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Ops Man

Topic 2 - Aggregate Planning

QuestionAnswer
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
Created by: patriciam03
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