SUDHEESH Production Planning & Scheduling

8/9/2019 SUDHEESH Production Planning & Scheduling

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Name of the Student : Sudheesh U

Student Registration No : BUB0908004

Module Leader at MSRSAS : Prof. B. S. Ajith Kumar

TITLE PAGE

POSTGAD

ENNRNPROGAMMEP

M.S.Ramaiah School of Advanced Studies

Postgraduate Engineering Programmes (PEPs)New BEL Road, Gnanagangothri Campus, MSR Nagar,Bangalore-560 054

Tel/Fax: 23605539/23601983; website: http://www.msrsas.org

Production Planning & Scheduling

EMM503

Centre Name: Mechanical & Automotive Engineering

Course Name:M.Sc (Engg) in Engg & Mfg M anagement

FULL TIME 2008 BATCH

ASSIGNMENT


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M.S Ramaiah School of Advanced Studies Postgraduate Engineering Programmes (PEPs)

Production Planning and Scheduling ii

DDEECCLLAARRAATTIIOONN

Student Name: Sudheesh U

Reg No: BUB0908004

Course: MSc (Engg) - EMM

Module Code: EMM504

Module Title: Production Planning and Scheduling

Module Leader: Prof. B. S. Ajith Kumar Module Date:

16.03.09

Submission Date:

11.04.09

SUBMISSION ARRANGEMENTS:This assignment must be submitted to Academic Records Office (ARO) by the submission date BEFORE 1730

hours for Full-Time and 1930 hours for Part-Time Evening students.

Extension requests:Extensions can only be granted by the Head of the Department / Course Manager for Postgraduate EngineeringProgrammes. Extensions granted by any other person will not be accepted and hence the assignment will incur apenalty. Extensions MUST be requestedby using the Extension Request Form, which is available with the ARO.

A copy of the extension approval must be attached to the assignment submitted .

PENALTY FOR LATE SUBMISSIONUnless you have submitted proof of Mitigating Circumstances or have been granted an extension, the penalties for alate submission of an assignment shall be as follows:

Up to one week late: Penalty of one grade (5 marks) One-Two weeks late: Penalty of two grades (10 marks) Two-three weeks late: Maximum mark of 40% More than three weeks late: Fail - 0% recorded (F2)All late assignments: must be submitted to Academic Records Office (ARO). It is your responsibility to ensure that the

receipt of a late assignment is recorded in the ARO. If an extension was agreed, the authorization should be submittedto ARO during the submission of assignment.

To ensure assignments are written concisely, the length should be restricted a limit indicated in the assignmentquestions. Assignments greater than this length will incur a penalty of one grade (5 marks). Each participant is

required to retain a copy of the assignment in his or her record in case of any loss.

DECLARATIONThe assignment submitted herewith is a result of my own investigations and that I have conformed to the guidelines

against plagiarism as lay out in the PEPs staff/student Handbook. All sections of the text and results, which have beenobtained from other sources, are fully referenced. I understand that cheating and plagiarism constitute a breach of

University regulations and will be dealt with accordingly.

Signed:

Sudheesh U

Date:

11-04-09

Signature Date Stamp Signature

Module Leader Course Manger


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Production Planning and Scheduling iii

AABBSSTTRRAACCTT

Globalization changed the way the world think and act. It made huge influences in all

the areas. The good and bad affect of these changed the people lifestyle, nations economy. In

last two or three decades the manufacturing and service sectors in the world had considerably

changed. New people came in the picture. Competitions increased between them. Many

companies and nations grow dramatically. But some couldnt survive. The organizations must

concentrate more on internal process and manufacturing related activities to improve the

throughput. Production planning and scheduling is very important to achieve the targets and to

win the market orders.

Planning and scheduling is one of the main activities of a manufacturing firm. Smart

planning reduces the errors, utilizes the resources, and helps to meet the delivery periods. The

PART A deals with a real time situation for planning and scheduling a product through some

operation. Preactor is used as the software tool. Preactor is one of the major production and

advanced planning and scheduling software available. The planning and the interpretation of

the result are carried out in this part.

PART B contains three discussions. The first discussion is based on the personal

policies followed by industries. The differences in the many areas are analyzed to explain the

two personal policies- A stable workforce, varying workforce.

Inventory is stock of material, which can be used for further operations when required.

Manufacturing personnel considers inventory as liability. But the zero inventory may not be

possible, due to the production and market factors. The second discussion in PART B relates

inventory with nine competitive priorities. The tabular column is prepared to match inventory

types and competitive priorities.

The third part of PART B contains five discussions, including an ERP implementation

case study. This part discuss about MPS and shop floor capacity planning, process

synchronization, bottlenecks and buffers, and about level production. These discussions are

very brief to illustrate the ideas.

PART C is a presentation about forecasting methods. The presentation slides are added

with this paper.


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Production Planning and Scheduling iv

LLIISSTT OOFF CCOONNTTEENNTTSS

TITLE PAGE................................................................................................................. i

DECLARATION .......................................................................................................... ii

ABSTRACT .................................................................................................................iiiLIST OF CONTENTS ................................................................................................. iv

LIST OF TABLES ....................................................................................................... vi

LIST OF FIGURES .................................................................................................... vii

LIST OF SYMBOLS ................................................................................................. viii

PART A .............................................................................................................. 1

Chapter 1 ...................................................................................................................... 1

1. Scheduling Using PREACTOR Software ........................................................... 1

1.1. Introduction ........................................................................................... 1

1.2. Given Data and Interpretations ............................................................... 1

1.2.1. Requirements ......................................................................................... 21.2.2. Interpretation of the data ........................................................................ 2

1.3. Steps Involved- Flow chart .................................................................... 2

1.4. Results and Discussions ......................................................................... 3

1.5. Conclusion ........................................................................................... 11

PART B ............................................................................................................ 12

Chapter 2 (Question: 1) .............................................................................................. 12

2. Personal Policies................................................................................................. 122.1. Introduction ......................................................................................... 12

2.2. Personal Policies .................................................................................. 12

2.3. Stable Work Force andVarying Workforce ......................................... 132.4. The Two Extreme Policies in Different Areas ...................................... 14

2.4.1. Markets ................................................................................................ 14

2.4.2. Management ........................................................................................ 15

2.4.3. Products ............................................................................................... 16

2.4.4. Financial position................................................................................. 16

2.4.5. Skills ................................................................................................... 17

2.4.6. Costs .................................................................................................... 17

2.4.7. Competition ......................................................................................... 18

2.5. Recommended method of Sales & Operation Plan for each Policy ....... 18

2.5.1. A Comparison ...................................................................................... 19

2.6. Conclusion ........................................................................................... 19


3. Inventory and Competitive Priorities ............................................................... 203.1. Introduction ......................................................................................... 20

3.2. Inventory ............................................................................................. 20

3.3. Nine Competitive Priorities .................................................................. 20

3.4. Inventory and Competitive Priority ...................................................... 21

3.4.1. Cost ..................................................................................................... 21

3.4.2. Quality ................................................................................................. 21

3.4.3. Time .................................................................................................... 22

3.4.4. Flexibility ............................................................................................ 22

3.5. Comparison ......................................................................................... 23


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Production Planning and Scheduling v

