Production Planning System ( Chapter 3 )

  Resource planning Once the preliminary production plan is established, it must be compared to the existing resources of the company. This step is called resource requirement or resource planning. There were 2 questions must be answered. 1.        Are the resources available to meet the production plan? 2.        If not, how will the difference be reconciled? If not enough capacity to meet the production plan cannot be made available, the plan must be changed. A tool often use is the resource bill. If the firm planned to make 500 tables, 300 chairs, and 1500 stools in particular period, so they could calculate the quantity of wood and labor that will be needed. For example, the wood and labor that needed. For example, the amount of needed is: Tables: 500 X 200 = 10,00 board feet Chairs: 300 X 0.85= 3000 board feet Stools: 1500 X 5= 7500 board feet Total wood required= 20,500 board feet The...

  Developing Make-to-Order Production Plan In make-to-order environment, manufactures will wait until an order is received from a customer before starting to make the goods. The example for this kind of manufacture are custom-tailored clothing, machinery, or any product made to customer specification. For very expensive items are usually made to order. Generally, firms make to order when: Goods are produced to customer specification. The customer is willing to wait while the order is being made. The product is expensive to make and to store. Several product option are offered. Assemble to order Where several product options are exist, such as in automobiles and where the customer is not willing to wait until the product is made, manufactures produce and stock standard component parts. When manufactures receive order for customer, they will assemble the component parts from inventory according to the order. Since the components are stocked, the firm needs only time to assemble befor...

 Developing a make to stock production plan Developing a Make-to-Stock Production Plan What is make-to-order? The manufacturers wait until an order are received from a customer before starting to make the goods. As clear, the custom tailored clothing will do a product when the order are received follow the customer specification. Usually, firms make to order when:     Good are production from customer specification     The customer are willing to wait while the order is being made     The product are expensive to make and to store     Several product option are offered How is the developing a make-to-stock production plan? In order for a make-to-stock environment, product are made and put into inventory before an order is received from a customer. Sale and delivery of the goods are made from inventory. Generally firms make to stock when:     Demand is fairly constant and predictable ...

  Making the production plan.  The production plan in responsibility to sets the limit or levels of manufacturing activity for some time in future or in another word is require the planning of production and manufacturing modules in a company or industry. It integrates the capabilities and capacity of the factory with the market and financial plan to achieve the overall business goals of the company. Its sets the general levels of production and inventories over the planning horizon. The prime purpose is to establish production rates that will accomplish the objectives of the strategic business plan. Typically, the period of six to eight months and done in monthly and sometimes weekly period.    Include: Ø Inventory level Ø Backlogs (unfilled customer orders) Ø Market demand Ø Customer services Ø Low-cost plant operation Ø Labor relations  Basic Strategies In other word, production planning problem typically has the following characteristics...

  Sales and operations planning is a process  where executive level management regularly meet and review projections for demand, supply, and the resulting financial impact. SOP is a decision-making process that makes certain that tactical plans in every business area are in line with the overall view of the company's  business plan . SOP is a cross-functional business plan that involves sales and marketing, product development, operations, and senior management. Benefits of Sales and Operations Planning  1) It provides means  of updating the strategic business plan as conditions change. 2) Improve inventory 3) Increase promotional planning 4) Great visibility of the demand and supply across the enterprise  5)  I ncreased accuracy in budget forecasting, and an improved product lifecycle management process. Manufacturing Resource Planning Manufacturing Resource Planning (MRP II) is an integrated information system used by businesses. Manufacturing Resour...

  The master production schedule (MPS) is  a  plan  for individual commodities to be produced in each time period. The Material Requirements Plan  (MRP) is a plan for the production and purchase of the components used in making the items in the production plan. It shows the quantities needed and when manufacturing intends to make or use them. Purchasing and production activity control use the MRP to decide the purchase or manufacture of specific items. Purchasing and production activity control (PAC) represent the implementation and control phase of the production and control system. Purchasing is responsible for establishing and controlling the flow of raw materials into factory. PAC is responsible for planning and controlling the flow of work through the factory.