production

1. Group

2. GROUP 7
034 HARSH PATHAK
035 GAURAV MISHRA
036 YASHU PANDEY
037 SACHLIN SINGH
038 TANU SHREE MAITI
040 CHETAN HEDGE
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3.  The need for Production Planning
 Demand Forecasting
 Aggregate Production Planning
 Strategies of Aggregate Planning
 Workforce Planning
 Materials Requirement Planning
 Capacity Planning
 Production Control using JIT
 Shop-Floor Control
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4. 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. 4

5. 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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6. Process
Planning
Re-planning Scheduling
Corrective
Functions of
Loading
Action PPC
Combining
Follow – up
Functions
Dispatching
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7. Objective
To predict demand for planning purposes
Qualitative Demand Forecasting
Prediction Market
Delphi Technique
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8. 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. 8

9. 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
Feb-12 9

10. 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.
Feb-12
Contd…
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11. 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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12. 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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13. 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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14. Level plans
Production
Demand
Units
Time
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15. Chase plans
Production
Demand
Series1
Series1
Units
Time
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16. 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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17. To find out and direct
Right people
Right place
Right time
Right price
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18. Issues
Basic Staffing Calculations and labor hours
Working Environment
Flexibility/Agility
Quality
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19. 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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20. 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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21. 21

22. 22

23. 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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24. Wrong Capacity
Feb-12 24

25. Classes of capacity planning
Lead strategy
Lag strategy
Match strategy
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26. Issues
Stand-alone capacities and congestion effects
Capacity Strategy
Make-or-Buy
Flexibility
Scalability and learning curves
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27. 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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28. 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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29. Issues
JIT Interdependencies
Implementing Issues
JIT purchasing
Expected Outcomes
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30. Objective
To control flow of work through plant and coordinate
with other activities (e.g., quality control, preventive
maintenance, etc.)
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31. Material Flow
Control
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32. 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
Contd…
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33. 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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34. 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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35. Issues
Simplicity
Departures from simple mechanisms must be
carefully justified.
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36. THANK YOU