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Unit 3

Unit-3 discusses production planning and process planning. It explains key concepts like product planning, value analysis, lack of product planning, process planning steps involving routing, scheduling, and dispatching. It also covers quantity determination for batch production using the economic batch quantity model which aims to determine the optimal batch size to minimize average costs based on factors like demand, unit costs, holding costs, setup costs and production time.

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S20M048 HARIRAM M
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22 views

Unit 3

Unit-3 discusses production planning and process planning. It explains key concepts like product planning, value analysis, lack of product planning, process planning steps involving routing, scheduling, and dispatching. It also covers quantity determination for batch production using the economic batch quantity model which aims to determine the optimal batch size to minimize average costs based on factors like demand, unit costs, holding costs, setup costs and production time.

Uploaded by

S20M048 HARIRAM M
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Unit-3

PRODUCTION PLANNING
AND PROCESS PLANNING
PRODUCT PLANNING
• Product Planning is the ongoing process of
identifying and articulating market
requirements that define a product’s feature
set.
• Product planning serves as the basis for
decisions about price, distribution and
promotion.
EXTENDING ORIGINAL PRODUCT
INFORMATION
VALUE ANALYSIS
• Value, as defined, is the ratio of function
to cost. Value can therefore be increased by
either improving the function or reducing
the cost
LACK OF PRODUCT PLANNING
• Unsatisfied customer
• Durability deteriaration
• Lack of quality
• Loss of brand name., Etc
PROCESS PLANNING

ROUTING

FOLLOW UP SCHEDULING

DISPATCHING
PROCESS PLANNING – INPUT INFO.
• PRODUCT
• PROCESS
• CAPACITY
• ORDERS
• DUE DATES
• RESOURCES
• ETC.,
STEPS IN PROCESS PLANNING
• Analyzing environment
• Establishing objectives or goals
• Seeking necessary Information
QUANTITY DETERMINATION –
BATCH PRODUCTION
• Economic batch quantity (EBQ), also called "optimal batch
quantity" or economic production quantity, is a measure used
to determine the quantity of units that can be produced at
minimum average costs in a given batch or production run.
• Economic Production Quantity model (also known as the EPQ
model) is an extension of the Economic Order Quantity
model. The Economic Batch Quantity model, or production
lot-size model, is similar to the EOQ model in that an
optimum is to be calculated for the batch quantity to be
produced.
EBQ
In working with this EBQ model, principal assumptions are:
• The demand (D) is known and constant within a certain period of time
• The unit cost of the inventory item (U) is constant
• The annual holding-cost per unit (Ch) is constant
• The setup-cost per batch (C) is constant
• The production time (tp) is known and constant
• there is one kind of product
• There is no interaction with other products
• The aspect of time does not play a role, just the setup time does
• The setup cost is constant and does not act upon the batch quantity.
Variables
• K = setup cost
• D = demand rate
• F = holding cost
• T = cycle length
• P = production rate
Formula: Sqrt(2x annual demandx setup costs)/(inventory carrying cost per unit)

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