pm lecture 6.pdf

8/14/2019 PM lecture 6.pdf

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Part Three Planning and Control

Chapter 10 The Nature of Planning and Control

Chapter 11 Capacity Planning and Control

Chapter 12 Inventory Planning and Control

Chapter 13 Supply Chain Planning and Control

Chapter 14 ERP

Chapter 15 Just-in-Time Planning and Control

Chapter 16 Project Planning and Control

Chapter 17 Quality Planning and Control


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Chapter 10 The Nature ofPlanning and Control

a plan is a set of intentions as to what is supposed to happen

control is the monitoring of what actually happens and making changesas necessary

an operation is influenced by the nature of supply and nature of demand:demand may be uncertain in the long-term and short-term, making

forecasting difficult

dependent demand is demand which is relatively predictable because it isdependent on some known factors

independent demand is demand which is unpredictable providing no

visibility of customer orders

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10 The Nature of Planning and Control

3 ways of responding to demand:

resource to order

operation starts organising resources when the order is confirmed

in cases of unpredictability

make to order

operation organises resources due to some confidence, but makes only whencertain

make to stock

operation produces goods ahead and puts to stock

in cases of low risk or cost

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there are 4 planning and control activities:

loading:

amount of work allocated to a work center

finite loading allocates work to a set limit, which is the estimate of capacity

work above this limit is not accepted

infinite loading does not limit accepting work but tries to deal with it

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sequencing:

the order in which work will be tackled

affected by:

physical constraints

customer priority

due date

LIFO (last in first out)

FIFO (first in first out)

SOT (shortest operation time first)

especially advantageous when operations become cash constrained

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scheduling:

a detailed timetable showing when jobs should start and finish

forward scheduling involves starting work as soon as it arrives

backward scheduling involves starting jobs at the last possible moment toprevent lateness

through Gantt charts

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monitoring and controlling the operation:

to ensure planned activities are happening

push systems:each work center pushes out work without considering whether the next work center

can make use of it or not

idle time, inventory and queues often are characteristics

pull systems:

pace and specification of what is done are set by customer

triggers movement (kanban)less likely to result in build up of inventory

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Operationinput output

monitor

compare/replan

intervention plan

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Chapter 11 Capacity Planning andControl

capacity of an operation is the maximum level of value added activityover a period of time that it can achieve

capacity constraints of the operation are those operating at the ceiling bottlenecks

capacity planning and control is the task of setting capacity of anoperation so that it can respond to demands

capacity planning will influence the 5 performance factors

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11 Capacity Planning and Control

there are 3 main steps in capacity planning and control:

measure demand and capacity:

demand forecast (short-term, medium-term..)

demand fluctuations seasonally are predictable

demand fluctuations in short-term (weekly, daily) are predictable

forecasting demand is unavoidably complex and not accurate

D e m a n

d

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C a p a c

i t y

output is the most important measure of capacity but input can also be used

theoretical design capacity does not cater for maintenance and other knownlosses

capacity after consideration of known losses is known as effective capacity

actual output is the value after losses which were not accounted for

utilisation = ratio of output/design capacity

efficiency = ratio of output/effective capacity

OEE (overall equipment effectiveness)

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identify alternative capacity plans:

level capacity plan:

ignore fluctuations and keep activity levels constant

possible for non-perishable goods

materials processed and put into stock in anticipation of being sold later

chase demand plan:

adjust capacity to reflect demand fluctuations

not appealing for producers of non-perishable products or where large capital

investment is required

adjusts capacity by:overtimevarying size of workforce

part-time staff sub-contracting

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manage demand:

change demand to fit capacity availability

transfer customer demand from peak to quiet periods

use pricing objectives to achieve transfer

yield management using capacity to its full potential to maximise yield, especially inoperations with fixed capacities (airlines)

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choosing a capacity planning and control approach:

a cumulative plot can assess feasibility of capacity

c u m u

l a t i v e a g g r e g a

t e d o u

t p u

t

cumulative productive days

cumulativedemand

cumulativeoutput(capacity)

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Assessdemand and

capacity

demand forecast

capacity measurement

Identifycapacity

plans

level capacity plan

chase capacity plan

manage demand

Choosecapacity

planning andcontrol

cumulativepresentations

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