PRODUCTION LOGISTICS

1. Slovak University of Technology Faculty of Material Science and Technology in Trnava PRODUCTIONLOGISTICS Production CapacitiesPlanning

2. The Mission of Planning Planning of production capacities means to achieve maximal harmony between the capacities of production process and capacity demands resulting from market requests to production process.

3. Planning Utilization • for longtime (strategic) planning of sale, goods production etc. There is necessary to answer following questions: • How great capacities are need or are present capacities sufficient, generic and capacitive suitable for the future production (how)? • When will they be necessary (when)? • Where can them locate (where)?

4. Planning Utilization • for operative planning, when we know the market demands - the orders. The aim of planning is to make the harmony of real capacity possibilities and capacity demands resulting form orders.

5. Basic Terms • Machine capacity – the time, which has the machine producing certain goods. • Production capacity of production process – maximal production per time unit (quantity of tin per month, operation amount per minutes etc.). • Production process bottle neck – is production operation (machine) on which the capacity will finish as first increasing the production. Maximal production of production process is limited by bottle neck.

6. Capacity Strategy Determination Capacity strategy – the goal is to fix longtime development of relation between production capacity and requirements (predicted). The racio between production capacity KJ and predicted requirements PPJ is express as: KVj= Kj-PPj pre j=1, 2, ...,m Value KVJ can be: • KV>0 capacity is larger then requirements, • KV<0 capacity is lower then requirements, • KV=0 capacity is equal to requirements.

7. Strategy Nb.1 • Utilization: for rising marker (aggressive conception), cheap capacity,

8. Strategy Nb. 2 • Utilization: uncertainty, bad market situation, expensive capacities

9. Strategy Nb. 3 • Utilization: maximal capacities utilization

10. Preempt Competition • If the company is dominant on market, rising the capacity advance the requirements. It is the aggressively market occupation. (Apple Computes or McDonald).

11. Wait and See • It is based on the idea that the company increases the production capacity only in that situation when has much more requirements as it is able to provide by actual capacity.

12. Capacity Balancing of Production Process The aim is to reach asked value of capacity relation KV. When the requirements are less stable then it is more difficult to secure this task. Following the structure of capacity relation KVj= Kj-PPj we can: • To change Kj – production capacities, • To affect requirements PPj, • Combined approach a) and b).

13. Production Capacity Adaptability There is needed to solve situations when:KV>0, KV<0, that is when we need to reduce or raise production capacities.

14. Rising capacities: Mineralization of material consumption per production unit, Recovery by another materials, Rising supply plants, transfer from another production processes. Reducing capacities: Transfer to another production places, Reducing supply plants. Production Capacity Matching – material consumption

15. Rising capacities: Reduction the production times, Automation processes, Dividing big orders, Outage non effective orders, Mineralization downtimes. Reducing capacities: Transfer some orders form next periods, Insertion to another jobs. Production Capacity Matching – machines

16. Rising capacities: Overtimes, 2 or 3 shifts, Change of the holidays plan, Transfer near the other production processes, Reception or new staff. Reducing capacities: The holidays planning, Partial limitation of period of running, Shift to another job, Reducing the staff number. Production Capacity Matching – human resources