Primarily due to rapid development of technology in the past thirty years, the market structure throughout the world has changed considerably. Local markets have become accessible to foreign manufacturers, who are able to perform well in their newly established territories in part due to their superior application of technology. In this light, most companies, including small and medium size, have embedded globalization in their expansion strategies, consistently seeking for new markets abroad. Consequently, local manufacturing companies are facing global competition, forcing them to adopt new concepts with respect to people, process and technologies. This document describes these approaches to production planning in detail as well outlines a software solution. The software solution (Production/3) combines both pull and push techniques and enables small to medium size organizations to fully automate their production system while retaining their investment in their legacy enterprise resource planning (ERP) systems.
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do not take into account the real-time events of shop floor such as absenteeism, equipment breakdown, defective material, limited quantity of bins or any other short-term uncontrollable event. To ensure the coordination of parts at assembly, there is strong incentive to increase the lead- times to provide a buffer against unforeseen obstructions. However, as inflating lead-times introduces more material into the system, it increases congestion and consequently lead-time. Instead of delivering on time,