AN EXPERIMENTAL STUDY ON THE MODELS OF PRODUCTION MANAGEMENT: A CASE OF TEKNO BUMI SDN BHD

Abstract

Economy uncertainty has made every size of the organization pay the utmost attention to every business management aspect, including Production Management. Production management through its components; Master Production Schedule, Material Resources Planning, Capacity Planning, Material Bill and Inventory Master List, is responsible for all processes of turning raw materials into finished goods by controlling the use of human labour, machinery, processes, inventory, storage, logistics, asset use and much more. Tekno Bumi Sdn Bhd (TBSB) is in process establishing its manufacturing subsidiary, Tekno Bumi Manufacturing Sdn Bhd (TBM). TBM's sole purpose is to assemble a product specifically design for TBSB's largest customer, Tenaga Nasional Berhad (TNB). However, TNB purchasing methods created uncertainty in TBM demands. TBM is also unable to provide a reliable and accountable figure when addressing questions about lead time and quantity. This study therefore aims to develop and construct a production management model that can collect, compile and analyse all the scattered data required to simulate better production planning and can be easily retrieved when needed. It will be an experimental research design as this work will conduct a sensitivity analysis to determine how the various uncertainties in data input relate to model uncertainty overall. This will have a numerical framework, so use quantitative method and Microsoft Excel spreadsheet as instruments. All data source will be primary data because all information will come from TBSB and TBM. Finally, a discussion, implication and recommendations are presented at the end of the study based on the outcome of the experiment.