Production planning

1. Production planning

Logistics
magement
PRODUCTION
PLANNING
By Lazovskaya Ekaterina

2.

Production
planning is the
planning of
production and
manufacturing modules in
a company or industry. It
utilizes the resource
allocation of activities of
employees, materials and
production capacity, in
order to serve different
customers
It is a plan for the
future production,
in which the
facilities needed
are determined
and arranged

3.

Single item
manufacturing
Batch
production
Type of
planning
Type of
planning
Mass production
Type of
planning
Production planning can be combined with
production control
or integrated into enterprise resource planning

4.

1. Determination of the required product mix and
factory load to satisfy customers needs.
2. Matching the required level of production to the
existing resources.
3. Scheduling and choosing the actual work to be
started in the manufacturing facility
4. Setting up and delivering production orders to
production facilities
A production planning is made
periodically for a specific time
period, called the planning
horizon. It can comprise the
following activities:

5.

The planning horizon is the amount of time an
organization will look into the future when preparing
a strategic plan. Many commercial companies use a
five-year planning horizon, however a general
Planning horizon is around one year.
In manufacturing, a planning
horizon is a future time period
during which departments that
support production will plan
production work and determine
material requirements

6.

Provide
Should take into
account
material availability
They can provide sales
forecasts, or a listing of
customer orders
knowledge of
future demand
resource
availability

7.

8.

Elements of
production planning
Planning
Routing
Scheduling
Dispatching
Follow – up and
expediting
Inspection

9.

If you fail to
plan, you
are planning
to fail!
Benjamin Franklin
Planning

10.

Routing
Routing is the specification of the flow sequence of
operations and processes to be followed in
producing a particular manufacturing lot.
Preparation
for control
Missing
part
Material
requiared
Manufacturing
operations
and
sequances
Lot sizes
Scrap
factors
Cost of
the
product

11.

Scheduling

12.

Types of
schedules

13.

Decentralised
despatching:
All orders are
ussued to the
foreman or
dispatch clerk of
the department.
Makes control more
complicated.
Dispatching
Centralized
despatching:
orders are directly
issued to workmen
and machines. It
serves for effective
control

14.

Follow – up and
expediting
Follow up or expediting is that
branch of production control
procedure, which regulates the
progress of materials and part
through the production process.

15.

Inspection
Inspection is the process of
ensuring whether the products
manufactured are requisite
quality or not.

16.

Production planning is done at three
different time dependent levels
Long – range planning:
Facility planning, capital investment, location
planning
Medium – range
planning:
Deamnd forecast and capacity
planning
short term
planning
dealing with day to
day operations

17.

Challenges
for planning
Combining Functions – It is desirable that
a minimum changes be made after
schedules are established. This objective
can be approached if the amount of
work scheduled for the factory or
department is equal or slightly greater
than the production cycle.
Follow-up – When jobs are started and
completed on schedule, there should
be very little concern about the meeting
of commitments.
Re-planning – Often required in
manufacturing. Changes in market
conditions, manufacturing methods, etc.
affecting the plant will often indicate
that a new manufacturing plan is
required.

18.

Factors Affecting Production Planning and Control
Market Forecast – It will indicate future trends in demand for
manufactured products.
Sales Order – It is a rewrite of the customer order specifying what
has been purchased (product, quantity and authorizing shipment
of the goods to the customer).
Standard Process Sheet – It is prepared by process engineering
group or process owner and it is the source of basic data which
may include type of machine to be used, time required for
processing, etc. (keep an eye on preventive maintenance and
breakdowns)
Load Charts – These charts are prepared for each workstation or
machine in the plant or may be for groups of machines or
departments.
Project Planning Method – The product to be produced are
manufactured in quantities and their total processing time can be
measured.

19.

Crystal Pepsi
> Company: PepsiCo
> Year released: 1992
> Revenue yr. released: $19.8 billion
In 1992, PepsiCo attempted to enter the then-flourishing “new-age
beverages” market with its clear, caffeine-free Crystal Pepsi. The
company promoted the product as a healthy and pure diet
beverage. Its $40 million advertising campaign included permission to
use Van Halen’s hit song Right Now in TV advertisements.
Reason:Not only were consumers not convinced by Pepsi’s health
angle, but many cola-drinkers expected a darker beverage. Also
hurting Crystal Pepsi’s popularity: to many consumers it tasted just like
original Pepsi.

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Thank you for your
attention