Ch%2013_mod - Operations Management MGT 3200 Dr. Samia Siha...

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Unformatted text preview: Operations Management MGT 3200 Dr. Samia Siha Aggregate Planning Chapter 13 Chapter Map Aggregate Planning Aggregate Planning What Is it? What Is it? AP Strategies AP Strategies AP in Service AP in Service Planning Relationship Planning Relationship Capacity Options Capacity Options Control the Control the Cost of Labor Cost of Labor Planning Process Planning Process Demand Options Demand Options Five Service Five Service Scenarios Scenarios Requirements Requirements Chase Strategy Chase Strategy Yield Yield Management Management Level Strategy Level Strategy © Copyrighted 2 Learning Objectives 1. Define aggregate planning, including the typical time horizon and key inputs 2. List and describe capacity and demand options and how these would impact aggregate planning 3. Recognize and define different demand options 4. Contrast chase and level strategies for aggregate planning 5. Discuss how to aggregate planning applies to service organizations, including controlling labor costs 6. Describe how yield management can be used to enhance profitability © Copyrighted 3 Aggregate Planning What Is It ? Translates Long-Range Strategic Plans Down to Operational Level Intermediate (Medium-Range) Planning Tool (12-18 Month Time Frame) Gross Labor and Material Requirements Broad View Gross Product Requirements vs. Individual Products Total Workers vs. Individual Skills © Copyrighted The Planning Process Long-range plans (over one year) Research & Development New product plans Capital investment Facility location/expansion Top executives Operations managers Intermediate-range plans (3 to 18 months) Sales planning Production planning and budgeting Setting employment, inventory, subcontracting levels Analyzing cooperating plans Short-range plans (up to 3 months) Operations managers, supervisors, foremen Responsibility © Copyrighted Job assignments Ordering Job scheduling Dispatching Overtime Part-time help Planning tasks and horizon Figure 13.1 5 Planning Relationships Planning Business or annual plan Production or staffing plan MPS or workforce schedule Aggregate Planning Determine the quantity and timing of Determine production for the immediate future production Objective is to minimize cost over the Objective planning period by adjusting planning Production rates Labor levels Inventory levels Overtime work Subcontracting © Copyrighted Other controllable variables 7 Aggregate Planning Required for aggregate planning A logical overall unit for measuring logical sales and output sales A forecast of demand for intermediate forecast planning period in these aggregate units planning A method for determining costs A model that combines forecasts and model costs so that scheduling decisions can be made for the planning period be © Copyrighted 8 Inputs to Aggregate Plan Inputs Operations Current machine capacities Plans for future capacities Workforce capacities Current staffing level Materials Supplier capabilities Storage capacity Materials availability Distribution and marketing Customer needs Demand forecasts Competition behavior Aggregate plan Engineering New products Product design changes Machine standards Figure 14.2 Accounting and finance Cost data Financial condition of firm Human resources Labor-market conditions Training capacity ...
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This note was uploaded on 01/20/2012 for the course MGT 3200 taught by Professor Moodie during the Spring '08 term at Kennesaw.

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