3.6. Zero Inventory ..................................................................................... 23

3.6.1. Inventory is liability, then why to keep inventory? ............................... 24

3.7. Conclusion ........................................................................................... 24


4. Discussions on Some Topics ............................................................................... 264.1. Introduction ......................................................................................... 26

4.2. MPS and shop-floor capacity planning (Q3: A) .................................... 26

4.2.1. Agility of shop floor............................................................................. 27

4.3. Process Synchronization (Q3: B) ......................................................... 28

4.4. Buffers and bottlenecks (Q3: C) ........................................................... 28

4.5. Advantages of Level Production (Q3: D) ............................................. 29

4.6. ERP Implementation Case Study (Q3: E) ............................................. 30

4.6.1. ERP Implementation at Waltham Forest Borough Council ................... 31

4.6.2. Conclusion ........................................................................................... 31

PART C ............................................................................................................ 33

Chapter 6 .................................................................................................................... 33

5. Presentation on Forecasting .............................................................................. 33

REFERENCES ........................................................................................................... 47

BIBLIOGRAPHY ....................................................................................................... 49

Annexure A ................................................................................................................. 50

Glossary of Terms Used.............................................................................................. 50


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Production Planning and Scheduling vi

LLIISSTT OOFF TTAABBLLEESS

Table 1:1 Data Given for Scheduling .............................................................................. 1

Table 1:2 Operations and Resource details ...................................................................... 1

Table 1:3 The summary of Scheduling in Different Steps ............................................. 10

Table 2:1 Comparison of Chase and Level Production .................................................. 19

Table 3:1 Nine Competitive Priorities ........................................................................... 21

Table 3:2 Inventory and Competitive Priorities ............................................................. 23


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Production Planning and Scheduling vii

LLIISSTT OOFF FFIIGGUURREESS

Figure 1:1 Steps for Planning .......................................................................................... 3

Figure 1:2 Shift Pattern for a Day ................................................................................... 3

Figure 1:3 Resource Groups ........................................................................................... 4

Figure 1:4 Product Database ........................................................................................... 5

Figure 1:5 Forward Scheduling Without Split Batch ....................................................... 6

Figure 1:6 Forward Scheduling With Split Batch ............................................................ 7

Figure 1:7 Forward Scheduling With Rush Order ........................................................... 8

Figure 1:8 Power Cut Data ............................................................................................. 8

Figure 1:9 The Final Scheduling ..................................................................................... 9

Figure 1:10 Final Scheduling with rush order and power cut ........................................... 9

Figure 1:11 Utilization for HMC1 Machine .................................................................. 10

Figure 2:1 Demand for labor in chase production .......................................................... 15

Figure 2:2 Demand for labor in Level production ......................................................... 15

Figure 4:1 MPS and Capacity Planning in MPC............................................................ 27Figure 4:2 Drum-buffer-rope system ............................................................................. 29


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Production Planning and Scheduling viii

LLIISSTT OOFF SSYYMMBBOOLLSS

BOM Bill Of MaterialERP Enterprise Resource Planning

FGI Finished Goods Inventory

MRP Materials Requirement Planning

MRP II Materials Resource Planning

OEE Overall Equipment Effectiveness

PLC Product Life Cycle

PO Purchase Order

RPI Raw Product Inventory

SCM Supply Chain management

TPM Total Productive Maintenance

TQM Total Quality Management

WCM World Class Manufacturing

WIP Work In Process

MPS Master Production Schedule

S&OP Sales and Operations Planning

AOP Annual Operation Plan

MPC Manufacturing Planning and Control

SME Small and Medium Enterprises


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Production Planning and Scheduling 1

PART A

CChhaapptteerr 11

1. Scheduling Using PREACTOR Software1.1.Introduction

Meeting customer demand is very critical in todays globalized market. To meet the

customer requirement, a production process must be effectively planned. The production

planning and scheduling is thus a vital criteria to compete in the market. Failing in the delivery

promises will make the firm out of the business.

Preactor is one of the production and advanced planning and scheduling software

developed by Preactor International, United Kingdom. The scheduling is done by finite

capacity scheduling method (1). Finite scheduling systems simulate actual job order starting and

stopping to produce a detailed schedule for each shop order and each machine centre. Finite

schedule explicitly establishes a detailed schedule for each job through each work centre

capacities and the other scheduled jobs (2).

1.2.Given Data and InterpretationsThe data given in the problem are given below. The interpretation of the given data and

the expected output are discussed after that.

Table 1:1 Data Given for Scheduling

Type of Industry Automobile Ancillary Manufacturing Industry

Product High Pressure Housing

Customer ABC India Ltd

Order Number HPH1

Order Quantity 3500 Numbers

Operation Details See Table 1:2

Available Resources See Table 1:2

Working Days 5 days a week (22 Days for April, 2009)Shifts 3 Shifts/Day

Shift Timing Given with Break timings

Table 1:2 Operations and Resource details

Sl.

No.

Operation

Number

Operation

Name

Set Up Time Process Time Resource

Name

Numberof

Resources

RemarksSeconds Minutes

1 10 Operation 1 00 Mins 02 Mins Twin Spindle 1

The machine has twospindles so effective

cycle time is 1min/component

2 20 Operation 2 0.15 Mins 15 Mins HMC 9

3 30 Operation 3 0.30 Mins 03 Mins Hot Spray 3 -Nil-

4 40 Operation 4 0.05 Mins 20 Mins TEM 3 -Nil-


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5 50 Operation 5 00 Mins 01 Mins Cooling 1

6 60 Operation 6 00 Mins 1.5 Mins Visual Inspection 1

1.2.1. Requirements1. Do the forward scheduling to find out whether the schedule is meeting the customer

due date (i.e., April 30, 2009)

2. Find solution to meet the customer demand.3. Include 200 additional requirement (Dated 20th of April 2009) in the scheduling.4. Also include a 30 minutes power cut from 20th to 25th of April 2009 at 5.00 Hrs

(Issued by electricity supplier).

5. Analyze the schedule and discuss with management about the results.1.2.2.

Interpretation of the data

The process time for twin spindle is given as 2min. As the machine has two spindles,

the process time is considered as 1min.

The forward scheduling must be done with respect to the due date.

The order quantity is large, thus split batching must be required.

Some resources are available in more quantities. All the resources must be utilized to

meet the demand.

Rush order, and power cut may increase the planned days.

1.3.Steps Involved- Flow chart


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Figure 1:1 Steps for Planning

1.4.Results and DiscussionsStep 1: Shift pattern

Created shift timing for Monday (Figure 1:2). Copied that to all the other days. Then

deleted the non-working days shifts. (From calendar status in maintain database.)

Figure 1:2 Shift Pattern for a Day

Shifts

Breaks

Step 1: Create shift plan

for all the working days.

Step 2: Add resources

Step 3: Add resource

group

Step 4: Create Product

data base

Ste 5: Generate Schedule

Does Plan meet

delivery date?

