FACULTY OF BUSINESS AND MANAGEMENT
UNIVERSITI TEKNOLOGI MARA
PRODUCTION PLANNING AND CONTROL (OPM545)
INDIVIDUAL ASSIGNMENT 1
PREPARED BY: NUR AMIRAH BINTI NASHARUDDIN (2018286896)
GROUP: NBO7B
PREPARED FOR: MADAM ARLIZA BINTI ABDULLAH
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1. Forecasting figures can be influenced by many factors. Describe any four (4) of
the factors in the context of a business organization.
• Production: The degree to which production levels actually meet demand is a
main factor in business success. If production is too low, the firm will be unable
to satisfy demand, resulting in unsatisfied consumers and a loss of revenue. If
production exceeds demand, the corporation must hold surplus inventory,
delaying payment and increasing storage expenses. In both circumstances,
business profits are lower than they would be if production forecasts were
accurate. On the basis of trend, pattern, cycle, and inventory, we can forecast
production.
• Inventory: Inventory forecasting is a technique for predicting inventory levels
in the future. It also aids in the tracking of sales and demand so that purchase
orders may be properly managed. It's an excellent inventory management
solution that may boost your company's income while lowering unneeded
expenses. Inventory forecasting predicts inventory levels based on criteria
such as sales history and trends, average lead time, demand, reorder point,
and safety stock.
• Personnel: The major goal of forecasting people or staffing requirements is to
plan for future employment, training, and development of human resources.
Because of the company's need for more competent staff, which is in short
supply, forecasting has become highly crucial. Expected organisational growth,
financial limits and allocations, projected internal turnover, minority recruiting
targets, and the introduction of new technology are just a few aspects to
consider when estimating future personnel needs.
• Facilities: The most significant factor of effective capacity is the design of
manufacturing facilities. Forecasting should take into account the ability of the
facilities to absorb the plan. The scale of the facilities, as well as the capacity
for extension, are all part of the design. The facilities should be designed in
such a way that employees feel at ease at work. Distance from the market,
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labour supply, transportation costs, and energy sources are all crucial location
issues. The layout of the work environment influences how efficiently the task
may be completed. Lighting and ventilation, for instance, have an impact on
the efficiency with which personnel can do their tasks.
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2. Identify five (5) values of practicing manufacturability and engineering activities in
product development process.
- Reduced product complexity: every time we remove a part or restructure and
simplify a product, equipment, or system, we are capable of creating it at a
lower cost.
- Lowered environmental effect: we decreased the environmental impact by
updating parts to be more energy efficient or ecologically friendly. We are
currently employing paper straws rather than plastic straws. Furthermore, there
are companies that create metal straws, and this is a new product development.
- Additional component standardisation: standardisation frees up time,
allowing personnel to focus on more efficient procedures like build-to-order.
Organizations can give their clients with a rapid turnover on desired items
thanks to the availability of parts and faster delivery from suppliers.
Standardization, along with a range of other approaches, helps manufacturers
reduce expenses and concentrate on improving their goods and processes.
- Improvement of product functionality: Functional Products is a business
model in which a supplier provides a service to clients at a pre-determined
degree of accessibility, productivity, or efficiency. FP is made up of four primary
components: hardware, software, service-support system, and operations
management, all of which work together to provide long-term value to clients.
The article discusses nine software-related availability measures that
manufacturing businesses have planned and implemented, as well as other
software-related availability measures that may be implemented.
- Robust design: the product is built in such a way that minor differences in
production or assembly have no negative impact on the final result. Lucent, for
example, created an integrated circuit that could be used to enhance speech
signals in a variety of devices. To eliminate signal intensity changes, the circuit
had to be built at a high cost when it was first conceived. However, after testing
and analysing the design, Lucent engineers recognised that lowering the
circuit's resistance, a very simple alteration with no related expenses, would
make the circuit significantly less susceptible to manufacturing variances.
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3. Describe production planning and production control and provide examples.
Explain two (2) objectives of production planning and two (2) objectives of
production control.
