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Manufacturing Planning and Control  MPC



A good Production Planning System must answer Four Questions of Priority and Capacity:

  • What are we going to make? 

  • What does it take to make it? 

  • What do we have? 

  • What do we need?


As established by the marketplace, relates to What products are needed, How Many are needed, and When they are needed.


is the Capability of manufacturing to produce goods and services (deliverables).  It depends on company Resources and the Availability of Material from suppliers.




MPC Role

MPC is responsible for the planning and control of the flow of materials through the manufacturing process

J.R. Tony Arnold , Stephen N. Chapman, Introduction to Material Management

MPC Purpose

The use of Quantitative Techniques to Optimize the Manufacturing Processes i.e. to give customer the Most possible value (utility) at the Lowest possible Total Cost (consumption of resources)

  • Traditionally, MPC systems have had a resource focus as in MRP II and ERP

  • Recently, manufacturing re-engineering programs such as time-based management and total quality management have brought on a change of focus from resources to business processes.

  • Consequently, we need to identify the business processes that are relevant to manufacturing planning and control,

  • and to study the MPC system as a process management support system.

3. MPC  Primary Activities

  1. Production Planning includes:

    • Forecasting,

    • Master planning MPS

    • Material Requirements Planning MRP

    • Capacity Planning

  2. Implementation and control (Production Activity Control) PAC

  3. Inventory management

    Provide buffer against the differences in demand rates and production rates

4. The Five Major Inputs of MPC

  • Product Description (engineering drawings, specifications and bill of material BOM),

  • Process specifications,

  • Standard time needed to perform operations,

  • Available facilities, and

  • Quantities Required (independent demand).

6. Capacity Management

  • At each level in the manufacturing planning and control system, the priority plan must be tested against the available resources and capacity of the manufacturing system.

  • The basic process is one of calculating the capacity needed to manufacture the priority plan and of finding methods to make that capacity available.

  • If the capacity cannot be made available when needed then the plans must be changed.





Decision level



Decision Aspects

Sales and operations planning (S&OP) 1-5 years ≥ month Aggregated (product family) Planning strategy
Aggregated capacity
Master production scheduling (MPS) ≤ 1 year ≈Week Products, delivery objectives Product mix - Capacity planning - Determine delivery schedule - Customer order point - (MTS/ATO/MTO)
Requirements planning (MRP) material and capacity 2-6 months Week / day Specific units Specific resources (work center...) Product structure complexity Flow complexity
Production activity control (PAC) < 1 month Day/ hour Specific unit (operation)
Specific resources (work center) Decentralize control  cells  Evaluation