Experimental push/pull production planning and control system

We introduce an experimental push/ pull production planning and control software system which is designed as an alternative to a MRP-II system for mass manufacturing enterprises in China. It has the following distinguishing features: (1) putting the philosophy of JIT into the master production scheduling of MRP-II via the earliness/ tardiness production planning method; (2) controlling material input by push and processing/ assembly by pull; and (3) adjusting the parameters of the production line by the‘ suggestion for improvement of production line’ module. Simulation results have shown that the proposed system can achieve better planning and control performance than existing systems.     

Experimental earliness/tardiness production planning with the due window system

In order to use the philosophy of JIT to improve the production planning method of MRP-II, we propose the experimental software system of the earliness/tardiness produc tion planning problem with due window. By means of the approaches and model reported in this paper, the optimal production planning can be achieved. The recommended model extends the problem of due window from the shop scheduling level into the aggregated planning level of mass manufacturing systems. Simulation results have demonstrated that the experimental software is a useful tool for the production management of repetitive manufacturing enterprises.     

Marketing planning and corporate planning

The market planning subset of the corporate planning process has unique difficulties associated with technical, organizational and behavioural problems. A major technical problem is that of getting the company sales forecast right. The paper suggests a check-list for budget reviewers aimed at producing more realism in forecasting (Section II).Organizational problems are discussed in terms of allowing time for full concurrence between budget framers and reviewers (Section III). The little-discussed behavioural problems associated with the interface between line management and marketing staff specialists are outlined in Section IV with some suggestions for overcoming them.     

Tailor-made planning: Making planning fit the firm

This selective and limited application of the contingency approach to planning is intended to show that the process is a highly flexible set of activities which can be adapted and tailored to the organization's requirements. At each stage of the planning process the manager has a set of choices which enable him to make the best possible fit between the process and the organization. He is not a passive recipient of a pre-ordained sequence of rigidly invariable activities. He is in the position of being able to select specific solutions to specific problems so that the planning process and structure form the best possible fit for the organization in its environment.     

Pre-investment planning

Effective control of a firm's future depends upon sound pre-investment planning before further commitments are made. Therefore, the firm's situation has to be strategically characterized. In this article the author develops a strategic approach towards preplanning of investments. This approach can be helpful in suggesting a relevant investment policy. In this respect attention will be paid to acceptance criteria, financing considerations and types of commitment.     

Practical planning

The author is President of Applied Futures Incorporated, a company that is concerned with assisting business and government in applying futures research to current decision-making. In December of 1971, he retired from the IBM Corporation as the Director of Exploratory Planning. Mr. Simmons had also been director of product planning, director of market planning, and director of planning systems for the Corporation. This article is based on 18 years of experience in various planning jobs at IBM.     

Developing a planning culture for more effective strategic planning

The literature of long-range planning is replete with justifications of the need for strategic planning and admonitions concerning its critical importance. However, both the literature of planning and its practice, as manifested in a variety of organizations as diverse as industrial firms, educational systems and law enforcement agencies, are deficient in specifying proven techniques and methodologies for marshalling organizational resources to effectively implement strategic planning.Over a period of years, the authors have consulted with a variety of business organizations and public agencies in the development and implementation of long-range planning processes. From this work has come an empirically-tested conclusion that the success of long-range planning in an organization is less sensitive to the parameters of the planning techniques that it is to the overall culture within which the planning is accomplished. Since most of the non-pontifical literature of planning focuses on planning techniques and specifications for planning processes, these conclusions suggest a critical void in planning methodology.     

Electricity planning vs energy planning: A modelling approach

An essential part of the energy policy making process is the co-ordination of the sub-sectorial plans of energy producers in order to ensure that they are compatible with the broader goals of the global energy system. In this paper an attempt is made to underline the significance and estimate the size of this problem through an interplay of two optimization models; a global energy system model and an electricity subsystem model. The possibility of model interlink, leading to a higher level of co-ordination, is discussed.     

Strategies for planning

In recent years there has been a good deal of discussion amongst planning specialists and academics about the gap which exists between the theory of planning as set out in journals and textbooks, and the practice of planning in private and public organizations. Planners are continually complaining about the resistance to planning by top management and operating managers in divisions and departments.In this article the author aims to produce a reconciliation between theory and practice and to discuss what alternative strategies are open to planners in devising planning systems for their organizations.He suggests that the problem has its origin in the fact that corporate planning theory was first developed by management scientists as a total systems approach. Corporate planners have failed to sell an integrated planning system either as programme budgeting or as corporate planning. Research suggests that a management team can only adopt and implement a comprehensive planning system in very special circumstances, e.g. when the organization's survival is threatened, a new management team has been appointed and the staff of the organization are ready to accept radical change.In normal circumstances the planner is wrong to advocate a ‘root and branch’ solution. He must diagnose the planning needs of the organization and his objective must be not merely to establish a particular planning procedure but rather to discover how he can best improve the quality of management decisions.Recent studies on strategy formation indicate that the introduction of a formal planning procedure is only a partial answer to the problem of improving the quality of management decisions.The paper reviews various approaches to planning and considers how they relate to organizations with different strategic problems, with differing organization structures and various management styles.     

