How to Do Production Planning and Control

Good Essays
Production, Planning and Control
Dr. Sindhuja

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

• 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

• 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

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