An Alternate Model of Aggregate Production Planning for Process Industry.

MRPII 67

An Alternate Model of Aggregate Production Planning for Process Industry: A Case of Cement Plant

Ghulam Asghar1*, Wasif Safeen1, Mirza Jahanzaib1 

1Department of Industrial Engineering, University of Engineering and Technology Taxila, Pakistan *Corresponding Author: Địa chỉ email này đã được bảo vệ từ spam bots, bạn cần kích hoạt Javascript để xem nó.

Abstract—

This study is about the suggestion of an alternate model of medium range/aggregate production planning (APP) for the process industry. This research is conducted according to the forecasted demand of six months of a leading Cement Industry of Pakistan. A number of methods have developed by researchers to carry out the APP. But all those methods mainly focus on the discrete type of industrial processes. A very little literature addresses the aggregate production planning regarding the process industries. Therefore this study is specifically about the APP of process industry, a case of cement plant.

The existing model of aggregate production planning of the selected cement plant is mainly focused on the continuous production and the excess product after meeting the demand is stored in the inventory. Cost analysis has been conducted for the existing model which revealed that nearly half of the total cost is consisted on the inventory holding cost. Different alternatives have been discussed and a proposed model has been developed and analyzed.

The results of cost analysis showed that by following the proposed model the company could save approximately 60% of its total cost. Above all, a better preventive maintenance schedule could also be implemented, which might reduce the unplanned break downs and hence the overall efficiency of the plant could also be improved by implementing the proposed model.

Keywords—

Aggregate Production Planning, Continuous Production, Inventory Holding Cost, Process Industry