Professional Documents
Culture Documents
Mixer
Mixer
Communications
Marketing does not share data with production
(sales promotions and large, unexpected orders)
Inventory
True inventory status not known
No real-time data on actual sales
Accounting and Purchasing
Difficulty forecasting raw material and labor costs
Adjusting accounts for actual vs. standard costs
time consuming and done infrequently
Work from sales forecast to create
aggregate production plan
Break down aggregate plan into more
specific plans
Use production plan to determine raw
material requirements
SALES
FORCASTING
DEMAND MANAGEMENT
DETAILED
MRP
SDHEDULING
PRODUCTION PURCHASING
Production data does not get entered into
an ERP system directly
Many methods of gathering shop floor data
are available
ERP allows shop floor data to be collected
once for production and accounting purposes,
and data is consistent in both areas
Sales and operations planning (S&OP): The
process of planning future aggregate resource
levels so that supply is in balance with demand.
Staffing plan: A sales and operations plan of a
service firm, which centers on staffing and other
human resource–related factors.
Production plan: A sales and operations plan of a
manufacturing firm, which centers on production
rates and inventory holdings.
The sales and operations plan is useful
because it focuses on a general course of
action, consistent with the company’s
strategic goals and objectives, without getting
bogged down in details.
Product family: A group of customers,
services, or products that have similar demand
requirements and common process, labor, and
materials requirements.
A company can aggregate its workforce in
various ways as well, depending on its
flexibility.
The company looks at time in the aggregate –
months, quarters, or seasons—rather than in
days or hours.
Six objectives usually are considered during
development of a plan: