Professional Documents
Culture Documents
Operations Planning
Definition:
Aggregates Sales
The Collective Amount of sum of the price, good and
services.
Whole amount.
Operation Planning
Define as a plan prepared by a component of an
organization that clearly defines action it will take to
support the strategic, objectives and plan of upper
management.
Medium-range planning
is done for the coming 3 to 18 months, with weekly,
monthly or quarterly time increments.
Short-range planning
is for periods ranging from one day to six months, with
daily or weekly time increments.
Process Planning
is done for accessing the new technologies and
improved processes for developing products or services.
Strategic Planning
is done to determine the long-term needs for the
production like incre asing the number of factories.
MRP
MRP is a planning tool geared specifically to assembly operations. The aim is to
allow each manufacturing unit to tell its supplier what parts it requires and
when it requires them. The supplier may be the upstream process within the
plant or an outside supplier.
-The first MRP systems of inventory management evolved in the 1940s and
1950s. They used mainframe computers to explode information from a bill of
materials for a certain finished product into a production and purchasing plan
for components. Before long, MRP was expanded to include information
feedback loops so that production personnel could change and update the
inputs into the system as needed. The next generation of MRP, known as
manufacturing resources planning or MRP II, also incorporated marketing,
finance, accounting, engineering, and human resources aspects into the
planning process. A related concept that expands on MRP is enterprise
resources planning (ERP), which uses computer technology to link the various
functional areas across an entire business enterprise.
MPS
Exploding-Explosion uses the Bill of Materials (BOM). This lists
how many, of what components, are needed for each item (part,
sub assembly, final assembly, finished product) of manufacture.
Thus a car requires five wheels including the spare.
Netting-in which any stock on hand is subtracted from the gross
requirement determined through explosion, giving the quantity of
each item needed to manufacture the required finished products.
offsetting.-This determines when manufacturing should start so
that the finished items are available when required. To do so a
'lead time' has to be assumed for the operation. This is the
anticipated time for manufacturing.
Order Scheduling
Scheduling is a communications tool that helps balance
customer demands with your ability to fulfill that
demand
@Pure Strategy
When only one strategy is used by the company to
meet the demand, it is known as Pure Strategy.
@Mixed Strategy
A Mixed Strategy is one in which a combination of two
or more strategies is used.
E. Relevant Cost
There are four costs to be dealt with by the aggregate plan
Basic production costs : These are the costs incurred in
producing the product in a given time. This includes both fixed
and variable costs, direct and indirect labour costs. etc
Costs associated with the changes in the production rate : The
costs involved in hiring, training and laying off people.
Inventory holding costs : This cost includes the capital invested
in the inventory. It also includes insurance, taxes, storing costs.
Backordering costs : These are hard to evaluate and include
cost of expediting, loss of goodwill, and loss resulting due to
backordering.
Yield Management
The matrix helps a firm to identify the position and the
necessary action to manage yield.
Duration
Predictable