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Production Planning

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Term Paper TitleProduction Planning
# of Words1988
# of Pages (250 words per page double spaced)7.95
Production Planning

Production Planning


Introduction

     The intention of this project is to demonstrate the function of
production planning in a non - artificial environment.  Through this simulation
we are able to forecast, with a degree of certainty the monthly requirements for
end products, subassemblies, parts and raw materials.  We are supplied with
information that we are to base our decisions on.  The manufacturer depicted in
this simulation was actually a General Electric facility that produced black and
white television sets Syracuse, New York.  Unfortunately this plant is no longer
operational, it was closed down and the equipment was shipped off to China.  One
can only wonder if the plant manager would have taken Professor Moily's class in
production management the plant still might be running.
     Modern production management or operation management (OM) systems first
came to prominence in the early half of the twentieth century.  Frederick W.
Taylor is considered the father of operations management and is credited in the
development of the following principles.

a.  Scientific laws govern how much a worker can produce in a day. b.  It is the
function of management to discover and use these laws in operation of productive
systems. c.  It is the function of the worker to carry out management's wishes
without question.

     Many of today's method's of operation management have elements of the
above stated principles.  For example, part of Material Requirement Planning
system (MRP) is learning how workers to hire, fire, or lay idle.  This is
because it we realize the a worker can only produce so many widgets a day, can
work so many hours a day, and so many days a year.
     I will disagree with principle “c” in that the worker should blindly
carry out the wishes of management. Successful operations are based upon a two-
way flow of thought and suggestions from management to labor.  This two-way flow
of ideas is incorporated into another modern system of operations management,
the Just - In - Time system.  Eastman Kodak gives monetary rewards to employees
who devises an improvement in a current process or suggests an entirely new
process of manufacturing.  Often a small suggestion can yield a big reward when
applied to a mass-produced item.

Body

     In this project we are presented with the following information: bounds
for pricing decisions, market share determination, the product explosion matrix,
sales history (units per month at average price), unit val...

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