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Introduction to Production Planning and Inventory Control I Nyoman Pujawan, Ph.D, CSCP Professor of Supply Chain Engineering Department of Industrial Engineering - ITS

Lecture 1 Introduction to PPIC

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  • Introduction toProduction Planning and Inventory ControlI Nyoman Pujawan, Ph.D, CSCPProfessor of Supply Chain EngineeringDepartment of Industrial Engineering - ITS

  • Mampu menjelaskan peran PPC diantara fungsi-fungsi lain pada organisasi suatu perusahaan manufaktur serta konteksnya dalam suatu supply chain Mampu menjelaskan perbedaan fungsi PPC untuk perusahaan manufaktur dengan karakteristik sistem produksi berbeda (misalnya MTS Vs MTO) Mampu menjelaskan kerangka umum PPC dan menghubungkan keterkaitannya mulai peramalan permintaan sampai pengendalian aktivitas produksi Mampu menggunakan metode-metode dasar peramalan permintaan dan mengukur akurasinya Mampu menggunakan berbagai metode dan teknik untuk membuat perencanaan produksi, termasuk untuk merencanakan kebutuhan bahan dan kapasitas Mampu menggunakan berbagai metode dan menghubungkan keterkaitannya untuk pengendalian aktivitas produksi Mampu melakukan analisis terhadap berbagai isu praktis PPC, termasuk menghubungkan keterkaitannya dalam lingkup rantai pasok secara terintegrasi dengan menggunakan berbagai macam metode PPC

  • Text BooksManufacturing Planning and Control Systems for Supply Chain Management (Fifth Edition, 2005), by Thomas Vollmann, William Berry, Clay Whybark, and Robert Jacobs.Production and Operations Analysis (3rd Edition), by Steven Nahmias, Irwin, Homewood, Illinois (1997).Production and Inventory Management (1991) by Donald W. Fogarty, John H. Blackstone, and Thomas R. Hoffmann

  • Course OutlineIntroduction to PPC / PPIC Demand forecasting Sales & Operations Planning Independent demand inventory models (1) Independent demand inventory models (2) MRPCapacity planning Production Activity Control, including Scheduling and sequencing Introduction to ERP PPC in the context of SCM

  • PertemuanMateriReferensi1.1Pengantar PPIC 1 (Daya saing industri manufaktur, Product Positioning Strategy, Process Positioning Strategy)1.2Pengantar PPIC 2 (Hakekat PPIC, Sistematika Proses PPIC, Struktur Organisasi)2.1Quiz 1 dan pembahasan untuk memperdalam konsep pertemuan minggu 12.2Demand forecasting 1 (Konsep, Klasifikasi, Moving Average, SES)2.3Demand forecasting 2 (Model Holt, Model Winter, Forecast Accuracy, Tracing Signals)3.1Quiz 2 dan Pembahasan untuk pendalaman konsep dan skills3.2Aggregate Planning 1 (Konsep dan Metode Chase, Metode Level)4.1Aggregate Planning 2 (Metode Mix dan Latihan)4.2Master Production Schedule5.1Quiz 3 dan pendalaman untuk Aggregate Planning dan MPS5.2MRP (Konsep, Input, Output, Proses)6.1MRP (Proses MRP Lanjutan)6.2MRP (Proses MRP Lanjutan)7.1Inventory 17.2Inventory 28.1 Inventory 38.2Quiz 4 MRP dan Inventory9.1 9.2Mid Terms10.1 10.2Mid terms11.1 11.2Remedy untuk mahasiswa yang kurang perform12.1Capacity Planning (Konsep, RCCP)12.2Capacity Planning (CRP)13.1Quiz 5 Capacity Planning dan diskusi pendalaman13.2Production activity control14.1Production activity control14.2Quiz 6 production activity control dan pendalaman15.1JIT15.2Presentasi studi kasus16.1Presentasi studi kasus17.1 17.2Tutorials18.1 18.2Final Exams

  • Outline for TodayCompetitive Advantage of Manufacturing Industry Product Positioning StrategyProcess Positioning Strategy

  • Apa peran industri manufaktur dalam kehidupan kita?Apa yang membuat sebuah industri manufaktur unggul dalam persaingan?

