Production and Inventory Planning and Control: techniques and practices

André Tchokogué

Description

The past few years have seen the utilization of integrated software packages (ERP type) in numerous enterprises. We can thus speak of a large-scale diffusion of the integrated enterprise resource management approach, which induces a growing interest in mastering techniques and approaches put in place in the production planning field, notably collaborative sales and operations planning, master production scheduling, material requirements planning, and implementation control of the plans established.
This book adopts this perspective, focusing on the techniques and approaches that contend with decision-making for short- and medium-term planning, and short-term production and inventory control. The application examples that accompany the presentation of each technique would allow students to acquire a good understanding of the links between the concepts, techniques, and their use in practice.
For the practice exercises and problems at the end of each chapter, students can deepen their grasp of the role played by production and inventory planning and control in a manufacturing company’s supply chain management, sharpening their skills in applying :
The decision support tools and techniques that are implemented in the production planning domain; and
The relevant information in decision-making situations.
In other words, this book would allow students to obtain the knowledge and know-how that are essential in the competitiveness of a manufacturing firm.

Sujets

• Operations Management
• Production Management
• Gestion et management
• Economics
• Business

Informations

• Publié par: Éditions JFD Inc
• Date de parution: 12 janvier 2023
• Nombre de lectures: 0
• EAN13: 9782897995010
• Langue: English
• Poids de l'ouvrage: 5 Mo

Extrait

Production and Inventory Planning and Control: Techniques and Practices
André Tchokogué




Production and Inventory Planning and Control: Techniques and Practices
André Tchokogué
© 2023 Les Éditions JFD inc.
Bibliothèque et Archives nationales du Québec and Library and Archives Canada Cataloguing in Publication
Title: Production and inventory planning and control : techniques and practices / André Tchokogué.
Other titles: Planification et contrôle de la production et des stocks. English.
Identifiants: Canadiana 20230050727 | ISBN 9782897994808
Subjects: LCSH: Production management – Textbooks. | LCSH: Inventory control – Textbooks. | LCGFT: Textbooks.
Classification: LCC TS155.T36213 2023 | DDC 658.50071/1—dc23
Les Éditions JFD inc.
CP 15 Succ. Rosemont
Montréal (Québec)
H1X 3B6
Courriel: [e-mail]
Web: editionsjfd.com
All rights reserved.
Reproduction in whole or in part in any form or by any means whatsoever, is strictly prohibited without the prior written permission of the publisher.
ISBN: 978-2-89799-480-8
Legal Deposit: 1st quarter 2023
Bibliothèque et Archives nationales du Québec
Library and Archives Canada


Printed in Quebec



3


Table of contents
Preface by Gilles Paché 5
Introduction 7
PART I FROM DEMAND FORECASTING TO COLLABORATIVE SALES AND OPERATIONS PLANNING 27
Chapter 1 Demand forecasting 31
Introduction 31
1.1 Forecasting approaches and methods: some generalities 33
1.2 Selection and implementation of forecasting methods 47
1.3 Forecasting system and best practices 144
Conclusion 150
Exercises and problems 152
Solutions 169
References 176
Chapter 2 Collaborative sales and operations planning (S&OP) 179
2.1 S&OP: a central process in the implementation of integrated management 180
2.2 Setup and implementation of the S&OP process 201
Conclusion 212
Exercises and problems 213
Solutions 232
References 234
PART II PRIORITY PLANNING 235
Chapter 3 Development of plans at the tactical level: MPS and FAS 245
3.1 Standard product context – the MPS 248
3.2 Assemble-to-order context 259
Exercises and problems 267
Solutions 289
Chapter 4 Development of plans at the tactical level: from MPS to MRP 297
4.1 Place and role of MRP in the planning of production and distribution activities 299
4.2 MRP inputs/outputs 300
Exercises and problems 313
Solutions 332



Production and Inventory Planning and Control


4


Chapter 5 Detailed planning: formulation and implementation 341
5.1 MPS change management policies 342
5.2 Plan analysis and decision-making 350
Conclusion 376
Exercises and problems 378
Solutions 425
Chapter 6 Production and inventory planning and control: Distribution Resource Planning (DRP) 433
6.1 Before the advent of DRP: the predominance of the combined use of proactive and reactive systems 433
6.2 Links between DRP, MPS, and MRP 435
Exercises and problems 443
PART III CAPACITY MANAGEMENT AND PRODUCTION ACTIVITY CONTROL 453
Chapter 7 Priority management and capacity management 459
7.1 Rough Cut Capacity Planning 461
7.2 Capacity Requirements Planning (CRP) 469
Exercises and problems 481
Solutions 510
Chapter 8 Production activity control 519
8.1 From release of orders to scheduling of inputs and outputs in work centers 521
8.2 Capacity control and implementation monitoring 539
Exercises and problems 549
Solutions 571
Chapter 9 JIT and MRP II/ERP 575
9.1 Kanban system: a pull approach 575
9.2 Complementarities between JIT and MRPII/ERP 582
Exercises and problems 596
Solutions 600
Conclusion 601



