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Production Planning & Control

Demand Forecasting: Forecasting as planning tool, Forecasting Time Horizon, Sources of Data for Forecasting, Accuracy of Forecast, Capacity Planning. Production Planning: Aggregate production Planning, Alternatives for Managing Demand & Supply, Mater Production Schedule, capacity Planning, Overview of MRP, CRP, DRP & MRP-II Production Control: Scheduling & Loading, Scheduling of Job Shops & Floor
Shops, Gantt Chart.

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Production Planning & Control

  1. 1. Unit-3 Production Planning & Control (PPC) Dr. Prashant B. Kalaskar
  2. 2. 3.1: Production & Planning Control (PPC): Role & Functions 3.2: Demand Forecasting: Forecasting as planning tool, Forecasting Time Horizon, Sources of Data for Forecasting, Accuracy of Forecast, Capacity Planning 3.3: Production Planning: Aggregate production Planning, Alternatives for Managing Demand & Supply, Master Production Schedule, capacity Planning, Overview of MRP, CRP, DRP & MRP-II, 3.4: Production Control: Scheduling & Loading, Scheduling of Job Shops & Floor Shops, Gantt Chart. Syllabus Dr. Prashant B. Kalaskar
  3. 3. Organizational Goals Dr. Prashant B. Kalaskar Growth & Profitability Customer Satisfaction Increased Productivity Output Input Value 5 R’s High Quality Products Lowest Cost of Mfg. Shortest Possible Time Production Planning
  4. 4. PRODUCTION: transformation of raw materials to finished goods. PLANNING: looks ahead, anticipates possible difficulties and decides in advance as to how the production, best, be carried out. CONTROL: phase makes sure that the programmed production is constantly maintained. Introduction to Production Planning & Control (PPC) Dr. Prashant B. Kalaskar Planning + Control = Productivity
  5. 5. Simple Meaning is Planning & Controlling the Production PPC is effective and Efficient Utilization of 5M’s Resources 1) Materials: To avoid Shortages and overstocking 2) Machines: Maintenance to avoid Machine breakdowns 3) Manpower: To avoid Accidents/Mishaps due to Fatigue 4) Money: Cost Effective Production 5) Management: To exert Effective Control Introduction to Production Planning & Control (PPC) Dr. Prashant B. Kalaskar
  6. 6. Thus Production Planning can be defined in simple terms as…. “ the Process of Planning of Resources, Scheduling of Resources for improved productivity, Fulfilling Customer Demand for Timely Delivery of Products so as to create Maximum Value for the Customers.” Video Definition of Production Planning Dr. Prashant B. Kalaskar
  7. 7. 1) What to Produce 2) How Much to Produce 3) How to Produce 4) When to Produce 5) What to be used to Produce Production Planning Gives Answers to…. Dr. Prashant B. Kalaskar Product Planning Process Planning
  8. 8. 1) Optimum Utilization of Resources 2) Maximum Utilization of Production Capacity 3) Inventory Management 4) To manage Cycle Time, Takt Time and Lead Time 5) Production Planning & Scheduling based on Forecasting 6) Coordination with Suppliers and other Functional Depts. 7) Reducing Overall Cost of Production 8) Effective Purchasing & Procurement of Materials Benefits of Production Planning Dr. Prashant B. Kalaskar
  9. 9. Suppose Your Company “ABC Ltd.” has received an order of 5000 units of product XYZ (bicycle) on todate, to be supplied by 5th March. 1) What will be your Production planning..? 2) What necessary work you will do, to achieve the target..? Production Planning Workout Dr. Prashant B. Kalaskar
  10. 10. 1) Routing: Sequencing of Machines and Flow of Materials matching to the required Product. - The main aim of routing is to determine the best and cheapest sequence of operations and to ensure that this sequence is strictly followed. 2) Scheduling: It means working out of time that should be required to perform each operation & also the necessary time to perform the entire series as route. It mainly concerns with time element and priorities of a job. Functions of Production Planning & Control Dr. Prashant B. Kalaskar
  11. 11. 2) Scheduling: The main aim is to schedule that amount of work which can easily be handled by plant and equipment without interference. It takes into account following factors… (i) Physical plant facilities of the type required to process the material being scheduled. (Machines-plant capacity) (ii) Personnel who possess the desired skills and experience to operate the equipment and perform the type of work involved. (manpower) (iii) Necessary materials and purchased parts. (materials) Functions of Production Planning & Control Dr. Prashant B. Kalaskar
  12. 12. 3) Dispatching: Transition from Planning into Action according to Scheduling. Dispatching involves issue of production orders for starting the operations. (i) Movement of materials to different workstations. (ii) Movement of tools and fixtures necessary for each operation. (iii) Beginning of work on each operation. (iv) Recording of time and cost involved in each operation. (v) Movement of work from one operation to another in accordance with the route sheet & Inspecting or supervision of work. Functions of Production Planning & Control Dr. Prashant B. Kalaskar
  13. 13. 4) Loading: (Actual Operation Begins) Loading of Materials in the sequence of requirement in the flow, to ensure supply of materials. - Loading determines who will do the work as determined in routing and scheduling determines when it shall be done. 5) Follow-up (Expedition): Determination of the progress of work, removing bottlenecks in the flow of work and ensuring that the productive operations are taking place in accordance with the plans. Functions of Production Planning & Control Dr. Prashant B. Kalaskar
  14. 14. 6) Evaluating: Evaluating the Plan and Output to ensure the supply and fulfilling the demand of the market 7) Control: Maintaining optimum level of Inventory to avoid shortage as well over stocking 8) Corrective Measures: Corrective action may involve any of those activities of adjusting the route, rescheduling of work, changing the workloads, repairs & maintenance of machinery or equipment, control over inventories & deviation is the poor performance of the employees. Functions of Production Planning & Control Dr. Prashant B. Kalaskar
  15. 15. Strategic Planning(Long range): It is process of thinking through the organizations current mission and environment and setting a guide for future decisions and results. e.g. Technology forecasting and choice of appropriate technology for the long range time horizon. Tactical Planning(Intermediate Range): It is done over an intermediate term or medium range time horizon by middle level management. These plans focus on aggregate products rather than individual products. Levels of Production Planning & Control Dr. Prashant B. Kalaskar
  16. 16. Operational Planning(Short Range ): It is done over a short range time span developed by junior level management. It is concern with utilization of existing facilities rather than creation of new facilities. Levels of Production Planning & Control Dr. Prashant B. Kalaskar
  17. 17. Production Planning Dr. Prashant B. Kalaskar Production Plan Marketing Customer Demand Engineering Design Completion Management Return on Investment Human Resources Manpower Planning Procurement Supplier Performance Finance Cash Flow Production Capacity Inventory
