Group

GROUP 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
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 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
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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-13

Main objective is to take appropriate decisions. Typical decisions

Work force level Production lot sizes Assignment of overtime Sequencing of production runs

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Process Planning

Re-planning

Scheduling

Corrective Action

Functions of PPC

Loading

Follow up Dispatching

Combining Functions

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Objective

To predict demand for planning purposes

Laws of Forecasting

Forecasts are always wrong Forecasts always change The further into the future, the less reliable the
forecast will be
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Qualitative Demand Forecasting

Prediction Market Delphi Technique Game Theory Intentions and Expectations Surveys Conjoint Analysis

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Quantitative Demand Forecasting

Discrete Event Simulation Quantitative Analogies Neural Networks Data Mining Causal Models Segmentation

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Objective

To 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. Mar-13 10

Guidelines for Aggregate Planning

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
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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.
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Contd
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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
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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

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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
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Level plans Production Demand

Units

Time
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Chase plans Production Demand

Series1 Series1

Units

Time
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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
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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

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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

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To find out and direct

Right people Right place Right time Right price

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Issues

Basic Staffing Calculations and labor hours Working Environment Flexibility/Agility Quality

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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
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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.
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Mar-13

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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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Wrong Capacity

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Classes of capacity planning

Lead strategy Lag strategy Match strategy

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Issues

Stand-alone capacities and congestion effects Capacity Strategy Make-or-Buy Flexibility Scalability 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 waste To improve quality To minimize lead time To reduce costs To improve productivity
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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

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Issues

JIT Interdependencies Implementing Issues JIT purchasing Expected Outcomes

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Objective To control flow of work through plant and coordinate with other activities (e.g., quality control, preventive maintenance, etc.)

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Material Flow Control

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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

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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
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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. Contd
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Issues

Simplicity
Departures from simple mechanisms must be carefully justified.

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THANK YOU

Management Science II, by Dr.T.T. Narendran, IIT

Madras (pdf format) Shop floor Control, by Wallace J Hopp and Mark J Spearman, 1996-2000 www.factory-physics.com Production Planning and Control, Lesson 8, Abha Kumar Production and Inventory Control, by Dr. Lotfi K. Gaafar, 2005 (ppt format) Manufacturing Planning and Control, by Stephen C. Graves, MIT Boston, Nov1999 (pdf format)
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http://en.wikipedia.org/wiki/Aggregate_planning http://www.slideshare.net/birubiru/aggregateplanning-2069281 http://www.buec.udel.edu/murphys/2009%20SLIDE %20PACKET/Chapter13AggPlanFINAL.pdf http://www.scribd.com/doc/11590350/AggregatePlanning Production Planning and Inventory Control, 2nd Edition, by Seetharama L. Narasimhan, Dennis W. Mcleavey and Peter J. Billington

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