Linking manufacturing strategy decisions on process choice with manufacturing planning and control systems

For any manufacturing firm, theory suggests that the firm is better off if the manufacturing planning and control (MPC) system supports the market strategy as well as the manufacturing strategy. Typically, the strongest link between market requirements and manufacturing strategy concerns the process choice, i.e. choosing a manufacturing process that supports a firm's competitive priorities. The general aim of this paper is to examine the role of the MPC system in a manufacturing strategy. More specifically, the purpose is to link market requirements, product characteristics, and the process choice to the MPC system. A special focus will be placed on the link between the process choice and the design of the MPC system. Two key factors are identified as major processspecific elements influencing the MPC system design: the number of planning points, and set-up times at individual resources. The process choice affects the lower planning levels of the MPC systems, where the physical reality of the plant becomes apparent. This is especially true for production activity control, but also for requirements planning (material and capacity). Concerning the MPC system design for longer-term planning, such as sales and operations planning and master scheduling, the impact from market requirements and product characteristics dominates.