The intention of this project is to demonstrate the function of production
planning in a non - artificial environment.
Through this simulation we are able to
forecast, with a degree of certainty the monthly requirements for end products,
subassemblies, parts and raw materials.
We are supplied with information that we
are to base our decisions on.
The manufacturer depicted in this simulation was
actually a General Electric facility that produced black and white television sets
Syracuse, New York.
Unfortunately this plant is no longer operational, it was
closed down and the equipment was shipped off to China.
One can only wonder if the
plant manager would have taken Professor Moily's class in production management the
plant still might be running.
Modern production management or operation management (OM) systems first came
to prominence in the early half of the twentieth century.
Frederick W. Taylor is
considered the father of operations management and is credited in the development
of the following principles.
Scientific laws govern how much a worker can produce in a day.
It is the function of management to discover and use these laws in operation of
It is the function of the worker to carry out management's wishes without
Many of today's method's of operation management have elements of the above
For example, part of Material Requirement Planning system (MRP)
is learning how workers to hire, fire, or lay idle.
This is because it we realize
the a worker can only produce so many widgets a day, can work so many hours a day,
and so many days a year.
I will disagree with principle "c" in that the worker should blindly carry
out the wishes of management. Successful operations are based upon a two-way flow
of thought and suggestions from management to labor.
This two-way flow of ideas is
incorporated into another modern system of operations management, the Just - In -
Eastman Kodak gives monetary rewards to employees who devises an
improvement in a current process or suggests an entirely new process of
Often a small suggestion can yield a big reward when applied to a
In this project we are presented with the following information: bounds for
pricing decisions, market share determination, the product explosion matrix, sales
history (units per month at average price), unit value, setup man-hours, running
man hours, initial workforce, value of inventory, on hand units.
We also know that
we have eight end products, four subassemblies, eight parts, and four raw