  • Order winnersDirectly and significantly contribute to winning the business

    Order qualifiersQualifying levels of performance below which, orders will be lost

    Less important factorsneither order-winning nor qualifying. Do not affect customers in any significant way

  • Competitive benefitPositiveNeutralNegativeLowHighAchieved performance

  • Product Positioning StrategyMTSATOMTOETO

    ProcurementFabricationAssemblyDelivery

  • Items tend to be standardA customer is not willing to tolerate delay in receiving the productManagement is required to maintain stock of finished products Produced in a flow shop / mass production system

  • Product variety tend to be large, produced from standard components and sub-assemblies with a short assembly lead time. Options, subassemblies, and components are either produced or purchased to stockThe customer enjoys for ssome customization, yet has a shot wait for delivery

  • Produce specialty goodsIn many situations, the design of the item is part of what is purchasedThe final product is usually a combined of standard components and other components custom designed for the customerThe manufacturer often purchases materials after the order is placedThe customer must be willing to tolerate a long lead time

  • Decoupling Points Vs Lead Times

  • Process Positioning StrategyVariasi produk Volume produkTinggiTinggiFlow shop / Mass ProductionBatch Production

    Job shop production

    Projects

    Specialized-skilled, More systemization,Standard facility,Lower costs

    Multi-skilled, Less systemization,Flexible facility,Higher costs

    Air mineralKapal pesiar

  • The product always follows the same sequential steps of productionCould be continuous or discrete flowsThe production process generally is arranged to minimize materials handlingInventory planning and control is driven by the rate of flowBalanced capacity of different works stations along the line is important

  • Two or more products are manufactured in the same facilityLong setup time between batch each batch should run for several hours or days to achieve economies of scaleEquipments tend to be more general purpose, and thus less efficient, than the flow shop

  • Organization of similar equipment by functionOrders may follow similar of different paths through the plant, suggesting one of more dominant flowsThe layout is designed to support great diversity of flow among products and large WIPMany different lots could be in the production facility at the same timeResource availability must be coordinated with order planning

  • Diskusikan:Pabrik TV, Mobil, dan Kapal Bedakan posisinya pada spektrum Volume dan VariasiModel layout apa yang digunakan?Bedakan strategi manufakturnyaSeberapa penting ramalan penjualan produk akhir pada produk-produk tersebut?Hal-hal apa yang menjadi kinerja kritis sistem produksi tersebut?Dalam bentuk apa rencana produksi akan dibuat?Dalam bentuk apa inventory akan disimpan?

  • PPIC

  • TerminologiesProduction Planning and Control (PPC)Production Planning and Inventory Control (PPIC)Manufacturing Planning and Control (MPC)

  • Sumber Daya Produksi: Bahan baku dan komponen Tenaga kerja Mesin dan peralatanOutput: Produk akhir WasteProses Eksekusi /ImplementasiProses perencanaanProses pengendalian

  • Planning and Control: What decisions are involved?

  • Why Plan?To satisfy customer demand, ensure the availability of resources Material CapacityDemandResources

  • Sales & OperationsPlanning

    ResourcePlanning

    Demand Management

    Master ProductionScheduling

    Detailed MaterialPlanning

    Detailed CapacityPlanning

    Material & CapacityPlans

    Supplier Systems

    Shop-floorSystems

    Enterprise Resource PlanningFront EndEngineBack End

  • PPC FUNCTIONS PLANNING PRODUCTION

    PLANNING INVENTORIES

    PLANNING CAPACITIES

    AUTHORIZATION OF PRODUCTION AND PROCUREMENT

    CONTROL OF PRODUCTION, INVENTORIES AND CAPACITIES

    STORAGE AND MOVEMENT OF MATERIALS

  • ORGANIZATION STRUCTUREPPIC AS A STAFF FUNCTION

  • ORGANIZATION STRUCTUREPPC AS A LINE FUNCTION DEALING WITH MATERIAL MOVEMENT INSIDE FACTORY

  • ORGANIZATION STRUCTUREPPC AS A LINE FUNCTION DEALING WITH MATERIAL MOVEMENT INSIDE AND OUTSIDE FACTORY

  • 1. PPIC is only one function in a production system. The function is not to work in isolation, but it needs good cross functional team with other functions.

    2. PPIC is also an agent in a company which should foster good coordination with suppliers, subcontractors, customers, and other relevant parties within a supply chain.

  • Conflicts Between FunctionsWe should always have enough inventory so that none of the customer orders are missedOur inventory turnover rate is too low, we need to have our inventory level reduced by 10% this yearWe need to have a better delivery schedule from our suppliers. Too much inventory increase difficulty in managing store activitiesI dont want my machine to have more than one setup in a week. Too many changes from customers significantly deteriorating our productivity.

  • Bad cross functional team: Some causesEngineering changes notCommunicated to other functionsMarketing team did not know the load of the Production system and make decisions Without consulting Production peopleWhen issuing materials,warehousing people often forget to input the transactionto the systemInformation about lateMaterial delivery fromsuppliers is not sharedwith other functions

  • PPC for Networked CompaniesIt is very often one company does not perform the whole PPIC functions. Rather, the functions are spread over a number of different points within a networked companies.

    For example, many multinational companies do the strategic plan and procurement centrally, but make detailed plan in a local office.

  • Collaborative Planning A new issue in production planning and control is the emergent trend of companies doing collaborative planning.

    This is important to make better synchronisation and visibility across the supply chain.

    *Just a quick reminder of the key operations objectives.