Information and Knowledge Management using ArcGIS ModelBuilder

Information Systems for Production Planning and
Scheduling and Their Impact on Business Performance
Denisa Ferenčíková
Tomas Bata University in Zlin, Czech Republic
ferencikova@fame.utb.cz
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.
Keywords: production planning and scheduling, capacity planning, VAT analysis, IS evaluation
1. Introduction
Today, the environment within manufacturing companies is very dynamic. Consequently, the
capability of a production process to rapidly react to altering market conditions is a key weapon for
remaining competitive. A changing market environment causes a rise in complexity as well as the
intensity of production planning. Fortunately, the actual marketplace is bursting with sophisticated
software solutions that can greatly simplify the process of planning and scheduling. Generally these
solutions are also able to flexibly react to any immediate alterations in customer demand or the
production process itself.
However, it is not exceptional in reality for a situation in an organization not to change, even after
implementing a costly information system with sophisticated methods for production planning and
control. Many companies invest considerable financial resources into purchasing various software
solutions, but the results envisaged do not materialize. What is the reason for this? For a concise
explanation, a quote would suffice from the similarly named book by Goldratt (2000): “Technology is
necessary but not a sufficient condition”. In fact, it can be confirmed that this adage holds some truth
in actual practice. Plenty of excellent software solutions are available for production planning and
control, but not all of them are suitable for every company. Even an impressive and sophisticated
information system may not produce positive results if its selection is not preceded by a thorough
analysis of the corporate environment and manufacturing process, or if the company and its
employees are not adequately poised for implementing it.
Many reasons could be given for unsuccessfully setting up new information systems in reality. In this
paper, and in further research, focus is placed on one of these – incorrectly choosing suitable
software for the type of production in question. Every company should be completely familiar with its
manufacturing environment so that it can select the information system most suitable for its purposes
and be able to interpret its requirements to the supplier. No business can expect excellent results
from implementation without properly analyzing both its corporate environment and the possibilities of
the software application.
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