  18. 18. Production Planning has following 4 important components 1) Forecasting of Demand 2) Aggregate Planning 3) Master Production Schedule (MPS) 4) Material Requirement Planning (MRP) Production Planning Dr. Prashant B. Kalaskar
  19. 19. Principles of Forecasting Dr. Prashant B. Kalaskar
  20. 20. Forecasting Dr. Prashant B. Kalaskar Predict the next number in the pattern: a) 3.7, 3.7, 3.7, 3.7, 3.7, ……? b) 2.5, 4.5, 6.5, 8.5, 10.5, …….? c) 5.0, 7.5, 6.0, 4.5, 7.0, 9.5, 8.0, 6.5, ……..? 3.7 12.5 12.5
  21. 21. What is Forecasting..? Dr. Prashant B. Kalaskar Process of predicting a future event based on historical data Educated Guessing. Underlying basis of all business decisions Production Inventory Personnel Facilities Finance
  22. 22. Forecasting Dr. Prashant B. Kalaskar Forecasting is a process of estimating a future event by casting forward past data. The past data are systematically combined in a predetermined way to obtain the estimate of the future. Prediction is a process of estimating a future event based on subjective considerations other than past data
  23. 23. Principles of Forecasting Dr. Prashant B. Kalaskar Defn: Prediction of Future (demand) is called as Forecasting Forecasting has 4 characteristics (principles)- 1) Forecasts are usually wrong 2) Every forecast should include an approximate error. 3) Forecasts are more accurate for families or groups 4) Forecasts are more accurate for nearer future
  24. 24. It is the Prerequisite Activity for Every Production Process Estimating or Predicting the Future is called as Forecasting Need for Forecasting: 1) Uncertainty in Market and Fluctuating Demands 2) Seasonal Fluctuation of Demand 3) To avoid Shortages and Overproduction 4) Helps in Planning and thus minimize errors Errors: Actual – Forecast [ Et = At – Ft ] Demand Forecasting Dr. Prashant B. Kalaskar Note that over-forecasts = negative errors and under-forecasts = positive errors
  25. 25. Steps of Demand Forecasting Dr. Prashant B. Kalaskar 1) Specifying the objectives of Demand Forecasting 2) Determining the Time Perspective 3) Making the choice of Methods of Demand Forecasting 4) Collection of Data 5) Estimation & Interpretation of Demand
  26. 26. Objectives of Forecasting (as Planning Tool) Dr. Prashant B. Kalaskar Forecasting can be done on short & long term basis. Benefits of Short term objectives:- 1) Formulation of Production plans 2) Helps to ensure regular supply of material 3) Maximum capacity utilization 4) Ensuring regular labour availability 5) Ensuring Adequate finance Apr. 2014
  27. 27. Objectives of Forecasting (as Planning Tool) Dr. Prashant B. Kalaskar Forecasting can be done on short & long term basis. B) Benefits of Long term objectives:- 1) Decision on new plant & production capacities 2) Estimation of labour requirement 3) Arrangement for long term finance
  28. 28. Forecasting (as Planning Tool) Dr. Prashant B. Kalaskar Seasonality of Demand: Ex. Ice Cream, Cold Drinks (helps businesses to maintain levels, to manage fluctuations in demand.) Festive seasons- demand is always high Daily & Weekly Demand Fluctuations: Ex: Time of Day or week viz: morning, noon, or evening, or Weekday or Weekend etc. Banks & Tea stalls, more rush in morning hours, Supermarkets experiences demand on weekends.
  29. 29. Types of Forecasting Methods Dr. Prashant B. Kalaskar Rely on data and analytical techniques. Rely on subjective opinions from one or more experts. Qualitative Methods Quantitative Methods
  30. 30. Techniques for Forecasting Dr. Prashant B. Kalaskar Qualitative Technique Executive Opinion Approach in which a group of managers meet & Shares Opinions to Forecast Market Survey Approach that uses interviews and surveys to Come to judge preferences of customer & to assess demand Sales Force Approach Approach in which each salesperson estimates sales in his or her region Delphi Method Approach in which consensus agreement is reached among a group of experts
  31. 31. Techniques for Forecasting Dr. Prashant B. Kalaskar 1) Qualitative Technique- Based on intuition, judgments & formal opinions are obtained from the customers for forecasting general business trends & demand from market o This is subjective technique used by Top Management. o Production & inventory forecasting is usually concerned with a demand for a particular item. Ex.-Delphi Method & Panel experts to give their opinions
  32. 32. Qualitative Techniques for Forecasting Dr. Prashant B. Kalaskar Type Characteristics Strengths Weaknesses Executive opinion A group of managers meet & come up with a forecast Good for strategic or new-product forecasting One person's opinion can dominate the forecast Market research Uses surveys & interviews to identify customer preferences Good determinant of customer preferences It can be difficult to develop a good questionnaire Delphi method Seeks to develop a consensus among a group of experts Excellent for forecasting long-term product demand, technological changes, and scientific advances Time consuming to develop
  33. 33. Techniques for Forecasting Dr. Prashant B. Kalaskar 2) Extrinsic Technique- These projections [Forecasting] are based on extrinsic (external) indicators/ factors which are related to demand for company’s products. Factors like- Housing Constructions, birth rates & disposable income. The theory is that the demand for the product group is directly proportional to external factors. Examples- Production & Sales of bricks are dependent on construction rate. Sales of electronics & automobiles is disposable income dependent Schools & Related materials depend on birth rate
  34. 34. Techniques for Forecasting Dr. Prashant B. Kalaskar 3) Intrinsic Technique-This technique is based on historical (past/internal) data, records within the company. It is assumed that trends/ demands in future can be related to what has happened in the past (Like driving a car safely looking in the rear view mirror) Ex- Simple moving average methods Weighted moving average methods, Exponential Smoothing Method
  35. 35. 1-Simple Moving Average Method Dr. Prashant B. Kalaskar This technique is suitable for short term forecasting. The data usually considered for 3-5 years for average calculation The number of periods may be considered up to 20. Every next time of calculation, the initial old data is replaced with the latest data. Formula for calculation- Simple Moving Average = Sum of demands of previous periods No. of periods used
  36. 36. 2-Weighted Moving Average Method Dr. Prashant B. Kalaskar o This is a similar method to that of Simple moving average o In this method, the weightage is given to the latest data, considering less accuracy with old data. o The latest data can give more exactness in forecasting, as it is the nearer demand. Let us see one example to understand it- Period 1 2 3 4 5 Qty. 1000 2000 3000 4000 5000
  37. 37. Simple & Weighted Moving Avg. Methods Dr. Prashant B. Kalaskar With Simple Moving Average Method- 1000+2000+3000+4000+5000 = 3000 With weighted moving average method- 3000+4000+5000 3 = 4000 o Here, the 4000 forecasted quantity is greater than 3000, which seems to be closer to that of earlier months 5000 units. o Hence these methods are useful for short term forecasting & to filter out random fluctuations in the demand