Ste 6: Do s lit bachin

No

Does Plan meet

delivery date?Yes

Ste 7: Add rush orderDoes Plan meet

delivery date?Yes

Ste 8: Add ower cutDoes Plan meetdelivery date? Yes

Step 9: Analyze the schedule.

Check the machine utilization.

Deliver da s.


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Step 2&3: Resources and Resource Groups

Create resources, and then resource groups (Figure 1:3). Add resources to resource

groups.

Figure 1:3 Resource Groups

Step 4: Product Database

Add product details in Maintain DatabaseProducts. Part number, Operation number,

Operation name are to be entered.

The resource group is to be entered for each operation. While scheduling, Preactorwill

select the resources from resource group accordingly.

Add the setup & Operation times. (inFigure 1:4)

HMC1,

HMC2, HMC9

Resources

ResourceGrou s


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Figure 1:4 Product Database

Step 5: Schedule Generation

The schedule is generated from the Generate Schedule menu. To generate schedule,

the Customer name (ABC India Ltd), Purchase Order number (HPH1), Order quantity (3500),

are to be entered.

Start Date: 01-04-2009

Delivery Date: 01-04-2009

Select options Forward Scheduling, Due Date, and then ClickAllocate(Figure 1:5)

Resource

For Step: 6


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Figure 1:5 Forward Scheduling Without Split Batch

The schedule span is of 160 days. That means the planning doesnt meet the schedules.

So adjustments must be made to reduce the time span. Step 6 finds the solution for this.

Step 6: Schedule Generation with Split Batching

From Figure 1:5, it is can be seen that not all the resources are taken for scheduling. For

example, HMC 2 to HMC 9 is not utilized. All the ordered quantities (3500 Nos) are processed

in a single batch. So the large batch makes the problem. To overcome this, the 3500Nos must

split to smaller batches. The batch size be 25Nos.

To make the split batch, the product attributes must be changes to split, and quantity as

25 Nos (seeFigure 1:4). Now the Step 5 needs to be repeated. The result is shown inFigure

1:6.

Resources

Fwd Schedule

Due DateAllocate 160 Days

Late Jobs


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Figure 1:6 Forward Scheduling With Split Batch

Now the schedule span can meet the delivery schedule. So this can be considered as the

final scheduling. There are some more conditions; they are discussed in next steps.

Step 7: Scheduling with Rush Order

As per the requirement (shown in 1.2.1) there is an additional requirement of 200

Units on 20th of April 2009. This rush order must be added to the present schedule. The

scheduling need to be analyzed for due date.

The rush order also added in the same way as mentioned in Step 5, but with a quantity

of 200Units. The generated schedule is shown inFigure 1:7.

26 Days 16:48


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Figure 1:7 Forward Scheduling With Rush Order

Now the schedule span can meet the delivery schedule. Now to conclude whether to

accept or reject the additional requirement, the power cut also must be considered in the

schedule. Step 8 Explains.

Step 8: Scheduling with Rush Order and Power Cut

A 30 min power cut is issued by the electricity supplier from 20th

to 25th

of April 2009

at 5.00 Hrs. To add this special situation for all the resources in the specified days, the special

calendar editing is required. There the start time (with date) and end time (with date) is entered.

The efficiency is entered as 0.00% which means it is a break down situation. (Figure 1:8)

Figure 1:8 Power Cut Data

Now the scheduling is to be done, with same steps done before. TheFigure 1:9 shows

the Gantt chart of the schedule. The Figure 1:9 is a enlarged view, and thus showing only some

part of the schedule. The power cut can be seen in the Figure 1:9. The Figure 1:10 shows the

complete scheduling view with performance metrics window.

27 Days 20:11


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Figure 1:9 The Final Scheduling

Figure 1:10 Final Scheduling with rush order and power cut

The final scheduled time span is 27 Days 22 Hours and 11 Minutes. I.e., the first order

of 3500 and additional order of 200 also can be done within the delivery requirements. The

Table 1:3 shows the summary after every step of the scheduling.

Power Cut

27 Days 22:11


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Table 1:3 The summary of Scheduling in Different Steps

Sl.

No.

Step Description Scheduled Due Date Schedule Span

1 Step 5Schedule without split

batch08/09/2009; 21:30 160 Days 15:32 Not Ok

2 Step 6Schedule with split

batch27/04/2009; 22:47 26 Days 16:48 Ok

3 Step 7Scheduling with rush

order29/04/2009; 02:10 27 Days 20:11 Ok

4 Step 8Scheduling with rush

order and power cut29/04/2009; 04:10 27 Days 22:11 Ok

The promised delivery date is on 30/04/2009

The Preactorsoftware is having many more features where many types of reports can

be generated from the Report menu in the menu bar. Also machine utilization of individualresources can also be determined. The Figure 1:11 shows the utilization of machines. The

popup window gives complete detail ofHMC1 machine.

Figure 1:11 Utilization for HMC1 Machine

In this scheduling, the idle time of the HMC1 machine 47%. That means the resource is

not utilizing properly. But in many cases the product line will have more than one product and

it will be a small batch production. So at that time the idle time will be very less, as the machine

will be occupied by any of the product.


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1.5.ConclusionProduction planning and scheduling is important in a manufacturing organization for the

effective use of available resources. Many organizations fails to do proper planning and

scheduling of their resources, and thus they falls behind the customer orders. Delivering

products on time with higher quality with minimum cost has become a mandatory requirement

for todays industries. Advanced planning helps organizations to simulate the scheduling, and

there by the planning person can understand the problems well before. This ensures maximum

use of resources, on time delivery, and avoids many problems which normally happens in a

production line.

Preactor is an advanced planning and scheduling software which can be linked to other

softwres like ERP, MES, forecasting, etc. The execution of the planning is equally important as

the planning of production process. To get the best result the organization must have good

interdepartmental communication, motivated and co-operative work force, and strong strategic

goals.


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PART B

CChhaapptteerr 22 ((QQuueessttiioonn:: 11))

2. Personal Policies2.1.IntroductionIt is a competitive world. To be in the business, firms must adopt best practices, and

policies. People are a very important factor for a companys success. A creative workforce can

add more value to its product and services. A skilled and motivated employee is an asset for the

company. Organizations treat employees in different ways. Good or bad, the company will be

affected. So finding a better personal policy; that will suit to the companys working nature,

and can go along with organization behaviour; is important. The selection, implementation, and

execution all are very much vital. This chapter finds out the two extreme policies, followed by

industries. The effect of these policies in different areas in the function is described.

2.2.Personal PoliciesPersonal policies are defined in many ways. It is a set of rules that define the manner in

which an organization deals with a human resources or personnel-related subject. A personnel

policy should reflect good practice, be written down, be communicated across the organization,

and should adapt to changing circumstances(3)

.

People are their most valuable resource. For the higher productivity and to achieve the

organizational goals, a co-operative workforce is required. Job security as well as the flexibility

is important for employee and the employer. When discussing about the two extreme personal

policies, followed by todays manufacturing as we ll as service industries, both gives them

(employer) good and bad effects. Creativity, loyalty, turnaround, motivation, skills, etc are

affected due to the differences in the policies.

