What purpose does feedback serve in a hierarchical production planning system?

A hierarchical production planning system is an approach to managing and controlling manufacturing processes in a top-down manner. The system comprises of various levels, where higher levels have strategic control over the elements of the lower levels. This arrangement allows organizations to make decisions at different time horizons and allocate resources more efficiently while addressing any conflicts or constraints.

Feedback, in general, refers to the process of providing information about the results of a system's performance so that necessary adjustments can be made to improve functions. It is the communication loop that allows a system to "learn" from its past actions and incorporate those learnings into future decisions.

In a hierarchical production planning system, feedback serves several critical purposes: a. Ensuring alignment: Feedback helps maintain alignment between the objectives, decisions, and actions of different levels in the hierarchy. When a decision at a higher level affects lower levels, feedback ensures that the impact is disseminated and accounted for by all levels involved. b. Detecting deviations: Feedback provides a mechanism for detecting deviations from planned outcomes in the system. As production progresses and variations occur, feedback identifies discrepancies to enable corrective actions before the deviations result in adverse consequences. c. Improving decision-making: Through feedback, managers can strengthen their decisions based on past experiences and actual performance. This learning aspect helps the organization make better informed and timely choices in the future. d. Performance evaluation: Feedback enables the evaluation of the overall performance of the system against established objectives, prompting adjustments in the planning process and resource allocation for improved results. e. Addressing constraints and conflicts: Finally, feedback helps in identifying and resolving resource constraints or conflicting objectives at different levels of the hierarchy, ensuring smoother functioning of the production system.