  38. 38. 3) Exponential smoothing Method Dr. Prashant B. Kalaskar This is software based computer mediated technique. This method is used for short term inventory control & scheduling Here also weightage to latest data is given. The actual demand is given the weightage. It is represented as α & is weighted in decimal 0.0 to 1.0 The formula for calculation new forecast by this method is- New Forecast= (α)x (Latest demand) + (1- α) x (Prev. forecast) A smaller α value makes the forecast more stable (used when more distant past data is used) A larger α makes the forecast more responsive
  39. 39. Ex- The old forecast for the month of May was 220 & actual demand for May was found as 190. If α value is 0.15, calculate the forecast for June. If the June’s demand turns to be 218, calculate forecast for July. Example of Exponential Smoothing Dr. Prashant B. Kalaskar Formula is- New Forecast= (α)x (Latest demand) + (1- α) x (Prev. forecast) June forecast= (0.15) x (190) + (1- 0.15) x (220) June Forecast calculated is- 215.5 units July forecast= (0.15) x (218) + (1- 0.15) x (215.5) July Forecast= 215.9
  40. 40. 4) Seasonality Dr. Prashant B. Kalaskar Many products have seasonal or periodic demand pattern Seasonal Index- This index is an estimate of how much demand during the season will be above or below the average demand for the desired product. It is calculated as- Seasonal Index = Period’s Average Demand Avg. demand for all periods
  41. 41. 5) Delphi Methods Dr. Prashant B. Kalaskar It Comprise of an expert panel. It is suitable for long range predictions, new products & product development market strategies. The panel of experts are from within the organization. The coordinators collects the answers for each question & summarizes & edited to develop new questions. This steps are repeated till the satisfied response is not received to the coordinators. Direct interpersonal relations are avoided, so there is no personality conflicts & dominance by any person.
  42. 42. 6) Scenario Based Method Dr. Prashant B. Kalaskar This method uses expert judgment in predicting alternative future scenarios. Suitability same as for the historical analysis
  43. 43. Forecasting on Time Horizon Dr. Prashant B. Kalaskar SHORT-RANGE FORECAST USUALLY < 3 MONTHS JOB SCHEDULING, WORKER ASSIGNMENTS MEDIUM-RANGE FORECAST 3 MONTHS TO 3 YEARS SALES/PRODUCTION PLANNING LONG-RANGE FORECAST 3 YEARS & MORE NEW PRODUCT PLANNING Design of Production system Detailed use of Production system Quantitative methods Qualitative Methods
  44. 44. Forecasting on Time Horizon Dr. Prashant B. Kalaskar Short Range Forecasting: o Typically are more accurate as predictions are made from the known facts and figures o It ranges from weeks to 3 months period, which includes; 1) Purchase requirement 2) Cash Requirement 3) Scheduling Work of employees 4) Job Assignments to Managers 5) Production Levels to be achieved
  45. 45. Forecasting on Time Horizon Dr. Prashant B. Kalaskar Medium Range Forecasting: o Typically are Fairly accurate as forecasts are made from the recent facts and figures and future trends can be calculated o It ranges from 3 months to 3 years, which includes; 1) Sales Planning 2) Production Planning & Budgeting 3) New Product Launch 4) Addition of New Technology
  46. 46. Forecasting on Time Horizon Dr. Prashant B. Kalaskar Long Range Forecasting: o Typically are less accurate as forecasts are made from the recent facts and figures and future trends can be calculated o It ranges from a 3 years to more than that, which includes; 1) Investments in New Plant 2) Change in Facility Location & Expansion 3) New Product Launch 4) Addition of New Technology 5) Acquisition or Divestment Useful for R&D Projects, Big Construction Projects Requires Constant Revisions and Updates
  47. 47. Sources of Data for Forecasting Dr. Prashant B. Kalaskar Accuracy of Forecasting increases based on quality and quantity of data. The source of Data for Forecasting can be either; 1) Internal Source: The data which is obtained from inside of the business. Viz. Previous Sales Data, Reports, Actual Forecast 2) External Source: The Data which is obtained from out of the business, which can be used for the purpose of forecasting Apr. 2016
  48. 48. External Sources of Data for Forecasting Dr. Prashant B. Kalaskar 1) Sales Force Estimates: Based on the opinions of the sales people, who are in the market and in contact with customers. The source is valuable, as the accuracy of the forecast is high 2) Point of Sales Data Systems: Here actually the CBB is observed by the retailers, who in contact with manufacturer, can estimate future trends and expected demand by customers 3) Forecast from Supply Chain Partners: Retailers and Distributors in SCM, can provide the accurate data based on their experiences with other channel partners including customers
  49. 49. External Sources of Data for Forecasting Dr. Prashant B. Kalaskar 4) Trade/Industry Journals: These journals can be published monthly or quarterly, becomes a source of data, which analyses trends in domestic as well international markets, sector wise data is also useful for forecasting purpose 5) B2B Portals or Market Place: Various Data sources of national and international businesses can be obtained from websites of private as well government officials.
  50. 50. External Sources of Data for Forecasting Dr. Prashant B. Kalaskar 6) Economic Surveys & Indicators: The surveys on economic trends like consumption pattern, GDP, GNP, Per capita income and spending capacity etc. can become the source for forecasting. Economic Research Agencies like CMIE- Centre for Monitoring Indian Economy or Central Statistical Agency are the examples 7) Subjective Knowledge: Senior Management or the Subject Experts, can become the source of information for forecasting. A systematic study of present and past scenario can help Top management to take Strategic Decisions
  51. 51. Capacity Dr. Prashant B. Kalaskar Capacity: It can be defined as “the upper limit of output” Capacity as output can be measured as Business Capacity (output) as sum total of its products or services. Definition: “Capacity is the upper limit or ceiling on the load that an operating unit can handle.” In Every Lift, it is clearly mentioned the capacity of weight either in kg’s or in terms of no. of persons
  52. 52. Importance of Capacity Decisions Dr. Prashant B. Kalaskar If a manufacturing plan has higher capacity then, It allows the ability to meet future high demands It affects operating costs to the company It is the major determinant of initial costs It affects competitiveness It affects ease of management
  53. 53. Types of Capacity Dr. Prashant B. Kalaskar Fixed Capacity: The capital assets (building and equipment) of a company at any particular time, is c/a fixed capacity. Adjustable Capacity: Depending upon size of work force, number of hours, number of shifts, subcontracting, capacity can be adjustable Design Capacity: is the maximum amount of work that an organization is capable of completing in a given period. Ex: A Cement Factory is designed to manufacture 150 tons/day Licensed Capacity: Legally Allowed Capacity (ex.-Liquor mfg.)
