Chapter 9 - Production Planning

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    PRODUCTIONPLANNING AND

    CONTROL(MEFB 433)

    Dr. Weria Khaksar

    Email: [email protected]

    Room No.: BN-03-08

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    9- PRODUCTIONPLANNING

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    9.1. AGGREGATE PLANNING

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    9- Producto! P"#!!!$

    9.1. A$$r%$#t% P"#!!!$&

    A$$r%$#t% '"#!!!$ is essentially a big-picture aroa!h to lannin".

    Does not #o!us on ea!h indi$idual rodu!t. %heya""re"ate all models to"ether unless there wereonly a sin"le rodu!t.

    E#'"%*&

    &!Donald's( Bur"er Kin" or %ele$ision )rodu!tion.

    *t +e"ins with a forecast   o# a""re"ate demand#or the intermediate ran"e and #ollowed +y ageneral plan to meet demand re,uirements +ysettin" outut( emloyment and nal rodu!t

    in$entory le$els or ser$i!e !aa!ities.

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    9- Producto! P"#!!!$

    9.1. A$$r%$#t% P"#!!!$&

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    9- Producto! P"#!!!$

    9.1. A$$r%$#t% P"#!!!$&

    B#*c A$$r%$#t% P"#!!!$ *tr#t%$%*

    1. Pro#ct+% (D%#!d O'to!*)

      )ri!in"  )romotion

      Ba!k orders

      New demand

    ,. R%#ct+% (C#'#ct O'to!*)

      irin" and rin"  /$ertimesla!k time

      )art time workers

      *n$entories

      1u+!ontra!tin"

    3. M%d (D%#!d #!d C#'#ct)

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    9- Producto! P"#!!!$

    9.1. A$$r%$#t% P"#!!!$&

    B#*c tr#t%$%* /or M%%t!$ U!%+%!D%#!d

    1. M#!t#! # "%+%" 0or/orc%.

    ,. M#!t#! # *t%#d out'ut r#t%.

    3. M#tc2 d%#!d '%rod '%rod.

    4. U*% # co!#to! o/ d%c*o!

    +#r#"%*.

     

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    9- Producto! P"#!!!$

    9.1. A$$r%$#t% P"#!!!$&

    T%c2!u%* /or A$$r%$#t% P"#!!!$B#*c t%'* ! #$$r%$#t% '"#!!!$&

    2. Determine demand #or ea!h eriod

    . Determine !aa!ities #or ea!h eriod

    3. *denti#y !omany or deartmental oli!ies that arerele$ant.

    4. Determine unit !osts #or re"ular time( o$ertime(su+!ontra!tin"( holdin" in$entories( +a!k orders(

    layo5s and other !osts.6. De$elo alternati$e lans and !omute the !ost

    #or ea!h.

    7. *# satis#a!tory lans emer"e( sele!t the +est one.

    /therwise return to ste 6.

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    9- Producto! P"#!!!$

    9.1. A$$r%$#t% P"#!!!$&

    T%c2!u%* /or A$$r%$#t% P"#!!!$

    - Tr#"-#!d-Error T%c2!u%* U*!$

    Gr#'2* #!d 'r%#d*2%%t*

    - M#t2%#tc#" T%c2!u%*

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    9- Producto! P"#!!!$

    9.1. A$$r%$#t% P"#!!!$&

    T%c2!u%* /or A$$r%$#t% P"#!!!$&Tr#"-#!d-Error T%c2!u%* U*!$ Gr#'2*#!d 'r%#d*2%%t*Num+ero#workersin aeriod

