Influence Of Forecasting, Planning And Controlling On The Performance Of Small And Medium Enterprises

Production Planning and Control (PPC) systems have grown and changed because of the developments in planning tools and models as well as the use of computers and information systems in this area. Though so much is available in research journals, practice of PPC is lagging behind and does not use much from published research. The practices of PPC in SMEs lag behind because of many reasons, which need to be explored This research work deals with the effect of identified variables such as forecasting, planning and control methods adopted, demographics of the key person, standardization practices followed, effect of training, learning and IT usage on firm performance. A model and framework has been developed based on literature. Empirical testing of the model has been done after collecting data using a questionnaire schedule administered among the selected respondents from Small and Medium Enterprises (SMEs) in India. Final data included 382 responses. Hypotheses linking SME performance with the use of forecasting, planning and controlling were formed and tested. Exploratory factor analysis was used for data reduction and for identifying the factor structure. High and low performing firms were classified using a Logistic Regression model. A confirmatory factor analysis was used to study the structural relationship between firm performance and dependent variables.

Influence of Forecasting, Planning and Controlling on the performance of Small and Medium Enterprises

Production Planning and Control (PPC) systems have grown and changed because of the developments in planning tools and models as well as the use of computers and information systems in this area. Though so much is available in research journals, practice of PPC is lagging behind and does not use much from published research. The practices of PPC in SMEs lag behind because of many reasons, which need to be explored. This research work deals with the effect of identified variables such as forecasting, planning and control methods adopted, demographics of the key person, standardization practices followed, effect of training, learning and IT usage on firm performance. A model and framework has been developed based on literature. Empirical testing of the model has been done after collecting data using a questionnaire schedule administered among the selected respondents from Small and Medium Enterprises (SMEs) in India. Final data included 382 responses. Hypotheses linking SME performance with the use of forecasting, planning and controlling were formed and tested. Exploratory factor analysis was used for data reduction and for identifying the factor structure. High and low performing firms were classified using a Logistic Regression model. A confirmatory factor analysis was used to study the structural relationship between firm performance and dependent variables.

An approach to the development of expert systems within production planning and control

The thesis presents an account of an attempt to utilize expert systems within the domain of production planning and control. The use of expert systems was proposed due to the problematical nature of a particular function within British Steel Strip Products' Operations Department: the function of Order Allocation, allocating customer orders to a production week and site. Approaches to tackling problems within production planning and control are reviewed, as are the general capabilities of expert systems. The conclusions drawn are that the domain of production planning and control contains both `soft' and `hard' problems, and that while expert systems appear to be a useful technology for this domain, this usefulness has by no means yet been demonstrated. Also, it is argued that the main stream methodology for developing expert systems is unsuited for the domain. A problem-driven approach is developed and used to tackle the Order Allocation function. The resulting system, UAAMS, contained two expert components. One of these, the scheduling procedure was not fully implemented due to inadequate software. The second expert component, the product routing procedure, was untroubled by such difficulties, though it was unusable on its own; thus a second system was developed. This system, MICRO-X10, duplicated the function of X10, a complex database query routine used daily by Order Allocation. A prototype version of MICRO-X10 proved too slow to be useful but allowed implementation and maintenance issues to be analysed. In conclusion, the usefulness of the problem-driven approach to expert systems development within production planning and control is demonstrated but restrictions imposed by current expert system software are highlighted in that the abilities of such software to cope with `hard' scheduling constructs and also the slow processing speeds of such software can restrict the current usefulness of expert systems within production planning and control.

