2. PRODUCT PLANNING
โข Product Planning is the ongoing process of
identifying and articulating market
requirements that define a productโs feature
set.
โข Product planning serves as the basis for
decisions about price, distribution and
promotion.
5. VALUE ANALYSIS
โข Value, as defined, is the ratio of function
to cost. Value can therefore be increased by
either improving the function or reducing
the cost
6. LACK OF PRODUCT PLANNING
โข Unsatisfied customer
โข Durability deteriaration
โข Lack of quality
โข Loss of brand name., Etc
8. PROCESS PLANNING โ INPUT INFO.
โข PRODUCT
โข PROCESS
โข CAPACITY
โข ORDERS
โข DUE DATES
โข RESOURCES
โข ETC.,
9. STEPS IN PROCESS PLANNING
โข Analyzing environment
โข Establishing objectives or goals
โข Seeking necessary Information
10. QUANTITY DETERMINATION โ
BATCH PRODUCTION
โข Economic batch quantity (EBQ), also called "optimal batch
quantity" or economic production quantity, is a measure used
to determine the quantity of units that can be produced at
minimum average costs in a given batch or production run.
โข Economic Production Quantity model (also known as the EPQ
model) is an extension of the Economic Order Quantity
model. The Economic Batch Quantity model, or production
lot-size model, is similar to the EOQ model in that an optimum
is to be calculated for the batch quantity to be produced.
11. EBQ
In working with this EBQ model, principal assumptions are:
โข The demand (D) is known and constant within a certain period of time
โข The unit cost of the inventory item (U) is constant
โข The annual holding-cost per unit (Ch) is constant
โข The setup-cost per batch (C) is constant
โข The production time (tp) is known and constant
โข there is one kind of product
โข There is no interaction with other products
โข The aspect of time does not play a role, just the setup time does
โข The setup cost is constant and does not act upon the batch quantity.
Variables
โข K = setup cost
โข D = demand rate
โข F = holding cost
โข T = cycle length
โข P = production rate
Formula: Sqrt(2x annual demandx setup costs)/(inventory carrying cost per unit)