Harsh
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12-Sep-2014 -
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Transcript of Harsh
PRODUCTION PLANNING & CONTROL
Group
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GROUP 7034 HARSH PATHAK035 GAURAV MISHRA 036 YASHU PANDEY037 SACHLIN SINGH038 TANU SHREE MAITI040 CHETAN HEDGE
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The need for 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
Topics to be covered
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Addresses decisions on
AcquisitionUtilizationAllocation 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.
The need for Production Planning
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The need for Production Planning
Main objective is to take appropriate decisions.
Typical decisions
Work force levelProduction lot sizesAssignment of overtimeSequencing of production runs
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The need for Production Planning
Process Planning
Scheduling
Loading
Combining Functions
Dispatching
Follow – up
Corrective Action
Re-planning
Functions of PPC
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Objective
To predict demand for planning purposes
Qualitative Demand Forecasting
Prediction MarketDelphi Technique
Demand Forecasting
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Aggregate Production Planning
Objective
To generate a medium-term production plan To establish rough product mixTo anticipates bottlenecksTo 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.
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Aggregate Production Planning
Guidelines for Aggregate Planning
Determine demand for each periodConsider company policies that may have impactDetermine capacities for each period Regular time, overtime, subcontracting, etc.Identify backorder or inventory amountDetermine costs of operationContinue through time horizon to calculate total costDevelop alternate plans and compute cost for eachSelect the plan that meets objectives Apr 7, 2023
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Aggregate Production Planning
Assumptions in Aggregate Planning
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.
Contd…Apr 7, 2023
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Aggregate Production Planning
Assumptions in Aggregate Planning
All costs associated with a decision option can be represented by a lump sum or by unit cost that are independent of the quantity involvedCost 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
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Aggregate Production Planning
Output of Aggregate Planning
Production quantity from regular time, overtime and subcontracted timeInventory held for determination of how much warehouse space and working capital is neededBacklog or stock-out quantity for determining the customer service levels
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Level plans
Use a constant workforce & produce similar quantities each time periodUse inventories and backorders to absorb demand peaks & valleys
Chase plans
Minimize finished good inventories by trying to keep pace with demand fluctuations
Strategies in Aggregate Planning
Strategies in Aggregate Planning
ProductionDemand
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Uni
ts
Time
Level plans
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Strategies in Aggregate PlanningU
nit
s
Time
Series1
ProductionDemand
Chase plans
Series1
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Strategies in Aggregate Planning
Hybrid or Mixed Strategies
Build-up inventory ahead of rising demand and use backorders to level extreme peaksLayoff or furlough workers during lullsSubcontract production or hire temporary workers to cover short-term peaksReassign workers to preventive maintenance during lullsInfluencing Demand
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Workforce Planning
To find out and direct
Right peopleRight placeRight timeRight price
Workforce Planning
Issues
Basic Staffing Calculations and labor hoursWorking EnvironmentFlexibility/AgilityQuality
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Materials Requirement Planning
MRP is a production 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 customersMaintain the lowest possible level of inventoryPlan manufacturing activities, delivery schedules and purchasing activities
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Materials Requirement Planning
MRP steps
Takes output from the planning phase (master plan)Combines that with the information from the inventory record and product structure recordsDetermines 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.
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Materials Requirement Planning
•Master plan
•MRP
•Capacity Req. plan
Materials Requirement Planning
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Capacity Planning
The process of determining 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
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Capacity Planning
Wrong Capacity
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Capacity Planning
Classes of capacity planning
Lead strategy Lag strategyMatch strategy
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Capacity Planning
Issues
Stand-alone capacities and congestion effects Capacity StrategyMake-or-BuyFlexibilityScalability and learning curves
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JIT is the technique for reducing inventories and elimination of waste in the production system.
Objectives
To eliminate wasteTo improve qualityTo minimize lead timeTo reduce costsTo improve productivity
Production Control using JIT
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Pull production and kanban
JIT is associated with pull systems.
Toyota was the first developer of kanban system.
Examples
McDonalds'Office Xerox Paper
Production Control using JIT
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Issues
JIT InterdependenciesImplementing IssuesJIT purchasingExpected Outcomes
Production Control using JIT
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Shop floor Control
Objective
To control flow of work through plant and coordinate with other activities (e.g., quality control, preventive maintenance, etc.)
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Shop floor Control
WIPTracking
CapacityFeedback
QualityControl
Material FlowControl
ThroughputTracking
StatusMonitoring
WorkForecasting
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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
Shop floor Control
Contd…32
Functions
Bottleneck Planning
Handling of bottlenecksCost of capacity is the keyStable bottlenecks are easier to manage
Span of Control
Physically or logically decompose systemSpan of labor and process management
Shop floor Control
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Issues
Customization
SFC is 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.
Shop floor Control
Contd…34
Issues
Simplicity
Departures from simple mechanisms must be carefully justified.
Shop floor Control
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