Computer-assisted production scheduling, planning and control in foundries

The present study describes a pragmatic approach to the implementation of production planning and scheduling techniques in foundries of all types and looks at the use of `state-of-the-art' management control and information systems. Following a review of systems for the classification of manufacturing companies, a definitive statement is made which highlights the important differences between foundries (i.e. `component makers') and other manufacturing companies (i.e. `component buyers'). An investigation of the manual procedures which are used to plan and control the manufacture of components reveals the inherent problems facing foundry production management staff, which suggests the unsuitability of many manufacturing techniques which have been applied to general engineering companies. From the literature it was discovered that computer-assisted systems are required which are primarily `information-based' rather than `decision based', whilst the availability of low-cost computers and `packaged-software' has enabled foundries to `get their feet wet' without the financial penalties which characterized many of the early attempts at computer-assistance (i.e. pre-1980). Moreover, no evidence of a single methodology for foundry scheduling emerged from the review. A philosophy for the development of a CAPM system is presented, which details the essential information requirements and puts forward proposals for the subsequent interactions between types of information and the sub-system of CAPM which they support. The work developed was oriented specifically at the functions of production planning and scheduling and introduces the concept of `manual interaction' for effective scheduling. The techniques developed were designed to use the information which is readily available in foundries and were found to be practically successful following the implementation of the techniques into a wide variety of foundries. The limitations of the techniques developed are subsequently discussed within the wider issues which form a CAPM system, prior to a presentation of the conclusions which can be drawn from the study.

Visszutas logisztika és termeléstervezés (Reverse logistics and production planning)

A dolgozat a visszutas logisztikát, az újrahasznosítást igyekszik beilleszteni a vállalati termeléstervezés keretei közé. A szükséglettervezési rendszerek (material requirements planning, MRP) célja a készletek és beszerzendő anyagok, alkatrészek időben ütemezett gyártásának és beszerzésének megtervezése. A klasszikus MRP rendszereket az utóbbi időben próbálja a tudomány az újrahasznosítással kibővíteni. Mivel ebben az esetben az új, és újrafelhasználható anyagokat külön kell nyilvántartani, ezért az MRP-táblák és készletek növekednek. A rendelési tételnagyságok meghatározása is nehezebb, összetettebb tételnagysághoz vezet. A dolgozatban egy visszutas logisztikai készletmodellt ismertetünk, valamint annak dinamikus kiterjesztését, amely alapja lehet az SAP-ba beépíthető rendelés állomány meghatározó heurisztikának. ____ The aim of the paper is to extend production planning with reverse logistics and reuse. Material requirements planning (MRP) systems plan and control invetory levels and purchasing activities of the firm. In the last decade scientists on this field try to involve reverse logistics activities in MRP systems. Size of MRP-tables is growing in this case because of the alternative use of newly purchased products and reusable old items. Determination of order quantities will be more complex with these two modes of material supplies. An EOQ-type reverse logistics model is presented in the paper with a dynamic lot size generalization. The generalized model can be seen as a basic model to build in production planning and control system like SAP.

Organizational, systems and human issues in production planning, scheduling and control

With global markets and global competition, pressures are placed on manufacturing organizations to compress order fulfillment times, meet delivery commitments consistently and also maintain efficiency in operations to address cost issues. This chapter argues for a process perspective on planning, scheduling and control that integrates organizational planning structures, information systems as well as human decision makers. The chapter begins with a reconsideration of the gap between theory and practice, in particular for classical scheduling theory and hierarchical production planning and control. A number of the key studies of industrial practice are then described and their implications noted. A recent model of scheduling practice derived from a detailed study of real businesses is described. Socio-technical concepts are then introduced and their implications for the design and management of planning, scheduling and control systems are discussed. The implications of adopting a process perspective are noted along with insights from knowledge management. An overview is presented of a methodology for the (re-)design of planning, scheduling and control systems that integrates organizational, system and human perspectives. The most important messages from the chapter are then summarized.

MRP-production planning in agile manufacturing

Over the years many researchers have been investigating the area of MRP production planning and still is an area of high interest today. This paper look at production planning where there is unpredictable demands due to the type of product and market a company produces for. Production planning becomes difficult when demand fluctuates unpredictably, and hence a historical sales forecast is used as the initial data for production planning. The sales from previous years, especially in a seasonal market, don't necessarily correlate well to the current and future sales for the next year. A planner working in such environment would have himself frustrating to create a feasible production plan that not only needs to meet customer's demands but also to built up the 'correct' amount of stock for that peak sell season. To overcome some of these problems, This work describes a production planning methodology that can be implemented robustly and quickly. This paper has studied two multi-item lot-sizing problems. We detailed the development of the planning problem mathematically and highlight some solutions to initial problems investigated.

