Fundamentals of Production Planning and Control

by Chapman, Stephen N.

• ISBN13: 9780130176158
• ISBN10: 013017615X
• Edition: 1st
• Format: Paperback
• Copyright: 2005-03-01
• Publisher: Pearson

Summary

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.

Table of Contents

Preface	xi
CHAPTER 1 Overview of Planning and Control	1	(16)
1.1 Manufacturing versus Service Operations	2	(1)
1.2 Customer Influence in Design: Production Environmental Choices	3	(1)
1.3 Process Categories	4	(3)
1.4 Order Winners and Qualifiers	7	(2)
1.5 Business Environment Issues	9	(1)
1.6 Process Analysis and Information Flows	10	(2)
1.7 General Information Flows	12	(1)
1.8 Book Structure	12	(1)
Key Terms	13	(1)
Summary	14	(1)
Discussion Questions	14	(1)
References	15	(2)
CHAPTER 2 Forecasting Fundamentals	17	(28)
2.1 Fundamental Principles of Forecasting	17	(1)
2.2 Major Categories of Forecasts	18	(17)
Qualitative Forecasting	18	(4)
Quantitative Forecasting-Causal	22	(1)
Quantitative Forecasting-Time Series	23	(12)
2.3 Forecast Errors	35	(3)
2.4 Computer Assistance	38	(2)
Key Terms	40	(1)
Summary	40	(1)
References	41
Discussion Questions	40	(1)
Exercises	40	(5)
CHAPTER 3 Sales and Operations Planning	45	(26)
3.1 Purpose of Sales and Operations Planning	46	(1)
3.2 General Design of Sales and Operations Planning	47	(1)
3.3 Approaches to Sales and Operations Planning	48	(2)
Make-to-Stock View of an S&OP	48	(1)
Make-to-Order View of an S&OP	49	(1)
3.4 Strategies for Sales and Operations Planning	50	(4)
Some Techniques	50	(1)
Trade-off Approaches	51	(3)
3.5 Balancing Resources in Sales and Operations Planning	54	(3)
3.6 Discussion: A Simple Example	57	(3)
Chase	58	(1)
Level	58	(1)
Combination	59	(1)
3.7 Qualitative Issues	60	(3)
3.8 Some Business Environment Issues	63	(1)
Key Terms	64	(1)
Summary	64	(1)
References	64	(1)
Discussion Questions	65	(1)
Exercises	65	(6)
CHAPTER 4 The Master Schedule	71	(28)
4.1 Background and Links to the S&OP	72	(1)
4.2 Master Schedule Horizon	73	(1)
4.3 Time Fences	74	(2)
4.4 Sources of Demand	76	(1)
4.5 Basic Methodology	76	(2)
4.6 Impact of Product Environment	78	(1)
4.7 General Approach to Master Schedule Development	79	(1)
4.8 Available-to-Promise Logic	80	(3)
4.9 Planning Options in an ATO Environment	83	(2)
4.10 The Two-Level Master Schedule	85	(2)
4.11 Some Notes on the Master Scheduling Responsibility	87	(2)
4.12 Demand Management Overview	89	(1)
4.13 Elements of Demand Management	90	(4)
Key Terms	94	(1)
Summary	94	(1)
References	94	(1)
Discussion Questions and Problems	95	(4)
CHAPTER 5 Inventory Management	99	(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