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CHAPTER 7: PRODUCTION PLANNING AND CONTROL (AGGREGATE PLANNING (Strategies…
CHAPTER 7: PRODUCTION PLANNING AND CONTROL
PLANNING PROCESS
Long range
Financial Planning
Resource Planning
5 years
Short range
1 days - few weeks
Material Requirement
Capacity Requirement
Medium range
6 - 8 months
Aggregate Planning
Item Forecasting
AGGREGATE PLANNING
Definition
Combining Resources
Objectives
Minimize Cost
Minimize Fluctuations
Certain Standard
Strategies
Changing Inventory
Varying workforce
Varying Production
Subcontracting
Influencing demand
Phases
Prepare demand forecast
Specify organization
Determine feasible
Determination production
MATERIAL REQUIREMENT PLANNING
(MRP)
Definition
Assembled Operation
Objective
What item?
How many?
When?
Dependent Demand
MPS
Bills of Material
Inventory Availability
Purchase Order
Lead Times
Benefit
Faster Responce
Improved Utilities
Better Response
Reduced Inventory
SCHEDULING
Establishing timing
Increase Productivity
Cost Saving
SEQUENCING JOB
Average number of jobs in the system = Total flow time / Total job work time
Average job lateness = Total late days / Number of jobs
Utilization = Total job work time / Total flow time
Average completion time = Total flow time / Number of Jobs
CRITICAL RATIO
CR = Time Remaining / Workdays Remaining = (Due date - Today's date) / Work time remaining
JOHNSON'S RULE
N >= 2
N = Jobs