO Environment

(2)

4.10 The Two-Level Master Schedule

(2)

4.11 Some Notes on the Master Scheduling Responsibility

(2)

4.12 Demand Management Overview

(1)

4.13 Elements of Demand Management

(4)

Key Terms

(1)

Summary

(1)

References

(1)

Discussion Questions and Problems

(4)

CHAPTER 5 Inventory Management

(26)

5.1 Basic Concepts of Inventory

100

(1)

5.2 Categories of Inventory

101

(3)

5.3 The Basic Inventory Lot Sizing Model-Economic Order Quantity (EOQ)

104

(3)

5.4 Basic Independent Demand Inventory Reorder Models

107

(5)

5.5 Inventory Control

112

(8)

Location Approaches for Stockrooms and Warehouses

113

(1)

Maintaining Inventory Data Accuracy

114

(3)

Obtaining Accurate Inventory Records

117

(3)

Key Terms

120

(1)

Summary

120

(1)

References

121

(1)

Discussion Questions and Problems

121

(4)

CHAPTER 6 Material Requirements Planning

125

(38)

6.1 Background and Fundamental Concepts

126

(4)

The Problem with Reorder Points

126

(4)

6.2 Bills of Material

130

(9)

6.3 The MRP "Explosion"

139

(2)

Common Lot Sizing Rules

139

(2)

6.4 Other MRP Issues

141

(8)

Generation of Data

141

(1)

Updating Information

141

(2)

Exception Messages

143

(1)

Other Sources of Demand

144

(5)

6.5 Potential MRP Challenges

149

(1)

6.6 Enterprise Resource Planning (ERP)

150

(2)

6.7 Business Environment Issues

152

(1)

Key Terms

153

(1)

Summary

153

(1)

References

154

(1)

Discussion Questions and Problems

154

(9)

CHAPTER 7 Capacity Management

163

(16)

7.1 Capacity Definitions

164

(1)

7.2 Rough-Cut Capacity Planning

165

(4)

7.3 Capacity Requirements Planning (CRP)

169

(2)

7.4 Input/Output Control (I/O)

171

(1)

7.5 Capacity Measures

172

(1)

7.6 General Approach to Capacity Management

173

(1)

Key Terms

174

(1)

Summary

174

(1)

References

175

(1)

Discussion Questions and Problems

175

(4)

CHAPTER 8 Production Activity Control

179

(16)

8.1 General PAC Information and Data

180

(3)

8.2 Prioritizing Work

183

(3)

Scheduling in MRP and "Pull" Production Environments

186

(1)

8.3 Scheduling

186

(2)

8.4 Loading

188

(3)

Infinite Loading

188

(1)

Finite Loading

188

(3)

8.5 Corrective Actions

191

(1)

Key Terms

192

(1)

Summary

192

(1)

References

192

(1)

Discussion Questions and Problems

193

(2)

CHAPTER 9 Lean Production and JIT

195

(24)

9.1 Fundamental Concepts

196

(8)

9.2 Some Impacts on Capacity

204

(1)

9.3 The Pull System

205

(3)

The Bicycle Example Revisited

207

(1)

The "Down Side" of the Change

208

(1)

9.4 Kanban

208

(6)

How It Works 209 Kanban Rules

211

(1)

Number of Kanban Cards

211

(2)

Kanban Card Alternatives

213

(1)

Setting Priorities with Kanban

214

(1)

9.5 Using the Kanban System for Process Improvement

214

(1)

9.6 Master Scheduling and Lean Production

215

(1)

9.7 Are MRP and Kanban Compatible?

216

(1)

Key Terms

217

(1)

Summary

217

(1)

References

217

(1)

Discussion Questions

218

(1)

CHAPTER 10 Fundamentals of the Theory of Constraints

219

(14)

10.1 Fundamental Principles of the Theory of Constraints

220

(1)

10.2 Understanding and Managing the Constraint

221

(2)

10.3 Improving the Process Using TOC Principles

223

(2)

10.4 Impact on Operations Strategy

225

(1)

10.5 General Types of Constraints Causes

226

(1)

10.6 Logistics and the Theory of Constraints

226

(2)

10.7 Scheduling and the Theory of Constraints

228

(1)

10.8 Multiple Time Buffers

228

(2)

10.9 Control Points and Batches

230

(1)

10.10 Major Steps in Using the Drum-Buffer-Rope Method

231

(1)

Key Terms

231

(1)

Summary

232

(1)

References

232

(1)

Discussion Questions

232

(1)

CHAPTER 11 "Partnering" Functions: Purchasing and Distribution

233

(16)

11.1 Purchasing Information Issues

234

(2)

11.2 Purchasing Responsibilities for Material Procurement

236

(2)

11.3 Distribution Requirements Planning

238

(8)

Basic DRP Structure

240

(1)

Key Data Requirements

241

(2)

The Bill of Distribution

243

(1)

Using the BOD for DRP

244

(2)

DRP in a Lean Production "Pull" Environment

246

(1)

Key Terms

246

(1)

Summary

246

(1)

References

247

(1)

Discussion Questions and Problems

247

(2)

CHAPTER 12 System Integration and Implementation

249

(14)

12.1 General System Design and Selection

249

(3)

12.2 "Push," "Pull," or Somewhere in Between?

252

(4)

Hybrid System #1 MRP with Lean Principles

253

(1)

Hybrid System #2 Kanban with MRP Planning

253

(1)

Hybrid System #3 Using MRP for Capacity and Long Lead Time Items

254

(1)

Hybrid System #4 Pull Systems with "Spike" Control

254

(1)

Focus on the Point of Customization

255

(1)

12.3 General Implementation Approaches

256

(5)

Major Process Steps in Implementation

257

(4)

Summary

261

(1)

Discussion Questions

262

(1)

Index

263

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Fundamentals of Production Planning and Control

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