PROD 28005 Production planning Planning problem – Uncertainty – Dimensionality How to make a consistent production planning system over multiple time horizons in a complex, uncertain world?
PROD 28006 Hierarchical production planning Defined decision level – Resource horizon – Demand uncertainty – Process uncertainty – Information Principles: Higher levels set resources and targets for next lower level Postpone detailed decisions until uncertainty is reduced
PROD 28007 HPP example Annual demand by item and by region Annual demand by item and by region Monthly demand for 15 months by product type Monthly demand for 15 months by product type Monthly demand for 5 months by item Monthly demand for 5 months by item INFORMATION Allocates production (time) among plants Allocates production (time) among plants Determines seasonal plan by product type Determines seasonal plan by product type Determines monthly item production schedules Determines monthly item production schedules DECISIONDECISION LEVEL Corporate Plant manager Shop manager
PROD 28008 Marketing planning Business plan Financial planning Production planning Demand management Resource planning Aggregate planning Master production scheduling Master requirements planning Inventory control Order scheduling Purchasing Dispatching Demand forecasts Order
PROD 28009 Aggregate planning Objective – Adjust resources to meet fluctuating demand. Means – Aggregated production rate – Aggregated workforce level – Aggregated inventory level Long-term – 1-5 years Uniform measures Frame for lower level planning Basis for Facility Location Analysis
PROD 280010 Aggregation rules Products Product Groups Machines Machine Groups Customers Market Regions Operators Labor Centers Products Machines Operators Customers Criteria?Measure?