Introduction to Production Planning

Introduction to
Production Planning
The role of hierarchical production planning
in modern corporations:
An MRP-based “push” framework
(borrowed from Heizer and Render)
Production Planning through
Time-based Decomposition
Corporate Strategy
Aggregate Unit
Demand
Aggregate Planning
(Plan. Hor.: ½-2 years, Time Unit: 1 month)
Capacity and Aggregate Production Plans
End Item (SKU)
Demand
Master Production Scheduling
(Plan. Hor.: a few months, Time Unit: 1 week)
SKU-level Production Plans
Manufacturing
and Procurement
lead times
Materials Requirement Planning
(Plan. Hor.: a few months, Time Unit: 1 week)
Component Production lots and due dates
Part process
plans
Shop floor-level Production Control
(Plan. Hor.: a day or a shift, Time Unit: real-time)
A CONWIP-based “pull” framework
(borrowed from Hopp & Spearman)
Reading Assignment
This part of the course is based on
– Chapters 3-5 and
– Chapter 13-16
of your textbook, plus on
– any other material reported or quoted in class.