Three major prerequistes to an effective PAC system are master production schedule MPS, material requirement planning (MRP) and capacity requirement planning (CRP). All these system play a effective role in the PAC system. MPS shows when products will be availables to PAC system, the material requirement planning ensure the availability of materials, components, and products for planned production and for customer delivery. Capacity requirement planning shows the requirements that need to meet production requirements. MPS and MRP along with shop data, product data, performance and procurement all directly affect PAC. MRP plays a critical role and affect PAC. A critical information service provided by MRP is apprising the SFC systems of all changes in material plans. This means revising due dates and quantities for scheduled receipts so correct priorities can be maintained. There’s important feedback from the shop-floor control and vendor follow-up systems of PAC to material and capacity planning. Feedback is of two types: status information and warning signals. Status information includes where things are, notification of operational completions, count verifications, order closeout and disposition, and accounting data. The warning signals help flag inadequacies in material and capacity plans. MRP system appraises the PAC system of all charges in material plan.

Feedback from production planning to schedule production and all components of MRP and even accounting are very important to have a productive, effective PAC. An effective production activity control system can ensure meeting the company’s customer service goals. A PAC system can reduce work-in-process inventories and lead times as well as improve vendor performance. A key element of an effective PAC system is feedback on shop and suppliers’ performance against plans. Production activity control (PAC) is responsible for executing the master production schedule and the material requirements plan. At the same time, it must make good use of labor and machines, minimize work-in-process inventory, and maintain customer service. PAC provides feedback on costs, efficiency, utilization, and schedule performance by providing the necessary information to keep things moving. Status information feedback is important to PAC because it directly relates to the function and operation of the shop floor. This feedback commonly lets managers know the progress of items on the floor as well as inventory counts, completed orders, and data used for accounting. When used in conjunction with warning signals we get a complete scope of feedback on the overall health of the operation.

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