  54. 54. Types of Capacity System Capacity: The maximum output of a specific product, using workers and machine system i.e. production system. It is less than or equal to Design Capacity Installed Capacity: The capacity of output of a machine provided at the time of installation. (Car Mileage) Normal Capacity/Rated Capacity: The capacity of output based on actual output, established by the actual trials. Effective/Actual or Utilized Capacity: It is the actual output of any production system at any given point of time. It depends upon the availability of resources like absenteeism reduces capacity
  55. 55. Efficiency and Utilization Dr. Prashant B. Kalaskar Actual output Efficiency = Effective capacity Actual output Utilization = Design capacity This definition of efficiency is not used very much. Utilization is more important.
  56. 56. Efficiency/Utilization Example for a Trucking Company Dr. Prashant B. Kalaskar Design capacity = 50 trucks/day available Effective capacity = 40 trucks/day, because 20% of truck capacity goes through planned maintenance Actual output = 36 trucks/day, 3 trucks delayed at maintenance, 1 had a flat tire Actual output Efficiency = Effective capacity Actual output Utilization = Design capacity 36 trucks/day = = 40 trucks/day = 36 trucks/day 50 trucks/day = 90% 72%
  57. 57. Capacity Planning Dr. Prashant B. Kalaskar Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products. A discrepancy between the capacity of an organization and the demands of its customers results in inefficiency, either in under-utilized resources or unfulfilled customers Demands. The goal of capacity planning is to minimize this discrepancy.
  58. 58. Improving Capacity of Output Dr. Prashant B. Kalaskar Capacity can be improved by.., o Better utilization of existing capacity, which can be accomplished through improvements in Overall Equipment Effectiveness (OEE). o Capacity can be increased through introducing new techniques, equipment and materials, increasing the number of workers or machines, increasing the number of shifts, or acquiring additional production facilities. Ex: Garment Stitching Machines Capacity increase during Festivals
  59. 59. Production Planning Process Dr. Prashant B. Kalaskar Production Plan Execute Material Plans Master Production Schedule (MPS) Material Requirements Plan (MRP-I) Capacity Requirements Plan (CRP) Execute Capacity Plans No Yes Realistic?? Demand Forecasting
  60. 60. Aggregate Planning is totaling of forecasted demand including customer backlogs, matching to the business plan. This plan is made in advance of about 3 to 18 months and this plan plays a very critical role in providing an idea to the management about the quantity of the materials and the other resources that are to be procured and at what time of the operation all these are required. Aggregate Planning Dr. Prashant B. Kalaskar
  61. 61. Aggregate Planning allows companies to understand; 1) Amount of resources required for production process 2) The rate at which the production should go on so as to meet the demand in the market 3) The inventory to be carried out for production purpose A Garment Manufacturer can make aggregate Planning of 1 yr Shirts-5k, Trousers-5k+1k backlog, Hotel Uniforms-500, Coats-700 School Uniforms-3k, Security Guards Dress-200 Aggregate Planning Dr. Prashant B. Kalaskar
  62. 62. Need for Aggregate Planning Dr. Prashant B. Kalaskar o Demand Fluctuation in the market: There will be a constant upswing and downswing of demand in the markets based on different factors o Capacity Fluctuation: ( Feb. has less days than in Jan or March) o Difficult level in altering production capacity: (4000/day to 5000/day) o Benefits of Multi Period Planning: Considering fluctuations in the demand, it is always advisable to produce slightly higher than the estimated demand to match with any fluctuation, than planning month by month.
  63. 63. - Even out of demand by shifting the demand from peak hours to non peak hours. A) Reservation of Capacity B) Influencing Demand: 1) Inventory Based Alternatives 2) Capacity Adjustment Alternatives 3) Capacity Augmentation Alternatives Alternatives for Managing Demand & Supply Dr. Prashant B. Kalaskar
  64. 64. A) Reservation of Capacity: - When on a specific day or time, demand goes beyond the capacity, the organization may loose customer and business - In such situation, reservation of capacity can be used. Example: Movie Theater: Advanced booking or advanced reservation of tickets Hospitals: Doctor’s appointment can be given as per the capacity, so that every patient can be served on alternative days Alternatives for Managing Demand & Supply Dr. Prashant B. Kalaskar
  65. 65. B) Influencing Demand: - Influencing demand of customers using some tools/techniques from peak demand time to non peak demand time. - Methods like Special Tariffs, Discounts, Offers, etc. Example: Internet providing companies can shift the demand from peak hours to non peak hours (12 am to 8 am) by providing special tariffs. End of Season Sell or Stock clearance sell, before festive demand Alternatives for Managing Demand & Supply Dr. Prashant B. Kalaskar
  66. 66. 1) Inventory Based Alternatives: - Building the inventories, when the demand is low for the time when the demand will be high. Ex: Suppose a machine has a capacity of mfg. 45000 units/day The demand for the product in Feb, Mar & April is just 35000 U/d The demand for the product in May, Jun & Jul is 55000 U/d The company will use its capacity of 45000 u/d, and will carry excess inventory in first 3 months for matching the demand in next 3 months Ex: Paan Shop, who keeps paan ready Alternatives for Managing Demand & Supply Dr. Prashant B. Kalaskar
  67. 67. 2) Capacity Adjustment Alternatives: - The capacity of the machine can be adjusted (increased or decreased) depending upon the demand in the market. a) Overtime or Under-time operation of machines b) Variable Number of Shifts (increase or decrease of shifts) c) Hire or lay off workers (training) Disadvantages: Training cost to hired labours, Morale issues of labours, OT cost increases. Alternatives for Managing Demand & Supply Dr. Prashant B. Kalaskar
  68. 68. 3) Capacity Augmentation Alternatives: - Augmentation means increasing or expansion through combination or integration a) Subcontracting or Outsourcing of manufacturing b) De-bottleneck of operation process c) Addition of New Capacity Disadvantages: Transaction cost increases due to outsourcing Additional cost of new capacity addition of machines Alternatives for Managing Demand & Supply Dr. Prashant B. Kalaskar
  69. 69. Master Production Schedule-MPS Dr. Prashant B. Kalaskar Aggregate Production Plan Capacity ? Master Production Schedule Feasibility approved? Material Requirement Planning Yes No No Can we produce 10,000 equivalent units (total for products A, B and C) per month for the next year? Can we produce 1500 units of A, 600 of B and 400 of C per week for the next month ?
