Definition of a centralized production planning model/organization for CNH-industrial agricultural plants

The thesis proposes a model/organization to centralize the tactical production planning of some of the CNH-Industrial plants operating within the Agricultural products segment. The proposed solution was identified following the results of the analysis of the current planning process. The frozen period definition was identified as the main cause of the order scheduling anomalies. In fact, the main business functions involved in production planning (Sales and Supply-chain/Manufacturing) often have conflicting interests because they pursue conflicting objectives: the first would theoretically benefit from a frozen period equal to zero in order to accommodate any type of customer request in the shortest possible time, the second would prefer a frozen period at least as long as the longest lead time among the components of a final product in order to operate with the least possible stock. The sub-optimal definition of the frozen period has caused a systematic discrepancy between planned and final quantities and inventories have increased accordingly. This problem suggested the development of a model to support the definition, this time at central level, of the quantities that component plants and assembly plants have to produce and that dealers can order. The definition of the policy to be adopted can then be carried out with the support of the proposed tool according to the strategic objectives of each product/market considered.