Production Planning and Control

Production Planning and Control

Production Planning course will involve many stakeholders in determining how much money will be used or spent for the production of the particular period Prepare a budgetplan production of the first things to be determined are:

1. establish policies on inventory levels 

2. Plan production quantities of each type of product during the budget period.

3. Create a production schedule for a shorter periosde

General considerations in the production plan

The production plan is not just a set amount of product and wktu appropriately in the implementation period, but his plan na production also showed a close relationship withpanjualan budget as a basis for planning the various aspects of the production function.

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SOLUTION PROGRAM LINEAR (SENSITIVITY ANALYSIS)

The core of the post-optimal analysis in the study of the general simplex table given in theform of a matrix.

Sensitivity analysis will study the effects of changes in the objective function coefficients and/ or the amount of available resources. more details download here.

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defenitions of manufacturer overhead costs

Overhead costs are the costs of indirect materials, indirect labor and indirect costs ofothers is not easy to identify. A wide range of factory overhead costs should be charged toall work done during a period. Therefore, in order to charge the cost of factory overheadequally to each of the products used factory overhead rate is determined in advance.

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The Cost Of Sales

COST OF SALES =

(Beginning inventory of finished goods + Cost of Production - Ending inventory of finished goods.)

explanation:

Direct material costs are all expenses or expenses for the use of materials that becomepart of the finished product. For example, a direct material in the cigarette business is:

• Cost of raw materials: tobacco, tobacco paper rollers, sauces, wrapping material.

• Cost of helper / maid: fuel oil, lubricants, water, and electricity used for production.

Direct labor costs are all costs incurred for workers who are directly involved in the manufacture of a product. This is called wage costs (not salaries) because payment is onlybased on the calculation of output, hours, or days of work they provide in the production process.

Factory overhead is indirect factory costs, ie all expenditure incurred in the plant that can not be connected directly to the manufacturing process. No other factory overhead costsare all costs other than direct materials and direct labor.

The cost of the plant overhhead include:

• Rent a factory fixed assets (building factories, cars, computers, etc.)

• Depreciation, repairs, and maintenance of fixed assets of the factory (the factory building, machinery, equipment, automobiles, computers, etc.)

• Salary production manager, engineering manager, supervisor, secretary of the activitiesrelated to production, etc..

• general and administrative costs the plant (office stationery, telephone, cleaning, etc.)

• fixed plant property insurance

• Etc

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The Cost Of Production

COST OF PRODUCTION

For the company's factory / manufacturing, the cost of production (HPP) or there is also a call cost of production is all it costs to produce a product / service to be sold during the period. So in essence no different from the prices or costs for finished goods for sale.

Production costs, relating to the calculation of the cost of production or cost of goods soldis often called, consists of:

- The cost of direct materials

- The cost of direct labor

- Overhead costs (for goods produced in a factory called factory overhead)

CALCULATION OF COST OF PRODUCTION =

Initial stock of intermediate goods used raw materials + wages + direct labor +manufacturing overhead costs - the end of semi-finished goods inventories of rawmaterials used = Beginning inventory + purchases - ending inventory

If the direct materials plus the direct wage costs is called the Primary

Direct wages plus the cost of factory overhead is called Conversion. For manufacturing companies, cost of conversion can be considered a direct cost to convert the material into a final product.

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Resource Requirements Planning

Now we will discuss about the Resource Requirements Planning (RRP). The steps in theresource requirements are as follows:

1. Get Production Plan

2.Determining the Structure of Product
3. Determining  Bill Of Resources

4. Calculating Total Resource Requirements

5. Evaluating the plan that has been done

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Production Planning

Actually, what is production planning? Maybe this is often a fundamental question in thefield of manufacturing systems. Yupz, which is the planning of production is the productioncapability Determine, with regard to the resources available. Then Doing partnershipmeeting with the relevant managers. This is an important activity for the productionplanning activity at the highest hierarchical by top management).

Production plans are made will be based on total demand, in accordance with the formulaas follows:

(Request Total - Beginning Inventory) + End Inventory

If we Rundown Kebawahnya is a daily production plan then the formula is:

Monthly Production Plan / Number of Business Days One Month).

Once we get the value of daily production then we can calculate the cycle time or cycletime, namely with the following formula:

Cycle Time (CycleTime) = Available Working Hours Per Day / Daily Production

There are several alternative strategies Perancanaan production such as:

A. level Method

characteristics ie uneven distribution in production, maintaining the stability of theproduction, use varied inventory to accumulate total output if the excess demand.

2.Chase Strategy

maintain the stability of inventory, production varies following the total demand.

3.Compromise strategy

that is a compromise between the two strategies above.

Well that was some review of production planning in manufacturing systems.

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