Also many factors like shortages of people, unavailability of skilled labor, unskilled

manpower, complex laws, social commitments, average age of the population, union, profits,

flexible work time requirements, outsourcing, cost of replacing a lost worker, etc are make

effect on organizations personal policies (4).There many other factors (opportunities as well as

threats) in the human recourse management. In case of woman employee, the demand for day

care and maternity leave, etc comes.


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2.3.Stable Work ForceandVarying WorkforceA competitive market requires more and more with less, in terms of time, cost, and

recourses. All the modern manufacturing philosophies and techniques are made to achieve the

best with optimum recourses. Human is also comes in the same way. With less number of

manpower, companies strive to achieve more profits. The cell alignments, value stream

mapping (VSM), are implemented for knowing the exact employee requirement in the

production and to make the maximum out of them.

It can say (most of the time) that a stable workforce exist only in government

organizations. The present economic slowdown shows many examples. But most of these

private sector companies were having a stable workforce, which is responsible for work

processes of each stage of the product. Organizations use the creativity of such personnel as and

when required. Organizations never try or act to lose those workers when they dont have

enough work. The present slowdown is an extreme situation, where the companies first give

priority for the existence of the firm. In such situation, many employees are put in trouble. But

in normal situations the employee turnover is the main problem of many organizations, as the

cost of losing a permanent employee will be a bad effect in terms of cost and skill. In Japanese

world-class plants, operators spend more time in the induction process, have longer probation

periods and a lower early drop-out rate (5). The positive as well as the negative effect of this

policy is described in the coming section with respect to manufacturing industries.

When an organization requires more number of persons, the organization need not go

for selecting fulltime employee as it will add more cost to selection process. In such situation

organizations hire workers. It happens when they need varying need for employees. The

situation can be due to a seasonal demand, new trend, special occasions, new product

development, etc. So the companies find the benefits of hiring contingent workers. They are

workers who do not have expectation of regular fulltime employment (4). They can be

- Part time workers

- Temporary workers

- Seasonal workers

- Independent contractors

- Interns

- Co-op students

If available, they have many advantages for the companies. They need less training, and

the companies need not to keep them in a less demand time. In India, after the booming of IT


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industries, the terms like outsourcing, bench, hiring, etc became popular like in USA, or

European countries.

The employment tenure1 is an important factor which affects different aspects of the

organizations measures. The lower job stability can reduce the productivity. There are many

differences in this context while comparing developed countries and developing countries (6).

When a production company needs to keep the same outputs in every month, regardless

of the fluctuations in the demand, uses a constant-level workforce. This level production

mainly uses inventory to match the demand variations(7)

.

In case of chase production, the production outputs are varied to match the demand. In

this case the output is controlled by changing the workforce size(7)

. The outputs are also

varied by doing overtime, outsourcing, adding shifts, etc.

The following section describes the differences in different areas to describe personal

policies followed by organizations.

2.4.The Two Extreme Policies in Different AreasAs discussed in section 2.3 these extreme policies effects an organizations function.

When labor markets are flexible, structural transformation can occur more rapidly, since both

capital and labor can shift to a newer, higher value added sectors, but world employment

report 2004-05(6) by International Labor Office (UN) finds that the stability of the employment

is positively related to the productivity. Some comments are made on the following subsections

taking account of the two policies followed by companies. All these areas are interrelated and

cant stand alone.

2.4.1. MarketsThe debate on labor market flexibility or rigidity has focused primarily on what types of

labor market institutions, both regulations and policies provide the best environment for

stimulating job growth (8).

Also the fluctuations in the market demand make differences in the companies personal

policies to match the demand of its product. The present slowdown in the global economy can

be illustrated for explaining the market condition and workforce. It is visible that when the

market goes down, the companys reduces their workforce, so that the loss due the inventory of

1Employment tenure is defined as the amount of time that a worker has spent working

for the same employer(8)

.


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the manpower can be avoided. When the market booms again, the organizations recruit

employees to meet the demand.

The Figure 2:1 shows the demand for labor in chase production. When the market

demand is more the company hire employees, and when the demand goes down the lay off the

workforce. TheFigure 2:2 shows the labor demand in level production. A stable workforce is

employed in this case. Lay off doesnt occurs.

Figure 2:1 Demand for labor in chase production (9)

Figure 2:2 Demand for labor in Level production (9)

2.4.2. ManagementThe recruitment of employee is too difficult due to high initial cost, finding

persons who can go in line with organizations culture, and the lack of availability of skilled

labours (4).

In a stable workforce, the management uses the creativity of the employees as and when

required. The employees are involved in each stage of the product. The relation with employee

and the manager is healthier. The morale of the employee will be good. Characteristics, way of

thinking, emotions, attitude and many other factors plays an important role in the success of an

organization. In a stable workforce the management can easily motivate and manage people.

As discussed in section 2.3 part time workers, temporary workers, seasonal workers,

independent contractors, co-op students, etc are comes under the varying workforce. So the


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relationship between management and the employees will not be matured. The distance

between the employee and management can be observed here.

2.4.3. ProductsThe lifecycle of the product is reducing as the market competition is increasing due

globalization. Introduction of new product at the right time is essential to survive in the

business. Thus the swiftness of new product development and modification in the present

products must be done with the help of the latest technologies. Many organizations make use of

specialized people and consultancies, as those people might be updated for new technological

developments. Employees are hired to balance the production due to the sudden demand in the

existing product, seasonal products etc.

Many of the research and development works done by the organization can have many

commercial importances. A stable workforce can be trusted to give all the works as the morale

of the employee will be more. They will be more familiar with the organization behavior. Such

special situations the organization may require more workforce for a specific task. The

reallocation of employees can be done in such situations.

2.4.4. Financial positionThe financial position of the organizations can be directly related to the productivity.

When the firms do the effective and efficient production, the financial position can be in a

secure position.

Research conducted byPeter Auer(8)

finds a positive and beneficial effect of tenure on

productivity with intermediate levels of tenure exhibiting the greatest returns to productivity,

decreasing but positive returns for extended tenure, and a negative productivity effect from

workers with short tenure. The firms investment in the workers must be useful for the

organizations.

A strong financial position helps organizations to keep a stable work force. They keep

man power as inventory even if there is no or very less work. Otherwise the organization

terminates the employees if there is no work. The present economic slowdown made somany

employees to lose their jobs. Many of them where in bench2 which is a common phenomenon

in the IT industries. But the hard time hit their jobs resulted in losing the jobs.

2Bench: A term used to describe unutilized hands.


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2.4.5. SkillsThe varying work force may be unskilled or skilled. The organization can hire skilled

labors for a particular task for a specific period of time. The advantages of such labors are that

the organization need not give any allowances that are applicable for stable work force. Suchpart time, temporary labors give only short-term advantages as they cant be employed for a

longer period.

