APICS Operations Management Body of Knowledge Framework, Third Edition

Planning and Control

Planning and control processes are the closed-loop processes that determine the need for material and capacity to address expected demand, execute the resulting plans, and update planning and financial information to reflect the results of execution. Planning and control processes exist at several levels: The most common are business planning, sales and operations planning, master scheduling, material requirements planning, production activity control, and project planning. Each level addresses 
different decision-making needs, covers a planning horizon, and is stated in units appropriate for the level. The highest level addresses long-term needs, such as the decision to build facilities. The lowest level addresses short-term needs, such as deciding which of two waiting jobs should be run through an assembly process first.

Each level produces two types of plans. The first is for the delivery of that level's focus (the focus plan), and the second is for providing the capacity and capability needed to support that delivery (the support plan). The importance of the two types depend on the nature of the business. For example, a service business might be more concerned with a robust staffing plan (support), and a manufacturing business might be more concerned with a robust production schedule (focus). The most common levels of planning are summarized in the following table.

Process

Focus plan

Support plan

Time horizon

Focus plan units

Business planning (strategic planning)

Revenue plan

Spending plan

Very long

Financial (dollars)

Sales and operations planning

Production plan

Resource plan

Long

Product and service lines (dollars of revenue)

Master 
scheduling

Master production schedule

Rough-cut capacity plan

Medium

End-level product numbers

Manufacturing resource planning (MRP II)

Material requirements plan/planned and scheduled orders

Capacity requirements plan

Medium

Part numbers 
(end-level, internal processed, purchased)

Production activity control 
(shop floor control)

Production schedule/
dispatch list/released orders

Staffing plan, input/output control

Short

In-process parts 
(part numbers and operation numbers)

Portfolio/program/
project planning (single products 
and services)

Project schedule/deliverables/
work breakdown structure

Resource plan (staffing and material)

Comprehensive (very long through short)

Varies (schedule, dollars, 
percent complete, 
project indexes)

5.1 Enterprise resources planning (ERP)

ERP is a framework for planning all of the resources of a business, from strategic planning through execution. Information technology tools and software can automate process links, sharing information across functional areas and processing business transactions efficiently. ERP systems also support the organization of data for decision making and analysis, and are typically organized around modules that support functional areas such as finance, marketing, human resources, operations, purchasing, and logistics. Real-time sharing of data is enabled by using a common database across these modules. (See section 8.1.1.)

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