PRODUCTION                  PLANNING                                  & CONTROLGroup
2Dec-10
Topics to be coveredThe needfor Production Planning
 Demand Forecasting
 Aggregate Production Planning
 Strategies of Aggregate Planning
 Scheduling
 Workforce Planning
 Materials Requirement Planning
 Capacity Planning
 Production Control using JIT
 Shop-Floor Control3Dec-10
The need for Production PlanningAddresses decisions onAcquisition
Utilization
Allocation    of limited production resourcesResources include the production facilities, labor and materials. Constraints include the availability of resources, delivery times for the products and management policies. 4Dec-10
The need for Production PlanningMain objective is to take appropriate decisions.Typical decisionsWork force level
Production lot sizes
Assignment of overtime
Sequencing of production runs5Dec-10
The need for Production PlanningFunctions of PPC6Dec-10
Demand ForecastingObjective Topredict demand for planning purposesLaws of ForecastingForecasts are always wrong
Forecasts always change
The further into the future, the less reliable the       forecast will be7Dec-10
Demand ForecastingQualitative Demand ForecastingPrediction Market
Delphi Technique
Game Theory
Intentions and Expectations Surveys
Conjoint Analysis8Dec-10
Demand ForecastingQuantitative Demand ForecastingDiscrete Event Simulation
Quantitative Analogies
Neural Networks
Data Mining
Causal Models
Segmentation9Dec-10
Aggregate Production PlanningObjectiveTo generate a medium-term production plan
To establish rough product mix
To anticipates bottlenecks
To align capacity and workforce plans.It is usually done for next 2 to12 months.Demand changes over a period of time at a faster rate than the resources. Aggregate planning offers strategies to absorb these fluctuations.10Dec-10
Aggregate Production PlanningGuidelines for Aggregate PlanningDetermine demand for each period
Consider company policies that may have impact
Determine capacities for each period    Regular time, overtime, subcontracting, etc.Identify backorder or inventory amount
Determine costs of operation

Production Planning and Control