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T7: Resource planning and control (Ch10) (Enterprise Resource Planning…
T7: Resource planning and control (Ch10)
Key elements (see Fig 10.2 p.327)
The customer interface
Should reflect the operations objectives
Acts as a trigger function
Defines the customer experience
The core mechanics of planning and control
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Scheduling (when)
Sequencing (what order)
Loading (how much)
Monitoring and control (going to plan?)
The supply/supplier interface
The decision mechanisms of planning and control
Information systems
Planning and control staff
Communication and negotiation
flexibility, adaptability and learning
Integration
Other functions of the business
Materials Requirement Planning (MRP) (p.354)
Master Production Schedule (MPS)
Inputs
Customer orders
Forecast demand
Outputs
Materials requirement planning (MRP)
Additional inputs
Bills of Materials (BOM)
Inventory records
Outputs
Purchase orders
Materials plans
Works orders
MRP netting process - calculating stock/demand/orders
Back-scheduling of component parts
Lead-times for ordering
Order quantities
When they are needed
Stock-on-hand
MRP capacity checks
All but the simplest MRP systems have closed-loop systems to ensure against over capacity issues
Methods
Resources requirements plans (RRPs) - long-term
Rough-cut capacity plans (RCCPs) - short- to medium-term
Capacity requirements plans (CRPs) - day-to-day
Available to Promise (ATP) information - i.e. what is available that can be sold
Based on 'chase' or 'level' demand schedules
Enterprise Resource Planning (ERP) (p.331)
Developed and sold by companies such as SAP / Oracle / Baan
Integrates all functions of the organisation to align their resource requirements, i.e. finance / accounting / HR / Marketing / Sales / etc
Grew out of MRP and MRPII but a much broader system
Aimed at planning and control of all resources across the organisation, i.e. inventory, capacity , cash, personnel, facilities, capital
Benefits
Force process improvements
Improved control
Greater visibility across the whole business
More sophisticated, accurate and timely communication with customers and supply chain partners
Integration with supply chain partners
Web-integration
Supply network integration
Sales and Operations Planning (S&OP) (p.334)
Goal is to have more cross-functional strategic cohesion, rather than little silos with their own agendas
Considers a 18-24 mth period to fit between short and long-term planning
Generally reviewed monthly by senior management level
Four concepts of short-term process capacity management
Sequencing
Some predefined rules
Customer priority
Due date (DD)
Last in, first out (LIFO)
First in, first out (FIFO) or First come, first served (FCFS)
Longest operation time first (LOT)
Shortest operation time first (SOT)
Scheduling
Due to complexity of the number of possible schedules in even simple organisations, scheduling aims for 'acceptable' not optimal
Gantt charts (p.339)
Loading
Finite (elevator)
CGC examples
Tee bookings
7-Day memberships
Relevant where:
It is necessary to limit load
It is not cost prohibitive to limit load
It is possible to limit load
Infinite (escalator)
Relevant where:
It is not necessary to limit load
It is cost prohibitive to limit load
It is not possible to limit load
CGC examples
Clubhouse services
Proshop services
Overall memberships
Monitoring and controlling
Push control
Pull control - triggered by the customer only
Comparing outputs to the plan to identify variations
Assess and adjust accordingly based on changes needed to the plan
Difficulties with control:
Is there consensus over what the operation's objectives should be?
Are the effects of interventions into the operation predictable?
Are the operations activities largely repetitive?
Types of control
Routine control
Needs systematisation skills
Unambiguous / Process knowledge complete / Repetitive
Expert control
Needs networking skills
Unambiguous / Process knowledge complete / Not repetitive
Trial-and-error control
Needs knowledge-building skills
Unambiguous / Process knowledge incomplete / Repetitive
Intuitive control
Unambiguous / Process knowledge incomplete / Not repetitive
Needs decision skills
Negotiated control
Ambiguous situations
Needs 'political' skills
Bottleneck concepts
Theory of Constraints (TOC) (p.341)
OPT principles outlined on p.341
Focus on
bottlenecks
as the only part of the process that can really make a difference
Based on Optimised Production Technology (OPT) principles
Drum, buffer, rope concept (p.343)
Buffer - Inventory around the bottleneck to mitigate delays
Rope - the line of communication to stay on top of buffers and drums (bottlenecks), anticipating and addressing problems
Drum - the bottleneck sets the drum beat for the process