Production Planning Redesign: Special Topics

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Author(s): Victor Portougal (University of Auckland, New Zealand)
Copyright: 2006
Pages: 46
Source title: Business Processes: Operational Solutions for SAP Implementation
Source Author(s)/Editor(s): Victor Portougal (University of Auckland, New Zealand)and David Sundaram (University of Auckland, New Zealand)
DOI: 10.4018/978-1-59140-979-3.ch011

Keywords: Business & Management / Business Information Systems / Business Process Management / Business Science Reference

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Abstract

For manufacturing companies, competitive advantage is ultimately measured interms of financial results, and the key financial result is usually a margin of profitfrom sales, which then translates into a margin of return on investment.How then does production planning and control (PPC) have a significantinfluence on this outcome? It is our contention that efficient production planningis one of the three crucial and vital driving factors that enables the otherfunctional areas to be effective. Figure 11.1 displays the driving position of PPCin a causal relationship layout.Efficient PPC has a direct and beneficial influence on both customer satisfac-tion and capacity utilisation. The first leads to greater sales volume, and thesecond to lower costs, both of which have a major impact on profits.

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