Production planning control to minimize production cost

Nurhasanah, Nunung and Susanti, Riyana (2013) Production planning control to minimize production cost. International Seminar on Industrial Engineering and Management, 6. pp. 67-74. ISSN 1978-774X

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Abstract

Urea demand has been fluctuated from year to year. It has reached 5.9 million tons in 2010, and it has been estimated for 2011 will be reached about 5.1 million tons. The results of production planning are generated much different from the reality. This leads to PT. Pusri must changes their production planning to customize with the changing of internal and external environment, through the preparation of master production schedule, for a planning horizon, the period July 2011-June 2012. The results of forecasting methods (forecast) that is used is a linear trend analysis with the total amount of urea to be produced is 1.95 million tons. Aggregate planning strategies, there is an election to be used i.e. overtime strategies, regular working day, subcontract, and mix between regular weekday and subcontracting. Production planning cost by company calculation is Rp.2.69 billion. While overtime strategy costs Rp.2.74 billion, regular working day strategy costs Rp.2.73 billion, subcontract strategy costs Rp.2.71 billion and mixed strategies costs Rp.611 million. The selected alternative strategy is a mix strategy. The difference is Rp.87 billion compared to company strategy, or reduce for about 3,25%.

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