Information and Knowledge Management using ArcGIS ModelBuilder

Denisa Ferenčíková
6. Benefits of implemented planning systems in relation to the performance of
the manufacturing system
Every company that wants to be successful in today’s tough competitive environment must produce
and sell good quality products with high functionality and low prices. Therefore, it is necessary to bear
in mind the so-called magic triangle: quality, cost and time. These three conditions can be greatly
affected by good production planning and scheduling systems.
The first of them, quality, may be influenced not only by properly selecting the suppliers of raw
materials, but also by a superior planning process with regard to continuous quality control. An
especially important aspect is preventing a shift of waste to the next step in the manufacturing
process. The further this gets within the production procedure, the greater the cost for the company. A
suitable contender for eliminating this problem is, for example, the Kanban method, because any site
using Kanban “does not buy” waste from its predecessor.
The next factor – time - must be considered in evaluating the benefits from implementing a new
information system for production planning and control. The number of delayed orders is quite
alarming in some manufacturing companies, but software that has been correctly selected and
implemented should be able to combat this problem. Emphasis is particularly placed on capacity
management and the possibility of simulated planning (what-if functionality), which helps to state real
delivery dates.
The last, no less important monitored indicator, is costs. The total costs of a production process can
be influenced by many factors. Determining the ordering time for purchasing material and setting-up
the amount of a purchase order are also important elements that can affect stock levels as well as the
costs needed to hold them. Furthermore, planning software should help to reduce work in a process
that also has a major impact on expense. Costs are, in addition, closely linked with the previous two
indicators: poor quality results in rising costs as well as not sticking to delivery dates (increased
expenses through overtime, any necessary cooperation or penalties for failing to meet delivery terms).
When evaluating the benefits from actually implementing planning software, the following
characteristics and their values should be primarily monitored before and after implementation:
The stock level of input materials
The work-in-process level
Average processing time (if the processing time of different orders is comparable)
Supplier reliability, respectively the average delay time per order
Average capacity utilization, especially for limited resources
The number of overtime hours needed for completing delayed orders and the costs for this
overtime allowance
The costs of unscheduled cooperation for completing delayed orders
The percentage of production costs expended on waste
The rise in sales (an increase in productivity of the production process due to better production
scheduling)
Further research by the author, using advanced methods for production planning and scheduling in
the actual practice of Czech and, later, Slovak manufacturing corporations, shall focus on evaluating
the benefits of individual methods according to the above-mentioned criteria, amongst other things.
The values of these criteria for each method will be considered also in relation to the previouslymentioned
types of production processes.
6.1 Consequential research and its methodology
The research itself is realised as the combination of qualitative and quantitative methodological
approaches as full-valued research alternatives.
A quantitative questionnaire has been sent to Czech and Slovak manufacturing companies. The aim
of the quantitative research is to determine the dependence between the successful implementation
of the concrete planning algorithm and the specific type of production system, according to above-
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