Manufacturing Planning and Control

Introduction 

Before goods make their way to shelves in stores, they go through an elaborate manufacturing process. Companies invest in machinery and other materials that are needed to convert raw components into finished products. For the manufacturing process to occur smoothly, proper planning and control must be carried out. Essentially, manufacturing planning and control involves monitoring the production process (Jacobs et al., 2011). It is also concerned with ensuring that all resources required for the manufacturing process are available. Thanks to planning and control, those responsible for manufacturing can ensure that such challenges as inadequate supply of materials and equipment do not derail the manufacturing process. The planning and control processes in manufacturing involve a number of particular functions and systems that facilitate the transformation of raw materials into finished and useful products. Extensive literature that explores these functions and systems is available.

Literature review 

To fully understand how the control and planning processes in manufacturing occur, it is necessary to conduct an investigation into what scholars have said about these processes. With this understanding, it is then possible for an individual to recognize the important roles that planning and control play in the manufacturing process. In the discussion that follows, a review of the literature on various aspects of manufacturing planning and control is offered. Among other things, the review addresses principles, definitions and techniques and practices that are applied in manufacturing planning and control. Operations planning, master production scheduling and inventory management are some of the particular techniques and practices that are highlighted.

Definition 

To set the stage for the literature review, it is important to offer a definition of manufacturing planning and control. As alluded to in an earlier section, manufacturing planning and control refer to systems and processes that seek to monitor and establish limits in the manufacturing process. Essentially, the main aim that planning and control desires to achieve is to ensure that the manufacturing process occurs smoothly (Jacobs et al., 2011). Thanks to these processes, it is possible for manufacturers to ensure that all required resources and human input are available. Planning and control also seeks to ensure that the amount of manufactured products is sufficient to meet the demand. Planning and control is also concerned with such matters as inventory management and capacity management. These processes serve the primary purpose of ensuring that the manufacturing process is sufficiently equipped to perform its role. Detailed discussions on these processes will be offered in a later section.

Principles 

The planning and control processes do not occur haphazardly. Elaborate principles and traditions govern how the processes are carried out. Efficiency and coordination are among these principles (Wang & Koh, 2010). Basically, efficiency is concerned with minimizing waste. One of the sources of the losses that businesses suffer is wastage that occurs in the manufacturing process. Manufacturing planning and control aims to ensure that all resources are utilized efficiently. For example, as part of the manufacturing process, a firm may institute policies that require employees to match the resources acquired to the demand for a given product. This policy guarantees that no wastage occurs. Coordination is another principle that guides the planning and control processes. The academic community has dedicated remarkable effort to understand the need for coordination in the manufacturing process. For example, Daniel Guide set out to understand the role of coordination. He found out that the manufacturing process “requires coordination amongst various functions” (Guide, 2000). What this means is that through planning and control, manufacturers are able to see to it that such processes as inventory management and sales planning are streamlined and aligned to the overall objectives of the organization.

Despite their best efforts, firms are never able to fully insulate their operations from external factors. These factors dictate how companies conduct their operations. In an attempt to minimize the threat that the factors pose to their operations, firms have integrated agility and adaptability into their manufacturing control and planning (Urtasun-Alonso et al., 2014). The scholarly community has shed light on how firms ensure that their operations are adaptable and sufficiently agile to keep up with the changes taking place in their operating environment. For example, it has been established that “the MPC system should evolve to meet changing requirements in the market, technology, products and manufacturing process” (“Chapter 1”, n.d). Essentially, what this finding means is that adaptability is a key principle in manufacturing planning and control.

It is true that the internal processes and facilities in a firm play the biggest role in determining how the manufacturing process unfolds. However, external actors also serve vital functions in the process. This is an issue that the academic community has captured in their exploration of the principles that guide planning and control in manufacturing. Supplier involvement has been identified as another key principle in planning and control. It is vital to involve suppliers since they provide the materials that facilitate the manufacturing process. In their evaluation of the role that suppliers play, Tseng and Chiu point out the need for “the direct involvement of firms with its suppliers and customers” in the manufacturing process (Tseng & Chiu, 2013). It is evident that the direct involvement of such external parties as suppliers is an essential principle in manufacturing planning and control.

