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Ops Man
Topic 2 - Aggregate Planning
Question | Answer |
---|---|
Aggregate Planning | Medium term production planning from a capacity point of view Allows strategic planning to be achieved effectively (and tactical objectives of the production subsystem) |
Techniques | 1. Pure techniques for just one variable 2. Mixed techniques for multiple variables - Chase of Demand (adjust to demand change) - Labour Levelling (constant workforce and production) |
Factors to be considered | Environmental limits Company policies Costs Customer satisfaction Basic cost of production is the same in all plans Comparison of incremental cost of each plan |
Possibilities (1) | 1. Influence the market demand = increase demand when its lower/higher than capacity = marketing actions = active/aggressive actions |
Possibilities (2) | 2. Adapt the production capacity = capacity increase/ decrease to adapt to market demands (overtime, subcontracting) = storage of production when over production (excess of capacity) = reactive/ passive actions |
Calculations | 1. Trial & error/ Intuitive 2. Analytical - mathematical programming (Optimal solutions), heuristic methods (satisfactory solutions) 3. Simulation (computer) |
Temporary steps to adjust the capacity | Hiring/dismissal of labour Overtime hours Idle/Spare timing Subcontracting Programming of labour vacation |
Master Production Schedule (MPS) | Detailed plan that determines the number of units of final product that will be manufactured & exact periods of time of production - refines aggregate planning in quantities and timing |