The stable work force gives more productivity. The employers can invest in training

them as the firm will be able to pick the rewards for their investment. It will increase the

commitment of the worker. The firm specific training can be given only to a stable workforce.

So the output of such trained personals can have more impact on organizational goals.

2.4.6. CostsProduction planning involves many costs. It can be classified in two categories (10).

1. Quantifiable: Inventory, overtime, subcontracting, and shift premium, recruitment,redundancy, training, and purchasing.

2. Non-quantifiable: Stock outs, loss of orders, low workers morale, inexperiencepersonnel, handling complaints, and loss efficiency.

Many of these quantifiable and non-quantifiable costs are directly related to the stable

or varying workforces. A stable workforce can get more benefits in the non-quantifiable costs.

The temporary or hired workers have so much cost advantages for the organizations.

The stable workforce requires more expenditure while recruiting, they must be paid even if

there is less business, and the cost of dismissal is more.

Today the laws are made very complicated so that the employer cant fire the

employees. The law insist the same consideration to the temporary employees like the

permanent employees. The news points out the Wall Mart reduced their employees and the

justification from the Wall Mart is new labor law which will raise wages and make it more

difficult to lay off employees(11). The laws experience the firms in the increase in their

expenditure.

Still hiring the employee when required will add the cost advantage to the companies.

When the demand goes up, or the research and development going on, or when new product is

under developments, company hires employees from outside. But in a stable work force the

labor cost forecasts can be made easily.


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2.4.7. CompetitionBecoming more competent is the ultimate challenge of the modern organizations. If the

firm cant give better performance they are mercilessly kicked out of the business. People have

a significant role in developing a core competency. The better the group of people are at thefulfilling the demand of the customer, the more competency of the firm

(12). The people in the

firm must be updated with new technology development and techniques of working. A stable

workforce can always be trained to achieve these goals, while comparing to a varying work

force.

Example of a football team can be considered to illustrate this. A good team work can

enhance the success of the team. Also the players must be talented. Some time the team hires

people from other club to play for them. They get special player(s) as it can add more

possibility of winning. Suppose if the new hired player cant be coordinated with the other

players in the team, then the presence of the special player is of no use, rather becomes a

burden. Many times the stable workforce, who is aware or the organization behavior will help

the organizations to develop a competitive advantage in their product in terms of quality,

performance, and timeliness.

2.5.Recommended method of Sales & Operation Plan for each PolicySales and Operations Planning (S&OP) is a set of business processes that helps

companies keep demand and supply in balance (13). S&OP integrates business management

process which synchronizes all the functions of the organization. This process brings sales,

marketing, development, manufacturing, sources, and financial plans together. The plan links

the strategic plans with execution and reviews the performance measures. An effective supply

chain can be enabled by these plans (14) (15).

The S&OP must meet business objectives of profitability, productivity, competitive

customer lead times, etc. The sales and operation plan set ups the production rate. It controls

the inventory levels. It usually takes effort to keep a moderately stable workforce. The

employee levels are thus controlled as per the chase or level productions depending on the

managements objectives.

The method of sales and operation plan can be begin from deciding the basic strategy,

i.e, chase, level or hybrid. The production rate can be determined next. In chase plan the

management can find the amount of over time, subcontracting requirements. In the next stepthe capacity and cost etc can be determined. The cost for regular time, over time,


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subcontracting, layoff etc can be determined. In the last step the cost of alternative plans can be

considered. Calculating the workforce requirement (size), shortages, expected hiring & firings,

and overtime must be calculated. The total cost of the plans can be compared to select the best

plan. The plans impact on the customer service and human resource issues must be considered

(16).From the internal (strategic objective, financial constrains, capacities, policy) and external

(competitor, demand, raw material availability) inputs must be considered to select the

alternatives.

2.5.1.A ComparisonComparison of Chase and Level production in terms of personnel in both categories are

listed in theTable 2:1

Table 2:1 Comparison of Chase and Level Production (16)+Author

No Comparison Chase Level

1 Level of labor skill required Low High

2 Worker levels and production output Fluctuating Stable

3 Job discretion Low High

4 Compensation rate Low High

5 Working conditions Low Morale High Morale

6 Training required per employee Low High

7 Labor turnover High Low

8 Labor Utilization High Low9 Hire-fire cost High Low

10 Labor Cost Low High

11 Inventory cost Low High

12 Error rate High Low

13 Amount of supervision required High Low

14 Type of budgeting and forecasting required Short-run Long-run

2.6.ConclusionA stable workforce many time benefits the organization. But varying workforce is also

far significant to meet the contingencies. The production type of the organization affects on the

companies personal policies. Realizing the customer requirement, and to meet those

requirement firms must have a skilled workforce. The level of maturity of the organization will

help them to select suitable workforce. Both the personal policies have its own advantages and

disadvantages. Selecting the best suited is critical. The chapter discussed the two different

policies with respect to different measures. The analysis shows that the types of workforce will

affect the organizations performance. So it is very much important to form strategies for the

workforce types.


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3. Inventory and Competitive Priorities3.1.Introduction

Just surviving in the market is not the goal of any organization. The organization must

be able to win the customer order. The competitiveness of a firm depends on the practices they

follow in their process. To become the market leaders the company should be competitive in

the cost, quality, time, and flexibility. These competitive capabilities are affected by many

internal and external factors. The managements vision and decisions to focus on these areas

will contribute to the success in the market.

Inventory is the stock, an important part in any organization. The inventory is closely

related to the competitive priorities of the firm. The following section analyses the relation

between inventory and competitive priorities.

3.2.InventoryInventory can be seen in every operation. In Manufacturing, inventory is the stored

accumulation of material recourses in a transformation system (17). Inventories are kept to meet

the internal or external customer demand. Inventory is manly four types they are buffer

inventory (safety inventory), cycle inventory, anticipation inventory, and pipeline inventory. In

a manufacturing process, inventory is can be classified in to three types.

1) Raw Material Inventory: Materials purchased and stored for production. These arematerial where the manufacturer not added any value. This helps to avoid the production

delaying.

2) Work-in-Process Inventory: Semi-manufactured products. These may be materials duringprocesses, in between workstations or reworked. The WIP inventory helps the production incase of machine breakdown or some work stoppages in one station.

3) Finished Goods Inventory: Completely manufactured products. These are ready forshipment. FGI helps for fast delivery of the product.

3.3.Nine Competitive PrioritiesThe dimensions that a firms production system must possess to support the demands of

the markets that the firm wishes to compete in (18). The nine competitive priorities are listed in

Table 3:1.


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Table 3:1 Nine Competitive Priorities

Competitive

Capabilities Competitive Priorities

Cost 1 Low cost operations

Quality 2 Top quality3 Consistent quality

Time 4 Delivery speed

5 On-time delivery

6 Development Speed

Flexibility 7 Customization

8 Variety

9 Volume Flexibility

The following passages explain each one on them.

3.4.Inventory and Competitive PriorityThe relation is briefed and most commonly applicable inventory and competitive

priority relation is tabled in Table 3:2.

