Information systems for production planning and scheduling and their impact on business performance

Abstract

One of the key activities of production planning and scheduling is integrated production management. In particular, discrete or partially complex production has an impact on many problems otherwise difficult to solve without using an adequate software support tool. Programming advanced planning algorithms lends a broad accent to optimally utilizing manufacturing resources and capacities, resulting in a reduction in production lead times and manufacturing cost savings (e.g. reduced need for overtime and cooperation, eliminating the failure to meet delivery deadlines, etc.). Rigid manufacturing systems (mostly push systems) already prove useless and insufficient for most production companies. Due to rapidly changing market conditions, dynamic adjustment of production plans is becoming extremely important. Implementing a new information system in the area of production planning and scheduling is not always to the benefit of a company. Therefore, it is necessary to know how to measure the benefits of these applications in relation to the performance of a production process. Defining efficiency evaluation indicators for software implemented (not just in the manufacturing process) is often a complicated procedure. The biggest obstacle is the inability to clearly define the benefits of the solution put in place and to separate out issues influenced by any other innovations and improvements of a production process. As regards evaluating an information system implementation, it is necessary to look at changes in actual production control and production planning processes as a whole. A good consultant or a systems integrator not only sets up software, they also adopt the role of a good teacher - one that helps establish know-how in a company on a selected application area or aids the introduction of best practices from other similar projects. The success of system implementation is dependent on many factors. One of the most important of these, in relation to advanced planning and scheduling applications, is the form of production according to differentiation of various types. This paper also discusses basic dependencies between selected planning algorithms and classification as regards the continuity of a manufacturing process and VAT analysis.