Industrial Engineering

Course Name Production Planning and Control-II

Course Code IEng3110
Degree Program B.Sc. in Industrial Engineering
Module Productions and Control Module
Credit Points (CP) 5 CP/3Cr.Hr.
Lecturer Negash L.
Lecture Tutorial Practice or Laboratory Home study
Time Distribution (in Hr.)
2 3 1 4
At the end of this course the students will be able to:
Apply different forecasting techniques
Course Objectives Manage inventory
Plan requirement of material for any production or service operation
Schedule activities effectively
The course deals about demand forecasting techniques; concept of aggregate planning
Course Description and material requirement planning and how they will be prepared; inventory
management models for both deterministic and un deterministic demand. It also deals
about job scheduling and the methods of scheduling shop floor activities.
Course Contents Chapter-One:- Demand Management and Forecasting:
 Demand Management; Types of forecasting, Components of Demand;
Qualitative techniques in forecasting, Market research, Panel consensuses,
Historical analogy, Delphi Method; Time series Analysis, Simple moving
average, weighted moving average, Exponential, smoothing, Exponential
Smoothing with Trend, Winter’s Method: Exponential Smoothing with
Seasonality, Initialization of Winter’s Method, Estimation of trend, cycle, and
seasonality components, forecasting accuracy, Analysis of forecast error and
computer control of forecasting systems.
Chapter-Two:-Aggregate planning (strategic planning):
 Characteristics of aggregate planning, Planning Tasks & responsibilities;
Relationships of the aggregate plan, Aggregate planning goals, Aggregate
planning strategies; Aggregate planning methods, Graphical & charging
techniques; Mathematical approaches, Linear programming, Transportation
method, Linear decision rule, Management coefficients model,
Simulation ;Product mix planning; Workforce planning ;Comparison of
aggregate planning methods; A combined aggregate and workforce planning;
Disaggregating the Aggregate Plan; Aggregate planning in services; Yield
Management
Chapter-Three:-Inventory Management:
 Introduction to Inventory Management, Definition of Inventory, Types and
Function of Inventory; Costs of Inventory; Inventory Control Models;
Independent Demand Systems; Inventory Models, Deterministic models ,
Model I- Economic Order Quantity; Model II- Production Order Quantity;
Model III-Infinite input rate-backlogging allowed; Model IV-Finite input
rate-backlogging allowed; Multiple item and Constraint; Quantity Discount
models, All units Discount, Incremental discount; Probabilistic models: Fixed
Order and Fixed Time systems, The nature of randomness ,Optimization
 criterion; The Newsboy Model; Lot size, reorder point systems; Service
levels in (Q, R) systems; Additional discussion of periodic—review systems;
Probability distributions for inventory management, Multiproduct systems
Chapter-Four:- Material Requirement Planning ( tactical planning):
 Introduction ,Independent Vs. dependent demand; Hierarchy of production
planning decisions, MRP Systems-input and output, MRP inputs; Master
production schedule MPS; Bill-of-material (product structure tree) BOM;
Inventory status records, MRP processing/explosion calculus, MRP outputs,
Planned order & other reports; Capacity planning, capacity theory, rough-cut
capacity planning, capacity requirements planning (CRP),MRP in services ,
Benefits of MRP; Manufacturing resources planning MRP II
Chapter-Five:-Short term Scheduling (operational planning):
 Strategic importance of short term scheduling, Scheduling Issues, Forward
and backward scheduling; Scheduling Criteria; Scheduling process- focused
facilities; Loading Jobs; Sequencing Jobs; Priority rules for dispatching jobs,
Critical Ratio, Sequencing N jobs on two machines, Limitations of rule based
dispatching system, Finite capacity Scheduling; Theory of Constraints;
Scheduling repetitive facilities; Scheduling services
Laboratory Practices:
 Computer implementation of: the Holt Method, winter method, regression,
regression methods, analysis of forecast errors and Computer control of
forecasting systems; implementation for Aggregate planning using computers;
Implementation of Product Mix using computers, implementation of
Workforce planning using computers.
 Computer implementation for master production schedule; Computer
implementation for Material requirement planning; Computer implementation
for bill of materials; Scheduling jobs on a computer; Inventory control model
applications on a computer

Pre-requisites Production Planning and Control-I

Semester Year III; Semester II
Status of Course Compulsory
Teaching & Learning Lecture supported by laboratory practices
Methods
F Continues Assessment 20%,
Assessment/Evaluation
F Mid 30 %,
methods
F Final Examination 50 %.
Attendance Requirements Minimum of 85% attendance during lecture hours and 100 % during lab sessions
Chase, R. B., N. J. Aquilano, and F. R. Jacobs. Operations Management for
Textbook
Competitive Advantage. 11th Ed. Boston: Irwin/McGraw-Hill, Inc, 2006.
1. W.J. Hopp and M.L. Spearman. Factory Physics: Foundations of
Manufacturing, McGraw-Hill, 2nd edition, 2001.
2. Nahmias, Steven, Production and Operations Analysis, Fifth Edition,
References
McGraw-Hill Irwin (2005).
3. Adam, E.E. and Ebert, R.J., Production and Operations Management, Prentice
Hall, NJ, (1993).