PRODUCTION PLANNING &

INVENTORY CONTROL
E.F. SRI MARYANI SANTOSO
SCOPE OF PPIC
Planning, execution, and control of
production rates and inventory levels
to achieve customer satisfaction at
minimum cost.

Good production and inventory

control can be a competitive weapon
 RULE OF CONDUCT
Min 80% Present in Class
Present in Class Before Starting
the Lecture
Don’t Use Sandal, T shirt and
Hand Phone During the Lecture
Having Good Attitude
 ASSESSMENT
Requirements:
– Min 80% Present in Class
– Having Good Attitude
Score/Grade :
– Mid Semester Test (UTS) : 35%
– Final Test (UAS): 50%
– Homework (paper, problems) :
15%
 PRODUCTION SYSTEM
System is an assembly of elements or components
or part related in an whole to reach an objective

Production is an activity to improve the values of

to input to be output

Production system is to functionalize of

materials, machines, work force, capital, and
methods to produce a product that can meet at a
level of quality, price, and availability.
 CUSTOMER OR
CLIENT
PARTICIPATION

OPERATION/TRANS
INPUT FORMATION OUTPUT

PERFORMANCE
INDICATOR

PRODUCTION SYSTEM
Production system exhibits the following 7
conflicting measures of performance:
Volume: how much is produced?
Variety: how many different types of products?
Quality: What percentage of products meet
design specifications?
Timeliness: Are the products available when
customer requires them?
Place: Are the products available when customer
requires them?
Satisfaction: are the participants in the
production process satisfied and fulfilled in their
work?
Cost: Have the products been created at min.
cost?
KIND OF TRANSFORMATION :

Due to process:
1. Fabrication transformation
2. Process Transformation
3. Service Transformation
Due to production volume
– Job shop
– Flow shop
– Project
Job shop
Production will be done to meet
of customer demand not to make
inventory,
Starting time was known, but
finishing time was uncertainty
The role of manpower skill was
big
Flow Shop:
Production will be done to make
inventory
Manpower as operator

Project: Special type ofjob shop

The starting and ending time
was known
Flow Shop terdiri:
Flow line/batch: shoes, cloth,

Assembly line : assembly of

motorcycle, food formulation
Continous : sugar factory
Process Classification:
Change of physical properties
Change of material shape
Machining process
Finishing process
Assembly process
Project Job shop Flow shop

1 or 2 volume big

dominant Skill Small contrib.

General Equipment/layout special
Fix Process Production
FORECASTING

JIP Eng. Mnfc.

database

Perenc, Perenc.
material kapasitas

Shop flow control

Priority Capacity
Raw material

Forecasting Administrative
Fabrication
plant functions

Srategic
planning Marketing
Assembly
plant Product design
Aggregate
Distribution production
center planning Process
planning
Production
retailer schedulling

Shop floor Manufacturing

control support

Customer

Product flow Prod. Planning & control Related technical &

decision adm. functions
 INPUTS PROCESS OUTPUTS

Long range ec. Forc STRATEGIC Operating facilities

Finan. choice PLANNING Product line
Technologies
Proc. Tech/efficiency
AGGREGATE
Med. Aggr. product Production level
PRODUCTION
Family forecast Workforce level
PLANNING
Machine schedules Family inventoris

Production levels
Workforce levels
Current Invent. Status DISAGGREG MPS
Changeover Time & Mon ATION Item inventories
Item forecast

MPS Job priorities

PRODUCTION
BoM Order Releasea
SCHEDULLING
Process plan Machine schedule

Labor status Machines priorities

SHOP FLOOR
Machine status Job status
Job priorities
CONTROL Labor reporting
Order release Mat handling task
Mac. schedule Production syst. Decision Hierarchy Load/price
 Dimensions for classifying
production schemes
Physical organization Product vs process
Key resources Labor intensity vs Capital
Product flow control intensity
Order Initiation Batch vs Continuous flow
Make to order vs make to
Production Authorization stock
Product variety Push vs pull
Product volume Single vs multiple products
Custom job vs rep. mass
prod
Fabrication/assembly Single prod. Stage vs
structure multiple stages
Time horizon Single planning period
(static) vs Multiple periods
9dynamic)
PRINCIPLES OF PROD. SYST
Learning curve
The product demand life cycle
Production setup
Inventory to support production
Capacity balanching
Customer defined value
Large inventory
Throughput time≥ cumulative move &
processing time for a transfer batch
 PENGOPERASIAN SISTEM
INDUSTRI/PERUSAHAAN
Perencanaan produksi
pengendalian produksi
Perencanaan dan pengendalian
produksi
Rencana penentuan out put produksi
dengan memperhatikan permintaan
dan sumber daya yang dimiliki untuk
kurun waktu perencanaan tertentu
Bagaimana produksi dapat
memenuhi permintaan pasar dalam
keterbatasan sumberdaya yang
dimiliki dengan kinerja yang optimal
(kualitas, harga, ketersediaan)
Perencanaan dan pengendalian
produksi berperan sbg pendukung
dalam sistem industri (perusahaan):
Mendukung fungsi marketing
Mendukung fungsi fabrikasi
Fungsi perencanaan dan pengendalian
harus mampu menjabarkan target
pasar menjadi rencana operasional
Perencanaan adalah proses penetapan dan
penjabaran aktivitastujuan
Tujuan yang baik mempunyai
karakteristik:
1. realistik
2. terukur
3. berbatas waktu
4. menantang
Aktivitas memerlukan waktu dan
sumberdaya (4 M)
Pengendalian adalah aktivitas untuk
menjamin proses pencapaian tujuan
yang telah ditetapkan
Kerangka dasar Perencanaan dan
Pengendalian

Rencana Pelaksanaan
Standar Evalua
si
Variabel perencanaan produksi:
Tingkat produksi (Pt), jumlah produksi
yang dihasilkan selama kurun waktu
perencanaan
Tingkat tenaga kerja (Wt), jumlah TK yang
dibutuhkan untuk menghasilkan produk
yang diinginkan
Tingkat persediaan (It), jumlah persediaan
rata-rata, cadangan pengaman, dan
jumlah persediaan yang diinginkan untuk
periode mendatang
Jenis perencanaan produksi:
Perencanaan jangka panjang (long
term planning), >1 tahun
Perencanaan jangka menengah
(medium term planning)
Perencanaan jangka pendek (short
term planning)
Pustaka:
1. Mc.Leavey, D.W, & S.L. Narasimhan, Production
Planning and Inventory Control
2. Bedworth, D.D & J.E. Bailey, Integrated Production
Control systems: Management, Analysis, Design 2/E
3. Elsayed, E.A. & T.O. Boucher, Analysis and Control of
Production Systems
4. Askin R.G. & J.B. Goldberg, Design and Analysis of
Lean Production Systems
5. Ballou, R.H., Bussiness Logistic/Supply Chain
Management
6. Salvendy, G (editor), Handbook of Industrial
Engineering (I, II, III)
7. D.Y.Y Leung, 2004, Handbook of Schedulling
8. Sule, D.R., 2008, Production Planning and Industrial
Scheduling: Examples, Case Studies and Applications