How to Do Production Planning and Control

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Production, Planning and Control
Dr. Sindhuja

• The most important business module – Production. Why?...

Objectives
• The ultimate objective of production planning and control, is to contribute to the profits of the enterprise. • this is accomplished by keeping the customers satisfied through the meeting of delivery schedules. • Specific objectives of production planning and control are to establish routes and schedules for work that will ensure the optimum utilization of materials, workers, and machines • and to provide the means for ensuring the operation of the plant in accordance with these plans.

Components of PP
• SOP: Sales and operations planning • DRP: Distribution Requirements Planning • MRP: Materials Requirement Planning

DRP
• The objectives of Distribution Resource Planning (DRP) in the SAP R/3 System are: • To improve customer service levels by anticipating customer demand at distribution centers and providing finished products at the correct location when customer needs arise. • To provide an accurate requirements plan for manufacturing. • To optimize the distribution of available stock in the distribution network using the deployment function. • Deployment lets you take action when a requirements shortage or surplus is calculated as a result of DRP runs. Deployment uses algorithms for "fair share" distribution when demand exceeds supply and "push," "pull," or "pull/push" distribution when supply exceeds demand.

Sales & Operations Planning
• Sales & Operations Planning (SOP) is a flexible forecasting and planning tool with which sales, production, and other supply chain targets can be set on the basis of historical, existing, and estimated future data. • Rough-cut planning can also be carried out to determine the amounts of the capacities and other resources required to meet these targets. • Use SOP to streamline and consolidate your company’s sales and production operations. • SOP is particularly suitable for long- and medium-term planning.

MRP
• The main function of material requirements planning is to guarantee material availability, that is, it is used to procure or produce the requirement quantities on time both for internal purposes and for sales and distribution. • This process involves the monitoring of stocks and, in particular, the automatic creation of procurement proposals for purchasing and production.

Production Planning
• The function of Demand Management is to determine requirement quantities and delivery dates for finished products assemblies. • Customer requirements are created in sales order management. • To create a demand program, Demand Management uses planned independent requirements and customer requirements.

KANBAN Production control method
• A system of continuous supply of components, parts and supplies, such that workers have what they need, where they need it, when they need it. • This is called a "pull" type of production system. The number of items that are made depends on the customer demand

Production Process
• • Production Proposal: This may come from MRP, Sales Order, manual or any number of ways Capacity: This is optional. Capacity will check to ensure you have enough manufacturing capacity to meet the production requirements need to make a product Release and schedule: These may two completely independent functions. You may want to schedule independently to maximize capacity or minimize cost then release the orders. Shop floor documents : These go along with the order on the floor. Many organizational use completely electronic shop floor control documents. Good issue (raw materials) These are consumed in the manufacturing process Completion confirmation: The product is now finished and often times just sitting at the end of the production line waiting to be put away. Goods receipt of finished product: Putting away of the product Order settlement: How much did it cost. Now, we can review the variances against expectations.

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