A decision support methodology for strategic planning in maritime transportation

This paper presents a decision support methodology for strategic planning in tramp and industrial shipping. The proposed methodology combines simulation and optimization, where a Monte Carlo simulation framework is built around an optimization-based decision support system for short-term routing and scheduling. The simulation proceeds by considering a series of short-term routing and scheduling problems using a rolling horizon principle where information is revealed as time goes by. The approach is flexible in the sense that it can easily be configured to provide decision support for a wide range of strategic planning problems, such as fleet size and mix problems, analysis of long-term contracts and contract terms. The methodology is tested on a real case for a major Norwegian shipping company. The methodology provided valuable decision support on important strategic planning problems for the shipping company.     

A modified hierarchical production planning system integrated with MRP: A case study

In this paper, a hierarchical planning system is proposed which integrates aggregate capacity planning with MRP. This system is to be implemented in a metal box manufacturing company which multi-user MRP system covering manufacturing activities as well as procurement sales order processing and accounting systems. The hierarchical planning system includes a medium-range aggregate planning model adapted to the firm's requirements and strategies. The model consists of a mathematical formulation which covers labour capacity has already installed a constraints and includes certain cost estimations in the objective function. The planning horizon of the medium range planning is taken as twelve months in order to cover sales seasonality. The aggregate production quantities resulting from the optimized medium-range planning model are disaggregated according to procedures already found in the literature. Furthermore, the theoretical infeasibilities pertaining to the disaggregation procedures are also resolved in an heuristic manner. Using the latter modified disaggregation procedure, a feasible disaggregated plan is generated for the whole planning horizon. The proposed plan is compared with the current production policy of the firm and it is observed that the proposed plan leads to backorder reduction.     

Plans—Their preparation and implementation

This article outlines the methodology developed in the adoption of long range planning at Reed International. Whilst the author rightly draws attention to the fact that the methodology described may not be applicable, or preferable, for all businesses it can give valuable lessons. Particularly, since Reed International is a highly diversified multi-national group of companies whose activities range from pulp and paper to publishing and building products, the difficulties of ensuring that plans are logically coherent, informative and examine the relative range of alternatives, is a complex and difficult task. Therefore, the paper provides a highly relevant and detailed insight into the planning methodology adopted by a company whose activities are wide ranging both in terms of product mix and geographical location. The author stresses the importance of planning as a process which includes the necessary structural underpinning but which concentrates essentially on the integration of concepts and ideas which may help the future performance of the company. Finally, the author also examines the important but often forgotten element of planning, the elements of control necessary to ensure effective implementation.     

Organization for long range planning—A survey of German companies

Whilst much is written about the theory of long range planning it is a fact that unfortunately, the organization of long range planning of business strategy within companies, has not proved to be an attractive object of research for business theorists. This paper is the exception. By an examination of more than 200 companies residing in the Federal Republic of Germany, long range planning is shown to be gaining more importance as a tool for company management. The organizational design of the planning system and its integration into the overall company structure is, according to this analysis, shown to be one of the most central problems of the implementation of corporate planning systems. This paper presents a theoretical framework and the empirical findings on structural and procedural aspects of long range planning, systems. The empirical study was carried out by means of interviews and a questionnaire survey. The survey results show some interesting and important features of the problems engendered by corporate planning and some of the advantages accruing from its successful implementation. Additionally, the analysis provides an interesting backcloth against which to view the implementation of planning and the relationships between the different levels of planning.     

Production planning and inventory control in a company manufacturing PC parts: A case study

In this paper, we present a case study on the production planning and inventory system in a company manufacturing personal computer (PC) parts. In the case study, the targets are specified for developing a system for production planning and inventory control. The current state of the company is analysed for clarifying the points necessary to achieve the targets. Also, a system based on the analysis is proposed and its effects are estimated.     

Strategic planning for British nuclear fuels Ltd.

This article presents an account of the current state of planning in a Government - owned company. The author describes differences he sees between the planning process in his enterprise and those which are outlined in many planning texts.Since the company is relatively new, the author makes no claims for the success of the total planning operation as he describes it. However, he does indicate areas where advances have been made.Among these are proving the validity of the chosen planning system; the derivation of objectives from the planning process rather than as a starting point, and the acceptance of the planning operation by Top Management.     