Futurology and planning

This paper is not intended to be an exhaustive exposition of futurological and predictive studies, but rather an indication of the kinds of approach which institutes devoted to this subject are making, methods used and the ideas which are being developed.     

Developing planning models

Mr. Holloway joined the Gulf Oil Corporation in 1939. His previous publications are in the fields of chemical engineering, statistics and computing.He is now the Senior Adviser on Planning Systems and member of Gulf's European Planning Council.The paper presents the author's view that linear programming is an efficient vehicle for long range planning, that it is more comprehensive and when properly structured requires no more computer time than the perhaps more conventional simulation models.Further, that it has the great advantage that the planner himself can control not only the data content of his model, but can also control the way in which the data is treated within the model even to the extent of making drastic matrix changes.     

DEA-based production planning

Production in large organizations with a centralized decision-making environment like supermarket chains or factories with many workshops, usually involves the participation of more than one individual unit, each contributing a part of the total production. This study is motivated by a production-planning problem regularly faced by the central decision-making unit to arrange new input and output plans for all individual units in the next production season when demand changes can be forecasted. Two planning ideas have been proposed in this paper. One is optimizing the average or overall production performance of the entire organization, measured by the CCR efficiency of the average input and output levels of all units. The other is simultaneously maximizing total outputs produced and minimizing total inputs consumed by all units. According to these two ideas, we develop two DEA-based production planning approaches to find the most preferred production plans. All these individual units, considered as decision-making units (DMUs), are supposed to be able to modify their input usages and output productions. A simple numerical example and a real world data set are used to illustrate these approaches.     

Multinational planning systems

Multi-national planning requires advanced tools for handling the complex variety of currencies, languages and diverse operating conditions characteristic of that environment. The planning process is further complicated by the high degree of uncertainty surrounding political and labour conditions in different countries.This paper describes the manner in which multi-national firms are using the computer as an aid to multi-national planning, first as a report generator to perform extensive data manipulations to save time and clerical labour and, secondly, at a higher level, as a means of simulating strategies under a wide variety of conditions and under extreme conditions of uncertainty.     

Computerized corporate planning

Computerized Corporate Planning as defined in this study is: the use of the computer to simulate the effect of alternative strategies on achievement of corporate objectives; the capability of answering ‘What if?’ questions.

The increasing complexity of business firms operating in a rapidly changing environment has led many managers in recent years to consider the development of computerized corporate planning systems. This article is concerned with an in depth study of some 55 such installations in North America and Europe. The objective of this effort conducted during the period of June –November 1970, was to determine the state of the art, identify problems of installation, and project trends in the rapidly evolving use of computers in planning. Specific questions include:

What is the economic justification for these systems? How are they being used? Who is using them? Have results measured up to expectations? What are the costs? Are organizational problems incurred?     

Manufacturing bill-of-material planning

The bill-of-material BOM in the machine tool industry takes two different forms in design and manufacturing functions: Engineering BOM E BOM , which is used by the design engineer to represent designed product structure; and manufacturing BOM M BOM , which is used by MRPII system for MRP explosion. The designer constructs the E BOM after the product has been designed. Next, the E BOM is transformed into the M BOM by considering assembly sequence and constraints. Constructing a M BOM simply involves compressing the E BOM into a three-level M BOM. Planning of a M BOM still depends primarily on the experience input of a manufacturing engineer and is performed manually. This trial and error and time consuming approach creates an inconsistent method for planning the M BOM. Therefore, in this study, a three-stage M BOM planning method is developed. Stage one plans the initial M BOM, stage two improves the M BOM and stage three tunes the M BOM. Concepts and algorithms of each stage are highlighted in this study. Moreover, an illustration is presented to demonstrate the feasibility of M BOM planning.     

Paradoxes in planning

A paradox may be described as: ‘an idea which seems to conflict with conventional logic’. Strategic planning has acquired such a conventional logic, or set of paradigms, which enables its practitioners to structure and understand their activities. However, some years of being a practitioner has convinced the author that good management and good planning often violate these principles. It is necessary to restate them, or frequently to invert them, to obtain a useful structure for successful planning.     

Concurrent consideration of product design,process planning and production planning activities

In manufacturing engineering, product design, process planning and production planning activities are often considered independently. However, in order to effectively respond to changes in business situations, such as changes in demand forecast, product mix and technology, it is desirable to consider them concurrently. For this purpose, a large-scale linear programming model has been developed. The model considers minimization of the sum of processing cost, late shipment cost and inventory holding cost as the objective, and concurrently selects product designs, and generates process plans and production plans. The number of columns in the formulation can be large and, hence, an efficient column generation scheme is developed to solve the model. The model and solution procedure are illustrated with examples.