ECO Note.doc

Session 1:Planning, execution, and control overview
Closed-loop system
The MPC system is a closed-loop system. A close-looped system is a system that monitors plishment against the plan. It has an internal control and replanning capability. It typically includes:
Sales and operations planning
Master production scheduling
Material requirements planning
Capacity planning
The execution functions include the manufacturing control functions of
Input-output capacity
Detailed scheduling
Dispatching
Anticipated delay reports from both the plant and suppliers
Supplier scheduling
The planning and control process consists of the following steps: establish a plan, execute the plan, measure performance, and take corrective actions.
Primary object of planning and control process
Maximizing customer service
Limiting inventory investment
Maintaining high operating efficiencies.
Interface is a point of interaction between two systems or work groups.
Planning interfaces
Interactions that facilitate the planning and control of production activity
Communication channels that transfer the following information to the anization
Production plan
Master production schedule
Material requirements plan
Capacity requirements plan
Business planning
Business planning, while outside of the MPC boundaries, is considered part of the MPC system because it has d direct impact on the subsequent planning activities. The plan must be consistent with strategic plans, departmental budgets, and the firm’s capabilities. The business plan is typically prepared annually and updated on a quarterly basis. A business plan is usually panied by supporting financial statements, such as budgets and a projected balance sheet or cash flow statement. A business plan is a statement of long-range:
Strategy
Revenue
Cost
profit
A business plan is usually stated in terms of dollars and grouped by product family. The business plan, the production plan, the master schedule, the material requirem