Production Planning

MACRO 2000 Production Planning and Control ERP System

Production Planning
The Macro Production Planning and Control Systems follow very simple and well established principles.
To produce the Correct Product to meet demand at the required time
To do so at the lowest Practical Cost
To do so with the shortest practical lead times
To do so with the maximum degree of simplicity and flexibility
To make the available resources as efficient as possible
The system is designed to allow a wide range of facilities and options. These are not compulsory and the user need only use the facilities that he requires.

Main Objectives
To ensure that the correct products are manufactured, at the lowest practical cost, to be available at the right time.
Resource Capacity Planning to enable the user to analyse the available capacity of men and machines against capacity required by the order situation or the actual production plan.
To assist in the translation of the over-all requirement into a production schedule.
To provide facilities to plan the production schedule in detail and ensure that production resources are fully utilised without unnecessary under or over-utilisation.
Material Requirement Planning to enable the user to correctly schedule the ordering of raw materials to meet the requirements of the production schedule.

To achieve this the Macro system provides three main subsystems:
Product Net Requirement Planning
Production Planning including Materials Planning and Resource Planning.
Production Scheduling

Product Requirement Planning
The first phase of Production Planning is deciding what products to manufacture.
The basic planning reports to provide this information are:-

Sales Forecast Sub-system. This is an optional facility which allows the recording of Sales Forecasts by product or product group by period (week or month) for as many periods needed for the planning horizon. This facility is used for companies who manufacture fully or partially to a sales or manufacturing plan.

Master Planning Facility allows the user to load a production budget by product by period (week or month) for as far in the future as needed. The Master Plan is basically a long term planning aid. Materials planning and capacity planning can be carried out against the Master Plan.

Order System Reports. The Customer Order System records all orders received for future delivery. The order system provides many different types of order analysis including time based delivery requirement analysis

Current Work in Progress
Stock Requirement and Availability Report. . The Macro system basis much of its product requirement planning facilities on the concept of stock and availability ie. what stock is available, and when it is available. This takes into account the stock on hand, stock becoming available at a later date and the current and future demand on that stock. The stock and availability is the key report which identifies, by time period, the stock that is required and the stock that will be available, with stock shortfalls by period, cumulative and in total. Requirements are obtained from the Sales Forecast and/or the Customer Order Book. Availability is determined from the Stock on Hand, the Purchase Orders Outstanding, Production Plan and Work in Progress. This report has the ability to explode a product to an unlimited number of levels and to carry out independent stock and availability calculations at each level. i.e.. it operates at the component level as well as the product level. The result of this process is available on a report or as an on-line inquiry.

Materials Requirement Planning
The objective of the Material Requirements Planning is to ensure that the Materials required to complete the planned production are available, and if they have to be ordered, that they should be ordered in good time, and received before they are needed. Materials Requirement Planning Reporting is the next level of breakdown of the Production Plan.

Reports are available at several levels:-
M.R.P. based on orders received but not dispatched (or on the Production Master Plan). This report is produced well before production start to check materials on hand, and on order, to requirements based on the required production level. This is normally a long term planning report.
MRP based on the Stock and Availability Report
M.R.P. based on the actual production plan. The source of the quantities, and product to be produced is by production period. It is normally printed as soon as a detailed production plan is loaded for a particular period. The M.R.P. report has the same explosion and multi-level facilities as the Stock Requirement and Availability Report. i.e. Explosion to an unlimited number of levels and full Stock and Availability planning at each level.
All Material Requirements Reports follow the same basic principles. The product requirement is determined from one of several optional sources. (Stock Requirement and Availability Shortfall, Production Plan, Master Production Plan, Sales Forecast, Order Book etc.) The system uses the Bill of Materials, which describes the exact make-up of each product to determine the unit material requirements. Stock on hand is obtained from the Raw Materials Stock Master data base. Stock on order is obtained from the Purchase Order data base . The M.R.P. reports are time based and show shortfalls and availability/net shortfall to as many levels of explosion as required. All shortfalls are shown in two periods, the period required, and the period in which ordering is required to ensure on time delivery.

Resource Capacity Planning
This is similar to Materials Requirement Planning, except that the resources that are analysed are capacity related.
These can be:-
Machines or Processes or Cost Centres. Machines can be recorded individually or by machine group. Any other production facility can be defined as a production cost centre.
Labour may be recorded in as many categories as required.
The capacity information (number of installed units, capacity hours per production period resource efficiency rating and availability) is stored on the relevant record in the Resource Master File. This enables the system to calculate the total availability of each resource.
The Bill of Materials/Standard Costing System contains details of the resources required to manufacture each product. The combination of the Production Plan quantities and the resource requirement ex the Bill of Materials enables the system to calculate the total requirement of each resource.
Planning Reports are all time period based. Resource planning can also be expanded to an unlimited number of levels.
Planning Reports are available from:-
Stock and Availability Data Base
The Production Master Plan
Production Job Master File
The Master Scheduling Master File

Master Scheduling System
An optional Master Scheduling System will allow the user to carry out Capacity Planning on a closed loop finite capacity basis. The plan may be modified and replanned as often as required until an acceptable plan is created. This may then be copied to the Production Job Master File to become the actual plan.
This facility creates the actual job schedule, job by job, on a practical basis and provides finite capacity planning i.e. once a resource is fully loaded for a period later jobs are planned to commence at a later date when the resource is available for use. The system provides for final product manufacture and sub-assembly. i.e. the time relationship between component manufacture and the final product is supported.
The system contains a model of the company’s production resources and a full factory calendar for the period being planned. This model is used to create a model of the capacity available (fully time based). The Production Jobs, or Stock and Availability reporting is used, with the Bill of Materials, or the Production Routing, to create a model of the capacity required (also time based).
The scheduling system matches requirement to availability on a finite basis (ie. a resource cannot be overloaded – over use of capacity moves the process to a later time period, so that the effect of over utilisation is late delivery)
Information that may be modified for each trial schedule is as follows:-
Production Quantities
Production Units or Machines to be used in the manufacturing process
Production Planning level i.e. The level of detail to which the current trial plan must be calculated
Job Priorities
Job Planned Start Dates
Efficiency of machines or processes
Available Capacity
Utilisation time of processes