3.4.1.CostThe importance of cost is very much affects the demand of a product. The low cost

increases the demand of the product. To achieve the minimum cost all the operations and

functions related to the product must be matured enough to optimize the cost. Small lot sizeswill decrease the inventory and will improve the process. The Table 3:2 shows the inventory

and competitive priority with respect to types of inventory. Inventory is costly to store, order,

insure, protect so to reduce the cost inventory should be maintained in low levels. But some

cases, eg. The discount level when ordering raw material in bulk can be misunderstands to be a

low cost.

3.4.2.QualityQuality can be divided in to two competitive priorities- top quality and Consistent

quality. Top quality refers to the superior product quality while consistent quality is the

products that meet design specifications.

Quality has many dimensions low-defect rate, product performance, reliability,

certification, and environmental concern. Quality is defined by customers. The quality can be

product quality or process quality. Product quality can be varied with varying customer levels

(like: many times china product refers to a low quality product and the intended customer

requires only that quality). But process quality must be equal for all the product ranges and the

organization must develop competitive quality standards to survive in the market.


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A higher inventory can badly affect the quality. Small batches points to low inventory.

As the batch sizes increases the inventory before and after the machine increases. Large batch

affects the quality. In large batch it is difficult to find out the errors. If the error finds out also it

might be affected the whole batch. As the batch size increases the time for inspection alsoincrease (in many cases).

3.4.3.TimeTime can be divided in to three competitive priorities. The Table 3:2 shows the

inventory and time relation.

3.4.3.1. Delivery speedIt can be referred as lead-time. The time between order receipt and delivery. Many times

higher inventory of raw material refers to faster delivery. For example of Maruti Suzuki Ltd

offers many range of products. Taking example of Swift and Omni; they maintain FGI so the

delivery is fast. But the delivery of swift is more.

3.4.3.2. On Time DeliveryMeeting the delivery promise is utmost important competitiveness in a business. The

organization can meet delivery target by maintaining low inventories too. As the organization

can plan its production to match the delivery requirements. The availability of the raw material

is important.

3.4.3.3. Development SpeedNew product development speed is the time gap from concept to first product in the

production. The higher inventory may not be required as the product would be in introduction

stage. But the customer service must be superior, so that the company may force to keep some

inventories.

3.4.4.FlexibilityCustomers are king in todays market. Knowing changing customer needs and adapting

to it has become a primary requirement for organization. The flexibility in adopting these

changes is important in industries. The flexibility can be three types as explained in next sub

headings. The relation between flexibility and inventory is illustrated in Table 3:2 also.

3.4.4.1. CustomizationCustomization is agility. Satisfying needs of individual customers as in construction.

Due to the low volume, the customization is very risky if not controlled and managed properly.


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The customization requires low inventory. The supply chain must be very strong and co-

operative to achieve the customization.

3.4.4.2. VarietyEfficiently handling many varieties of products is imperative. Many firms do so. Many

fail. In case of General Motors, they owned many brand names and many varieties of products

in each brand name. But this negatively affected their operations and now they stopped some of

their brands.

To keep variety in the product, the organization must keep a very low inventory. But the

common parts and raw materials can be kept as inventory for contingent situation.

3.4.4.3. Volume FlexibilityThe volume flexibility refers to the sudden change in the production capacity of a

product. The ability to react with sudden change in the demand. To meet this the raw material

inventory might be kept high, as the sudden increase in demand cant trigger the raw material

supplier with same pace.

3.5.ComparisonThe comparison is based on the data which suits most manufacturing industries.

Table 3:2 Inventory and Competitive Priorities

Competitive Priorities Raw Material

Inventory

WIP FGI

1 Low cost operations Low Low Low

2 Top quality Low Low Low

3 Consistent quality Low Low Low

4 Delivery speed High Low High

5 On-time delivery High Low High

6 Development Speed Low Low Low

7 Customization Low Low Low

8 Variety High Low Low

9 Volume Flexibility High Low Low

3.6.Zero InventoryInventory is a liability as manufacturing is concerned; even though the traditional

financials consider inventory as asset. The goal of every manufacturing firm is to maintain zero

inventories. Kaizen is practiced in all the organizations for the improvement in every area.

Today world class manufacturing organizations adopt Just-In-Time production system to

eliminate inventory. They use Kanban to control the inventories. But Kanban points to


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inventory. The best Kanban is NO KANBAN. So the ultimate aim of modern manufacturing

system is to eliminate excess inventories.

Zero inventory is a CONCEPT. Organizations strive to achieve it. Keeping optimum

inventory is required to meet the contingencies. Inventory does not earn interest. Less inventorymaximizes the profitability.

Inventory is costly to

-Store,

-Order,

-Insure,

-Protect

So zero inventory makes the best production system. But an organization cant

completely eliminate the inventory. Inventory should be held to hold enough to run, but not too

much.

There should be proper inventory management system to maintain and to keep the best

size inventories. The inventory management system must control the investments in the

inventory; it should ensure continuous supply of material. Also it should determine ordering

quantity by finding the Economic Order Quantity.

The supply chain must be so much matured and controlled to reduce the problems due

to high inventories. The demand forecasting, planning of the production, production system,

supply chain (suppliers, transportation, distribution, etc), etc makes effects on inventory.

3.6.1.Inventory is liability, then why to keep inventory?All organizations, through modern manufacturing practices, tries to eliminate the

inventory. But optimum inventory is important

- To facilitate smooth production and sales operations- To meet unpredictable changes in demand and supply.- To take advantage of price fluctuations.Too much or too high inventory will lead to more cost or reduction of customers.

3.7.ConclusionGlobalization changed the way the world think and act. It made huge influences in all

the areas. Identifying the competitive priorities required for a particular firm is important for

them to become order winners. For organizations to chug away all the way through todaysmarket, it is mandatory to be further competitive, and should have captivating methods to be


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unbeaten. All resources must be used effectively and efficiently to get the best outputs.

Inventory is a major factor in competitive priorities. Inventory management must be done to

find out, decide, and to maintain the proper level of inventories. The effective supply chain will

help organization to keep minimum inventory levels.

When there is a difference between rate of supply and demand, inventory exist. The

fluctuation in the demand causes the inventory. In pull production, the inventory is tends to

zero, but the same time the delivery may not be good. Keeping inventory will help for some

industries, while the other will worst affect by higher inventories. Finding the optimum

inventory level and keeping it to best fit to the competitive priorities are important for an

organization to achieve its strategic goals.


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4. Discussions on Some Topics4.1.Introduction

The production planning and control related to every area of operation management,

strategies, supply chain, human resource, and more. The following heading briefly explains

some concepts related to production planning and control.

4.2. MPS and shop-floor capacity planning (Q3: A)The manufacturing planning and control (MPC) repeat business objectives in operations

management terms. The MPC system helps managers to make proper decisions, and to manage

the operations. The Master Production Scheduling (MPS) and Capacity Planning (Both are

explained in next passages) interrelated as shown in the Figure 4:1The MPS included in the

front end system while the material and capacity planning act as the engine of the MPC.

