The Influence of Cognitive Biases in Production Planning and Control: Considering the Human Factor for the Design of Decision Support Systems

Abstract

Production planning and control (PPC) requires human decision-making in several process steps like production program planning, production data management, and performance measurement. Thereby, human decisions are often biased leading to an aggravation of logistic performance. Exemplary, the lead time syndrome (LTS) shows this connection. While production planners aim to improve due date reliability by updating planned lead times, the result is actually a decreasing due date reliability. In current research in the field of production logistics, the impact of cognitive biases on the decision-making process in production planning and control remains at a silent place. We aim to close this research gap by combining a systematic literature review on behavioral operation management and cognitive biases with a case study from the steel industry to show the influence of cognitive biases on human decision-making in production planning and the impact on logistic performance. The result is the definition of guidelines considering human behavior for the design of decision support systems to improve logistic performance.