Production Planning

1
Production Planning

• Group 4
• Claudia David Lisa Shakeia Vicky

2
Definitions

• Production Specification File The PSF provides a
  "road map" that identifies the software structure
  and package according to its attributes,
  contents, compatibilities, and dependencies.
• Machine Loading File Recorded information
  identifying the machinery and the raw materials
  used and the duration of such use.

3
Definitions Continued

• Open Production Orders File production orders
  which are authorized to manufacture a specific
  quantity of a particular product that has not
  been completed.
• Bill of Materials lists the components that are
  required to build each product, including part
  numbers, descriptions, and quantity.
• Operations List lists the sequence of steps
  required to produce each product, including the
  equipment needed and the amount of time required.
• Production Order the document used to process a
  production run of an item.
• Move Tickets a document used to move inventory
  within a facility.
• Materials Issue Cards

4
(No Transcript)
5
Data sheet explanation

• Section 1 is all of the special orders for the
  company, custom jobs and such. Section 2 is the
  everyday productions of the company. In section 1
  the company gets a special order and they then
  figure out exactly what is needed to produce the
  order. A clerk enters those specifications and
  the Product specification as well as the
  Operations (routing) files are updated.
• In section 2 the company uses forecasts and
  previous backorders to determine production needs
  to meet demand for the current year. They break
  that down into the production requirements for
  each product. Then you enter that data at the end
  of each day. The data for both of those sections
  goes into the 4 electronic database files in
  section 3. From those files outputs 4-7 occurs.
• In Section 4 Customers are sent the Bills of
  materials which lists the components that are
  required to build each product, including part
  numbers, descriptions, and quantity.
• The Operations list which lists the sequence of
  steps required to produce each product, including
  the equipment needed and the amount of time
  required. And a copy of the original sales order.
  In Section 5 the production operations are sent
  the production order the document used to process
  a production run of an item. The move tickets a
  document used to move inventory within a
  facility, and how many materials they have been
  allocated (materials issue cards). In Section 6
  the revised production schedule is sent to the
  production work center. And in Section 7 the
  material requirements report is sent to
  purchasing processing.

6
Threat 1

• Poor Product Design
• Increase in Cost
• Poorly designed products are the cause of 50
  of all product returns. Therefore the company
  incurs higher costs because of repair and
  warranty costs.

7
Threat 1 Continued

• Controls
• 1. There needs to be accurate data pertaining
  to the relationship between the components
  involved in manufacturing the finished product.
• 2. Warranty and repair costs should not be
  ignored, but analyzed. Examination of these costs
  can help us to know what were the major causes of
  the product failure.

8
Threat 2

• Over or Under Production
• Over Production More goods are available than
  are demanded
• Under Production More goods are demanded that
  have been produced

9
Threat 2 Continued

• PROBLEMS
• Overproduction
• - If all of your resources are tied up in
  inventory, it may lead to future cash flow
  problems.
• There is also an increased risk of your inventory
  becoming obsolete.
• Underproduction
• Loss of sales customer dissatisfaction

10
Threat 2 Continued

• CONTROLS
• Having Accurate Current Data
• - Sales Forecast Data
• - Inventory Stock Data
• Ability to Quickly Adjust Production Schedules
• - You must be able to slow or speed up
  production depending on the sales forecast.
• By collecting accurate data about the time it
  takes to manufacture the good it helps the
  production planner organize the production
  schedule.

11
Threat 2 Continued

• CONTROLS continued
• Proper approval of production orders
• - Restrict access to the production scheduling
  program (passwords access controls)
• Correct production orders
• - Closed-loop verification (The planner enters
  the production order the system request to
  verify the production order.)

12
Threat 3

• Suboptimal Investment in Fixed Assets
• 1. Excess cost in over investing that reduces
  profit.
• 2. Under investments can reduce productivity.

13
Threat 3 Continued

• Controls
• 1. Authorization on fixed assets.
• Examples
• 1. Large amount of more than 10,000
  should be verify by the senior executive
  committee.
• 2. Smaller amounts can be approved by
  manager who will be accountable for the
  investment.
• 3. Inviting suppliers to provide an
  estimate cost of the asset.
• 4. Then capital investment committee
  choose the best supplier that has the best
  estimate.