    Num+er o#workers atend o#re$iouseriod

    9Num+er o#new workersat start o# theeriod

    Num+er o# laid-o5 workers atstart o# theeriod

    Num+ero#workersin aeriod

    Num+er o#workers atend o#re$iouseriod

    9Num+er o#new workersat start o# theeriod

    Num+er o# laid-o5 workers atstart o# theeriod

    *n$entoryat the

    end o# a

    eriod

    *n$entory

    at end o#the re$ious

    eriod

    9)rodu!tion

    in the!urrent

    eriod

    mount used tosatis#y demand inthe !urrent eriod

    *n$entoryat the

    end o# a

    eriod

    *n$entory

    at end o#the re$ious

    eriod

    9)rodu!tion

    in the!urrent

    eriod

    mount used tosatis#y demand inthe !urrent eriod

    ;ost#ora

    /utut !ost

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    9- Producto! P"#!!!$

    9.1. A$$r%$#t% P"#!!!$&

    T%c2!u%* /or A$$r%$#t% P"#!!!$&Tr#"-#!d-Error T%c2!u%* U*!$ Gr#'2*#!d 'r%#d*2%%t*T'% o/ co*t 5o0 to c#"cu"#t%

    /utut  Re"ular????....  /$ertime????.  1u+!ontra!t???..ire>ay-o5   ire??????..

      >ay o5?????.

    Re"ular !ost er unit uantity o# re"ularoutut/$ertime !ost er unit /$ertime ,uantity1u+!ontra!t !ost er unit 1u+!ontra!t,uantity

    ;ost er hire Num+er hired;ost er lay o5 Num+er laid o5 ;arryin" !ost er unit $era"e in$entory

    Ba!k-order !ost er unit Num+er o# +a!k-order units

    T'% o/ co*t 5o0 to c#"cu"#t%

    /utut  Re"ular????....  /$ertime????.  1u+!ontra!t???..ire>ay-o5   ire??????..

      >ay o5?????.

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    9- Producto! P"#!!!$9.1. A$$r%$#t% P"#!!!$&

    T%c2!u%* /or A$$r%$#t% P"#!!!$&Tr#"-#!d-Error T%c2!u%* U*!$ Gr#'2*#!d 'r%#d*2%%t*EAamle:)lanners o# a !omany that makes se$eral models o#skate+oard are a+out to reare the a""re"ate lan that will!o$er siA eriods. %hey ha$e assem+led the #ollowin"in#ormations:P%ro

    d1 , 3 4 6 7 Tot#

    "

    ore!ast

    00 00 300 400 600 00 2(800

    Co*t*  /utut  Re"ulartime

    /$ertime

    1u+!ontra!t  *n$entory

    C er skate+oard C3 er skate+oard C7 er skate+oard C2 er skate+oard er eriod on a$era"e

    in$entory C6 er skate+oard er eriod

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    9- Producto! P"#!!!$9.1. A$$r%$#t% P"#!!!$&T%c2!u%* /or A$$r%$#t% P"#!!!$& Tr#"-#!d-

    Error T%c2!u%* U*!$ Gr#'2* #!d'r%#d*2%%t*

    EAamle:

     %hey now want to e$aluate a lan that !alls #or a steady rate o#

    re"ular-time outut( mainly usin" in$entory to a+sor+ theune$en demand +ut allowin" some +a!klo". /$ertime andsu+!ontra!tin" are not used +e!ause they want steady outut. %hey intend to start with ero in$entory on hand in the rsteriod.)reare an a""re"ate lan and determine its !ost usin" there!edin" in#ormation.ssume a le$el outut rate o# 300 units

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    9- Producto! P"#!!!$9.1. A$$r%$#t% P"#!!!$&

    T%c2!u%* /or A$$r%$#t% P"#!!!$&Tr#"-#!d-Error T%c2!u%* U*!$ Gr#'2*#!d 'r%#d*2%%t*EAamle:

    P%rod 1 , 3 4 6 7 Tot#"

    ore!ast/utut  Re"ular  /$ertime  1u+!ontra!t/utut ore!ast*n$entory  Be"innin"  Endin"  $era"eBa!klo"

    ;osts/utut  Re"ular  /$ertime  1u+!ontra!t  ire>ay o5 *n$entoryBa!k orders

    00

    300----------200

    0200600

    C700

    ---------------

    C 60C 0

    00

    300----------200

    20000260

    0

    700---------------260

    0

    300

    300----------

    0

    000000

    0

    700---------------00

    0

    400

    300----------

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    9- Producto! P"#!!!$9.1. A$$r%$#t% P"#!!!$&T%c2!u%* /or A$$r%$#t% P"#!!!$& Tr#"-#!d-Error T%c2!u%* U*!$ Gr#'2* #!d'r%#d*2%%t*