As part of this assignment, internet sources were consulted. It was noted that the academic community has given little focus to the principles that guide the manufacturing planning and control processes. This is clearly a research gap that must be filled. The academic community needs to invest more in shedding light on these principles and how they impact the manufacturing process.

Practices 

The principles discussed above grease the manufacturing process. However, on their own, they are not sufficient to ensure that the process occurs smoothly. It is important for firms to combine these principles with certain practices. Lean production is one of the practices that are commonly applied in manufacturing planning and control. Lean production is primarily concerned with minimizing waste. The Lean Enterprise Research Center carried out a study to determine the level of waste in the manufacturing process. It was observed that as much as 60% of the functions and activities in this process are unnecessary and add zero value to customer experience (“What is Lean?”, n.d). This finding highlights the significance of lean processes. Rosemary Fullerton and her colleagues conducted a study in which they examined the emergence of lean production. They determined that “a lean strategy is rapidly becoming the dominant paradigm in manufacturing” (Fullerton, Kennedy & Widener, 2013).

Lean production is not the only practice that firms employ in manufacturing planning and control. Just-in-time is yet another practice that enables firms to streamline the manufacturing process. Basically, this practice involves companies receiving products as and when they are needed. The key benefit of this practice is that it facilitates the minimization of waste and promotes efficiency. Just-in-time was the subject of a study that Yuchun Xu and Mu Chen carried out. They found out that this practice enhances “manufacturers’ competiveness through inventory and lead time reduction” (Xu & Chen, 2016). Stanley Fawcett and John Pearson echo the thoughts of Xu and Chen. They found that just-in-time enhances efficiency. They particularly note that this practice benefits firms involved in small-scale manufacturing (Fawcett & Pearson, 2016). Xu and Chen went beyond examining the benefits of just-in-time. They also explored the challenges that hinder the adoption of this practice. Poor communication among stakeholders is among the challenges (Xu & Chen, 2016).

Techniques 

The manufacturing planning and control process involves various functions. The execution of each of these functions requires the application of various techniques. There are certain techniques that are applied throughout the entire planning and control process. The use of overall factors is among these techniques. This technique is mostly applied in capacity planning but its use can be extended to other functions in the planning and control processes. This technique involves using historical data to determine the requirements of the manufacturing process. Capacity bills, capacity requirements planning and resource profiles are other techniques that are traditionally used in capacity planning (Proud, 2012). Through these techniques, firms are able to determine the amount of workload that their systems and facilities can handle.

The discussion above has focused on specific techniques used in different processes. For a comprehensive understanding of these techniques to be gained, it is necessary to explore broader techniques. Materials requirements planning, just-in-time, optimized production technology and flexible manufacturing are the main techniques that firms use for manufacturing. Just-in-time has already been highlighted in an earlier discussion. Sumer Aggarwal authored an insightful article in which he shed light on each of these techniques. In the article, Aggarwal examined the benefits and challenges that the techniques present. He argues that materials requirement planning allows managers to “track orders through the entire manufacturing process and helps purchasing and production control departments to move the right amount of materials at the right time to production-distribution stages” (Aggarwal, 1985). On optimized production technology, Aggarwal holds that this technique enables firms to determine priorities using such parameters as due dates and product mix. Aggarwal also outlines flexible manufacturing systems and the integration of modern technology into manufacturing. Overall, Aggarwal’s article provides broad perspectives on the major techniques that firms apply in the manufacturing process. Given that Aggarwal’s article is over 30 years old, it would be interesting to see if his arguments still hold true. An examination of the current state of the manufacturing process is largely in line with the arguments that Aggarwal raised. Today, thousands of companies employ the just-in-time, flexible manufacturing and material requirements planning. This makes it clear that these techniques are resilient and able to evolve with the changes taking place in the manufacturing environment.

Key aspects 

Manufacturing planning and control is a broad concept. It can only be fully understood when it is broken down into its constituent elements. In the discussion that follows, a look at some of the basic aspects of manufacturing planning and control is offered.

