...PRODUCTION PLANNING AND CONTROL Assignment A Marks 10 Answer all questions. 1. a) Explain the forecasting process? What are the techniques for monitoring forecasts? b) Explain various forecasting models. a) A planning tool that helps management in its attempts to cope with the uncertainty of the future, relying mainly on data from the past and present and analysis of trends. Forecasting starts with certain assumptions based on the management's experience, knowledge, and judgment. Qualitative & Quantitative techniques are the two techniques used for monitoring forecasts. b) There are two types of forecasting models which are : Time Series Models Causal Models or Associative Models 2. a) What is aggregate production plan? What are the pure strategies for APP? a) Aggregate production planning refers to the process of deciding the overall quantities of products to be manufactured or produced in a plant or other manufacturing facility during a medium term planning period such as a month, or a quarter. The aggregate plan output consist of the total quantities of each product or a group of product to be manufactured in the plan period of going into details of scheduling of different manufacturing activities required to achieve the planned production levels. The aggregate production will also not specify details such as the dates when material ordered against individual customer...
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...Production planning control function The main functions of PPC are the coordination of all the activities, which exist during production or manufacturing. Materials : This function is concerned with ensuring that the Raw material, standard finished parts, finished parts of products must be available while starting the operation within the time. Methods : This function is concerned with the analysis of all methods of manufacturing and selecting the best appropriate method according to the given set of circumstances and facilities. Machines and Equipments: It is important that methods of manufacturing should to be related to the available production facilities coupled with a detail study of equipment replacement policy. This function is concerned with the detailed analysis of the production facilities, maintenance procedures and equipment policy. Routing: It refers to the flow of sequence of operation and processes to be followed in producing a particular finish product. It determines manufacturing operation and their sequence. Estimating: This function is concerned with estimation of operations time. The operation time can be worked Out once the overall method and sequence of operation is fixed and process sheet for each operation is available. Loading & Scheduling: It is important that machine should be loaded according to their capabilities performance the given and according to the capacity. It is concerned with preparation of machine loads and fixation...
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...Introduction Global operations involves the linking and relating of four primary functions; marketing, finance and accounting, suppliers, and human resources to create a competitive advantage in global markets (Russell & Taylor, 2011). The business environment has become increasingly competitive over the past decade, due to the global economic crisis, environmental challenges, technological innovations, as well as, consumer lifestyle changes. As a result of the changes, many multi-national corporations (MNC), in an effort, to remain competitive and sustainable are responding by creating global strategic management plans to address the competitive trends occurring in the market (Kim, Bak, & Bae, 2010). In fact, the aforementioned factors created a rich environment for firms to access new technologies, materials, customer bases, as well as, the ability to form business partnerships, globally (Russell & Taylor, 2011; Nembhard, Shi, & Park, 2000). Consequently, there has been a shift in the way business operations are performed and managed. Procter and Gamble Company (P&G), is an excellent example of an iconic firm maintaining a competitive advantage in global markets through the effective implementation of global operations strategies and management. In fact, P&G is the leading consumer goods firm, generating annually $84 billion in sales, operating in 180+ countries, spanning the Americas, Europe, the Middle East and Africa (EMEA), and Asia. In...
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...Chapter 18 Production Planning and Control In any manufacturing enterprise production is the driving force to which most other functions react. This is particularly true with inventories; they exist because of the needs of production. In this chapter the relationship of production planning and control to work-in-process inventories is stressed. Objectives of Production Planning Control The ultimate objective of production planning and control, like that of all other manufacturing controls, is to contribute to the profits of the enterprise. As with inventory management and control, this is accomplished by keeping the customers satisfied through the meeting of delivery schedules. Specific objectives of production planning and control are to establish routes and schedules for work that will ensure the optimum utilization of materials, workers, and machines and to provide the means for ensuring the operation of the plant in accordance with these plans. Production Planning and Control Functions All of the four basic phases of control of manufacture are easily identified in production planning and control. The plan for the processing of materials through the plant is established by the functions of process planning, loading, and scheduling. The function of dispatching puts the plan into effect; that is, operations are started in accordance with the plant. Actual performance is then compared to the planned performance, and, when required, corrective action is taken. In some instances...
