Production Planning
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Production Planning Giuseppe Stecca Consiglio Nazionale delle Ricerche, Istituto di Analisi dei Sistemi ed Informatica, Rome, Italy
Synonyms Planning; Production programming
Definition Production planning is the process of translating customer orders to jobs for the manufacturing plant with attached due dates.
Theory and Application The production planning is not an isolated function, and its role is not only the production of a plan for the operations function. Production planning is instead interrelated and dependent by the information coming from procurement and selling, coordinated with the functions of marketing, manufacturing, engineering, finance, and materials management. The Planning Hierarchy Production planning problems can be grouped in terms of the level of detail and temporal horizon.
In these settings aggregate production planning, production scheduling, and production control problems can be configured. At the first stage, problems arise to the decision of the quantity to produce for each product on a weekly basis, while the sequence of operations in a daily basis is considered as a problem in the second stage. The production control is instead characterized by real-time decisions. Figure 1 shows the information flows in a manufacturing system and the production planning role. The output of the production planning process is a set of decisions in response to events in a given time interval. The process can be defined as (Kempf et al. 2011) an ongoing supply–demand system, so a production plan must be generated repeatedly on a regular basis in many periods into the future. During the time interval, the customer may place a tentative order, change or cancel a tentative order, and confirm a tentative order. In response to the cited events, the producer’s decisions include (Kempf et al. 2011): What tentative orders to accept on confirmation How much material to release into the factory What orders to fill with products exiting in the factory Framework for Production Planning and Scheduling Decision-making strategies are dependent on the production environment (discrete, continuous, or
# CIRP 2016 The International Academy for Production Engineering et al. (eds.), CIRP Encyclopedia of Production Engineering, DOI 10.1007/978-3-642-35950-7_6569-5
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Production Planning
Production Planning, Fig. 1 Information flow diagram in a manufacturing system (#Planning and scheduling in manufacturing and services, 2005, p. 9, Michael L Pinedo, Springer, New York/Heidelberg. With permission of Springer)
hybrid manufacturing systems). Nevertheless, it is possible to draw a general framework for production planning and scheduling as suggested by Silver et al. (1998), in which the production planning and scheduling system can be broken down in different, interconnected modules. The main modules of a general production planning and scheduling system are detailed in aggregated planning, demand management, master production scheduling, finished production scheduling, material planning, capacity planning, short-range schedulin
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