Demand 

Before deciding on the amount of products to manufacture, it is important for firms to first establish the level of demand for that product. As they do this, they are able to match the manufacturing process to the demand and the overall market conditions. David Fredrick Ross offers a broad and intriguing examination of the manufacturing process. Among other issues that he addresses in his book, Ross identifies the need for the manufacturing process to be demand-driven (Ross, 2015). Instead of carrying out this process blindly, firms must first determine the level of demand. This allows them to align the production process with the demand. Demand is closely linked to other functions in the manufacturing planning and control process. These functions include sales and operations planning and resource planning (“Chapter 1”, n.d). As they determine the level of demand, companies are able to set aside all the resources needed to manufacture products in amounts that meet the demand.

Sales and operations planning 

Sales and operations planning is an integral component of the manufacturing planning and control process. It is primarily concerned with focusing effort on particular functions and ensuring that all operations of an organization are streamlined and synchronized (Murray, 2016). Sales and operations planning involves such activities as production planning and developing a sales plan. Developing a customer lead time plan and an inventory plan are other elements of sales and operations planning. Experts at PriceWaterhouseCoopers released a report in which they offered a fresh perspective on sales and operations planning and its impact on the manufacturing process. They held that sales and operations planning is particularly beneficial for companies involved in the production of consumer packaged goods. They lament that as many as 25% of these companies have not adopted sales and operations planning and are therefore missing out on the benefits that this process presents (“A Fresh Look”, 2009). The experts attempt to explain why so many companies are yet to adopt the process. They identify “complexity in the value chain” as one of the challenges that these companies face as they attempt to adopt sales and operations planning (“A Fresh Look”, 2009). Emrah Arica and Daryl Powell echo the issues that the PwC experts raise in their report. Arica and Powell give particular attention to the impact of technology on the role that technology is playing in redefining sales and operations planning and the larger manufacturing process (Arica & Powell, 2014).

Master production scheduling 

Master production scheduling is yet another important aspect of the manufacturing planning and control process. Essentially, this process involves determining the amount of a commodity to be produced at a given time and at a particular stage of the manufacturing process. This process allows firms to ensure that the amounts of goods produced match the demand. Master production scheduling ensures timely delivery of products and helps to minimize wastage. This type of scheduling was the focus of an article that Patrik Johnson collaborated with Linea Ivert in authoring. These scholars probe the impact of sophistication on the effectiveness of master production scheduling. They contend that “using sophisticated MPS methods reduces the negative effects of complex planning environments and results in more feasible plans irrespective of environment complexity and process maturity” (Johnson & Ivert, 2015). This finding indicates that as firms make their master production scheduling more sophisticated, they position themselves for greater gains. Ivert and Johnson are just two of the many scholars who have dedicated effort to revealing the immense gains that master production scheduling presents. Christian Gahm partnered with two other scholars to add their voice to the discussion on the role of master production scheduling in the manufacturing process. From the investigation that they conducted, they determined that master production scheduling facilitates the minimization of lead time and optimizes the manufacturing process (Gahm, Dunnwald & Sahamie, 2014). It is not in question that the academic community is committed to research and enhancing the manufacturing process. This community has adequately addressed master production scheduling and shed particular light on its significance as regards manufacturing.

Inventory management 

The ultimate objective of the manufacturing process is to ensure that final products are delivered to end consumers. Inventory management helps to facilitate the attainment of this objective. It is chiefly concerned with monitoring and controlling the flow of products from where they are manufactured to warehouses. Inventory management also ensures that these products make their way from the warehouses into the hands of consumers. It appears that inventory management fascinates members of the academic community. Evidence for this lies in the amount of literature that explores this issue. Michalski is among the scholars who seek to broaden perspectives on inventory management. He penned an article in which he explored the importance of ensuring that inventory management is based on values. He urges firms to ensure that their inventory management system enables them to achieve the goal of value maximization (Michalski, 2008). Efforts of the academic community have led to revelations that the significance of inventory management goes beyond facilitating the manufacturing process. Mei Feng and his colleagues determined that inventory management can also be used to enhance financial accountability (Feng et al., 2015). The wide range of issues that the scholarly community has explored with regard to inventory management is clear evidence that the community truly wishes to broaden perspectives on this issue.

