Parametric Production Planning

8/18/2019 Parametric Production Planning

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ParametricProduction

planningGROUP-2


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Production Planning Process

ProcessPlanning

StrategicCapacityPlanning

AggregatePlanning

How much & wto produce


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ethods !or Aggregate Planning

"ntuiti#e Approach

Analytical Approach

$ransportation method o! linear programming

%inear ecision Rule '%R(

anagement Coe)cients odel 'C(

Parametric Production Planning (PPP)

Search ecision Rule 'SR(* etc+


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"ntroduction

Parametric Production Planning postulates the e,istence o! two

linear !eed ac. rules+ Rule /0 Pro#ide numer o! wor.ers

Rule 20 Production Rate

any sets o! parameters are applied to a li.ely se1uence o!!orecasts and sales to pro#ide many series o! wor. !orce andproduction le#el decisions+

$he e#aluation o! each set o! parameter "s per!ormed y costingout the series o! decision y the cost structure o! particular rm+

PPP pro#ide answers #ery close to optima pro#ided y linearprogramming and the linear decision rule+

3hen applied to more comple, models* it pro#ide more protaleresults than the other methods+


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$he e#elopment o! Rules

$he linear decision rule approach o! two rules0

%ong-$erm Resource

Short-$erm Resource

4irst Rule0 Allows ad5ustment o! long term resource* wor. !orce* to thetrends in demands

Second Rule0 Allows rapid ad5ustment o! short term resource* o#ertimtime to the short term 6uctuations in demand

3or. !orce on hand at the end o! preceding period as the ase in wor

Calculation o! desired long term resource Con#ersion o! wor. !orceunit cost production rate 7ase !or the second rule


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$he 3or. 4orce RuleWR = (1-A)Wo + AWD

WR= estimated work force

A=Parameter between 0 and 1

WD= Workforce desired to meet te future sales

!umber of worker sould be em"lo#ed in a "eriod is sum ofworker alread# on and and number of worker tat would beem"lo#ed if costs of iring and la#ing o$ could be ignored%

&alue of A de"ends u"on cost of iring' if ig A is low almost

ero and ice erse oterwise% *e wole idea is determining a o"timum alue of A b# te cost o

te rm onl# as long as tere is no cange in te cost structure%

WD is determined b# conerting te series of sales forecast intonumber of workers best able to "roduce tose ,uantities% *us wget a series of workforce and ence weigted aerages are used%


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$he 3or. 4orce Rule 4or periodic weighted a#erages* conca#e !unctions are pre!erred

that will pro#ide decreasing weights !or the !orecast o! increasindistance+

bi=Bi/(

i 8 weight applied to ith period in !uture " 8 period numer

7 8 parameter etween 9 and / : 8 planning hori;on

Summation i 8 /

< !unction !or con#erting a !orecast measure into !orecast

measure in wor.er

3/ 8 39 = A'


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$he 3or. 4orce Rule $o pre#ent the e,treme in#entory positions etween ideal and

actual in#entory a compensating term is added which can econstant* linear* s1uare root or any other suitale !unction+

7ecause i and A will cause the in#entory to e uilt up or downin response to the needs to smooth production+


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$he Production Rule :,cept !or the change in the ase !rom which we measured

discrepancy* the production rule is #ery similar to wor. !orce rul

Here


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Heuristic @ature o! Parametric ProductionPlanning Heuristic- 3hen there is no proo!* the answer is Optimal

$hree signicant steps in PPP which might e called HeuristicB

4irst0 Restricted production plans produced y

ad-hoc period-y-period decision rules

non-linear !unctions o! e,isting wor. !orce

those which re1uire parameter #alue outside the range o! ;ero and one

Second0 Search process used to select the est parameter #alues $he relati#e e)ciency o! dierent search techni1ues depends on the natu

uni#erse eing searched

$hird0 inclusion o! the insights o! the planner into the process o! screenumerical answers to ma.e sensile decision

Screening process might consider physical* economic and political constra

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Parametric Production Planning