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The document discusses various topics related to production planning and control. It begins with an introduction to the need for production planning and then discusses demand forecasting, aggregate production planning, workforce planning, materials requirement planning, capacity planning, production control using just-in-time, and shop-floor control. It provides objectives, guidelines, assumptions, and outputs for each topic. The document aims to explain the key concepts and issues for effectively managing production processes.
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- 2. GROUP 7 034 HARSH PATHAK 035 GAURAV MISHRA 036 YASHU PANDEY 037 SACHLIN SINGH 038 TANU SHREE MAITI 040 CHETAN HEDGE 2
- 3. The needfor Production Planning Demand Forecasting Aggregate Production Planning Strategies of Aggregate Planning Workforce Planning Materials Requirement Planning Capacity Planning Production Control using JIT Shop-Floor Control 3
- 4. Addresses decisions on Acquisition Utilization Allocation of limited production resources Resources include the production facilities, labor and materials. Constraints include the availability of resources, delivery times for the products and management policies. 4
- 5. Main objective isto take appropriate decisions. Typical decisions Work force level Production lot sizes Assignment of overtime Sequencing of production runs 5
- 6. Process Planning Re-planning Scheduling Corrective Functions of Loading Action PPC Combining Follow – up Functions Dispatching 6
- 7. Objective To predict demandfor planning purposes Qualitative Demand Forecasting Prediction Market Delphi Technique 7
- 8. Objective To generate amedium-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. 8
- 9. Guidelines for AggregatePlanning Determine 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 Continue through time horizon to calculate total cost Develop alternate plans and compute cost for each Select the plan that meets objectives Feb-12 9
- 10. Assumptions in AggregatePlanning The regular output capacity is the same in all periods. Cost is a linear function composed of unit cost and number of units. Plans are feasible : sufficient inventory capacity exists to accommodate a plan, subcontractors with appropriate quality and capacity are standing by, and changes in output can be made as needed. Feb-12 Contd… 10
- 11. Assumptions in AggregatePlanning All costs associated with a decision option can be represented by a lump sum or by unit cost that are independent of the quantity involved Cost figures can be reasonably estimated and are constant for the planning horizon Inventories are built up and drawn down at a uniform rate and output occurs at a uniform rate throughout each period 11
- 12. Output of AggregatePlanning Production quantity from regular time, overtime and subcontracted time Inventory held for determination of how much warehouse space and working capital is needed Backlog or stock-out quantity for determining the customer service levels 12
- 13. Level plans Use aconstant workforce & produce similar quantities each time period Use inventories and backorders to absorb demand peaks & valleys Chase plans Minimize finished good inventories by trying to keep pace with demand fluctuations 13
- 14. Level plans Production Demand Units Time 14
- 15. Chase plans Production Demand Series1 Series1 Units Time 15
- 16. Hybrid or MixedStrategies Build-up inventory ahead of rising demand and use backorders to level extreme peaks Layoff or furlough workers during lulls Subcontract production or hire temporary workers to cover short-term peaks Reassign workers to preventive maintenance during lulls Influencing Demand 16
- 17. To find outand direct Right people Right place Right time Right price 17
- 18. Issues Basic Staffing Calculationsand labor hours Working Environment Flexibility/Agility Quality 18
- 19. MRP is aproduction planning and inventory control system used to manage manufacturing processes. An MRP system has 3 major objectives Ensure materials are available for production and products are available for delivery to customers Maintain the lowest possible level of inventory Plan manufacturing activities, delivery schedules and purchasing activities 19
- 20. MRP steps Takes outputfrom the planning phase (master plan) Combines that with the information from the inventory record and product structure records Determines a schedule of timing and quantities for each item The basic idea is to get the right materials to the right place at the right time. 20
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- 23. The process ofdetermining the production capacity needed to meet changing demands Maximum amount of work that an organization is capable of completing in a given period of time 23
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- 25. Classes of capacityplanning Lead strategy Lag strategy Match strategy 25
- 26. Issues Stand-alone capacities andcongestion effects Capacity Strategy Make-or-Buy Flexibility Scalability and learning curves 26
- 27. JIT is thetechnique for reducing inventories and elimination of waste in the production system. Objectives To eliminate waste To improve quality To minimize lead time To reduce costs To improve productivity 27
- 28. Pull production andkanban JIT is associated with pull systems. Toyota was the first developer of kanban system. Examples McDonalds' Office Xerox Paper 28
- 29. Issues JIT Interdependencies Implementing Issues JITpurchasing Expected Outcomes 29
- 30. Objective To control flowof work through plant and coordinate with other activities (e.g., quality control, preventive maintenance, etc.) 30
- 31. Material Flow Control 31
- 32. Functions Gross Capacity Control Match line to demand by staffing (workers/shifts) Varying length of work week (or work day) Using outside vendors to augment capacity Contd… 32
- 33. Functions Bottleneck Planning Handling of bottlenecks Cost of capacity is the key Stable bottlenecks are easier to manage Span of Control Physically or logically decompose system Span of labor and process management 33
- 34. Issues Customization SFCis often the most highly customized activity in a plant. Information Collection SFC represents the interface with the actual production processes and is therefore a good place to collect data. Contd… 34
- 35. Issues Simplicity Departuresfrom simple mechanisms must be carefully justified. 35
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