  70. 70. The MPS is software based system, that gives information related to production planning, purchasing & helps top management with the information needed to plan and control the manufacturing operation. Planned production quantities for end-items in each time period of the planning horizon. Master Production Schedule-MPS Dr. Prashant B. Kalaskar
  71. 71. - A Master Production Schedule (MPS) is the plan that a company has developed for- Production, Inventory, Staffing, etc. - It sets the quantity of each end item to be completed in each week of a short-range planning horizon. - A MPS is the master of all schedules. - It is a plan for future production of end items. - It is usually linked to manufacturing where the plan indicates when and how much of each product will be demanded. Master Production Schedule-MPS Dr. Prashant B. Kalaskar
  72. 72. - Breaks down, or disaggregates, the production plan into product families - Promotes valid order promises - Provides a communication medium between Marketing/Sales and Operations - Proactively control ability to deliver goods to customers - Resource availability control - Proactively controls inventory levels What Master Production Schedule Does..? Dr. Prashant B. Kalaskar
  73. 73. Disaggregate the Sales and Operations Plan 1) The Sales and Operations Plan is broken into smaller product families. An example would be an auto maker breaking their automobile production down into small cars, sudans, trucks, etc.. 2) Promotes valid order promises: By validating the capacity for the MPS through rough cut capacity planning, alterative plans can be made when there are more orders than capacity. - Management has several options & implement something before customer orders are late or missed Master Production Schedule-MPS Dr. Prashant B. Kalaskar RCCP: Irrespective of Available inventory and available capacity, matching market demand
  74. 74. Marketing Operations - Marketing communicates demand through customer orders & forecasts: Marketing researches and monitors data to provide input on actual customer demand and forecasted customer demand to the Operations department - Operations communicates capacity through inventory levels and constraints: Operations researches & monitors data to provide input on capacity, inventory levels, & production constraints. Master Production Schedule-MPS Dr. Prashant B. Kalaskar
  75. 75. - Resource Availability Control Production shortfalls will be known ahead of time & alternative plans can be made: Based on the sales forecast & capacity review, a firm will know when they will not be able to meet forecasted demand & will be able to make alternative plans to increase capacity in some other manner or subcontracting. Proactively control ability to deliver goods to customers: Management will be able to proactively work on CRM by deciding how to handle production shortfalls in advance Master Production Schedule-MPS Dr. Prashant B. Kalaskar
  76. 76. Objectives of MPS Dr. Prashant B. Kalaskar • Establish and meet delivery dates • Determine launch dates for material orders • Optimize the use of available capacity and resources • Meet the objectives of the aggregate plan • Make trade-off decisions between production and marketing Sales Purchase Operations Operations Systemic Approach
  77. 77. An example of a master production schedule for "product A“ Production Plan for week-2, February, 2017 Example of MPS Dr. Prashant B. Kalaskar Demand Management 6 Feb. 17 7 Feb. 17 8 Feb. 17 9 Feb. 17 10 Feb. 17 Monthly Demand For Product A 4000 4000 4000 4000 4000 Working Days in the Month 23 23 23 23 23 MPS Daily Demand for Product A 174 174 174 174 174
  78. 78. Inputs-Outputs of MPS Dr. Prashant B. Kalaskar Forecast Production Plan Customer Order What to Produce? When to Produce? How much to produce? Product Lead Time Constraint Capacity Constraint
  79. 79. Materials requirements planning (MRP) is the logic for determining the number of parts, components, and/or materials needed to produce a demanded product. MRP is a software system. MRP provides time scheduling information specifying when each of the materials, parts, and components should be ordered or produced. Dependent demand drives MRP. Material Requirement Planning (MRP-I) Dr. Prashant B. Kalaskar
  80. 80. Dependent demand – Demand for items that are sub- assemblies, parts or raw materials to be used in the production of finished goods (end items). Independent demand – Finished products Inventory Classification Dr. Prashant B. Kalaskar 100 tables 100 x 1 = 100 tabletops 100 x 4 = 400 table legs
  81. 81. Functions of Material Requirement Planning Dr. Prashant B. Kalaskar • Reduces Inventory Levels • Reduces Component Shortages • Improve Shipping Performance • Improve Customer Service • Improve Productivity • Improve Communication • Reduce Freight Cost • Reduction in Excess Inventory • Reduce Purchasing Cost • Improve Production Schedules • Reduce Manufacturing Cost • Less Scrap and Rework • Simplified & Accurate Scheduling • Improve Supply Schedules • Improve Calculation of Material Requirements • Improve Competitive Position
  82. 82. 1. Identifying Requirements 2. Running MRP – Creating the Suggestions 3. Firming the Suggestions Three Basic Steps of MRP Dr. Prashant B. Kalaskar
  83. 83. Step 1: Identifying Requirements Quantity on Hand Quantity on Purchase Order Quantity in/or Planned for Manufacturing Quantity Forecasted (In short gross & net requirement planning) Three Basic Steps of MRP Dr. Prashant B. Kalaskar
  84. 84. Step 2: Running MRP – Creating the Suggestions Critical Items- (Vital & Essential “A”) Expedite Items- (Possibility of Shortage. “S”) Delay Items- (possibility of delay) (Simply Classification of Materials) Three Basic Steps of MRP Dr. Prashant B. Kalaskar
  85. 85. Step 3: Firming the Suggestions Manufacturing Orders Purchasing Orders Various Reports Three Basic Steps of MRP Dr. Prashant B. Kalaskar
  86. 86. Material Requirement Planning (MRP-I) Dr. Prashant B. Kalaskar
  87. 87. Overview of the MRP System (Inputs & Outputs) Dr. Prashant B. Kalaskar Product Structure File (BoM) Master Production Schedule Inventory Master File Material Requirements Planning Manufacturing Orders Purchase Orders Various Reports I n p u t s O u t p u t s
  88. 88. Bills of Materials “A listing of all the subassemblies, intermediates, parts, and raw materials that go into a parent assembly showing the quantity of each required items to make an assembly”. Basically, a Bill of Material (BOM) is a complete list of the components making up an object or assembly. Product Structure File (Bills of Materials) Dr. Prashant B. Kalaskar
  89. 89. Static (fixed) bill A bill of material for a part that is normally made from the same components, labor and raw materials. Used for standard assemblies, components, and engineer-to- order customer orders. (Ex: Auto Components, Tyres etc.) Dynamic (parametric) bill A bill of material for a product or part for which size, color, laminate, and other options can be selected. (Changing) Example: A bill of materials for a computer or Fast Food Items Types of Bills of Materials (BoM) Dr. Prashant B. Kalaskar
  90. 90. List of components & quantities needed to make product Provides product structure (tree) Parents: Items above (Top) in given level Children: Items below in given level Shows low-level coding Lowest level in structure item occurs Top level is 0; next level is 1, 2, 3 etc. Bill of Materials Dr. Prashant B. Kalaskar
