Production planning

comprise the following activities:

•   Determination
Determination of the require
required
d product mix and fac-
tory load to satisfy customers needs.[3]

•   Matching the required

required level of production
production to the ex-
[4]
isting resources.
resources.

•   Scheduling   and
and ch
choos
oosing
ing the actua
actuall wowork
rk to be
[1]
started in the manufacturing facility”
facility”

•  Setting up and delivering production orders to pro-

duction facilities.[5]

In order
order to dev
develo
elop
p prod
producti
uction
on plan
plans,
s, the producti
production
on
planner
planner or prod
producti
uction
on plann
planning
ing dep
departme
artment
nt needs
needs to
work
wor k cl
closel
oselyy toge
together
ther with the marketing
marketing departme
department nt
and sales
sales depar
departme
tment.
nt. They
They can pro provi
vide
de sale
saless for
ore-
e-
casts,
casts, or a lislistin
ting
g of cu
custo
stome
merr ord
orders .”[6] The “wor
ers.” “workk
is us
usual
ually
ly se
selec
lected
ted from a va vari
riety
ety of pr produ
oduct
ct typ
types
es
which may require different resources and serve differ-
ent customers.
customers. Theref
Therefore,
ore, the sel
selecti
ection
on must optimiz
optimizee
customer-independent performance measures such as cy-
Role of Production Planning in the Production Cycle. cle time and custome
customer-depende
r-dependentnt perfo
performance
rmance measures
[1]
such as on-time delive
delivery.”
ry.”
Production planning is the planning
Production the  planning of of production
 production and
A cri  and
critica
ticall factor
actor in prod
producti
uction
on plan
planning
ning is “the accu-
manufacturing modules
manufacturing  modules in a company or industry. It uti-
rate estimation of the productive capacity of available
lizes the resource
the  resource allocation
allocation of
 of activities of employees,
resources, yet this is one of the most difficult tasks to
materials
materials and
 and  production capaci
capacity
ty,, in order to serve dif-
perform well”.[7] Production planning should always take
[1]
ferent customers. “into account material availability, resource availability
[5]
Differe
Different
nt type
typess of producti
production
on meth
methods,
ods, suc
such single and knowledge of future demand”.
h as single
item manufacturing, batch
manufacturing, batch production
production,,  mass production
production,,
continuous producti
production
on etc.
 etc. hav
havee their ow
ownn type of pro-
duction planning. Production planning can be combined 2 His
Histo
torry
with prod
producti
uction
on cont
control
rol into prod
producti
uction
on plann
planning
ing and
co
contr
ntrol,
ol, or it can be co
comb
mbine
ined
d and or intinteg
egrat
rated
ed into
into
planning..
enterprise resource planning
Production planning is used in companies in several dif-
ferent industries, including agriculture, industry, amuse-
ment industry, etc.

1 Over
Overvi
vieew

Pr
Produ
oduct
ctio
ion
n pla
planni
nning
ng is a pla
plan
n for the fu
futur
turee pr
produ
oduc-
c-
tion, in which the facilities needed are determined and
arranged.[2] A production plan is made periodically for a
specificc time period, called the planning horizon. It can
specifi Planning department bulletin board, 1911.

1
 

2   5 RE
REFE
FERE
RENC
NCES 
ES 

Modern producti
Modern production
on plan
planning
ning meth
methods
ods and tools have •  Master production schedule
Under  Scientific
been developed since late 19th century. Under Scientific
Management,, the work for each man or each machine
Management •   Material requirements
requirements planning
is mapped
mapped out in advanc
advancee (se
(seee image
image).
). The origi
origin
n of •   MRP II
production planning back goes another century.   Kaplan
(1986) summarized that “the demand for information for •   Scheduling
internal planning and control apparently arose in the first
half of the 19th century when firms, such as textile mills •   Workflow
and rail
railroad
roads,
s, had to devise
devise inte
internal
rnal administr
administrati
ative
ve proc
proce-
e-
dures to coordinate the multiple processes involved in the Related kind of planning in organizations
performance of the basic activity (the conversion of raw
materials into finished goods by textile mills, the trans- •   Employee scheduling
portation of passengers and freight by the railroads.”[8]
•  Enterprise resource planning
Herrmann (1996) further describes the circumstances in
which
whi ch new methods
methods for
for internal
internal planning and con control
trol •  Inventory control
evolved:
evolved: “The first factories were quite simple and rel-
ati
ative
vely
ly small.
small. They
They produced
produced a smasmallll number
number of prod- •  Product planning
ucts in large batches. Producti
Productivity
vity gains came from using •   Project planning
interchangeable parts to
parts to eliminate time-cons
time-consuming
uming fitting
operations. Through the late 1800s, manufacturing firms •  Process planning
planning,, redirects to Computer-aided
to Computer-aided pro-
were concerned with maximizing the productivity of the cess planning
expensiv
expen sivee equipment in the fafactory.
ctory. Keepi
Keeping
ng utilization
high
high was an important
important ob
objec
jectiv
tive.
e. For
Foreme
emen
n rule
ruledd thei
theirr •  Sales and operations planning
shops, coordinating all of the activities needed for the •   Strategy
limited number of products for which they were respon-
sible. They hired ope
operators,
rators, purchased materi
materials,
als, man-
aged production,
production, and delivered
delivered the product. They wer weree 3.2 Product
Production
ion contro
controll
experts with superior technical
technical skills, and they (not a sep-
arate staff of clerk
clerks)
s) planned production. Even as facto-
facto- Production
Production control   is the acti
activi
vity
ty of co
contr
ntroll
olling
ing the
ries grew, they were just bigger, not more complex.[9] workflow in
workflow  in the produc
production
tion.. It is partl
partly
y comple
complemen
mentary
tary
About production planning Herrmann (1996) recounts to production planning.
that “production scheduling
scheduling started simply also. Sched-
ules, when used at all, listed only when work on an or-
der should
should begin
begin or when the order is due. The
Theyy didn't 4 See also
provide any information about how long the total order
should take or about the time required for individual op- •  Industrial engineering
erations ...”[9]
•   Manufacturing process management
In 1923  Industrial Management  cited
  cited a Mr. Owe
Owensns who
had observed:
observed: “Produc
“Production
tion planning
planning is rapi
rapidly
dly becom- •   Materials management
ing one of the most vital neces
necessit
sities
ies of manage
management
ment.. It
is true that every establishment, no matter how large or •   Operations management
how small has production planning in some form; but a
•  Production engineering
lar
large
ge perce
percenta
ntage
ge of the
these
se do not have
have pla
planni
nning
ng that
that mak
makes
es
for an even flow of material, and a minimum amount of
money tied up in inventories.”[10]
5 Ref
Refer
eren
ence
cess
[1] Far
Fargh
gher,
er, Hugh E., and RicRichar
hard
d A. Smi
Smith.
th. “Metho
“Method
d
3 Topics and syst
system
em for
for prod
producti
uction
on planning.”
planning.” U.S. Pat
Patent
ent No.
5,586,021. 17 Dec. 1996.

