Production Planning and Scheduling

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Production Planningand Scheduling
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Production Planning

• Also Known as Aggregate Planning
• Problem in Game Set Production Every Period,
  Allocate Resources, Meet Demand
• Set Pt Production for t
• Wt Workforce for t

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Production Planning

• Inputs Resources (Rough-Cut Capacity Planning),
  Forecast, Inventory, Policies, Costs
• Demand Options Pricing, Shifting Demand,
  Promotion, Markets for New Demand, Partnering
  with Suppliers, Allowing Back Orders (Shortages)
• Supply (Capacity) Options Hiring/Layoff,
  Overtime, Temporary Workers, Inventories,
  Subcontracting, Expediting

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Relevant Costs

• 1. Change in Production (E.g. Hire/Layoff) Costs
• 2. Inventory Holding Costs
• 3. Shortage Costs
• 4. Payroll Costs
• 5. Subcontracting Costs
• 6. Expediting Costs

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Scheduling Strategies

• Level Workforce
• Steady Output
• Match Demand, Chase
• Mixed, Game
• Given Beginning Inv. Demand Pt End Inv.

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Scheduling Techniques (1) Heuristics

• Informal Rules that Appear to Work
• Rules are Developed (Often by Trial and Error)
  and Tested in Real World or Computer Simulation
• Advantage Rules Can Be Realistic.
  Disadvantage Not Optimum.

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Scheduling Techniques(2) Linear Decision Rule

• EOQ-Like Approach
• TRC Payroll Holding Shortage Change in
  Pt f(Pt, Wt)
• Calculus Used to Find Best Pt and Wt
• E.g. Pt .2Ft .1Ft1 .05Ft2 -.1It .1Wt-1
• Advantage Optimum Given that Equations Fit.
  Disadvantage Cost

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Scheduling Techniques (3) Search Rules

• Used with Simulation
• Educated, Computer-Driven, Trial Error
• Advantage Realistic Costs, Not Optimum but
  Close. Disadvantage Uses Lots of Computer Time

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Master Production Schedule (MPS)

• Similar to Production Plan
• Time Periods or Buckets are Smaller
• Multiple Products are Shown Disaggregating
  Done by Heuristics or Linear Programming
• Example on Page 658

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Summary of the Scheduling Process

• FORECAST
• ?
• ROUGH-CUT CAPACITY PLANNING
• ?
• PRODUCTION PLAN
• ?
• MASTER PRODUCTION SCHEDULE (MPS)
• ?
• MATERIAL REQUIREMENTS PLANNING (MRP)
• ?
• CAPACITY REQUIREMENTS PLANNING
• ? ?
• SHOP FLOOR CONTROLS VENDOR
  CONTROLS

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MRP

• Material Requirements Planning
• Manufacturing Resource Planning (MRP II)
• Translates MPS into Schedule of Component
  Requirements, Both Order Quantities and Times

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MRP Inputs

• Master Production Schedule (MPS)
• Bill of Materials (Parts List, p. 660)
• Inventory Status On Hand
• Lead Times

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Bill of MaterialsProblem 3.1
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Problem 3.1 a

• Ear Plugs (2 x 1000) 2000
• Aspirin (1 x 1000) 1000
• Gas Masks (5 x 1000) 5000
• Boxes (1 x 1000) 1000
• Labels (1 x 1000) 1000
• Cardboard (1 x 5000) 5000
• Wax (2 x 2000) (.5 x 5000) 6500
• Labor Hours (.08 x 2000) (.1 x 5000) 660

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Problem 3.1 b,c

• Adjustment for Scrap
• Scheduled Units MRP / (1 Scrap )
• Scheduled Units 5000 / .97 5155
• Standard Time MRP / (1 - Delay)
• ST 0.66 / 0.8 0.825 Hours
• Actual Time ST / Labor Efficiency
• AT 0.825 /.9 0.920 Hours

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