Ernst K. Simader - Plan Target Actual - Examples
With the help of some basic examples of a simplified production of web-shaped goods (paper, paperboard, foil, etc.) you can study the effects of the influencing variables on the target quantity. These examples can also be opened and viewed in the Blazor simulator.
The production is going exactly as planned. Thus, the target production exactly matches to the planned quantity and the actual production exactly matches to the target quantity.
The planned product mix is actually produced. The actual available time corresponds to the planned values. Thus, the target production matches exactly to the planned quantity. Since the production in reality runs better than planned, the actual quantity exceeds the target value.
The actual product range differs from the planned product mix. Less productive types are produced. The available time is less than planned. Since these factors cannot be influenced by the production, the target production is smaller than the planned value. Since the production process is exactly as planned, the actual quantity matches to the target value.
A product mix A:B of 30:70 is planned. In fact, the ratio turns to 70:30. Since Type A has a lower productivity as type B, the target production quantity is decreasing. Because during production of type A less waste is created as expected, the planned quantity can be achieved anyway.
If the actually available time is smaller than planned, the target production will decrease because the production has no effect on the available time. A lesser efficiency due to longer technical downtimes has no effect on the target value. That is why the actual quantity keeps behind the target value.
Many times, there is an extra correlation between grammage and speed: Heavy types cannot be produced with as fast velocities as lighter types. So, the interesting case may occur that the target production increases, even though the actual produced types are lighter than planned. In the example however, the target speed is not achieved. Therefore, the actual production is less than the target value.
If the formats of the customer orders cause a higher cutting waste than planned, the target production will decrease. A higher waste production of non-saleable goods, however, goes to the expense of the production. The actual quantity decreases.
If the actual quantity is smaller than planned, this does not necessarily mean that the production has run badly. The decrease of the target quantity is due to a lower availability of the plant. The differing product mix leads to a slight increase of the target value due to better productivity. The actual production is even higher than the target value, because less waste was produced as expected.