  91. 91. Bill-of-Material Product Structure Tree Dr. Prashant B. Kalaskar Bicycle(1) P/N 1000 Handle Bars (1) P/N 1001 Frame Assy (1) P/N 1002 Wheels (2) P/N 1003 Frame (1) P/N 1004 Bicycle(1) P/N 1000 Handle Bars (1) P/N 1001 Frame Assy (1) P/N 1002 Wheels (2) P/N 1003 Frame (1) P/N 1004
  92. 92. Sample Bill of Materials Dr. Prashant B. Kalaskar Bill of Material P/N: 1000 Name: Bicycle P/N Desc Qty Units Level 1001 Handle Bars 1 Each 1 1002 Frame Assy 1 Each 1 1003 Wheels 2 Each 2 1004 Frame 1 Each 2
  93. 93. 1) Quantity 2) Item ID# 3) Description of Item 4) Cost of Item 5) Total Project Cost What information is on a BOM? Dr. Prashant B. Kalaskar
  94. 94. Quantity Tells user how many of each part is needed for each project Ex.: A chair needs 1 seat, 4 legs, 1 back, 2 handles & 15 nails Item ID Tells us which part to order Can be any of the following: Catalog number, UPC, or any other identification number. Ex: The chair needs a 2PC seat, 5DR legs, 6TU8 back, and 1 inch nails. Information is on a BOM Dr. Prashant B. Kalaskar
  95. 95. Description of Item Provides a check that the correct item is being ordered. Cost of Item Cost is included to show how much each part is per item and the total cost of all like parts. Example: The cost of a leg is ` 50 per leg. Then the total price of the legs ordered would be ` 200 because there are 4 legs. Information is on a BOM Dr. Prashant B. Kalaskar
  96. 96. Total Project Cost Shows the total cost of all items and is also the total cost of the direct materials used in the project. Example: Seat- ` 10, Back- ` 5, Leg- ` 5 per leg, Nail- ` 5 per nail Total Cost of a chair = 10 + 5 + 50*4 + 5*5 = ` 240 Information is on a BOM Dr. Prashant B. Kalaskar
  97. 97. MRP Process Dr. Prashant B. Kalaskar The Firm in Example produces all items in Product A. Using Lead times and MPS, we construct the Gross MRP as follows:
  98. 98. Given the following on-hand inventory, We construct a Net Requirements Plan: MRP Process Dr. Prashant B. Kalaskar Item Quantity on Hand A 10 B 15 C 20 D 10 E 10 F 5 G 0 Net Requirements plan includes following: 1) Gross Requirements, 2) On hand inventory, 3) Net requirements, 4) Planned Order Receipt & 5) Planned Order Release for each item.
  99. 99. MRP Process Net Requirement for Item-’A’ Dr. Prashant B. Kalaskar
  100. 100. Net Requirement for item-’B’ Dr. Prashant B. Kalaskar We need 80 units of B at week 7 because we need 40 units of A at this week, and one unit of A requires 2 units of B. Therefore 2 times 40 = 80.
  101. 101. Net Requirements = (Gross Req.) - [(On hand) + (Scheduled Receipts)] Therefore, we should also consider that the Inventory on hand for a item & also Scheduled Receipts for it (if we buy some of the item from other suppliers). Remember that, Scheduled receipts are the ones which we do not produce but buy from Outside. MRP-I Process Dr. Prashant B. Kalaskar
  102. 102. 1) Exploding and Offsetting 2) Gross and Net Requirements 3) Releasing Orders 4) Low level Coding and Netting MRP-I Process Dr. Prashant B. Kalaskar
  103. 103. 1) Exploding and Offsetting: Lead time – it is the time needed to perform the process . It includes order preparation, queuing, processing moving receiving and inspecting time as well as any expected delays. Exploding the requirements – it is the process of multiplying the requirements by usage quantity of each item and recording the appropriate requirements throughout the product tree. (BoM) Offsetting – it is a process of placing the exploded requirements in their proper periods based on lead time. (Ordering) MRP-I Process Dr. Prashant B. Kalaskar
  104. 104. 2) Gross and Net Requirements Gross Requirement - Total expected demand of the product. Net Requirements - Actual amount needed in each time period. Net Requirements = Gross Requirement – available inventory Planned on hand - Expected inventory on hand at the beginning of each time period. Planned-order receipts - Quantity expected to received at the beginning of the period Planned-order releases - Planned amount to order in each time period MRP-I Process Dr. Prashant B. Kalaskar
  105. 105. 3) Releasing Orders: Releasing an order – means authorization is given to buy the necessary material or to manufacturing of required component. Scheduled Receipts – are orders placed on manufacturing or on a vendor and represent a commitment to make or buy. Now, considering Scheduled Receipts, Net Requirement = Gross Requirement – Scheduled Receipts – available inventory MRP-I Process Dr. Prashant B. Kalaskar
  106. 106. 4) Low Level Coding and Netting: Netting – is a process in which any stock on hand is subtracted from the gross requirement determined through explosion, giving the quantity of each item needed to manufacture the required finished products. Low Level Code – is the lowest level on which a part resides in all bills of material. (Low level codes are determined by starting at lowest level of bill of material and working up, recording the level against the part. If part exists on higher level, its existence on the lower level is already recorded.) MRP-I Process Dr. Prashant B. Kalaskar
  107. 107. In the 1980s, MRP technology was expanded to create a new approach called Manufacturing Resources Planning (MRP II). MRP provides valid production schedules, proved so successful that organizations thought that with valid schedules of other resources could be even better planned and controlled. Manufacturing Resource Planning-(MRP-II) Dr. Prashant B. Kalaskar
  108. 108. MRP II represents an effort to expand the scope of Production Resource Planning and to involve other functional areas of the firm in the planning process, such as marketing, finance, engineering, purchasing, and human resources. Manufacturing Resource Planning (MRP II) Dr. Prashant B. Kalaskar
  109. 109. MRP II includes the following four major developments from MRP: 1) Feedback MRP II includes feedback from the shop floor on- a) How the work has progressed, to all levels of the schedule so that the next run can be updated on a regular basis, for this reason it is sometimes called 'Closed Loop MRP. Manufacturing Resource Planning (MRP II) Dr. Prashant B. Kalaskar
  110. 110. 2) Resource Scheduling: the system that concentrates on the resources i.e. – The plant and equipment required for operations process. The personnel requirement to carry out the task The financial requirements for necessary courses of actions etc. Manufacturing Resource Planning (MRP II) Dr. Prashant B. Kalaskar
  111. 111. 3) Batching Rules: The important rules are 'Lot for Lot', 'EBQ' and 'Part Period Cover'. Lot For Lot- means batches that match the orders EBQ- stands for Economic Batch Quantity. The batch size is calculated by a formula that minimizes the cost of production through balancing the set up cost. Part Period Cover means making batches whose size cover a fixed period of demand. Making a weeks requirement in one batch is an example. Manufacturing Resource Planning (MRP II) Dr. Prashant B. Kalaskar