Material requirements planning 

Material resource planning (MRP) is perhaps the most important aspect of the manufacturing planning and control process. This is because it encompasses such functions as inventory management and production planning. The primary goal that MRP aims to achieve is to see to it that all materials needed for production are available in adequate quantities. MRP also seeks to minimize the inventory in store while ensuring that proper planning for manufacturing is carried out. In previous years, MRP was conducted using manual processes. Today, various computer programs are used in MRP. As is the case with the other aspects of manufacturing planning and control already discussed, MRP has received focus from the academic community. The community has explored a wide range of issues such as models and benefits of MRP. For example, Jakowska and Wolny examined the support model and its role in MRP. They applied this model to the case of a coal mine and discovered that historical data enables firms to determine the amount of materials required for future production (Jakowska-Suwalska & Wolny, 2015). In addition to helping in the determination of materials needed for production, MRP also “generates replenishment orders… for uncritical components… and provides access to a transactional ERP system and thus can initiate the execution of orders (Stadtler, 2014). What becomes clear when one examines the literature on MRP is that data plays a vital role in driving this process and the MRP is the backbone of the manufacturing process.

Capacity management 

The production capacity of a firm determines how much manufacturing takes place. Low capacity hinders production while high capacity enables firms to produce high volumes. Given the vital role that capacity plays in determining level of production, it is important for firms to invest in increasing their capacity. Capacity management is primarily concerned with ensuring that a firm possesses the facilities and resources needed to manufacture. It is true that the scholarly community strives to conduct research on capacity management. However, the community faces accusations that it has failed to examine the role of capacity management in directing decision making (Orr, 2010). In his article, Orr argues that firms are investing in advanced technology as part of their efforts to boost their production capacity. Another argument that he raises is that price and cost are some of the factors that shape a firm’s production capacity. The key insights that can be gleaned from Orr’s article are the role of technology plays and the hindrances that firms encounter as they seek to boost their capacity. To equip manufacturers with the insights they need to boost capacity, scholars need to dedicate effort to developing strategies for overcoming the challenges faced when attempting to boost capacity.

Manufacturing and outsourcing 

Most companies wish to establish in-house production facilities. However, the costs incurred in this undertaking force firms to outsource the manufacturing function. Firms in the United States have embraced outsourcing as they move their operations to markets where labor costs are lower. Convenience and lower costs are the main factors that push firm to outsource (Rolstadas, Henriksen & O’Sullivan, 2012). As they set up manufacturing planning and control systems, firms need to give special attention to outsourcing options. They must conduct a cost-benefit analysis and examine the impacts that outsourcing has on their operations. While outsourcing presents gains for companies, it adversely affects the economy of a nation. For example, the United States has witnessed a capital flight as its firms set up bases in Asian countries. Hundreds of people have been left without jobs as a result of outsourcing.

Discussion Questions 

Define lean manufacturing. Give as much detail as possible. 

In an earlier section, the concept of lean production was introduced. It was noted that the primary purpose that lean production serves is the minimization of waste. A study in which it was established that as many as 60% of production processes are wasteful and add little value to customers was also mentioned. This discussion set the stage for a broader conversation regarding lean manufacturing and the numerous benefits that it presents for manufacturers. Lean manufacturing has its origins in the Japanese auto industry (Shimokawa, 2010). Such car makers as Toyota are renowned for their adoption of this production system which has delivered immense gains. As already mentioned, the chief focus of lean manufacturing is the minimization of waste. To achieve this, a number of practices and processes are put in place. Bottleneck analysis is among these practices. It involves examining the production system to identify the parts that hold back the system (“Exploring Lean”, n.d). These parts are then improved for the purpose of enhancing production. Continuous flow is another practice in lean manufacturing. This practice primarily seeks to ensure that all the processes and functions in manufacturing occur smoothly. To achieve this goal, the practice eliminates buffers that are responsible for time wastage thereby hindering seamless flow of processes.