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...Chapter 18 Production Planning and Control In any manufacturing enterprise production is the driving force to which most other functions react. This is particularly true with inventories; they exist because of the needs of production. In this chapter the relationship of production planning and control to work-in-process inventories is stressed. Objectives of Production Planning Control The ultimate objective of production planning and control, like that of all other manufacturing controls, is to contribute to the profits of the enterprise. As with inventory management and control, this is accomplished by keeping the customers satisfied through the meeting of delivery schedules. Specific objectives of production planning and control are to establish routes and schedules for work that will ensure the optimum utilization of materials, workers, and machines and to provide the means for ensuring the operation of the plant in accordance with these plans. Production Planning and Control Functions All of the four basic phases of control of manufacture are easily identified in production planning and control. The plan for the processing of materials through the plant is established by the functions of process planning, loading, and scheduling. The function of dispatching puts the plan into effect; that is, operations are started in accordance with the plant. Actual performance is then compared to the planned performance, and, when required, corrective action is taken. In some instances...
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...PRODUCTION PLANNING AND CONTROL FOR REDUCING MANUFACTURING THROUGHPUT TIME Amey Dhar Dubey (fy7096) Arpit Sharma (fe2365) Bhavditya Sisodiya (fw6052) College of Engineering Wayne State University Detroit, Michigan ABSTRACT This paper scans the present state of Production Planning and Control (PPC) regarding the manufacturing industry. PPC needs to undergo internal and external changes by being more dynamic and properly utilizing resources and delivery performance. In order for this to happen, the concept of crashing much be applied to better understand of how different factors affect PPC systems performance. Crashing is reduces project time by overlapping or performing two or more different steps simultaneously using additional resources (PM PrepCast). Crashing the network is the reduction of project duration by contracting and compressing the network at minimum cost. Project duration can often be reduced by appointing more labours to project activities. However, when appointing more labours, the project cost increases due to overtime and more resources being used. Time and cost requirement must be balanced to reduce project duration. The gist of this paper covers production time, along with the cost applying the concept of crashing. In addition, time management with optimum cost is vital for any project. A method to obtain optimum cost and project duration minimization is outlined. This is achieved by fully crashing the critical path or by removing non-added...
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...LESSON 8 PRODUCTION PLANNING AND CONTROL Abha Kumar STRUCTURE 8.0 8.1 8.2 8.3 8.4 Introduction Objectives Production management Product design Design of production system 8.4.1 Types of production system 8.5 Manufacturing process 8.5.1 Types of manufacturing process 8.5.2 Factors affecting the choice of manufacturing process 8.6 Production planning and control 8.6.1 Benefits to small entrepreneur 8.6.2 Steps of production planning and control 8.7 Summary 8.8 Glossary 8.9 Self-Assessment Questions 8.10 Further Readings 8.0 INTRODUCTION After taking decisions about the type of business, its location, layout etc. the entrepreneur steps into the shoe of production manager and attempts to apply managerial principles to the production function in an enterprise. Production is a process whereby raw material is converted into semi finished products and thereby adds to the value of utility of products, which can be measured as the difference between the value of inputs and value of outputs. Production function encompasses the activities of procurement, allocation and utilization of resources. The main objective of production function is to produce the goods and services demanded by the customers in the most efficient and economical way. Therefore efficient management of the production function is of utmost importance in order to achieve this objective. 114 8.1 OBJECTIVES After studying this lesson, you should be able to • • • • • • • Describe the production function and...