  112. 112. 4) Software extension programs: A number of other software programs are included in the MRP II The most important is Rough Cut Capacity Planning (RCCP), an initial attempt to match the order load to the capacity available (using a number of simplifying assumptions). Overloads are identified and orders can be moved to underload periods to achieve a balance. This has been described as "knocking the mountains (the overloads) into the valleys (periods of underload) Manufacturing Resource Planning (MRP II) Dr. Prashant B. Kalaskar
  113. 113. CRP is the process of determination of; Personnel Capacities & Equipment Capacities to meet production objectives as per MPS MRP & CRP are integrated within computerized system MRP mainly focuses on Materials, while CRP focuses on Time Capacity Requirement Planning (CRP) Dr. Prashant B. Kalaskar
  114. 114. CRP mainly Concerned with; 1) Long Range resources planning of capital facilities, equipment and human resources 2) Medium Range requirement planning of Labour & Equipment to meet MPS needs 3) Short Range control of the flow (input & output) and sequencing of Operations Capacity Requirement Planning (CRP) Dr. Prashant B. Kalaskar
  115. 115. DRP provides the basis for integrating Supply Chain inventory information & physical distribution activities with the Manufacturing planning & control system. - Managing the flow of Materials between firms, warehouse & distribution centers - DRP helps to manage these materials flow just like MRP does in manufacturing Distribution Requirement Planning (DRP) Dr. Prashant B. Kalaskar
  116. 116. DRP & Marketplace: - DRP starts in Marketplace to collect sales forecast - Some firms gather information on inventory levels & product usage from customers - This information serves as knowledge to create opportunity - This is specially true when they have vendor managed inventories Distribution Requirement Planning (DRP) Dr. Prashant B. Kalaskar
  117. 117. DRP is the systematic process of delivering materials (Raw materials as well finished goods) at the location, where it is demanded. - The main objective of DRP is to lower the shortages and reduce the cost of ordering, transportation and holding goods - DRP take into accounts the supply stock along with buffer or safety stock to meet customer demand Distribution Requirement Planning (DRP) Dr. Prashant B. Kalaskar
  118. 118. The role of MRP and DRP is same, the only difference is that, MRP works at manufacturing while DRP works at SCM - DRP works on Pull as well Push System Pull System: ensures goods moving up to fulfill the demand of customers Push System: It sends goods down with planned order system, so as to maintain a constant supply of goods which are on regular demand. Distribution Requirement Planning (DRP) Dr. Prashant B. Kalaskar
  119. 119. DRP system works on demand signals - The organization collects the orders from market Totaled orders then sent as demand signals to various production units, enabling them to develop their production plan and thus ensure supply of goods to the desired markets with 5R’s If DRP system doesn’t deploy efficiently, may result in Bullwhip effect. Distribution Requirement Planning (DRP) Dr. Prashant B. Kalaskar
  120. 120. It provides a framework for determining the need to replenish inventory - It links market requirement with manufacturing and demand management system - It helps to manage the inventory according to MPS and demand in the market - It helps to maintain the safety stock of inventory, thus avoids shortages - It helps to achieve overall productivity Need of Distribution Requirement Planning (DRP) Dr. Prashant B. Kalaskar
  121. 121. DRP Process Flow Dr. Prashant B. Kalaskar Defining Nodes in Distribution Network Deployment Strategy for Each Materials Availability Checks Forecasting (for each Distribution Centre) Analysis and Transfer DRP run and Plan Production Order Transform and Transport the Stock
  122. 122. 1) Defining nodes in Distribution Network: Identify and define the different nodes in distribution network like warehouse, distribution centers and stock transfer point 2) Deployment Strategy for Each Materials: Set up material master record at each nodes. Using push and pull system, setup deployment strategy to ensure availability of each materials 3) Availability Check: This process will ensure availability of materials in hand and required materials as per MRP through availability checks DRP Process Flow Dr. Prashant B. Kalaskar
  123. 123. 4) Forecasting for Distribution Centers (DC): at each center forecasting of materials based on sales forecast. 5) Analysis and Transfer: Analyze the demand at each DC matching to the sales forecast and transfer the materials 6) DRP run and Plan Production Order: The DRP runs allows to know quantities of materials required at each node of distribution point and supplies matching to production plan 7) Transfer & Transport the Stock: Transfer & Transport the Stock of materials from point of supply to point of consumption DRP Process Flow Dr. Prashant B. Kalaskar
  124. 124. Every Organization makes a planning of - What Product to be produced - When to Produce - How to Produce - How much to produce - Who will produce based on the demand and fulfilling customer needs & wants This planning is supported with effective utilization of Resources Production Control Dr. Prashant B. Kalaskar
  125. 125. Product control is thus…. - “The process of Planning Production in Advance, - Establishing the exact route of resource - Setting the time of starting & finishing of each tasks - Releasing the necessary orders to carryout each task - Evaluation and Follow-ups with all the activities to effectuate the smooth functioning of the operation process” Production Control Dr. Prashant B. Kalaskar
  126. 126. Production Control Dr. Prashant B. Kalaskar Production Control Progress Reporting Data Processing Corrective Actions Expediting Re-planning
  127. 127. 1) It increases productivity of the organization 2) Reduces scrap and wastages of materials 3) It reduces time of operation thus allows on time delivery 4) Reduces overall operation cost to the company thus contributes in profit generation 5) A better planning helps organizations to develop competitive advantage Benefits of Production Control Dr. Prashant B. Kalaskar
  128. 128. Schedule – the order in which jobs are to be completed providing a start time for each job on each machine Sequence – only provides the order in which jobs are to processed “Scheduling integrates the people, machine, materials, customer demands, and quality requirements in finalizing the priorities. Scheduling makes it possible by determining starting and completion time of each of the operations.” Production Scheduling Dr. Prashant B. Kalaskar
  129. 129. Production Scheduling Dr. Prashant B. Kalaskar Forecast of future demand Aggregate plan Master production schedule (MPS) Schedule of production quantities by product and time period Material Requirement Planning (MRP) Generate production orders and purchase order Operations Scheduling To meet quantities and time requirements for MRP Implement the production orders as generated in MRP under given objectives ; Allocate production resources (machine, workers et al.) to production orders (jobs or tasks & their due dates) in an optimized manners; The results are time allocations of production resources to different jobs (job sequences on each production resources); All the orders can be completed while all production resources are utilized with their loads being balanced.