For the most part, lean manufacturing is concerned with streamlining the production process with the goal of achieving efficiency and minimizing waste. However, lean manufacturing also extends to employees and managers. The philosophy of Gemba which is a crucial aspect of lean manufacturing reminds managers to be involved directly in the manufacturing process (“Exploring Lean”, n.d). Managers are in the habit of supervising work from the comfort of their desks. This is an ineffective management practice as it denies employees on the floor the benefits of direct supervision. Gemba attempts to address this issue and ensure that managers keep a close eye on the entire manufacturing process. This philosophy also challenges managers to gain a deeper understanding of how the manufacturing process occurs (“Exploring Lean”, n.d). The ultimate result of this philosophy is that waste is minimized and the production process becomes more efficient.

Encouraging managers to play a more active role and implementing bottleneck analysis are some of the effective practices in lean manufacturing. While these practices deliver benefits, they are not sufficient to achieve a system that is truly efficient. These practices must be combined with organization-level reforms. Lean manufacturing seeks to achieve this as well through the principle of Hoshin Kanri. Essentially, this principle involves aligning the strategic objectives of the organization with the plans that the middle management have developed (“Exploring Lean”, n.d). The actual work that is carried out on the manufacturing floor is also aligned with the strategies and plans. This alignment ensures consistency and enhances communication among the different stakeholders involved in the manufacturing process. What results is a production system that strives to minimize waste while delivering products of high quality.

It is true that lean manufacturing is mostly applied to the production process. However, the benefits that this form of manufacturing presents have seen it become applied to other endeavors. For example, lean manufacturing is applied in logistics and distribution. Construction, maintenance and government have also benefited from lean processes. More and more organizational leaders are coming alive to the benefits of lean processes. These leaders are integrating these processes into the operations of their organizations. In their discussion on the application of lean manufacturing, Fullerton and his colleagues contend that lean processes facilitate financial accountability (Fullerton, Kennedy & Widener, 2013). Their discussion highlights the numerous and far-reaching benefits of lean processes. Given the many benefits that it presents and the increasing adoption that it has witnessed, lean manufacturing is poised to become the most widely applied manufacturing process.

Describe the conceptual framework for JIT implementation. 

In an earlier section, an enlightening discussion on just-in-time (JIT) was offered. It was defined as the practice where materials are acquired at the phase of the production process where they are needed. The main advantage of just-in-time is that it minimizes waste and reduces the amount of goods that a firm has to hold in its stores. For the implementation of JIT system to occur smoothly, it must be based on an elaborate conceptual framework. The academic community has explored various conceptual models that aid the implementation of the system. Dowlatshahi and Taham penned an article where they outlined the conceptual framework that should serve as the basis for the implementation of the JIT system. It is true that their article focuses on the implementation of the system in small firms. However, it can be argued that the framework applies to nearly all manufacturing firms, regardless of their size. A detailed discussion of this framework is provided in the discussion below.

Dowlatshahi and Taham encourage companies to embrace the JIT system. The conceptual framework that they develop focuses on challenges encountered during implementation and the enablers that facilitate implementation. One of the barriers that Dowlatshahi and Taham identify is the failure of suppliers to cooperate (Dowlatshahi & Taham, 2009). When suppliers fail to offer their full support, the implementation of the JIT system could be compromised. This is an issue that firms must have in mind as they attempt to implement the JIT system. Challenges in managing changes in demand and difficulties in ensuring that products are of high quality are other hurdles that Dowlatshahi and Taham include in their conceptual framework (Dowlatshahi & Taham, 2009). Unless these hurdles are overcome, a firm risks being unable to implement the JIT system. The failure to provide employees with sufficient training is yet another challenge that firms should brace themselves for as they attempt to implement the JIT system. For the implementation to occur without hitches, employees must be provided with all the skills and knowledge that they need. Dowlatshahi and Taham also identify a firm’s inability to create or acquire the technologies and methodologies needed as another hurdle that a firm may encounter during the implementation of the JIT system (Dowlatshahi & Taham, 2009). The conceptual framework that Dowlatshahi and Taham sheds light on the challenges that firms should keep an eye out for as they implement the JIT system.