Integrated pulp and paper mill planning and scheduling

This article describes a real-world production planning and scheduling problem occurring at an integrated pulp and paper mill (P&P) which manufactures paper for cardboard out of produced pulp. During the cooking of wood chips in the digester, two by-products are produced: the pulp itself (virgin fibers) and the waste stream known as black liquor. The former is then mixed with recycled fibers and processed in a paper machine. Here, due to significant sequence-dependent setups in paper type changeovers, sizing and sequencing of lots have to be made simultaneously in order to efficiently use capacity. The latter is converted into electrical energy using a set of evaporators, recovery boilers and counter-pressure turbines. The planning challenge is then to synchronize the material flow as it moves through the pulp and paper mills, and energy plant, maximizing customer demand (as backlogging is allowed), and minimizing operation costs. Due to the intensive capital feature of P&P, the output of the digester must be maximized. As the production bottleneck is not fixed, to tackle this problem we propose a new model that integrates the critical production units associated to the pulp and paper mills, and energy plant for the first time. Simple stochastic mixed integer programming based local search heuristics are developed to obtain good feasible solutions for the problem. The benefits of integrating the three stages are discussed. The proposed approaches are tested on real-world data. Our work may help P&P companies to increase their competitiveness and reactiveness in dealing with demand pattern oscillations. (C) 2012 Elsevier Ltd. All rights reserved.

Development of a Mathematical Model for the Calculation of the Tool Appropriation Delay depending on the Tool Inventory

Compliance with punctual delivery under the high pressure of costs can be implemented through the optimization of the in-house tool supply. Within the Transfer Project 13 of the Collaborative Research Centre 489 using the example of the forging industry, a mathematical model was developed which determines the minimum inventory of forging tools required for production, considering the tool appropriation delay.

Understanding safety and production risks in rail engineering planning and protection

Much of the published human factors work on risk is to do with safety and within this is concerned with prediction and analysis of human error and with human reliability assessment. Less has been published on human factors contributions to understanding and managing project, business, engineering and other forms of risk and still less jointly assessing risk to do with broad issues of ‘safety’ and broad issues of ‘production’ or ‘performance’. This paper contains a general commentary on human factors and assessment of risk of various kinds, in the context of the aims of ergonomics and concerns about being too risk averse. The paper then describes a specific project, in rail engineering, where the notion of a human factors case has been employed to analyse engineering functions and related human factors issues. A human factors issues register for potential system disturbances has been developed, prior to a human factors risk assessment, which jointly covers safety and production (engineering delivery) concerns. The paper concludes with a commentary on the potential relevance of a resilience engineering perspective to understanding rail engineering systems risk. Design, planning and management of complex systems will increasingly have to address the issue of making trade-offs between safety and production, and ergonomics should be central to this. The paper addresses the relevant issues and does so in an under-published domain – rail systems engineering work.

The application of preprocessing and cutting plane techniques for a class of production planning problems

This paper investigates properties of integer programming models for a class of production planning problems. The models are developed within a decision support system to advise a sales team of the products on which to focus their efforts in gaining new orders in the short term. The products generally require processing on several manufacturing cells and involve precedence relationships. The cells are already (partially) committed with products for stock and to satisfy existing orders and therefore only the residual capacities of each cell in each time period of the planning horizon are considered. The determination of production recommendations to the sales team that make use of residual capacities is a nontrivial optimization problem. Solving such models is computationally demanding and techniques for speeding up solution times are highly desirable. An integer programming model is developed and various preprocessing techniques are investigated and evaluated. In addition, a number of cutting plane approaches have been applied. The performance of these approaches which are both general and application specific is examined.