Master Production Scheduling is the most important planning and control schedule. It

forms the main input to the MRP(17)

. The MPS is has developed for production, inventory,

staffing, etc. The manufacturing function gets all the information related to production through

MPS.

The Capacity planning is to ensure the match between capacities available in specific

work centers, Capacity needed to achieve the planned production(2)

. The shop floor capacity

planning controls production process with all the resources involved. MPS is a primary data

source for capacity planning. The Figure 4:1 shows the relation between MPS and Capacity

planning in MPC.


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Figure 4:1 MPS and Capacity Planning in MPC

4.2.1. Agility of shop floorThe requirement of customized products, with minimum cost and higher quality has

becoming the order winning criteria in the market. The concept of agility improves the

competitiveness of the firms. Agility is the ability to thrive in a competitive environment of

continuous and unanticipated change and to respond quickly to rapidly changing markets driven

by customer-based valuing of products and services (DeVor and Mills 1995) (19).

The shop floor will have to respond and accommodate the adjustments in the supply

chain making it an important piece in the competitiveness. So the agility in the shop floor

capacity is important to achieve the organization goals and to survive in the market. To reach

the customized product to the end user, all the functions in the organizations must be

coordinated. The MPS must be able to plan as per the customized requirements.

ProductionPlannin

ResourcePlannin

DemandMana ement

MasterProductionSchedulin

DetailedMaterialPlannin

DetailedCapacityPlannin

Material andCapacity

Plans

VendorS stem

Shop-floorS stems

Front End

Engine

Back End


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4.3. Process Synchronization (Q3: B)Synchronization means the rapidity of output at each stage in the production process to

ensure the same flow characteristics for each part or product as it progress through each stage

(18). In a pull production system synchronization is attained by balancing of cycle times of

upstream operations with the cycle time of the final assembly.

The upstream operation must work to satisfy the downstream demand. When the

completion time is different for operations, to synchronize the line, all the operation task time

must be adjusted as close as possible to the required cycle time. To achieve this, task grouping

at every operation, work cell, and machining department must be adjusted(7)

. This can be done

by following ways.

a) Adding tasks at operationsb) Sub contracting the tasksc) Moving workforce between stationsd) Time adjustment to perform task.The Takt time of the process must be found. The bottle necks need to be finding out and

must be eliminated. Each stations operation must be equal to the Takt time. The Kanban

system (pull production) is established to trigger the upstream operations. For smooth Kanban

flow, all the operations must be balanced.

In a mixed model production the synchronization is done by identifying the requirement

of each product. Then cycle time of each product is found (available time/requirement). The

Takt time of the line (includes all the product variety) is determined

Takt time = Available Time/Total number of product requirement (Product

1+P2++Pn)

The Takt time is the drumbeat of the process. In every takt, one product will come out

of the line. The sequence of the products in the line is to be determined.

4.4. Buffers and bottlenecks (Q3: C)Bottleneck refers to a low-capacity part of a system that reduces the capacity of the

whole system. Scheduling is the last stage of planning before production. The scheduling is

done to meet the customer due date, minimize the delay, maximize the labor and machine

utilization, minimize WIP. The bottleneck scheduling is a scheduling process based upon the

bottleneck constraint(7)

. The bottle neck scheduling is carried out by DBR (Drum-Buffer-Rope)


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where the scheduling is planned based on the bottleneck in a process. The Figure 4:2 shows the

DBR representation.

Drum: Bottleneck, beating to set the pace of production for the rest of the system.

Buffer: Inventory placed in front of the bottleneck to ensure it is always kept busy. It

determines output or throughput of the system.

Rope: Communication signal; tells processes upstream when they should begin production.

Figure 4:2 Drum-buffer-rope system (7).

The TOC scheduling procedure includes the following steps.

- Identify bottleneck- Schedule job first whose lead time to bottleneck is less than or equal to bottleneck

processing time.

- Forward schedule bottleneck machine.- Backward schedule other machines to sustain bottleneck schedule.- Transfer in batch sizes smaller than process batch size.Buffers in bottle neck scheduling

Buffers are the excess inventories held between stages of a process to avoid running

short(7)

. The buffers are kept in bottleneck schedule to feed the drum. In a bottleneck

scheduling, constrain resource must not be kept idle. So the buffer supplies to its downstream

operation without interruption. The buffer protects the constraint from all the fluctuations in

demand. Buffer is maintained after the constraint resource to store the WIP after the Drum. The

constraint resource is over worked and keeps an inventory level ahead of bottleneck.

4.5. Advantages of Level Production (Q3: D)Level production maintains a constant level workforce to keep the output approximately

the same every month and, using inventory to absorb monthly fluctuations in demand (7). While


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chase (non-level production) production varies the production output as needed to match the

demand. This changes the workforce size and uses overtime, outsourcing, extra shifts, etc.

Benefits of Level Production over Non-level production

o Capacity enhancements are not costly due to the constant volume output.o The labor cost will be low because

o No need of hiring of employees.o Less training requirement.o Stable and motivated workforce.

o As the production volume is constant there is less planning required for resource allocation.o The delivery speed will be good as they maintain FGI.o Uniform and constant volume increases the machine utilization.o Scope for process improvement.o Consistent performance of the production system.

4.6. ERP Implementation Case Study (Q3: E)Enterprise Resource Planning is a tool which coordinates and manages resources,

information, and functions of a business. Most of the ERP softwares are adopted best practices

in the industry. ERP helps organization to develop its business and monitors all the functions inan organization. Performance metrics are measures of an organization's activities and

performance. The performance measures can be financial (traditional) or non-financial. Rainer

Feurer and Kazem Chaharbaghi(20) points their views for the need of performance evaluation

as follows

Enable organizations to learn about the internal and external environments of anorganizations

Helps to identify future trends and their implications for the organization. Helps to align operations and supporting objectives for instituting a common purpose.

ERP implementation helps organizations to improve their performances. The case study

briefs the improvements in the performance matrix after the implementation of ERP.


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4.6.1.ERP Implementation at Waltham Forest Borough CouncilReference:http://www.sap.com/uk/about/success/casestudies/walthamforest06.pdf(21)

Waltham Forest Borough3

Council is a public sector company in UK, which provides

services to people and employs 4,300 staffs. It provides local government services, including

education, social services, highways, libraries, environmental services and leisure. The

implementation of ERP in their operations improved their performance- both in financial and

non-financial measures. Those are listed below.

The procurement has been streamlined. The numbers of suppliers were more, as the procurement system was not effective.

Introduction if ERP system benefited to the Council by reducing the number of suppliers.

The improved relation between suppliers improved the performance of the procurementsystem.

The integration of procurement and accounts payable functions has enabled improvedinvoice matching.

The improvements in the cash flow are another indicator of performance of the firm afterthe ERP implementation.

The council could reduce its borrowing by 20 million over 24 months. They reduced the interest payments by improving the cash flow. Authority has seen a dramatic improvement in its Comprehensive Performance Rating

(CPA4).

ERP implementation process helped the Council to standardize their processes. The performance of the employees is improved as everyone follows standards. The co-ordination among all the groups of the organization helped them to improve the

productivity and lead times.

