Production planning and control: A case study in stone crusher company

Abstract

PT. Z is one of the companies engaged in the stone crusher business. The problem at PT Z is frequent delays in fulfilling customers order, significantly when demand increases. Based on the observations, it is known that PT Z performs production planning and control intuitively. It shows that PT Z does not yet have a production planning and control system in its production process. Solutions to overcome the problems faced by PT Z, namely by planning and controlling production, include (1) Forecasting, (2) Aggregate Planning (AP), (3) MPS, and (4) Rough Cut Capacity Planning (RCCP). The strategy used in AP in this study is the Chase Strategy. In addition, the approach used in RCCP in this study is Capacity Planning Using Overall Factors (CPOF) approach. The purpose of this research is to provide proposals of production planning and control at PT Z to overcome the problem of delays. The results showed that AP resulted in a total cost of IDR 635,150,000 per year with a final inventory of 140 tons which met the safety stock requirements of 50 tons even though there was firing in the 17th period. RCCP, which became the validation of MPS, shows that the production capacity was 192 hours per month, and the average production capacity requirement was 172 hours per month, with the highest value of 190.4 hours and the lowest value of 163.68 hours. Based on the results of the RCCP, it can be stated if the MPS can be used.