Minimization of the Production Losses Occured by the Production Program

ABSTRACTMINIMIZATION OF THE PRODUCTION LOSSESOCCURED BY THE PRODUCTION PROGRAMAhmet KALAYCIOĞLUMaster ThesisDepartment of Business AdministrationSupervisor : Prof. Dr. Ergün İLTERJuly 2006, 92 PagesProduction planning is a function, determining the limits of the futureproduction activities and production quantity in the enterprises. As a result of thecomplexity increasing within the production systems day by day, coordination andcommunication difficulty is occuring during the activities inside the companies.Expanding of the customer range in the global market, spreading of the supply anddistribution activities through a large area, and increasing of the service, quality andprice competition caused production planning to be the most important and necessaryprocess in any kind of production sector.Production planning is a very critical process for all the companies since ithelps the management of the factory resources in the most optimum way, provides aflexible and rapid planning suitable to the dynamic customer needs, and constitutes acoordination point among suppliers and customers. Due to the unability in thewriting process of the production program at first instance and accordingly makingoften and compulsory changes because of constraints in the production andcomponents, lowers productivity in the enterprises and causes serious productionlosses thereof. In order to decrease production losses, enterprises started to seek fornew advanced planning optimizer programs which can work under capacity andcomponent constraints and can create production program in an instant and accurateway as well.The main goal of this thesis is; with the help of multiple analyses, to findout the criteria in order to form an optimum advanced production planning optimizerprogram which will serve the ultimate aim of decreasing production losses whichstem from production program. The thesis consists three parts: In the first part,production planning process is revised in a general frame. In the second part, alongwith the importance of production planning, preparation of production plan andapplication stages are analysed. In the third part, the necessity of an advancedproduction planning optimizer program is analysed along with the case studyexample of Bolu Arçelik Cooking Appliances Plant in the subject of the detailedanalysis of the criteria which will serve as input to the program.Keywords: Production Planning, Production Program, Production Loss