  130. 130. 1) Meet due date; 2) Minimize WIP inventory; 3) Minimize the average flow time through the systems; 4) Provide for high machine/worker (time) utilization (minimize idle time); 5) Reduce setup cost; 6) Minimize production and worker costs Objectives of Operations Scheduling Dr. Prashant B. Kalaskar
  131. 131. Forward Scheduling: It starts with the receipt of orders from the customers. It schedules the procurement of materials and then scheduling operations to match with the delivery date. Backward Scheduling: In this case the last operation step i.e. finished product is scheduled first. Then in reverse sequence one by one other operations are designed and then sets the time of procurement of raw materials Types of Production Scheduling Dr. Prashant B. Kalaskar
  132. 132. FCFS- (First Come First Served): Jobs processed in the order they come to the shop. SPT- (Shortest Processing Time): Jobs with the shortest processing time are scheduled first. EDD- (Earliest Due Date): Jobs are sequenced according to their due dates. CR- (Critical Ratio): Compute the ratio of processing time of the job and remaining time until the due date. Schedule the job with the smallest CR value next. Typical (Common) Sequencing Rules that we should consider Dr. Prashant B. Kalaskar
  133. 133. Gantt chart is a type of Bar Chart, and it was developed by the mechanical engineer Henry Gantt. - He designed the chart in order for his foremen and supervisors to quickly understand the status of engineering projects. - The modern Gantt chart displays the start/finish dates and overall schedule of a project. - It clearly highlights the dependency & relationship between tasks & resources scheduled to deliver the work. Gantt Chart Dr. Prashant B. Kalaskar
  134. 134. Gantt Chart Example Dr. Prashant B. Kalaskar Process Name Data Tables Task bars Milestones Task Connectors Vertical Scroll Line Colors of the Bars
  135. 135. A Gantt chart consists of the following elements: 1) Categories & sub-categories (dates/weeks) in the visual time-line 2) Scrollable data table that includes: Process names Additional user-defined columns of data 3) Scrollable Gantt view pane that includes: Gantt task bars Milestones Task connectors Vertical Scroll Bar or lines Legend to show the color keys used in the chart Elements of Gantt Chart Dr. Prashant B. Kalaskar
  136. 136. 1) Whole Project Picture - The human brain interprets images and pictures much more easily than words. - A well structured Gantt chart demonstrates the start and end dates of a project and the whole delivery plan in a single view. - If stakeholders can easily see the delivery date or end of the project they are much more likely to support the plan. Benefits of Gantt Chart Dr. Prashant B. Kalaskar
  137. 137. 2) Critical Path - Tasks that are considered on the critical path are literally just that, critical to the success of the project. - If any one of these tasks were to fail or be impacted then they would have a direct affect on the project. - The ability to easily identify possible risks and issues can only be considered as a benefit. Benefits Gantt Chart Dr. Prashant B. Kalaskar
  138. 138. 3) Ability to baseline a project - Baselining a project is a task that is often overlooked but brings great benefit. - The ability to look back over a project and identify where changes were made to a plan and assess performance. Benefits Gantt Chart Dr. Prashant B. Kalaskar
  139. 139. 4) Demonstrate Control - For any project to be a success it must have ‘buy in’ from all stakeholders. - One way this can be achieved is by instilling confidence that as a Project Manager you are in control. - Being able to view dates, resources and tasks on one single page demonstrates that as a PM you have considered the project delivery plan. Benefits Gantt Chart Dr. Prashant B. Kalaskar
  140. 140. 5) Highly Visible - Gantt charts were designed to be easily presentable and highly visible. - An updated & regularly reviewed plan helps instill confidence & ensures the project is moving in the right direction. - If a plan is posted in a public space then people can not use the excuse of being unaware of timescales or responsibilities. Benefits Gantt Chart Dr. Prashant B. Kalaskar
  141. 141. 6) Communication Due to its structure and layout it aides communication. By highlighting questions that may have not previously been considered it forces team members to communicate. 7) Dependencies The horizontal layout allows a viewer to quickly identify the dependencies between tasks and spot any risks. Benefits Gantt Chart Dr. Prashant B. Kalaskar
  142. 142. 8) Clarity & Visualization - A well presented Gantt chart combined with the right level of task breakdown for the size of the project provides clarity to everyone. - Team members will be confident that the project is being managed and steered in the right direction. Benefits Gantt Chart Dr. Prashant B. Kalaskar
  143. 143. 1) Define Production Planning & Control. Explain its objectives, scope and elements. (Dec. 2014) 2) Explain Forecasting as Planning Tool (Apr 2014) 3) Explain Various Sources of Data for Forecasting (Apr 2016) 4) Explain Aggregate Production Planning (Dec 2014) 5) Explain Objectives and Function of MPS (Dec14 & Apr 16) 6) Explain Material Requirement Planning (Dec 2014) 7) Explain Capacity Requirement Planning (Dec 2014) 8) Explain Scheduling Questions Asked Till Time by SPPU Dr. Prashant B. Kalaskar
  144. 144. Dr. Prashant B. Kalaskar 9975770407 pbkalaskar@sinhgad.edu For Any Query Dr. Prashant B. Kalaskar

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