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Production Planning: Customer Perspective Supplier Perspective

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13 views

Production Planning: Customer Perspective Supplier Perspective

Uploaded by

adammajidi29
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Production planning

Chapter 1
Global environment:

 Global competition
 Customer expectations: price quality delivery pre- and post-sale service flexibility
availability customisation...
 The economy and government regulation
 Quality

Order qualifiers: competitive characteristics that a firm’s products must exhibit to be considered by customers.

Order winners: competitive characteristics that makes me special from my competitors in the market.

Manufacturing and service industry objectives: (7 rights of the customer)

Customer perspective Supplier perspective


The right goods and services High levels of customer service
The right quality Efficient use of resources
The right quantity Low inventory investment
The right time
The right place
The right price

MTS  make to stock low lead time of the customer  high volume low variety.

MTO  make to order  intermediate lead time of the customer  average volume average variety.

ETO  engineer to order  very high lead time of the customer low volume high variety.

ATO  assemble to order  intermediate lead time of the customer low volume high variety.

PTO  Package to order  high lead time of the customer low volume high variety.

MASS customization / postponement...  high volume high variety


 Providing insufficient capacity will result in a reduction of customer service.

Exercise 1:

Process
MTS ETO/ATO or MTO
environment/production
Refineries(continuous) / milk
Flow Assembly of car(repetitive)
manufacturing(continuous)
Manufacturing of skis /Ready to
Intermittent Mechanical (MTO/ETO)
wear clothing
Project Collective housing Ships /Satellites (ETO)

Exercise 2:

Product Process
layout(flow) layout(intermittent)
Capital cost + -
Flexibility - +
Annual setup cost - +
Run cost - +
Work-in-process inventory - +
Production and inventory control costs - +
Lead time - +

Chapter 2 PIC

BOM: Bill of material  nomenclatures

Advantages:
 stable inventory
 inventory can be kept to a
minimum.
 production varied to meet
sales requirements.
Disadvantages:
 Costs of hiring, training...
 costs of layoffs
 Possible unavailability of
needed work skills
 Capacity must match
maximum demand
Advantages:
 Avoid labor and capacity costs of
demand matching
 Avoids changeover costs lower
the average production costs per
item
Disadvantages:
 Buildup of inventory

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