BUS140 Study Guide3

BUS140 Study Guide3 - Ch10. Short Term Operations Planning...

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Ch10. Short Term Operations Planning The Planning Hierarchy Top Management’s Needs--Middle Management Needs--Operations Mgmt Needs Short Term Operations Planning (plan your work, work your plan- unless something changes) The OM planning process is defined by its business environment AND THE ORGANIZATION DESIGN Five shared criteria define it:--How many units must we deliver?--When and how soon must we deliver?--When and where should we make the stuff?--What resource adjustments must be made?--What are the value tradeoffs between the above? The result of this process should be a plan that provides OM with both the capacity and the capabilities to profitably serve the firm’s targeted customers (including those in the financial community) The Operations Planning Process Inputs--System design parameters—Capability specifications—Market inputs—Rousource availability profile. Activities--Estimate activity levels—estimate short term resource requirements—secure resources needed—plan, direct, organize, work—develop and maintain performance metrics Outputs--Operational plans—Performance measurement—Feedback on problems and/or opportunities. Operations Planning Environments Cost Focused Strategies--Get the stuff at the lowest possible costs-maybe offshore--Operate the plant in the most efficient level--Squeeze the max value from a set of inputs Time Focused Strategies--Preposition goods as close to the customer as possible--Develop quick response process choices--Get rid of the slow response business Product Flexibility Focused Strategies--Use assemble to order where-ever possible--Customize generic subassemblies/products Resource Allocation Models Cost Minimization Models--How can I produce a mix at the lowest cost—animal feeds Profit Maximization Models--Max=Revenue-costs---Subject to--Market constraints--Raw material constraints Production Planning Tools Aggregate Production Planning--Three pure strategies- chase/level/variable hours Four ways to trigger production--Classic inventory management o Materials requirements planning--Time phased planning(gantt chart logic)--MRP inputs---Inventory levels, demand schedule, planned lead time, on order status---Just in Time (Pull)--Detailed Production Planning Master Production Planning A general agreement between marketing and operations that defines, at one point in time, what marketing can expect operations to produce and by
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BUS140 Study Guide3 - Ch10. Short Term Operations Planning...

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