Mpc - Manufacturing Planning and Control

MPC: Manufacturing Planning and Control                          

Strategy: Business strategy; Operation strategy: shape the vision, support organizational strategy: Align with requirements; Communicate operations strategy and capability; Define key performance objectives; Track and reconcile;

Coordination among different business functions is necessary and key to developing a common strategy successfully Operations: Low customer service; Few Changes to output; High inventory levels

MPC: create and deliver the firm’s products and services (Revenue are planned, control manner to generate value added output, accordance with policies to respond to market needs) Manage resources and processes to add value and meet demand

MPC Principles: Coordinates the planning and control efforts; Supports the strategy and tactics pursued by the company; Different processes dictate the need for different designs; Should evolve to meet changing requirements in the market…; should be comprehensive

Demand Management & Forecasting Customer relationship Management (CRM) helps to improve operations efficiency and customer service through Design assistance expand product/service line; Information analysis; Fast and accurate order entry and tracking ;Order fulfillment; Customer service; Accurate documentation and invoicing

Forecast is the volume, mix and timing of expected customer demand

Customer Interactions

MTS: replenish inventory levels; ATO/MC: convert customer request to promised delivery date; complete previous partial processing; M/ETO: convert customer request to product specifications and promise date

Collaborative Planning, Forecasting and Replenishment (CPFR) Improve demand information between customers and providers. Ex. Retail; Reduce variance at individual product level; Closer, more timely sharing of forecast adjustments and actual demand data; Results in lower inventory and higher service levels.

How forecasting and demand planning adds value

Information is valuable as there are time lags is systems; Drive financial planning; proactive respond to demand fluctuations; better control, higher efficiency and customer service; reduce need fir slack/ extra resources; allows for lower inventory controls; Helps stabilize operations 

Forecasting is a process that converts data and/ or qualitative information into predictions of future events

Quantitative forecasts: Time series: repeated observations of demand for a service in their order of occurrence; Causal Models: Entrinsic; Simulation Models: try to represent past phenomena to evaluate data to project future outcomes