Reduced the inventory cost in supply chain due to improved co-ordination.4.6.2. ConclusionThe ERP implementation improved the productivity, reduced cost of goods and services

and improved transactions. ERP system planning smoothed the whole systems operation, and

improved the enterprise perpetual operating capacity significantly. In the present highly

3A borough is an administrative division of various countries. In principle, the term borough

designates a self-governing township although, in practice, official use of the term varies

widely (22).4 The Comprehensive Performance Assessment (CPA) is the framework which the Audit

Commission uses to measure the performance of all councils(23)

.
http://www.sap.com/uk/about/success/casestudies/walthamforest06.pdfhttp://www.sap.com/uk/about/success/casestudies/walthamforest06.pdfhttp://www.sap.com/uk/about/success/casestudies/walthamforest06.pdfhttp://www.sap.com/uk/about/success/casestudies/walthamforest06.pdf


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competitive market, enterprise resource integration is very critical. The wrong implementation

of ERP can result in wrong results. So the ERP must be implemented with complete preparation

before the huge investment of money, human, and time. ERP system implementation involves

too many resources and parties and thus it is very time consuming and capital intensive.


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PART C

CChhaapptteerr 55

5. Presentation on Forecasting


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RREEFFEERREENNCCEESS

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s.l. : Irwin McGraw-Hill, 1997. ISBN 0256-13899-0.

3. Unknown. Business Definition for: Personnel Policy. BNET Business Dictionary. [Online]

[Cited: April 3, 2009.] http://dictionary.bnet.com/definition/personnel+policy.html.

4. William G Nickels, James M Mchugh, Susan M Mchugh."Understanding Business". 7th

Edition. New York : McGraw Hill.

5. Mackenzie, Christine. "Working practices in the 1990s- the bottom line". s.l. : MCB

University Press, December 1996, Vols. Volume 14, Number 12/13.www.emeraldinsight.com/10.1108/02632779610152199. ISSN 0263-2772.

6. Office, International Labour."World employment report 2004-05". Geneva : International

Labour Organization, 2005. ISBN 9221148130.

7. Nicholas, John M. "Competitive Manufacturing Management". New York : Tata McGraw-

Hill, 1998. ISBN 007-047415-X

8. Peter Auer, Janine Berg and Ibrahim Coulibaly. "Is a stable workforce good for theeconomy?". s.l. : Employment Analysis and Research Unit Employment Strategy Department,

August 2004, Insights into the Tenure-Productivity Employment Relationship. [Online]http://www.ilo.org/public/english/employment/strat/download/esp15.pdf. ISBN 92-2-116471-3

(web pdf).

9. The Institute for Working Futures Pty Ltd, Planning Strategically. www.marcbowles.co.[Online] 2005. [Cited: April 8, 2009.]

http://www.marcbowles.com/sample_courses/frontline_v5/fmf27/fmf27b.htm.

10. Onwubolu, Godfrey C."Emerging optimization techniques in production planning and

control". s.l. : Imperial College Press, 2002. Link: http://books.google.co.in/books?id=bYfW5-

SgBBoC. ISBN 1860942660.

11. Who Needs a Stable Workforce? Wall Mart Watch. [Online] Nov 5, 2007. [Cited: April 3,

2009.] http://walmartwatch.com/blog/archives/who_needs_a_stable_workforce/.

12. Drejer, Anders. "Illustrating competence development". www.emeraldinsight.com.

[Online] 2001. [Cited: April 4, 2009.] http://www.emeraldinsight.com/Insight.13. Thomas F Wallance, Robort A Stahl.Sales & Operations Planning. 3rd Edition. s.l. :

T.F. Wallace and Company. Link:http://www.tfwallace.com/pages_blocks_v3/images/links/3rdEd1stChp.pdf.

14. Sales and Operations Plan. Wikipedia, the free encyclopedia. [Online] [Cited: April 3,

2009.] http://en.wikipedia.org/wiki/Sales_and_Operations_Plan.

15. Unknown. SALES AND OPERATIONS PLANNING (S&OP).JasperSolutions LLC.[Online] [Cited: April 3, 2009.] http://www.jaspersolutions.net/definitions.htm.

16. Planning. [Online] Augusta State University. [Cited: April 3, 2009.]

http://www.aug.edu/~sbajmg/quan3600/Planning/aggreg%20plng%20rev5.pdf.17. Slack, Nigel. "Operations Management". 2nd Edition. London : Financial Times

Management, 1998. ISBN 0273626884.


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18. Lee J. Krajewski, Larry P. Ritzman. "Operations management: strategy and analysis".

s.l. : Addison-Wesley Pub. Co., 1993. ISBN 0201566303.

19. A Gunasekaran, Y Y Yusuf. Agile manufacturing: a taxonomy of strategic and

technological imperatives. [Online] 2002. [Cited: March 26, 2009.]

http://www.umassd.edu/charlton/birc/am_taxonomy.pdf.20. Chaharbaghi, Rainer Feurer and Kazem. Performance measurement in strategic change.s.l. : MCB University Press,, 1995, Vol. 2. No.2.

http://www.emeraldinsight.com/Insight/viewPDF.jsp?contentType=Article&Filename=html/Ou

tput/Published/EmeraldFullTextArticle/Pdf/1310020205.pdf.

21. ERP Imlimentation at Waltham Forest Borough Council. [Online] 2005. [Cited: April 4,2009.] http://www.sap.com/uk/about/success/casestudies/walthamforest06.pdf.

22. Borough. Wikipedia, the free encyclopedia. [Online] Wikimedia Foundation, Inc. [Cited:

April 4, 2009.] http://en.wikipedia.org/wiki/Borough.

23. Unknown, Comprehensive Performance Assessment (CPA). [Online]www.birmingham.gov.uk. [Cited: April 4, 2009.]

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BBIIBBLLIIOOGGRRAAPPHHYY

1) Module Notes of Prof. B.S. Ajith Kumar

2) Vollman, Berry, Whybark.Manufacturing Planning and Control Systems. 4th Edition.s.l. : Irwin McGraw-Hill, 1997. ISBN o256-13899-0.

3) Nicholas, John M. "Competitive Manufacturing Management". New York : Tata McGraw-

Hill, 1998. ISBN 007-047415-X

4) Slack, Nigel. "Operations Management". 2nd Edition. London : Financial Times

Management, 1998. ISBN 0273626884.

5) Lee J. Krajewski, Larry P. Ritzman.Operations management: strategy and analysis.

s.l. : Addison-Wesley Pub. Co., 1993. ISBN 0201566303.


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AAnnnneexxuurree AA

Glossary of Terms Used

Core competencies are a unique set of lasting capabilities that a company develops in keyoperational areas that allow it to vault past competitors (24)

CompetitiveAdvantage is the aggregation of factors that gets a small business apart from its

competitors and gives it a unique position with market superior to its competition (24).

Productivity: Productivity in economics refers to metrics and measures of output from

production processes, per unit of input.

Documents

SUDHEESH Production Planning & Scheduling