GroupGROUP 8 068 076 084 092 100 Dipakshi Katoch Ashwani Mehta Sohini Sinha Shubham Rohatgi Renu Bargale 108 116 Swatanu Mohan Satpathy Ankit Jain 118 Akshay Kachhal Mar-12 2 The need for 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 Control Mar-12 3 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. Mar-12 4 Main objective is to take appropriate decisions. Typical decisions Work force level Production lot sizes Assignment of overtime Sequencing of production runs Mar-12 5 . Process Planning Re-planning Scheduling Corrective Action Functions of PPC Loading Follow – up Dispatching Combining Functions Mar-12 6 . the less reliable the forecast will be Mar-12 7 .Objective To predict demand for planning purposes Laws of Forecasting Forecasts are always wrong Forecasts always change The further into the future. Qualitative Demand Forecasting Prediction Market Delphi Technique Game Theory Intentions and Expectations Surveys Conjoint Analysis Mar-12 8 . Quantitative Demand Forecasting Discrete Event Simulation Quantitative Analogies Neural Networks Data Mining Causal Models Segmentation Mar-12 9 . Demand changes over a period of time at a faster rate than the resources. Mar-12 10 . It is usually done for next 2 to12 months.Objective To generate a medium-term production plan To establish rough product mix To anticipates bottlenecks To align capacity and workforce plans. Aggregate planning offers strategies to absorb these fluctuations. overtime. etc. subcontracting. 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 Mar-12 11 .Guidelines for Aggregate Planning Determine demand for each period Consider company policies that may have impact Determine capacities for each period Regular time. Cost is a linear function composed of unit cost and number of units.Assumptions in Aggregate Planning The regular output capacity is the same in all periods. Mar-12 Contd… 12 . Plans are feasible : sufficient inventory capacity exists to accommodate a plan. and changes in output can be made as needed. subcontractors with appropriate quality and capacity are standing by. 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 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 Mar-12 13 . Output of Aggregate Planning 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 Mar-12 14 . Level plans Use a constant 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 Mar-12 15 . Level plans Production Demand Units Time Mar-12 16 . Chase plans Production Demand Series1 Series1 Units Time Mar-12 17 . Hybrid or Mixed Strategies 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 Mar-12 18 . Concerned with timetable of production Scheduling arranges the different manufacturing operations in order of priority. fixing the time & date for the commencement & completion of each operation. Types of scheduling Forward scheduling Backward scheduling Mar-12 19 . The pattern of scheduling differs from one job to another which is explained as below. Master Schedule Production Schedule Manufacturing Schedule Scheduling of Job Order Manufacturing Mar-12 20 . To find out and direct Right people Right place Right time Right price Mar-12 21 . Issues Basic Staffing Calculations and labor hours Working Environment Flexibility/Agility Quality Mar-12 22 . 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 customers Maintain the lowest possible level of inventory Plan manufacturing activities. delivery schedules and purchasing activities Mar-12 23 . Mar-12 24 .MRP steps Takes output from 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. Mar-12 25 . Mar-12 26 . 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 Mar-12 27 . Wrong Capacity Mar-12 28 . Classes of capacity planning Lead strategy Lag strategy Match strategy Mar-12 29 . Issues Stand-alone capacities and congestion effects Capacity Strategy Make-or-Buy Flexibility Scalability and learning curves Mar-12 30 . Objectives To eliminate waste To improve quality To minimize lead time To reduce costs To improve productivity Mar-12 31 .JIT is the technique for reducing inventories and elimination of waste in the production system. Examples McDonalds' Office Xerox Paper Mar-12 32 .Pull production and kanban JIT is associated with pull systems. Toyota was the first developer of kanban system. Issues JIT Interdependencies Implementing Issues JIT purchasing Expected Outcomes Mar-12 33 . .Objective To control flow of work through plant and coordinate with other activities (e. quality control. preventive maintenance. etc.) Mar-12 34 .g. Material Flow Control Mar-12 35 . 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 Mar-12 Contd… 36 . 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 Mar-12 37 . 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. Contd… Mar-12 38 . Issues Simplicity Departures from simple mechanisms must be carefully justified. Mar-12 39 . THANK YOU . Management Science II. Abha Kumar Production and Inventory Control. Gaafar. Lotfi K. Lesson 8. by Wallace J Hopp and Mark J Spearman.T. Graves. by Dr. Narendran.T. Nov1999 (pdf format) Mar-12 41 . by Stephen C.com Production Planning and Control. 2005 (ppt format) Manufacturing Planning and Control. IIT Madras (pdf format) Shop floor Control. 1996-2000 www. MIT Boston.factory-physics. by Dr. net/birubiru/aggregateplanning-2069281 http://www. Billington Mar-12 42 .org/wiki/Aggregate_planning http://www.edu/murphys/2009%20SLIDE %20PACKET/Chapter13AggPlanFINAL.wikipedia. Mcleavey and Peter J.pdf http://www.buec.com/doc/11590350/AggregatePlanning Production Planning and Inventory Control. Dennis W. by Seetharama L. 2nd Edition.http://en.udel.slideshare.scribd. Narasimhan.