preview

Production Planning Report

Good Essays
Open Document

Production Planning

Introduction

The intention of this project is to demonstrate the function of production planning in a non - artificial environment. Through this simulation we are able to forecast, with a degree of certainty the monthly requirements for end products, subassemblies, parts and raw materials. We are supplied with information that we are to base our decisions on. The manufacturer depicted in this simulation was actually a General Electric facility that produced black and white television sets Syracuse, New York. Unfortunately this plant is no longer operational, it was closed down and the equipment was shipped off to China. One can only wonder if the plant manager would have taken Professor Moily's class in …show more content…

Next we calculate the labor that goes into transforming these parts into a viable end product. We get a total of six hours of running man hours/unit and an hourly labor rate of $8.50, which gives us a total of fifty-one dollars. This gives a minimal total cost of
$101 to produce product one. This number is useful in determining how much a unit actually cost to manufacture and what we must minimally sell the product for to make a profit. We can than analyze if a product costs to much to make or the sum of the parts is more than the price of the end product. Product eight had the lowest direct minimum cost ($89.50) and four had the highest minimal direct cost. From a purely economic stand point, it would be beneficial to use as much of raw material twenty-three ($5 unit) and as little of raw material twenty-two ($30 unit). This does not consider that raw material twenty-two may actually be more valuable than raw material twenty-three. Perhaps raw material twenty two may be gold or silver and raw material twenty-three may be sand or glass. I also converted all information in the sales history per month (figure four of the MANMAN packet). The purpose of this step was so that I could sort and add the sales numbers to chronicle the past twenty four months. Clearly product one was the best-selling apparatus, and product three, four and five where sales laggards. Entering the information into spreadsheet form was also necessary to

Get Access
Related
Get Access