Proceedings of ICLT 2012
JUST-IN-TIME PRODUCTION PLANNING OF A PAINTING SECTION TO MEET CUSTOMER ORDERS
Phensinee Chomtongsiri; Porpan Vachajitpan
Daikyo Nishikawa (Thailand) Co. Ltd., Rayong, Thailand; Faculty of Logistics, Burapha University, Chonburi, Thailand
International Conference on Logistics & Transport 2012, Chiang Mai, Thailand, pp. 202-207
Abstract
Purpose: The purpose of this paper is to study the production planning under the just-in-time delivery demand. JIT is a very common arrangement in manufacturing especially in the automotive industry in Thailand. Suppliers are required to strictly follow the daily even hourly schedule of product delivery to a customer. Any delay can cause significant penalty and other expediting costs. This has necessitated most suppliers to avoid the costs by careful production planning and to rely on inventory. Design/methodology/approach: This paper describes a situation in a car bumper manufacturing plant using a simulation approach to improve its production planning of the painting section. There are 50 combinations of designs and colors of bumpers which have to be produced according to advance orders and meeting delivery requests in just-in-time order cycle of 45 minutes. Although inventory is used to absorb the real-time delivery request, the manufacturer still encounters difficulties in matching its product availability with the real time orders from its customer. Since the product requires large storage spaces and a necessary number of storage dollies in circulation, this also imposes a limit to the inventory level. Frequent changes in production plan and expediting are thus necessary and incur very high cost. A simple spreadsheet simulation model is used to determine a better planning policy. Findings: The results show that a better policy can be adopted and leads to about 75 percent reduction in the undesirable cost. Originality/value: The method used in this study shows the importance of selecting a good production planning that can be applied to similar just-in-time environment. This will improve the efficiency in production and allows more effectiveness in meeting real time orders of the customer.
Keywords
Just-in-time production; Production planning; Simulation; Spreadsheet model
Citation
Phensinee Chomtongsiri; Porpan Vachajitpan (2012). JUST-IN-TIME PRODUCTION PLANNING OF A PAINTING SECTION TO MEET CUSTOMER ORDERS. Proceedings of the International Conference on Logistics & Transport (ICLT 2012), Chiang Mai, Thailand, pp. 202-207.