Production planning system for a combination of make-to-stock and make-to-order products

2002 ◽  
Vol 40 (18) ◽  
pp. 4835-4851 ◽  
Author(s):  
H. Tsubone ◽  
Y. Ishikawa ◽  
H. Yamamoto
2011 ◽  
pp. 148-167
Author(s):  
Victor Portougal

This case details the implementation of Systems Applications & Products’(SAP) Production Planning module at EA Cakes Ltd. The market forced thecompany to change its sales and production strategy from “make-to-order”(MTO) to “make-to-stock” (MTS). The decision to change the strategyinvolved not only the company’s decision to invest much more money inaccumulation and keeping stocks of finished goods, it required a completeredesign of its production planning system, which was an integral part of an ERPsystem that used SAP software.


Author(s):  
Victor Portougal

This case details the implementation of the Systems Applications & Products (SAP) Production Planning module at EA Cakes Ltd. The market forced the company to change its sales and production strategy from “make-to-order” to “make-to-stock.” The decision to change the strategy involved not only the company’s decision to invest much more money in accumulation and keeping stocks of finished goods, it required a complete redesign of its production planning system, which was an integral part of an ERP system that used SAP software. A team of IT specialists and production planning personnel was formed for designing computer support for the new production planning system business processes. There was no consensus in the design group. IT specialists were sure that existing SAP software could provide adequate computer support. The production planning staff had doubts that SAP modules are relevant to their business processes. They argued that poor fit between the business processes implicit in the software and the business processes of EA Cakes will result in failure. To resolve the problem, the management invited a consulting company. The consultants suggested quickly designing a rough prototype system. Analyzing this system would help the working group to reach a consensus. Apart from giving adequate computer support to the new production planning system, the SAP implementation had to solve several implementation problems identified by consultants. The question is: can a standard software system like SAP give adequate computer support to an individually designed business management system?


Author(s):  
Victor Portougal

This case details the implementation of the Systems Applications & Products (SAP) Production Planning module at EA Cakes Ltd. The market forced the company to change its sales and production strategy from “make-to-order” to “make-to-stock.”


2011 ◽  
pp. 168-193
Author(s):  
Victor Portougal

It was pointed out in Chapter VII that before implementation of an ERP systemin EA Cakes Ltd., it was necessary to completely reengineer the productionplanning process. To change the strategy from make-to-order to make-to-stock involves not only the company’s decision to invest money in accumulationand keeping stocks of finished goods. It requires a complete redesign of itsproduction planning system, because:•There is no forecasting for MTO, it is driven by customers’ orders, so aforecasting system had to be designed and implemented.•An inventory management system for finished goods had to be developed.•Under MTS, it is vital that the planning system preserves continuity; theplans produced by each level should be detailed plans of the top level.Also, there must be feedback continuity: feedback of the top levels is anaggregation of bottom level feedback — for more detail see McNair andVangermeersch (1998).


2019 ◽  
Vol 19 (1) ◽  
pp. 21-34
Author(s):  
Hans Gerald Regawa

Production planning is part of the operational management that is important in a company. By managing production planning properly, the production process in a company will be able to run better. PT X is a company that produces vehicle spareparts for private cars. The company runs make to order system to fulfill the production procss. In the make to order system, a new product will begin to be produced by the company if there is an order from the customer. In this system, a company has inventory i.e. raw material and work in process. The problem are PT X have lack of raw materials and the absence of lead time given by the company to customers about when a product will be sent. To overcome this problem, improvements are made to the existing production planning system. Improvements begin by changing the way raw materials are purchased. This is done by treating the system with order point. With this system, company will never experience a shortage of raw materials because when raw material below order point, company must immediately order new raw materials. Thus the production process will not be disturbed and can run smoothly. In determining when a product will be completed and sent to customers, a production planning system with DSS tools (decision support system) is made using Microsoft Excel tools. By using DSS, the system will automatically display when a product will be finished and when it can be sent to the customer, when to buy raw materials, and how much production order is. Accordingly, the company can provide certainty of information to customers when the products have been produced and shipped.


2017 ◽  
Vol 260 (3) ◽  
pp. 1014-1023 ◽  
Author(s):  
Bart Beemsterboer ◽  
Martin Land ◽  
Ruud Teunter

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