ADL- 65: Production Planning and Control
1. A small electronics company produces pocket calculators and records the demand monthly. The following demand data are for a representative calculator:
November 45
December 57
January 60
Using 50 as the exponential smoothing forecast for November, and using 0.3 as the exponential smoothing coefficient, forecast February sales.
2. ACE Computers has the following expected production capacity and demand for minicomputers:
Quarter Capacity Demand
1 300 300
2 400 600
3 450 300
4 550 500
The company does not accept any backorders and wishes to fulfill demand by letting inventories absorb all fluctuations. How many minicomputers must they have on hand on January 1 to meet the forecast demand throughout the year?
3. Analyse the above plans. Use graph and tables for presentation of your analysis.
i. Discuss the merits and disadvantages of these plans.
ii. Which plan will you recommend and why?
4. Using the data in Table 1 below, compute weekly requirement for the following schedule
5. With reference to Problem 4, calculate the capacity requirements for the final assembly department, ignoring lead times.
Average assembly time: 1.2 hours
Average subassembly time: 0.8 hours
Average fabrication time: 0.2 hours
The subassembly lead times are included in the assembly lead times.
1. Given the following BOM, MPS and inventory status, develop MRP tables for all items (ten tables in total)
MPS 8 9 10 11 12
GR-A 100 50 150
GR-H 100 50
Item OH LT
A 0 1
B 100 2
C 50 2
D 50 1
E75 2
F75 2
G75 1
H 0 1
J1002
K100 2
OH - On Hand Inventory in units
LT - Lead time in weeks
MPS - Master Production Schedule
2. An item has the following gross requirements and a beginning inventory of 40 units:
1 2 3 4 5 6 7 8 9 10 11 12
GR 30 40 30 70 20 10 80 50
Holding costs: $2.50/unit/week
Setup cost: $150
Lead time: 1 week
Develop an L-4-L, EOQ, MCP, POQ, LUC, LTC, PPB, MOM, Groff Algorithm and FC solution, calculate their respective total relevant costs and comment on the results.
3. Clark Company makes three products on three different types of equipment. The matrix of operating times and job setup times (in decimal hours), demand per month, and economical lot sizes for manufacturing are given in Table below. The machine utilisation factor is approximately 90%, and operator efficiency of the shop is believed to be 105%.
Case Study
Notes: Read the case study and answer the questions given at the end.
CASE I
In 1990, Jain began to make custom furniture full time in his garage. Jain's work had been admired by friends and neighbours, who often asked him to make special pieces for them. In
1995, he expanded his operations by leasing a used facility and hiring two additional skilled workers: a woodworker and a leather specialist. By 1998, Jain formed a company called Good Wood P Ltd, and had 11 employees.
Today, Good Wood serves a custom furniture market covering Delhi and surrounding regions.
Jain, the CEO, has a staff of 37 employees. Custom made furniture is the sole product line, and the company has prided itself on high quality and timely delivery services.
Organizationally, Good Wood has Production, Sales, Purchasing, Shipping, and Design departments. Production department includes wood framing, wood preparation, wood finishing, metal finishing, leather, glass, plastics, and cloth fabrics.
This past year, 250 to 300 jobs were processed in the facility on any given day. Although product quality remains high, on time deliveries have deteriorated. The average job seems to be four to seven weeks late. Suresh, an employee since 1995, and a special assistant to the shop manager does the shop loading. His job also includes coordinating the overall shop efforts with those of the sales and design departments. He recently compiled data on waiting job orders for a typical day.
Detailed scheduling of orders has always been the responsibility of the three shop foremen. Josh is foreman of the wood preparation, framing, and finishing departments. Srivastava is the foreman for the leather and cloth fabrics departments. Chatterjee is the foreman of the metal, glass and plastics departments.
Jain is concerned about job lateness. He feels deteriorating customer service might well affect future sales. He has requested George, whose primary experience has been coordinating a new physical distribution system, to analyses the current situation and recommend changes. George is uncertain which factors he should consider and how to proceed with the problem.
Discuss
1. What is the main problem and what could be the causes of the problem?
2. Propose a production planning and control system to George which would minimise the above problems
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