Download Production Planning Tools: Gantt Charts and PERT Networks and more Exercises Business Fundamentals in PDF only on Docsity! Introduction to Business –MGT 211 VU Lecture 36 TOOLS FOR PRODUCTION PLANNING GANTT CHART Gantt charts are visual aids that are useful in loading and scheduling. The name is derived form Henry Gantt, who developed them in the late 1800s. The chart shows the use of resources, such as work centers and labor. When used in loading, Gantt charts show the loading and idle times of several departments, machines or facilities. They display the relative workloads in the system so that the manager knows what adjustments are appropriate. For example when one work center becomes overloaded employees from a low‐load center can be transferred temporarily to increase the workforce. In short this chart is for following purposes This chart is for scheduling purposes. Bar charts are drawn in this schedule. Each bar describes an activity. This chart will help to know, which activity should start at what time. Comparison of planning with actual output. PERT NETWORK PERT stands for Program Evaluation Review Technique, this was a methodology that was developed by U.S. Navy in 1950 to manage the Polaris submarine missile program. It is commonly used in construction. Pert network is a flow chart which shows the sequence of activities that are required to complete a project along with time or cost associated with each. Major difference in Gantt Chart & Pert is, in Gantt chart we have bars, here we don’t have bars here we have diagrams. Components of PERT Chart Pert chart provide the details of Events Show end points where we have to reach Activities Include all the resources used to complete any project Slack time © Copyright Virtual University of Pakistan 160 docsity.com Introduction to Business –MGT 211 VU Represent the delay in each activity Critical path Pert chart is used to determine critical path of each activity & to determine maximum time consumed for each project. CHALLENGES FOR MATERIAL MANAGEMENT i. Flow of material Flow of material is an important factor for success and competitiveness. It involves production planning, purchasing, Just‐In‐Time and inventory management. ii. Standardization A standard is a document that establishes uniform engineering or technical specifications, criteria, methods, processes, or practices. Thus Standardization is the process of developing and agreeing upon technical standards. Areas for Material Management i. Transportation How & through which medium materials will be received in the form ii. Storage In which manners & sequence materials will be stored iii. Record Keeping How the record will be maintained for all the materials available in the stored form. iv. Inventory control It further covers two parts 1. Quantity Control 2. Cost Control 3. In hand stock details Costing of Material i. LIFO – Last in First out In this method the most recently purchased units are sold first and that the older units remain in inventory. ii. FIFO – First in First out In this method the oldest purchase costs are transferred to the cost of goods sold, while the most recent costs remain in inventory. iii. Average cost © Copyright Virtual University of Pakistan 161 docsity.com
