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Demand Forecasting:
Demand forecasting is used to predict the future sales activity of the firm’s products. Long range fb looksahead 5 years or more iii advance and it is used to decide about plant constraining and equipmentacquisition. Intermediate forecasting books ahead 1 or 2 years in advance and it is used to plan for longlead time materials and components. Short-term forecasting looks ahead 3 to 6 months in advance to decideabout hiring of personnel, purchasing and production schedule
Aggregate Production Planning:
Once the demand of the products is known, an aggregate production plan can be prepared. It is based on the‘Demand forecast’ and i used to increase (or) lower inventories, stabilizeproduction over the planning horizon and allow for the launching of new products in the company’sproduct tine. -
Process Planning:
We have already studied about the process planning. Process planning determines the sequence of operations required to produce a certain product. In manual process planning, the route sheets are prepared.The route sheets have a listing of operations and machine tools through which the part should be routed.
Estimating:
To fix a price of a product, the manufacturing lead time end production co should b arrived. Themanufacturing lead time can be calculated by summing up the total time required to finish the job. Theproduction cost is the sum of material cost, labor cost and overhead cost to produce the part. The data forarriving manufacturing Lead time and production cost are collected in the operation route sheets, purchasefile and accounting records.
Master Production Scheduling:
The master production schedule is used to know how many number of units of each product-should bedelivered and when should be delivered. The master production schedule isconverted from the aggregate production plan. From the master production schedule, the purchase order forraw materials, and purchase order for components from outside vendors will be prepared. Also, theproduction schedule for the parts to be manufactured in the shop will also be prepared.Normally, the scheduling periods in the master production schedule may be of months, week (or) days. Thequantities in master production schedule should not exceed the capacity of the plant.
- Material Requirement Planning: (MRP)
MRP is used to manage inventeries to issue orders for parts and materials. Based on the Master productionschedule, the raw materials and components used are planned by MRP. The purchase of raw materials andproduction order of various components are ordered. All materials are planned so that they will be availablewhenever needed. MRP is an effective tool to minimize unnecessary inventory investment. It is very muchuseful for production scheduling and purchasing of materials MRP is a computerized method toprocess massive data required to convert master-production schedule into detailedschedule for raw materials and components. -
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