Report 92.3.LT.3071, Transport Engineering and Logistics.
Production planning can be defined as the process of determining the quantity
of production, stocks and capacities which are needed to fulfill a certain
The planning can be divided in three levels: strategic planning, tactical
planning and operational control.
At the tactical level planning and control of the production are established at
an aggregate level. At this level a production process is divided in different
production units. These are independent production departments with some
production stages and resources. The activities of the production units are
coordinated by the goods flow control, which considers the production units as
black boxes with elementary production characteristics. These operational
characteristics describe the behaviour of a production unit on the goods flow
control level. Production orders for a specific production unit are released by
goods flow control.
In order to design general methods of production planning and control it is
recommendable to distinguish varous types of production processes. In this
paper a division in three different production situations has been chosen:
Make-to-Stock, Make-to-Order and Engineer-to-Order .
At goods flow control level the aggregate production planning can be controled
on a capacity oriented manner. The remaining workload method can be used for
the goods flow control. The hierarchical backlog control is a useful method of
production planning in make-to-order production organizations, which is a mix
between make-to-stock and engineer-to-order. In an engineer-to-order situation
in which network structures are considered at an aggregate level, engineer work
is difficult to plan. In this situation the planning can take place on a
capacity oriented manner with work load norms.
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