5



Preface by Gilles Paché


For those who are closely interested in the evolution of contemporary economies, there is little doubt about a profound change in value chains in a context of generalized dematerialization of exchanges. Some do not even hesitate to speak of a dominant service model where the production of market and non-market services has totally taken precedence over manufacturing production as if the world of physical objects referred to a bygone past when Taylorism and Fordism triumphed. Nonetheless, it will have been enough for a health crisis on an exceptional scale, at the turn of the years 2020-2021, to remind us brutally that albeit important, services, especially delivery, turn out to be quite useless when the manufacture of physical objects is interrupted. Let us think here of the stockouts of protective masks and artificial respirators which plunged health systems into disarray for several weeks… As for the “salvation” itself in response to the Covid-19 pandemic, it will ultimately come from miraculous vaccines produced in factories running at “full capacity,” day and night. In short, let us not hesitate to speak of a triumphant revenge for manufacturing activity!
Attentive analysts of the functioning of value chains will not be surprised by the centrality of physical objects. Nor will consumers themselves if they think for a moment of the smartphone which they consult frantically several hundred times a day, of the motor vehicle which takes them to work each morning, of the laptop computer which accompanies them to their vacation spot to finish a file in progress, of the barbecue around which they gather their colleagues and friends on weekends… That is a Prévert- style list (of disparate items) that would occupy us for hours if we had to list the physical objects that feed our daily lives. Objects resulting from industrial processes involve materials and component sup- ply, more or less complex assembly, and physical distribution activities to serve the markets, notably through Internet sales. Such a manufacturing reality may appear trivial. It tends to be forgotten or, at least, understated, in favor of the aforementioned service economy. However, that overlooks the fact that the “production of services,” known under the notion of servuction, introduced by the late Pierre Eiglier and Éric Langeard, requires the presence of physical objects to be fully operational.
This means that André Tchokogué’s book comes at the right time to highlight the key elements related to the planning and control of production and inventory of physical objects. The author, a professor working at HEC Montréal, is part of this generation of researchers paying particular attention to oper- ations management. In an academic world where the research work of many academics is often obscure and largely disconnected from the needs of companies, the author stands out with a didactic posture at all times. Such quality emerges with even more brilliance in the present manual, which makes it a remarkable working tool.



Production and Inventory Planning and Control


6


In effect, it is rare that readers can have in hand a book that harmoniously combines theory and practice. Most often, the authors choose one or the other of the two options: for some, a conceptual reflection on the transformations of industrial systems; for others, a series of operational advice sometimes akin, alas, to “cooking recipes.” André Tchokogué manages the feat of combining total mastery of theory and practice. He perfectly knows the academic literature and wisely mobilizes it to highlight the main issues involved. In regular contact with practitioners, he is able to identify the problems encountered by manufacturing companies and the solutions, possible or not, to overcome them. Moreover, as a planner for three years in the pharmaceutical industry, André Tchokogué has developed real expertise in the implementation of the techniques and approaches presented. He demonstrates an ability to formulate very realistic exercises and applications (which is not always the case in works on operations manage- ment), allowing students in particular to “put into practice” effectively. From this point of view, there is no doubt that the book will very quickly present itself as an indispensable support for easy learning of planning techniques which are essential but sometimes difficult at first.
Finally, we congratulate ourselves on the deep managerial culture which André Tchokogué proves to allow him to avoid falling into the double trap of “confetti specialization” and “temporal myopia.” “Confetti specialization” is currently plaguing the academic community by leading in particular to a focus of research on micro-subjects of relative interest, while “temporal myopia” consists in making a clean sweep of all that may have been developed, thought out, or tested more than ten years ago, even if it means constantly reinventing the wheel! By contrast, the author demonstrates wisdom and a broad analytical view by embracing the issues of operations management in all their systemic complexity. He also immerses himself in seminal works, which are certainly old but which we must consider essential to have an enlightened understanding of today’s questions... and avoid repeating yesterday’s mistakes. After all, as George Santayana reminded us, “those who cannot remember the past are doomed to repeat it.” As such, we would like to thank André Tchokogué for putting in our hands a reference work that will be very useful for students, but also, more broadly, for decision-makers in business.
Gilles Paché
Associate Professor in Management Science Aix-Marseille Université (France)



7