Whereas Dowlatshahi and Taham give focus to the challenges that JIT implementation presents, they do not neglect to identify the enablers of implementation. Basically, the enablers are the factors and resources that grease the implementation process. The possession of the capacity to adequately train employees and the ability to minimize the time taken to implement the JIT system are among the enablers that Dowlatshahi and Taham shed light on (Dowlatshahi & Taham, 2009). They also point out the ability to overcome the resistance that employees demonstrate to change as another enabler. Government support is also a factor that facilitates the implementation of the JIT system (Dowlatshahi & Taham, 2009). This support is especially vital for small manufacturing firms which may lack the financial endowment needed for JIT implementation. The conceptual framework that Dowlatshahi and Taham provides firms with the insights they need to know to evaluate their preparedness for the JIT system.

Compare the JIT manufacturing philosophy with traditional manufacturing. 

From the discussion this far, it is evident that JIT manufacturing presents many benefits that have seen it increasingly replace traditional manufacturing. There are numerous differences between these manufacturing philosophies. One of the differences lies in costs. On the one hand, JIT manufacturing is less costly (D’Ouville, Willis & Huston, 2010). This system manages to minimize cost through the acquisition of materials as and when they are needed. On the other hand, traditional manufacturing is costly since materials are usually acquired in advance and the amount of these materials may be higher than what a firm needs. This results in wastage. Another difference can be found in the level of expertise of employees and their relationship with managers. When the JIT manufacturing philosophy is applied, workers are elevated from the lowly position of mere executioners of orders (“Traditional Method and JIT”, 2009). The JIT philosophy equips workers with expertise that allows them to manufacture products of high quality. This philosophy relegates managers to the position of facilitators from where they provide workers with the support that they need. On the other hand, traditional manufacturing places managers above workers. The managers issue orders and possess all the expertise while the workers execute these orders and possess little expertise (“Traditional Method and JIT”, 2009).

Errors are among the sources of losses and inefficiencies that are witnessed in the manufacturing process. The JIT and traditional manufacturing differ in how they regard and treat errors. On one hand, the JIT system considers errors to be integral components of the manufacturing process (“Traditional Method and JIT”, 2009). They provide firms with the lessons that they need to improve manufacturing. On the other hand, traditional manufacturing eliminates errors when they are observed during inspection. The two manufacturing philosophies also differ with regard to the management of inventory. Firms that have adopted the JIT philosophy maintain low inventories with the aim of minimizing inefficiency and losses (“Traditional Method and JIT”, 2009). This is not the case when traditional manufacturing is adopted. This manufacturing philosophy encourages firms to maintain large inventories. The differences in the amount of inventories in the two manufacturing systems cause further differences in queues. The JIT system eliminates queues since firms have small inventories. Firms that have adopted the traditional method usually have long queues that result from the large inventories that they maintain. Traditional and JIT production also differ with respect to the strategies that are implemented to reduce costs. In JIT production, focus is given to ensuring that the production process flows at an accelerated rate (“Traditional Method and JIT”, 2009). This results in a reduction in lead time, thereby minimizing costs. On the other hand, traditional production places emphasis on automation and minimal utilization of human labor. All these measures play a vital role in lowering the costs that firms which have adopted the traditional approach incur.