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...MANUFACTURING RESOURCES PLANNING What is MRP II and why it is being used Definition and History According to American Production and Inventory Control Society, MRP II can be defined as a method of the effective planning of all the resources of a manufacturing company (Higgins, Leroy and Tierney 1996). It is actually advancement or can be said as a upgrading of Material Requirement Planning System (MRP) system, which is a set of technique that uses bills of material, data and a master production schedule to calculate the requirements for materials in a manufacturing company. The MRP system was initiated in the 1960s and was spearheaded by a team of IBM innovators comprising Joe Orlicky, George Plossl and Ollie Wright who sought to create a structured methodology for planning and scheduling materials for complex manufactured products. Over the past 30 years MRP has spawned an entire industry in manufacturing and professional services. It has evolved hand in hand with technological advancements in the computer hardware industry. At the beginning, MRP systems were run on large mainframe computer costing a lot of money and required large technical staff to support them. However in the 1970s they underwent refinements that saw disparate modules get included and critical business concerns such as cost accounting and Capacity Requirements Planning get added. This gave rise to a new generation system called MRP II. Continued changes spurred by increased technological advances coupled...
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...1 PRODUCTION AND OPERATIONS MANAGEMENT Introduction Product. Production. Management. Production and Operations Management an Overview. Definition of Production Operations Management. Objectives of Production Management. Scope of Production Management. Benefits derived from efficient Production Management Department. Functions of Production Management. Types of Production Systems. Characteristics of production systems and Production cycle. INTRODUCTION The Subject of Production Management is studied under different Headings-such as Production Planning and control, Production and Inventory control, production and operations control and many more. What ever may be the title of the subject, the contents of the subject are more or less one and the same. Before we discuss about production management, let us discuss about product, production and management. This will give us a rough idea about production Management and with what a production manager has to deal with. 1.1. PRODUCT Though many authors define the product with Consumer orientation, it is better for us to deal with different angles, because it will be helpful for us to understand the subject of production and Operation Management. (i) For a Consumer: The product is a combination of or optimal mix of potential utilities. This is because every consumer expects some use or uses from the product. Hence he/she always identifies the product in terms of the uses. Say for example-Soap can be identified by complexion, cleanliness...
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...Management is related to planning, procuring, storing and providing the appropriate material of right quality, right quantity at right place in right time so as to co-ordinate and schedule the production activity in an integrative way for an industrial undertaking. Most industries buy materials, transport them in to the plant, change the materials in to parts, assemble parts in to finished products, sell and transport the product to the customer. All these activities of purchase of materials, flow of materials, manufacture them in to the product, supply and sell the product at the market requires various types of materials to manage and control their storage, flow and supply at various places. It is only possible by efficient materials management. The materials requirements planning, purchasing, inventory planning, storage, inventory control, materials supply, transportation and materials handling are the activities of materials management. They will be discussed in details in various chapters to follow. About 20-25 years ago, there was no cut-throat competition in the market to sell the various consumer items manufactured by different industrial undertakings and the availability of materials to manufacture these items was not scarce. Therefore, materials management was not thought to be so important and its separate identity in the organization was not felt. But today it has become an important management activity to streamline production. Actually before the production begins it is necessary...
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...Class 08 – Planning & Control BUFW M570-01W: Operations and Supply Chain Management Planning & Control: Chapter 19 – Sales & Operations Planning Chapter 20 – Inventory M anagement Learning Objectives Understand what sales and operations planning is and how it coordinates manufacturing, logistics, service, and marketing plans. Construct and evaluate aggregate plans that employ different strategies for meeting demand. Explain yield management and why it is an important strategy. Joseph Khamalah, Ph.D. 2 What Is Sales and Operations Planning? Sales and operations planning is a process that helps firms provide better customer service, lower inventory, shorten customer lead times, stabilize production rates, and give top management a handle on the business. The process consists of a series of meetings, finishing with a high-level meeting where key intermediate-term decisions are made. This must occur at an aggregate level and also at the detailed individual product level. – Major Sales & Operations Planning Activities Aggregate means at the level of major groups of products. 3 4 Sales & Operations Planning Activities – Overview Sales and operations planning was coined by companies to refer to aggregate planning. Types of Planning Long-range planning • Planning focusing on a horizon greater than 1 year, usually performed annually Intermediate-range planning • Planning focusing on a period from 3 to 18 months, time increments are weekly, monthly,...
