Troy D. George

 A Discussion on the Production Planning Process Troy D. George 04/09/14 MGMT-A-01 Professor Jingxi Liu American Intercontinental University Abstract The purpose of this paper is to discuss production planning and quality management. Specifically, this paper will examine methods of assessment pertaining to performance and the design process. Definitions of criteria used will be provided. A ranking on importance will be explained. An explanation on methods used to manage the production planning process will be used to show the importance of this aspect of management. Introduction The production planning process takes center stage in many aspects of business. Companies will use metrics or measurements to judge their current business and to look for future direction. Specifically, companies can use the information provided by key process indicators (KPI’s) to measure cost and profitability of their operations; expose inefficiencies, and to improve their overall operations (Career Education Corporation (CEC), 2013). The following discussion will provide current metrics used in business today. Examination of these metrics and how they impacted by operations will be provided along with a case for the validity of these metrics. Lastly, research into other useful metrics will be provided. By the end of this paper, the reader will have an understanding on the usefulness and overall importance of performance metrics in the production planning field. Scenario Liu Memory Chip Manufacturing (LMCM) produces specialty memory chips for use in cell phones, computers, and electronics. While headquartered in Southern California, they also have offices located in Singapore, China, Europe, and Japan (Liu, 2014). As Liu delves into the examination of the techniques used to assess the performance and design of its operations, ways to analyze the existing workflow of the production process grows in importance (Liu, 2014). As a new member of the production planning staff, the expectation is that you deliver an assessment of these current metrics that help ensure that the proper plans are in place and enables the best use of capacity in order to promote high standards of quality. The first step in this assessment would be to examine the currently used metrics by businesses today. Metrics Quality. This metric is used to show the number of defects associated with a given product (CEC, 2013). Cost: While there are many different types of costs associated with business today, a common metric used will detail material and labor costs. Timeliness: This explains how quickly products are manufactured and delivered to the end customer (CEC, 2013). Flexibility: Flexibility speaks to the degree to which the production process can be adapted to produce other products or specific products more quickly (CEC, 2013). Productivity: This measures a ratio of outputs divided by inputs. This is among the measurable that has the most significant impact on overall cost and profitability (CEC, 2013). Efficiency: Once again, there are several ways to measure efficiency. For the purposes of this paper, efficiency will be a ratio of actual outputs divided by standard (or expected) outputs, multiplied by 100% to give a total efficiency percentage (CEC, 2013). Cycle time: This metric measures the total time it takes to complete a production process. This is another metric that is a large indicator of cost and profitability for a business (CEC, 2013). Theory of Constraints. Queuing Theory. Explain how each of these measures can be applied to the Liu’s production planning process. Can the LMCM use each one? How so? Rank the criteria listed above in order of importance to the company's production planning strategy detailing your rationale for such a ranking. Identify other measures that might apply to the company and explain them. References Capacity Planning. (n.d.). Zarate Consulting. Retrieved from http://www.zarate-consult.de/kosvet3/m4/KEET_M4_LU6_L1/capacity_planning.html Career Education Corporation (CEC). (2013). My Unique Student Experience. Retrieved from https://class.aiuniv.edu/_layouts/MUSEViewer/MUSE.aspx?mid=MU13988 Certification for Logistics Professionals. (2011). European Logistics Association. Retrieved from http://www.arilog.ro/userfiles/files/110101%2002_03%20Production%20Planning%281%29.pdf Chapman, S. (2006). The Fundamentals of Production Planning and Control. Pearson Custom Publishing. Retrieved from http://wow.coursesmart.com/-/firstsection Eben-Chaime, M. (1995). The queuing theory machine interface model: use and application. 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