The production planning in a SME oriented at the Lean production

Abstract

This thesis is concerned with the production planning system of a small/medium sized enterprise located in Vicenza named Renato Menegatti Ltd. This firm operates in the “made to order” (MTO) and “engineering to order” (ETO) sectors of the metal accessories industry. In relation to the needs of the fashion market that requires a more dynamic reaction to the reduction of the delivery and stocks lead time, the company is implementing several programs aimed to manage the production processes in addition to increasing customer service, and optimizing costs.

At the beginning of this thesis, we will introduce the company by illustrating its current practices, market, and clients. We also describe which type of products they offer, as well as the production phases needed in order to manufacture these items. When discussing the different departments that must be involved, we will fully describe the firm’s maximum capability and highlight their future goals.

The second chapter will be dedicated to the presentation of the academic techniques adapted by the firm we are studying. These techniques will be heavily focused on the management, planning, and control practices currently in place.

In the third chapter, we will introduce the production planning methods used according to its historical orders and forecasts. Then, we will move on to the schedule created with the use of Excel spreadsheets. First, we will explain how the use of this excel spreadsheets are effective, the progress generated due to its implementation, and the limitations that were encountered. Next, we will provide a detailed explanation of a second methodology based on an update of the first Excel spreadsheet. Later, we will highlight the main differences between the two models, the advantages in addition to the constraints of the second methodology in comparison to the first procedure. Finally, we will explain the reasons why in February 2014 the company decided to invest in the Preactor software.

The fourth chapter is dedicated to the Precator/APS (Advanced Planning System) software platform. We will begin with a simple explanation of the planning and scheduling functions, then we will describe the possibilities and advantages that this software offers. To illustrate the point, we will use some screenshots of the software's windows presenting the main functions that are used within the Menegatti company today.

In the last chapter, we will analyze the new production planning systems within the Menegatti firm by using other visual displays. By comparing these three different approaches to planning, we can understand the huge benefits that the last method delivers and how it has affected the company presently. Thus, the evolutionary transition of the firm’s advancement through the new APS software is completely interpreted with all of its positive and negative effects. In conclusion, we will demonstrate how the small / medium sized business enterprise is increasingly adopting Lean production methods.