Lectures on Production Planning and Control for B.Sc. Students - Industrial Engineering Branch -Department of Production Engineering and Metallurgy- University of Technology - Baghdad -Iraq

1. PRODUCTION PLANNING HIERARCHY
Assistant Professor Dr. Mahmoud Abbas Mahmoud
Industrial Engineering Branch
Department of Production Engineering and Metallurgy
University of Technology
Baghdad - Iraq
dr.mahmoudalnaimi@uotechnology.edu.iq
dr.mahmoudalnaimi@yahoo.com
2015 - 2016

2. 6201-5201Production Planning and Control Dr. Mahmoud Abbas Mahmoud
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4- PRODUCTION PLANNING HIERARCHY
Typically, the manufacturing organizations have three categories of
managerial planning activities whose names "strategic", "tactical", and
"operational" production planning. Strategic planning is clearly of "long-
range" scope planning decisions. It is a responsibility of top management
so it is called "business planning". Tactical planning is a "medium-
range" activity involving middle managements. Finally operational
planning, which involves "short-range" actions, and it is normally
executed by lower levels of management (factory operations managers).
Long-range (business plans) are necessary to develop facilities and
equipment, major suppliers, and production processes and become
constraints on the medium-range plan. Medium-range is "aggregate
plans" concerning with employment, aggregate inventory, utilities,
facility modifications, and material-supply contracts. These aggregate
plans impose constraints on the short-range production plans that follow.
So short-range is "Master Production Schedules" (MPS) for producing
finished goods or end items, which are used to derive production planning
and control systems. These systems develop short-range production
schedules of parts and assemblies, schedules of purchased materials,
shop-floor schedules, and workforce schedules. Figure (1) gives an
illustration of the planning activities.

3. 6201-5201Production Planning and Control Dr. Mahmoud Abbas Mahmoud
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Figure (1) Production Planning Hierarchy
Business Planning
Aggregate
Production
Planning
Master Production
Scheduling
Production
Planning and
Control Systems
Planning Horizon
Description
Long-Range
(1-5 Years Horizon)
Medium-Range
(3-12 Months Horizon)
Short-Range
(1-90 Days Horizon)
Top management make long-range plans
for (1)facilitates- plant locations, layouts,
size, and capacities; (2) major supplier
plans and amount of vertical
integrations; (3) processing plans- new
production technology, new production
processes, new system of automations.
Factory operations managers make
plans for (1) production schedules of
parts and assemblies to be
manufactured; (2) schedules of
purchased materials; (3) shop floor
schedules–machine changeovers,
batch movements; (4) workforce
Middle management make plans for (1)
employment–layoffs, hiring, recalls,
vacations, overtime, part-time
employees; (2) inventories; (3) utilities;
(4) facility modifications; (5) material-
supply contractors.
Phase I
Phase II