L5 Production Planning & Control

What is production planning?

Production planning is the process of deciding what products to make, in what quantities, and by when.

What are the key tasks in production planning?

1. Deciding products, quantities, and deadlines
2. Scheduling parts delivery/production
3. Planning personnel and equipment resources

Why is a formal planning process important?

• Aligns production with business plans
• Ensures realistic, resource-based goals
• Manages complex data
• Maximizes efficiency
• Tracks progress against benchmarks

What is aggregate planning?

Planning what to produce, in what quantity, and when, based on anticipated demand and orders.

What is the Master Production Schedule (MPS)?

A "rough cut plan" resulting from aggregate planning that balances sales, financial, production, and resource goals.

What are the business needs balanced by MPS?

• Sales: Product availability
• Finance: Minimize lead times
• Production: Steady flow & batch efficiency
• Resources: Optimize manpower & usage

What is production scheduling?

Allocating machines & resources to jobs using the MPS, considering constraints.

What are the key tasks in production scheduling?

• Lot sizing
• Process routing
• Dispatch/loading
• Sequencing
• Works order generation

What are the key planning constraints?

• Meet delivery dates
• Minimize job lead times
• Reduce production period
• Balance workload
• Maintain steady productivity

What is Production Activity Control (PAC)?

Ensures execution of plans, monitors progress, and makes adjustments.

What are key PAC functions?

• Process monitoring & data collection
• In-process & final inspections
• Support services (material handling, tools)
• Breakdown policies
• Preventive maintenance

How can production capacity be adjusted short-to-medium term?

• Hire temporary staff
• Overtime for staff
• Schedule maintenance during low demand

What is a smooth production profile and why is it important?

It avoids peaks/troughs in activity, helping to optimize resource use and reduce idle time.