Production planning
This presentation is the property of its rightful owner.
Sponsored Links
1 / 8

Production Planning PowerPoint PPT Presentation


  • 53 Views
  • Uploaded on
  • Presentation posted in: General

Production Planning. Dr. Everette S. Gardner, Jr. Aggregate planning. Definition Choosing production rates, work force levels, and inventory levels Horizon 6-18 months into future Prerequisites Forecasting Company policies on Max./min. inventories Hiring/firing Overtime.

Download Presentation

Production Planning

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Production planning

Production Planning

Dr. Everette S. Gardner, Jr.


Aggregate planning

Aggregate planning

  • Definition

    Choosing production rates, work force levels, and inventory levels

  • Horizon

    6-18 months into future

  • Prerequisites

    • Forecasting

    • Company policies on

      Max./min. inventories

      Hiring/firing

      Overtime

Production Planning


Policy considerations in aggregate planning

Policy considerations in aggregate planning

  • Flexibility

    Are work force and inventories maintained at a level sufficient to meet unexpected demand?

  • Work force stability

    Improves quality, productivity, union relations

  • Production rate stability

    Makes materials planning easier, reduces uncertainty in physical distribution

Production Planning

APP.xls


Policy considerations in aggregate planning cont

Policy considerations in aggregate planning (cont.)

  • Production capacity

    Will overtime reduce quality? When will physical capacity (space, machinery, equipment) become inadequate?

  • Customer service

    Have lead time and stock availability goals been met?

Production Planning


Aggregate planning in services

Aggregate planning in services

  • Definition

    Balancing service capacity with demand

  • Tactics

    • Change operating hours

    • Change staffing

      Nbr. of workers

      Full vs. part-time

    • Modify type of service

    • Influence demand

      Advertising

      Pricing

    • Build more service outlets

Production Planning


Aggregate planning in services cont

Aggregate planning in services (cont.)

  • Evaluation

    • Waiting time

    • Throughput

    • Service time

    • Nbr. of lost customers

Production Planning


Production planning

#

#

Production – Inventory System

Information Flow

Material Flow

Days for transit time

Days to process or to

handle and issue orders

25 Day De- 5 Day Delay 25 Day Delay 13 Day Delay

lay to sense to sensefor Review for Review

needs, place needs, place and and

and transmit and transmit Transmission Transmission

orders M.O.s of orders of orders

Demand

Raw Factory Factory Distributor Retail Ultimate

Material Warehouse Inventory Inventory Customer

Vendor

50 Independent 500 Independent

Distributors Retailers

35

4

2

1

30

1

10

5

1

Company System Under

Managerial Control

Production Planning

Dynamo.xls


Response of inventories

Response of inventories

10

10,000

Retail inventory (units)

-4%

Factory production output (units/week)

+45%

7.5

7500

Distributor inventory (units)

+10%

+32%

+12%

Retail sales RRR

Weeks

5

5000

(units/week)

-10%

-3%

-15%

Factory warehouse inventory

(units)

2.5

2500

0

0

Feb

Sept

Aug

Apr

Apr

May

Mar

May

Mar

Dec

Oct

Jun

July

Nov

Jan

Jan

Jun

J

Feb

Production Planning


  • Login