    EAamle:

    #ter re$iewin" the lan de$eloed +e#ore( lanners ha$ede!ided to de$elo an alternati$e lan. %hey understandthat one erson is a+out to retire #rom the !omany.Rather than rela!e the erson( they would like to staywith the smaller work#or!e and use o$ertime to make u#or the lost outut. %he redu!ed re"ular-time outut is80 units er eriod. %he maAimum mount o# o$ertimeoutut er eriod is 40 units.De$elo a lan and !omare it to the re$ious one.

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    9- Producto! P"#!!!$9.1. A$$r%$#t% P"#!!!$&

    T%c2!u%* /or A$$r%$#t% P"#!!!$&Tr#"-#!d-Error T%c2!u%* U*!$ Gr#'2*#!d 'r%#d*2%%t*EAamle:

    P%rod 1 , 3 4 6 7 Tot#"

    ore!ast/utut  Re"ular  /$ertime  1u+!ontra!t/utut ore!ast*n$entory  Be"innin"  Endin"  $era"eBa!klo"

    ;osts  /utut  Re"ular  /$ertime  1u+!ontra!t  ire>ay o5 *n$entoryBa!k orders

    00

    80----------80

    080400

    C6700

    ----------

    C 40C 0

    00

    80----------80

    8027020

    0

    6700

    ----------20

    0

    300

    8040

    -----0

    2702802F0

    0

    67020----------2F0

    0

    400

    8040

    -----

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    9- Producto! P"#!!!$9.1. A$$r%$#t% P"#!!!$&

    A$$r%$#t% '"#!!!$ ! *%r+c%*& %akes into a!!ount roGe!ted !ustomerdemands( e,uiment !aa!ities and la+or!aa!ities.

     %he resultin" lan is a time-hasedroGe!tion o# ser$i!e sta5 re,uirements.

    E#'"%*&

    - Hospitals- Airlines- Restaurants

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    9.,. MATER PRODUCTIONC5EDULING (MP)

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    9- Producto! P"#!!!$9.,. M#*t%r Producto! c2%du"% (MP)

    D*#$$r%$#t!$ t2% #$$r%$#t% '"#!&Disa""re"ation means +reakin"down the a""re"ate lan intose!i! rodu!t re,uirements in

    order to determine la+orre,uirements

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    9- Producto! P"#!!!$9.,. M#*t%r Producto! c2%du"% (MP)

    M#*t%r c2%du"!$&&)1 is the heart o# rodu!tion lannin" and !ontrol.it inter#a!es with marketin"( !aa!ity lannin"(rodu!tion lannin" and distri+ution lannin".

    General duties o a master scheduler:2. E$aluatin" the ima!t o# new orders.. )ro$idin" deli$ery dates #or orders.3. Dealin" with ro+lems:

    a. E$aluatin" the ima!t o# rodu!tion delays or late

    deli$eries o# ur!hased "oods.+. Re$isin" the master s!hedule when ne!essary.!. Brin"in" instan!es o# insuH!ient !aa!ity to the

    attention o# rodu!tion and marketin" ersonnel.

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    9- Producto! P"#!!!$9.,. M#*t%r Producto! c2%du"% (MP)

    MP&T% F%!c%* di$ide a s!hedulin" time horioninto three se!tions or hases( sometime re#erredto as Frozen( Slushy  and Liquid .

    Frozen is the near-term hase and deli$ery o#new "oods would +e imossi+le or $ery !ostly.Slushy is usually a #ew eriods +eyond the #roen

    hase. /rder entry is less !ostly or disruti$e.Liquid is the #arthest out on the time horion.New orders and !an!ellations !an +e entered withease.

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    9- Producto! P"#!!!$

    9.,. M#*t%r Producto! c2%du"% (MP)

    MP&

    I!'ut* = %he master s!hedule has three inuts:-  %he +e"innin" in$entory

    -ore!asts #or ea!h eriod o# the s!hedule

    - ;ustomer orders whi!h are already committed to !ustomers.

