Enterprise Resource Planning

(ERP)

Concept of Production (Planning & Control)

Production Planning and Execution - Components
Example of sub-modules:
Key functions will depend on each ERP package
Sales Info System
▪Information contains total sales orders already obtained,
incoming sales orders, pending sales orders – product wise,
customer wise, region wise.

Forecasting
▪Based on the past history of consumption, a forecast of
the sales figures for a product can be made.
▪Future projections are made using one of the Statistical
forecasting methods.

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Production Planning and Execution - Components
CO/PA
▪Projections will be based on the company’s future
projection of revenue & costing for profitability analysis.

Sales & Operations Planning

▪Higher level planning i.e. overall planning at company level
Yearly/Half yearly/Quarterly Planning.

Demand Management
▪Management of Requirements
▪Requirements can be from sales forecasts, sales orders, etc.

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Production Planning and Execution - Components

MPS (Master Production Scheduling)

▪Planning of items (majority = finished products) that greatly
influence the company’s profits or consume critical
resources/dominate production processes.
▪After the production plan of these critical items are firmed
up, the planning of other components (MRP) are taken up.

MRP (Material Requirement Planning)

▪This is the total planning of all the components taking into
consideration the existing requirements and stocks.
▪Creation of purchase requisitions, production orders, etc.
▪Final step in the planning process.
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Production Planning and Execution - Components

CAPACITY PLANNING
▪Capacity planning supports planning in all its phases:
▪ Long-term planning (high level of Production Resource)
▪ medium-term planning (Rough-cut planning)
▪ short-term detailed planning (Capacity Requirement Planning)

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Production Planning and Execution - Components

MANUFACTURING EXECUTION
▪ Whatever Manufacturing Types (Discrete, Repetitive and
Process Industries) they are, the production output
(quantities), raw materials consumed and effort
(including people and other resources e.g. machines)
consumed will be recorded either by automatic or
manual procedures.
ORDER SETTLEMENT
▪ Costs accrued to an order are debited to one or
several

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Production Planning and Execution - Components

STANDARD PRODUCTION PLANNING REPORTS

Stock/Requirements List
Lists the latest stock/requirement position of a material
in the plant i.e. planned orders, production orders,etc.

Production Plan
This report lists the monthly production plans – material
and plant wise.

Orders
This report lists the orders pending/completed for a material
material wise or work center wise..

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Production Planning and Execution - Components

STANDARD PRODUCTION PLANNING REPORTS

Consumption
Lists the consumption of a material for the period in
question.
Quantity produced
This report lists the quantity of the material produced during the
Period in question.

Work center Loads

This report lists the available capacities, required capacities,
remaining available capacities and %load for the work center.

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Production Planning and Execution - Components

STANDARD PRODUCTION PLANNING REPORTS

Missing parts
Lists the missing parts that are required for the production of
a material.

Backlogs
Lists the backlog of the load at a work center for the period
in question.