The annual planning cycle

The practical business man, be he the boss or an employee, usually accepts that systematic planning of some sort is almost certain to be of benefit to his company, and he can usually agree with many of the planning techniques put forward. What often worries him though, is how to actually operate a planning system in his company day by day: what instructions to give, systems to use, how to make it really work. In this article, the author describes an Annual Planning and Budget Cycle Chart which was developed at the Avon Rubber Company. This chart goes a long way to solving the practical businessman's dilemma referred to above, it gives set dates during the year for completion of specific planning and budgeting jobs and it explains how they are interconnected to make up a coherent and workable corporate planning system.     

Designing an effective financial planning and control system

This article addresses the problems to be found in the design of financial planning and control systems. The primary purpose of an effective planning and control system is to minimize the possibility of management crises and to accomplish this, management must plan for the development of such systems as it would plan for plant expansion or new product development, recognizing the changing needs of the system as the company evolves.     

Planning in a German engineering business

Formalized corporate planning, particularly in its long-range aspects, often seems to be a privilege of the huge international firm. The following case is intended to show that, contrary to this belief, long-range planning is equally essential for the company evolving rapidly from a small into a medium-size company. In the company described, over a period of 3 years a basic system was developed with the participation of line management, and many of the procedures have become routine. Also, the firm's business objectives and long term strategy have been reviewed and the company has diversified outside the saturated traditional markets for agricultural machinery.     

Corporate planning at Dunlop

It has often been said that corporate planning is an art which, like all art perhaps, means all things to all men. As other papers have attempted to do this approaches the concepts of corporate planning in an analytical manner and illuminates a number of approaches which the author considers to be preferable. The problems of corporate planning in Dunlop Limited are then analysed and the author's own experience of corporate planning in that company are utilized describing a practical and comprehensive system.     

Developing a manpower strategy for an industry

This paper considers the following issues for developing an industry manpower strategy. An idea of the national system that exists for implementing a manpower strategy. The main questions arising from the strategy, and a definition of manpower planning. From this, the information and analysis techniques used to identify the strategy. The first application produces a manpower picture of the foundry industry. For company manpower planning the paper describes a manpower model of a company, and how the relationship between the activity and employment patterns of boundries was investigated. The industry findings are verified by company manpower planning investigations using the same information and techniques. The conclusions discuss some of the strengths and weaknesses of using this approach.     

Selection and implementation of a PPC system

There are many computer-aided production planning and control (PPC) systems available on the market which can provide a solution to the complex task of production planning and control. However, the question remains, how can a company find an optimal system from the vast amount of available systems? This article proposes that a company, having decided to buy one of the available systems, starts a project for selection and implementation of the PPC system.     

The cut-off rate for investment decisions in growth companies

In this article the author attempts to define cut-off rate for capital budgeting decisions of a “growth company” and to relate it to the firms long range planning. Dr Chandra argues that conventional measurement of cost of capital cannot be used in the growth company. In brief, he defines the cut-off rate in this type of company as— dividend yield plus the rate at which dividend is expected to grow.     

CIM implementation for job-shop environments

Abstract

Abstract. The small to medium-sized job-shop manufacturing industry can benefit most from the implementation of computer integrated manufacturing (CIM) technology, to meet the increasing demand for high-quality and economically priced products. The injection mould making industry is a typical representative for this group, where a manufacturer would generally produce moulds which consist of parts that are standard to every mould type or very similar. Thus, manufacturing techniques, such as group technology (GT), and production planning and control (information) management systems could make significant contributions in improving the efficiency of design and production operations.

The objective of the project, presented in this paper, was the development of a GT-based classification and coding (C/C) system for injection mould parts especially for the design and process planning phases, and the development of a production planning and shop-floor control (SFC) information management system.

An extensive investigation was carried out on existing GT-based C/C systems. This investigation, followed by a thorough examination of many injection mould parts for determining geometric similarities, led to the development of part families (classes) required for GT implementation. An OPITZ-type GT system was developed, thereafter, for the C/C of the manufactured parts of the target company.

