Implementing integrated production and distribution planning systems

The development and implementation of an integrated production and distribution planning system requires more than the optimal solution of a set of mathematical models. Success is achieved when the organisation addresses both the technical and human issues in planning. The approach followed by a process manufacturer over the last five years to integrate fully its production and distribution planning and scheduling system is described. Reduced distribution costs and improved co-ordination and communication are the principal benefits of this successful implementation. The major technical strategies adopted to co-ordinate the tactical and short-run planning and scheduling system are discussed, followed by the key organisational and human factors which play a vital role in the functioning of a successful system.