Production Planning Group 4 Claudia· David· Lisa· Shakeia· Vicky

Definitions Production Specification File: The PSF provides a "road map" that identifies the software structure and package according to its attributes, contents, compatibilities, and dependencies. Production Specification File: The PSF provides a "road map" that identifies the software structure and package according to its attributes, contents, compatibilities, and dependencies. Machine Loading File: Recorded information identifying the machinery and the raw materials used and the duration of such use. Machine Loading File: Recorded information identifying the machinery and the raw materials used and the duration of such use.

Definitions Continued Open Production Orders File: production orders which are authorized to manufacture a specific quantity of a particular product that has not been completed. Open Production Orders File: production orders which are authorized to manufacture a specific quantity of a particular product that has not been completed. Bill of Materials: lists the components that are required to build each product, including part numbers, descriptions, and quantity. Operations List: lists the sequence of steps required to produce each product, including the equipment needed and the amount of time required. Production Order: the document used to process a production run of an item. Move Tickets: a document used to move inventory within a facility. Materials Issue Cards

Data sheet explanation Section 1 is all of the special orders for the company, custom jobs and such. Section 2 is the everyday productions of the company. In section 1 the company gets a special order and they then figure out exactly what is needed to produce the order. A clerk enters those specifications and the Product specification as well as the Operations (routing) files are updated. Section 1 is all of the special orders for the company, custom jobs and such. Section 2 is the everyday productions of the company. In section 1 the company gets a special order and they then figure out exactly what is needed to produce the order. A clerk enters those specifications and the Product specification as well as the Operations (routing) files are updated. In section 2 the company uses forecasts and previous backorders to determine production needs to meet demand for the current year. They break that down into the production requirements for each product. Then you enter that data at the end of each day. The data for both of those sections goes into the 4 electronic database files in section 3. From those files outputs 4-7 occurs. In section 2 the company uses forecasts and previous backorders to determine production needs to meet demand for the current year. They break that down into the production requirements for each product. Then you enter that data at the end of each day. The data for both of those sections goes into the 4 electronic database files in section 3. From those files outputs 4-7 occurs. In Section 4 Customers are sent the Bills of materials which lists the components that are required to build each product, including part numbers, descriptions, and quantity. In Section 4 Customers are sent the Bills of materials which lists the components that are required to build each product, including part numbers, descriptions, and quantity. The Operations list which lists the sequence of steps required to produce each product, including the equipment needed and the amount of time required. And a copy of the original sales order. In Section 5 the production operations are sent the production order the document used to process a production run of an item. The move tickets a document used to move inventory within a facility, and how many materials they have been allocated (materials issue cards). In Section 6 the revised production schedule is sent to the production work center. And in Section 7 the material requirements report is sent to purchasing processing. The Operations list which lists the sequence of steps required to produce each product, including the equipment needed and the amount of time required. And a copy of the original sales order. In Section 5 the production operations are sent the production order the document used to process a production run of an item. The move tickets a document used to move inventory within a facility, and how many materials they have been allocated (materials issue cards). In Section 6 the revised production schedule is sent to the production work center. And in Section 7 the material requirements report is sent to purchasing processing.

Threat #1 Poor Product Design Poor Product Design Increase in Cost: Increase in Cost: Poorly designed products are the cause of 50% of all product returns. Therefore the company incurs higher costs because of repair and warranty costs. Poorly designed products are the cause of 50% of all product returns. Therefore the company incurs higher costs because of repair and warranty costs.

Threat #1 Continued Controls Controls 1. There needs to be accurate data pertaining to the relationship between the components involved in manufacturing the finished product. 1. There needs to be accurate data pertaining to the relationship between the components involved in manufacturing the finished product. 2. Warranty and repair costs should not be ignored, but analyzed. Examination of these costs can help us to know what were the major causes of the product failure. 2. Warranty and repair costs should not be ignored, but analyzed. Examination of these costs can help us to know what were the major causes of the product failure.

Threat #2 Over or Under Production Over or Under Production Over Production – More goods are available than are demanded Over Production – More goods are available than are demanded Under Production – More goods are demanded that have been produced Under Production – More goods are demanded that have been produced

Threat #2 Continued PROBLEMS Overproduction Overproduction - If all of your resources are tied up in inventory, it may lead to future cash flow problems. - There is also an increased risk of your inventory becoming obsolete. Underproduction Underproduction - Loss of sales & customer dissatisfaction

Threat #2 Continued CONTROLS Having Accurate & Current Data Having Accurate & Current Data - Sales Forecast Data - Inventory Stock Data Ability to Quickly Adjust Production Schedules Ability to Quickly Adjust Production Schedules - You must be able to slow or speed up production depending on the sales forecast. By collecting accurate data about the time it takes to manufacture the good it helps the production planner organize the production schedule. By collecting accurate data about the time it takes to manufacture the good it helps the production planner organize the production schedule.

Threat #2 Continued CONTROLS continued Proper approval of production orders Proper approval of production orders - Restrict access to the production scheduling program (passwords & access controls) Correct production orders Correct production orders - Closed-loop verification (The planner enters the production order & the system request to verify the production order.)

Threat #3 Suboptimal Investment in Fixed Assets 1. Excess cost in over investing that reduces profit. 1. Excess cost in over investing that reduces profit. 2. Under investments can reduce productivity. 2. Under investments can reduce productivity.

Threat #3 Continued Controls Controls 1. Authorization on fixed assets. 1. Authorization on fixed assets. Examples: Examples: 1. Large amount of more than 10,000 should be verify by the senior executive committee. 1. Large amount of more than 10,000 should be verify by the senior executive committee. 2. Smaller amounts can be approved by manager who will be accountable for the investment. 2. Smaller amounts can be approved by manager who will be accountable for the investment. 3. Inviting suppliers to provide an estimate cost of the asset. 3. Inviting suppliers to provide an estimate cost of the asset. 4. Then capital investment committee choose the best supplier that has the best estimate. 4. Then capital investment committee choose the best supplier that has the best estimate.