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...main problems of a manufacturing system and, on the other hand, how they can be ranged in a hierarchical order, derived from a CIM architecture (from the strategic decisions to the production constraints). Then, we present an Operational Research tool for solving each of these problems. 1 Introduction Flexible Manufacturing Systems (FMS) are nowadays installed in the mechanical industry, especially in car factories. However, the market constraints impose to always improve the production system and the whole production organization. The concepts developed by Taylor and applied at the beginning by Ford are progressively abandoned and replaced by the Just-In-Time concept and the Computer Integrated Manufacturing philosophy (CIM). One of the aims of the CIM philosophy is to provide an integrated information system which avoids the rigid separations between the different functionalities of a complete production system. With such integrated information systems, the loss of time on one hand between the customer order and the part delivery, on the other hand between the product design and its manufacture will be drastically reduced. To understand the complete production system, it is relatively easy to find in the scientific literature excellent general books explaining the different aspects of the Production and Operations Management (POM) ([1], [2], [3], [4], [5]). It is more difficult to discover a writing dedicated to use of Operational Research (OR) models and methods in the industrial...
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...of Mandexor Memory Case Study-Capacity Planning and Control Alfred Asuah Adongo (13025813) Ghana Institute of Management and Public Administration Professor: Dr. Chris Tabi Amponsah EMBA 665 - Operations and Project Management 6th April 2014 Analysis of Mandexor Memory Case Study-Capacity Planning and Control 2 Abstract This paper explains capacity planning and control in the case of Mandexor Memory. Mandexor Memory with its parent company in the US is currently experiencing a poor record of meeting production targets at its European Disk Drives Division and has therefore appointed a new Operations Manager in Mat Frankel to turn things around and to see to the reorganization of the sales and marketing functions into one division. The core objectives of this paper will thus be to analyze the current capacity and output levels vis-à-vis the demand as per the forecasts and then determine how Mandexor can balance optimal output with demand using the right capacity planning and control strategies to achieve its production targets in the European Disk Drive Division. The methods to be employed in this paper include review of the current production data (Actual Vs. Forecast) in relation to the capacity of the plant, calculation of necessary variances between output and demand in relation to capacity and a coherent analysis based on sound assumptions that will help Mandexor to adopt the right capacity planning and control strategies, operate at optimal capacity...
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...to perform particular tasks, specific specialized software is needed. Material Requirements Planning Among the many operating software systems, one of the most important is the Material Requirements Planning (MRP) system. Material Requirements Planning is the system that manages the process of production planning and inventory. This system uses a technique of inventory, expected receipts, and bill of materials. This system also uses the Master Production Schedule (MPS) to determine the material requirements. There have been four main benefits of having a MRP system in your business. These benefits include, but are not limited to, better responses on customer orders, faster responses on market changes, improve utilization of facilities and labor, and reduced inventory levels (Heizer, J). Capacity Requirement Planning The Capacity Requirement Planning (CRP) is a method that many businesses use to determine the available production capacity. It will start off by assessing the schedule of production that the company has planned. It will then analyze the actual production capacity of the company, and weigh it against the schedule of production to see if the company can meet the schedule with its current production capacity (Capacity Requirements Planning.) Enterprise Resource Planning The Enterprise Resource Planning (ERP) is a software system that effectively plans and controls all resources needed to make, ship, and account for...
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...Production Systems Assumptions: * available set of machine technology is fixed (short term production control decisions) * organization of production has been determined Production system * collection of material, labour, capital, and knowledge that goes into manufacture of a product * how the collection of components is put together in a specific situation defines a particular system Taxonomy of Production Systems * by different criteria and meaningful analysis applied * by production flow characteristics Production processes can be either continuous or discrete (or one at a time fashion). Three Major Building Blocks in a Production System 1. Machine Technology Base (or the Tools for Production) * Sets boundaries on the processes that can be employed in converting inputs to finished products * Long term planning decisions * Major component of productivity improvement 2. Organization * Product layout * Organizes people and machines that is satisfactory for the production of a single product * Sequential operations * Flow line organization of a production * Process layout * According to the manufacturing process involved in the production of products * Machinery is grouped based on common purposes * When there are a large number of different products using the same machinery but not necessarily in the same order * Job shop ...
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