    Out'ut* =- )roGe!ted in$entory- )rodu!tion re,uirements- Resultin" un!ommitted in$entory (A+#"#"%

    to 'ro*% (ATP) !+%!tor)

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    9- Producto! P"#!!!$

    9.,. M#*t%r Producto! c2%du"% (MP)

    MP&E#'"%& !omany that makes industrial ums wants toreare a master rodu!tion s!hedule #or Iune and

     Iuly. &arketin" has #ore!asted demand o# 20 ums#or Iune and 270 ums #or Iuly u!% >u"

    1 , 3 4 1 , 3 4

    ore!ast

    30 30 30 30 40 40 40 40

    .

    .

    .

    .

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    9- Producto! P"#!!!$

    9.,. M#*t%r Producto! c2%du"% (MP)

    MP&E#'"%&Now suose that there are !urrently 74 ums inin$entory u"

    1 , 3 4 1 , 3 4

    ore!ast 30 30 30 30 40 40 40 40

    ;ustomer orders

    33 0 20 4

    .

    .

    .

    .

    .

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    9- Producto! P"#!!!$

    9.,. M#*t%r Producto! c2%du"% (MP)

    MP&

    E#'"%&

    Now we ha$e the three inuts o# the master s!hedulin" and

    we should determine three oututs in!ludin": the roGe!tedon-hand in$entory( the &)1 and the un!ommitted

    re,uirements

    )roGe!ted on-hand

    *n$entory

    *n$entory#rom

    re$iousweek

    ;urrentweek's

    re,uirements

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    9- Producto! P"#!!!$

    9.,. M#*t%r Producto! c2%du"% (MP)

    MP&E#'"%&

    Be"innin"*n$entory:

    74

     >u!% >u"

    1 , 3 4 1 , 3 4

    ore!ast 30 30 30 30 40 40 40 40

    ;ustomer orders

    33 0 20 4

    )roGe!ted on-handin$entory

    31 1 -,9

    .

    .

    .

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    .

    ;ustomer orders are ore!ast is lar er than ore!ast is lar er than

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    9- Producto! P"#!!!$

    9.,. M#*t%r Producto! c2%du"% (MP)

    MP&E#'"%&When roGe!ted on-hand in$entory +e!omesne"ati$e( the rodu!tion is needed to rellin$entory.*# the lot size is F0( then the ne"ati$eroGe!ted on-hand in$entory re,uires

    units and lea$es 42 ums #or #uturedemand: F2-42E$ery time roGe!ted on-hand in$entory+e!omes ne"ati$e( another rodu!tion lot o#

    F0 ums is added to the s!hedule.

    Week

    *n$entory

    rom

    )re$iousWeek Re,uirements

    Net*n$entor

    y

    Be#ore &)1

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    9- Producto! P"#!!!$

    9.,. M#*t%r Producto! c2%du"% (MP)

    MP&E#'"%&

    Be"innin"

    *n$entory:74

     >u!% >u"

    1 , 3 4 1 , 3 4

    ore!ast 30 30 30 30 40 40 40 40

    ;ustomer orders

    33 0 20 4

    )roGe!ted on-handin$entory

    32 2 42 22 42 2 32 72

    &)1 F0 F0 F0 F0

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    9- Producto! P"#!!!$

    9.,. M#*t%r Producto! c2%du"% (MP)

    MP&

    E#'"%&

    Now it is ossi+le to determine the amount o#in$entory that is un!ommitted and( a$aila+le toromise usin" a look-ahead  ro!edure:1um +ooked !ustomer orders week +y week until

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    9- Producto! P"#!!!$

    9.,. M#*t%r Producto! c2%du"% (MP)

    MP&E#'"%&

    Be"innin"

    *n$entory:74

     >u!% >u"

    1 , 3 4 1 , 3 4

    ore!ast 30 30 30 30 40 40 40 40

    ;ustomer orders

    33 0 20 4

    )roGe!ted on-handin$entory

    32 2 42 22 42 2 32 72

    &)1 F0 F0 F0 F0

    $aila+le-to-romise

    in$entory 22 67 78 F0 F0