3.1 Types
Types of plann
plannin
ing
g [2] Telsang,
Telsang, Mart
Martand.
and.   Industrial engineering and production
management. S. Chand, 2006.
Different types of production planning can be applied:
[3] Hung, Yi-Feng, aand
nd Robert C
C.. Leachman. “A producti
production
on
planning methodology for semiconductor manufacturing
•
  Adv
Advanced
anced planning and scheduling based on iterati
iterative
ve simulation and linear programmi
programmingng cal-
culations.”  Semiconductor Manu
Manufac
facturing,
turing, IEEE
IEEE Transac-
•  Capacity planning tions on  9.2 (1996): 257-269.
 

[4] Bouc
Boucher,
her, Thoma
Thomass O. “The choi
choice
ce of cost para
parameter
meterss in
machining
mach ining cost models.”
models.” The Engin
Engineerin
eering
g Econ
Economi
omist
st 32.3
(1987): 217-230.

[5] Bertr
Bertrand,
and, J. W. M., and W. G. M. M. R Rutten.
utten. “Eva
“Evalua-
lua-
tion of three production planning procedures for the use
of recipe flexibility.” European journal of operational re-
search 115.1 (1999): 179-194.

[6]   August-Wilhelm Scheer   (1984) Scheer, A-W. “Produc-

tion control and info
information
rmation systems.” Methods and Tools 
 for Computer Integrated Manu
Manufac turing.   Springer Berlin
facturing.
Heidelberg, 1984. 138-178.

[7] Solb
Solberg
erg,, Jame
Jamess J. “Capa
“Capacity
city planni
planning
ng with a stoc
stochast
hastic
ic
workflow
workfl ow model.” AIIE Transactio
Transactions
ns 13.2 (1981): 116-
122.

[8]   Kaplan,
Kaplan, Robe
Robertrt S.   "The ev
evolut
olution
ion of mana
manageme
gement
nt ac-
counting,”
counting,”   The Accounting Review,   V
Vol
ol 14
14,, No 3. Jul
July
y
1986.

[9] Herr
Herrmann,
mann, Jeff
Jeffrey
rey W. ""A
A history of production schedul-
ing.”
ing.” Handbook of Production Scheduling. Springer US,
2006. 1-22.

[10]   John Robe

Robertso
rtson
n Dunla
Dunlap
p,   Arthur Va
Van
n Vlis
Vlissing
singen
en,,   John
Michael Carmody.
Carmody. eds.  Industrial Management,  Vol. 65-

66, p. 182
 

4   6 TEX
TEXT
T AND IMAGE
IMAGE SOURC
SOURCES,
ES, CONT
CONTRIB
RIBUTORS,
UTORS, AND LICEN
LICENSES 
SES 

6 Text
Text a
and
nd im
image
age sour
sources,
ces, ccont
ontrib
ributo
utors,
rs, an
and
d li
licens
censes
es

6.1 Text
•   Production planning   Source:    https://en.wikipedia.org/wiki/Production_planning?oldid=766682042  Contributors:    Mdd, Mindmatrix,
Gogo Dodo, Cpl Syx, Dgmoran, Lbertolotti, Grayfell, MrOllie, Yobot, DRAGON BOOSTER, BG19bot, Me, Myself, and I are Here,
U2fanboi, Aea68 and Anonymous: 6

6.
6.2
2 Ima
Images
ges
•   File:Planning_
File:Planning_department_
department_bulletin_board ,_1911.jpg   Source:    https://upload.wikimedia.org/wikipedia/commons/c/c9/Planning_
bulletin_board,_1911.jpg
department_bulletin_board%2C_1911.jpg   License:    Public domain  Contributors:    The American
American Magazine, May 1911   Original artist: 
Photograph by Richard A. Ade
•  File:Production_Cycle.jpg  Source:  https://upload.wikimedia.org/wikipedia/commons/2/2e/Production_Cycle.jpg  License:   CC BY-SA
3.0  Contributors:   File:Notes
File:Notes On Production Management.pdf  Original artist:  User:Kamesh15, 2014

6.3 Conten
Contentt lic
licen
ense
se
•   Creativ
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