It has been noted that the JIT system empowers workers as it allows them to perform functions that are usually reserved for managers. This difference becomes even clearer when one examines the flexibility of the line and staff workers as regards the functions that they execute. In traditional manufacturing, the duties of the line and staff workers are clearly demarcated (“Traditional Method and JIT”, 2009). These duties are exclusive and one group cannot perform the duties of the other. In JIT manufacturing, job rotation is applied. This means that line and staff workers can perform roles as assigned and are not necessarily confined to their original mandate. The differences between the two production systems can also be seen in how breakdowns are viewed. Since JIT seeks to eliminate inefficiencies, all preventive measures are implemented to ensure that breakdowns do not occur (“Traditional Method and JIT”, 2009). The situation in traditional manufacturing is different. Here, breakdowns are regarded as normal elements of the production process. It is quite clear that the JIT and the traditional philosophies of manufacturing are very different. Despite these differences, several similarities between these philosophies exist. One of these similarities concerns the factors that are considered when choosing which between the two philosophies to adopt. The attitude that an organization has towards work is the primary factor that shapes the decision to opt for one philosophy instead of the other (“Traditional Method and JIT”, 2009).

Compare the remanufacturing production planning and control framework with the conventional production planning and control framework. What are the major differences between the two systems? 

Remanufacturing planning and conventional planning are two of the most commonly applied production approaches. There are various differences between these planning methods and their respective control frameworks. One of the major differences can be found in the complexity of planning and production activities. The production activities in remanufacturing are more complex than those in conventional production (Benton, 2013). This difference stems from the difficulty that is encountered in obtaining core resources for remanufacturing. Another difference exists in the number of suppliers that firms that use remanufacturing and conventional planning and production methods rely on for core resources. On one hand, the complexity of remanufacturing compels firms to turn to multiple suppliers (Benton, 2013). On the other hand, one or few suppliers are all that a company that has adopted conventional production planning requires for all its supplies.

The differences between remanufacturing and conventional production systems extend beyond complexities and the number of suppliers that the firms rely on. There is some difference in the primary purpose that the two systems serve. Conventional production planning is primarily concerned with converting raw materials into finished products. Remanufacturing production planning shares this goal. However, this system also seeks to conserve the environment and enhance the image of the company (Guide, Jayaraman & Srivastava, 1999). Firms that have adopted this system as regarded as committed to preserving the environment through responsible and environmentally-friendly production processes.

The cost reduction must be significantly lower than the current direct operating costs in order for an outsourcing proposal to be attractive. What are the generic strategic benefits of outsourcing? What are the specific benefits of outsourcing? 

Outsourcing is quickly emerging as an effective strategy for reducing costs and expanding operations. This practice involves a firm charging another company with the mandate of manufacturing its products. The practice is particularly common among Western firms which face high labor costs in their home bases. This has forced them to move their operations to markets in Asia where the labor costs are lower and the operating environment is friendlier. Outsourcing presents firms with many benefits. Some of these benefits are rather generic while others are specific to outsourcing. Cost reduction is one of the generic benefits (Bucki, 2017). Outsourcing allows businesses to access markets where labor and other costs are lower. This enables the firms to make substantial cost savings. Staffing flexibility is another generic benefit. Thanks to outsourcing, a firm may bring on board more workers when there is demand for them. The firm then lets go of these workers when they are no longer needed. The company is able to enjoy greater freedom and flexibility as regards meeting its staffing needs.

There are some benefits that are specific to outsourcing and cannot be enjoyed through the implementation of some other strategy. Enabling a firm to focus on core mandates and activities is one of these benefits (Bucki, 2017). Outsourcing provides a firm with an avenue for acquiring additional capabilities that handle routine and non-essential tasks. Essentially, outsourcing frees up time and resources that a firm can dedicate to essential and core functions. Outsourcing also provides a firm with operational control (Bucki, 2017). As a firm expands, it becomes increasingly difficult to maintain order and control all operations. Thanks to outsourcing, a firm can reclaim control as it contracts another company to help with certain functions. Another specific benefit of outsourcing is that it facilitates the development of the internal staff (Bucki, 2017). One of the circumstances when a firm resorts to outsourcing is a situation where the firm’s employees lack the capacity to perform a given task. As the firm brings in experts from outside, it exposes its employees to new knowledge, thereby enhancing their capacity.

What is the SCOR model? Discuss each level in detail. Why is the SCOR model important for a world class manufacturing organization? Which SCOR Model level is the most important for manufacturing organizations? 