The production planning and control software that has been developed for the target company utilizes a relational data base management system. It consists of 13 application programs, which provide a tool of organizing information for efficient production planning and SFC. The programs are designed to cover all manufacturing operations of a job from the proposal to the final testing stage. Shop orders and dispatch lists are created using this software for effective and prioritized SFC. Shop status and job status reports are generated based on feedback information received through time card entries.     

The planning function and input-output analysis

Long range planning has been defined as a decision-making process involving the commitment of resources—money, people, time, capital—today, the payback or return on which will not be realized until some future period. Since the heart of the planning process is the making of decisions about allocations in some systematic way, economic analysis, armed with its concepts of opportunity cost, indifference theory, marginal analysis, and investment theory, provides much of the theoretical framework for good long range planning models.

If planning is to be done in a scientific manner, there shouldexist common principles and study approaches, regardless of the nature of the organism being planned for. Thus planning for the individual, family, company, industry, association or state should vary according to the relevant information to be used in making decisions and the priorities of the objectives but not in the essential method by which decisions are arrived at. This is major theme of the paper.

As a result of more, than a decade of experience as a ‘planner’ for a number of diverse business and government groups, and through the process of articulating this planning experience as a teacher, I have developed a systematic approach to the planning process. The model has its own conceptual framework that includes, as information filters and display devices, unique adaptations of input-output notation. First in this article I will highlight some of the elements of the planning process, as I have constructed them. Then I will proceed to describe the specifications of the planning system, with particular emphasis on the use of input-output analysis.     

Integrated scheduling and inventory management of an oil products distribution system

The oil supply chain is facing new challenges due to emerging issues such as new alternative energy sources, oil sources scarcity, and price variability with high impact on demand and production and profit margins reduction. Additionally, the existence of large, complex and world wide spread businesses implies a complex system to be managed where distribution can be seen as one of the key areas that needs to be efficiently and effectively managed. Different types of distribution modes characterize the oil supply chain where the pipeline mode is one of the most complex to operate when having multiproduct characteristics. This paper addresses the planning of a generic oil derivatives transportation system characterized by a multiproduct pipeline that connects a single refinery to a storage tank farm. Two alternative mixed integer linear programming models (MILP) that aim to attain a set of planning objectives such as fulfilling costumers’ demands (which is mandatory) while minimizing the medium flow rate are developed. Additionally, final inventory levels are avoided to be excessively low. A real world scenario of a Portuguese company is used to validate and compare the two alternative MILP models developed in this paper.     

Integrated scheduling and inventory management of an oil products distribution system

The oil supply chain is facing new challenges due to emerging issues such as new alternative energy sources, oil sources scarcity, and price variability with high impact on demand and production and profit margins reduction. Additionally, the existence of large, complex and world wide spread businesses implies a complex system to be managed where distribution can be seen as one of the key areas that needs to be efficiently and effectively managed. Different types of distribution modes characterize the oil supply chain where the pipeline mode is one of the most complex to operate when having multiproduct characteristics. This paper addresses the planning of a generic oil derivatives transportation system characterized by a multiproduct pipeline that connects a single refinery to a storage tank farm. Two alternative mixed integer linear programming models (MILP) that aim to attain a set of planning objectives such as fulfilling costumers’ demands (which is mandatory) while minimizing the medium flow rate are developed. Additionally, final inventory levels are avoided to be excessively low. A real world scenario of a Portuguese company is used to validate and compare the two alternative MILP models developed in this paper.     

A decision support tool for planning bills-of-material

In this paper, the framework for a decision support tool for planning bills-of-material is presented. This tool generates a set of modular planning bills-of-material from the manufacturing bills-of-material for a company. The tool attempts to consolidate options in a product family which are specific. The force with which the tool attempts to consolidate two or more options is dependent on the financial control parameters. As well as having a minimum amount of common material, the financial value of such a match must also be of sufficiently high value to be worth planning together. The tool also examines the long-term inventory effect of planning two or more options as common.