Production Planning:
The act of creating a roadmap for the design and manufacturing of a product or
service is known as production planning. Production planning aids businesses in
making their manufacturing processes as efficient as possible. Development planning
began as a way to improve the manufacturing process, but it is now used in a variety
of ways to improve the design, production, and delivery of software. Production
planning is important because it creates an efficient process for production according
to customer and organizational needs. It optimizes both customer-dependent
processes -- such as on-time delivery -- and customer-independent processes, such
as production cycle time. A strong production plan reduces lead time, which is the
time it takes for an order to be completed and delivered from the moment it is placed.
The concept of lead time varies widely depending on the firm and the sort of
production planning required. Lead time in supply chain management, for example,
refers to the time it takes for items to arrive from a supplier. This is included because
the manufacturing company needs to know when the components will arrive so that
material requirements planning may be effectively executed. With tight manufacturing
limitations or just-in-time (JIT) manufacturing, this is extremely crucial.
Objectives:
- Effectives utilization of resources: Production planning results in effective
utilization of resources, plant capacity and equipments. This results in low-cost
and high returns for the organization. Thus, the operations manager in charge,
need to have discussion with various departments – such as purchases,
inventory, sales and human resources to arrive better utilization of all the
resources.
- Ensures optimum inventory: Production planning ensures optimum inventory. It
prevents over-stocking and under-stocking. Necessary stocks are maintained.
Stock of raw material is maintained at a proper level in order to meet the
production demands. Stock of finished goods is also maintained to meet regular
demands from customers.
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Production Control:
Production control seeks to achieve production objectives, make the best use of
available resources, boost profitability via productivity, and provide better and more
cost-effective goods and services, among other things. For successful operation, a
production control system requires reliable information, a good organisational
structure, a high degree of uniformity, and educated employees. A good production
control system is essential for a plant's smooth functioning. Production control
ensures a more positive and precise completion and delivery date while
manufacturing client orders. Fulfilling an order on time is critical to the client's
satisfaction and the growth of customer loyalty. Production control also gives chaotic
and unplanned production processes becoming more structure and order. Alternately,
production control is the function of management which plans, directs and controls
the material supply and processing activities of an enterprise; so that specified
products are produced by specified methods to meet an approved sales programme.
It ensures that the activities are carried in such a way that the available labour and
capital are used in the best possible way.
Objectives:
- Provision of raw material, equipment, machines and labour.
- To ensure regular and timely supply of raw material at the desired place and of
prescribed quality and quantity to avoid delays in production.
- To perform inspection of semi-finished and finished goods and use quality
control techniques to ascertain that the produced items are of required
specifications.
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Question 4.
Month Sale 3 Month 3 Month Smoothing 3 Month 3 Month
(units) Moving Weighted a = 0.5 Moving Weighted
Forecast Forecast Deviation Deviation
March 120 - - - - -
April 90 - - - - -
May 100 - - 110.0 - -
June 75 103.3 100.1 105.0 28.3 25.1
July 110 88.3 85.8 90.0 21.7 24.2
August 50 95.0 96.8 100.0 45.0 46.8
September 75 78.3 74.1 75.0 3.3 0.9
October 130 78.3 72.7 75.0 51.7 57.3
November 110 85.0 98.3 102.5 25.0 11.8
December 90 105.0 110.7 106.3 15.0 20.7
110.0 103.4 27.1 26.7
# The method that I would recommend using MAD is 3 months weighted moving
average. It is because the deviation is smaller.
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Question 5.
Online Monthly E- Online x y xy x2 y2
Stores commerce Advertising
Sales (in In RM
1000s) (1000s)
1 368 1.7 1.7 368 625.6 2.9 135424
2 340 1.5 1.5 340 510 2.3 115600
3 665 2.8 2.8 665 1862 7.8 442225
4 954 5 5 954 4770 25.0 910116
5 331 1.3 1.3 331 430.3 1.7 109561
6 556 2.2 2.2 556 1223.2 4.8 309136
7 376 1.3 1.3 376 488.8 1.7 141376
Sum 15.8 3590 9909.9 46.2 2163438
Mean 2.3 512.9 1415.7 6.6
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