Supply chain management is a vital element of the operations of any firm that is involved in manufacturing. The supply chain operations reference (SCOR) is a standard that was developed to facilitate supply chain management. This framework connects business processes practices, people skills and metrics to evaluate performance (“SCOR Framework”, n.d). The main objectives that it wishes to achieve include enhancing the implementation of system processes and boosting inventory turns. The SCOR framework is composed of three levels. The first level involves five processes that constitute the manufacturing process. Planning is one of these processes. Here, such activities as capacity planning and resource assignment are carried out (“Different Levels of SCOR”, n.d). Source is another process in the first live. This process is mostly concerned with procurement of the materials needed for production. Make, deliver and return are the other processes in the first level. Make involves converting raw materials into finished products while deliver involves moving the goods from the plant into the hands of customers. Return is concerned with bringing in damaged products (“Different Levels of SCOR”, n.d).

The first level sets the stage for the second level which is composed of three processes: make-to-stock, make-to-order and engineer-to-order. Make-to-stock involves the manufacture of products that are destined for the warehouse where they are stored. Make-to-order concerns the manufacture of products as a company anticipates an order (“Different Levels of SCOR”, n.d). On the other hand, engineer-to-order is activated when a customer orders a product and outlines the specifications of the product. The third level of the SCOR framework involves particular activities that are carried out as part of manufacturing (“Different Levels of SCOR”, n.d). These activities depend on the industry and the particular product being manufactured.

Each of the levels in the SCOR model performs important functions. However, it can be argued that the first level is the most important. This is because the processes in this level set the stage for the processes and activities in the levels that follow. For example, planning is a process in the first level. Planning allows a firm to identify all the resources and activities that must be carried out for manufacturing to be conducted smoothly. The SCOR model is regarded as the gold standard for supply chain management. This tag is well-earned as the model presents many benefits for world-class manufacturing organizations. One of the important roles that the SCOR model plays is that it accelerates the implementation of strategies and processes. Another role is that it enhances learning in an organization (“SCOR Framework”, n.d). Improving inventory turns is yet another important function that the SCOR model serves.

What are the Level 1- attributes, definitions and metrics for the SCOR Model? 

In the discussion above, level 1 has been identified as the most important for any manufacturing organization. In this level, there are various attributes, definitions and metrics that facilitate manufacturing. Supply chain reliability is one of the key attributes in this level. This attribute has several definitions that companies focus on. They include the correct product, the correct place, the correct customer, the correct time and correct documentation, among others (“SCOR Metrics”, n.d). Some of the metrics associated with supply chain reliability include fill rates and delivery performance. Supply chain responsiveness is another attribute in the first level. The main definition associated with this attribute is the speed at which products are delivered to customers. Lead times for fulfilling orders is the main metric in this attribute. Supply chain flexibility is another attribute in level 1. Agility and adaptability are the key definitions under this attribute (“SCOR Metrics”, n.d). These definitions are concerned with how the supply chain system responds to changes that occur in the operating environment. Response time of the supply chain and production flexibility are some of the metrics used to evaluate this attribute (supply chain flexibility) (“SCOR Metrics”, n.d). Another attribute in the first level supply chain costs. The costs resulting from running the supply chain is the main definition found under the attribute of supply chain costs. The metrics for this attribute include cost of goods, value-added productivity and the costs of processing returned goods. Asset management efficiency is yet another attribute in the first level of the SCOR model. Here, the key definition is how effective an organization is in managing the assets that are required for meeting the demands of customers (“SCOR Metrics”, n.d). Asset turn and cash-to-cash cycle time are among the metrics associated with this attribute.

Conclusion 

The role that manufacturing plays in delivering products into the market cannot be overstated. Thanks to manufacturing, firms are able to convert raw materials into products that can be used for various functions. Planning and control are two of the most important processes in manufacturing. These processes enable firms to determine the materials needed for production. They also allow firms to ensure that their volume of production matches demand. These are some of the issues that scholars have explored in the articles that they have authored. While the academic community has committed remarkable effort to conducting research on manufacturing planning and control, certain knowledge gaps still exist. The community should invest more effort in filling these gaps.

References

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