Chapter 1 - MPC

Supplier systems and shop-floor systems

Back end of MPC system includes...

Short term

Detailed scheduling of resources is required to meet production requirements - involves time, people, material, equipment, and facilities; need performance indicators such as output results, equipment utilization, costs associated with different departments, product returns, labor utilization, quantity errors, etc.; also need measures of customer satisfaction

Detailed material planning, detailed capacity planning, and material and capacity plans

Engine of MPC system includes...

Resource planning, S&OP, Demand management, and master production scheduling (MPS)

Front end of MPC system includes...

Flexibility and responsiveness

"Winning requires ... and .... in dealing with even more fickle customer demands"

The nature of the product, processes, or both change

MPC emphasis changes as...

Static - the need for matching is ongoing

MPC process is not

ERP System

MPC usually embedded in...

Medium term

Matching supply and demand in terms of volume and product mix; focus is on providing the exact material and production capacity to meet customer needs at the right time; provide customer and supplier with expected delivery time; sets corporate budget, sales plans, quotas, etc.

Long term

Provides info to make decisions about the appropriate amount of capacity and to meet the market demands of the future (direction and capacity)

3 time horizons: long, medium, and short term

Support activities of MPC broken into

Ensure system activities are synchronized and focused on the firm's strategy. This ensures that the detailed MPC decision making is in harmony with the company's game plan

The key to keeping the MPC system matched to evolving company needs is to...

Essential task of MPC system

To manage efficiently the flow of materials, the utilization of people and equipment, and to respond to customer requirements by utilizing the capacity of suppliers, internal facilities, and (in some cases) that of customers to meet customer demand; it provides info upon which managers make effective decisions

MRP and JIT

Typical MPC responses to forces for change

Automation, simplification, and production cells for cellular manufacturing

Typical process responses to forces for change