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Lecture Operations management: Chapter 11 - William J. Stevenson

Chapter 11 - Aggregate planning and master scheduling. In this chapter you should be able to: Explain what aggregate planning is and how it is useful, identify the variables decision makers have to work with in aggregate planning, describe some of the strategies that can be used for meeting uneven demand,. | Aggregate Planning and Master Scheduling Chapter 11 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 11: Learning Objectives You should be able to: LO 11.1 Explain what aggregate planning is and how it is useful LO 11.2 Identify the variables decision makers have to work with in aggregate planning LO 11.3 Describe some of the strategies that can be used for meeting uneven demand LO 11.4 Describe some of the graphical and quantitative techniques planners use LO 11.5 Prepare aggregate plans and compute their costs LO 11.6 Describe the master scheduling process and explain its importance LO 11.7 Disaggregate an aggregate plan Aggregate planning Intermediate-range capacity planning that typically covers a time horizon of 2 to 18 months Useful for organizations that experience seasonal, or other variations in demand Goal: Achieve a production plan that will effectively utilize . | Aggregate Planning and Master Scheduling Chapter 11 Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 11: Learning Objectives You should be able to: LO 11.1 Explain what aggregate planning is and how it is useful LO 11.2 Identify the variables decision makers have to work with in aggregate planning LO 11.3 Describe some of the strategies that can be used for meeting uneven demand LO 11.4 Describe some of the graphical and quantitative techniques planners use LO 11.5 Prepare aggregate plans and compute their costs LO 11.6 Describe the master scheduling process and explain its importance LO 11.7 Disaggregate an aggregate plan Aggregate planning Intermediate-range capacity planning that typically covers a time horizon of 2 to 18 months Useful for organizations that experience seasonal, or other variations in demand Goal: Achieve a production plan that will effectively utilize the organization’s resources to satisfy demand Aggregate Planning LO 11.1 Why do organizations need to do aggregate planning? Planning It takes time to implement plans Strategic Aggregation is important because it is not possible to predict with accuracy the timing and volume of demand for individual items It is connected to the budgeting process It can help synchronize flow throughout the supply chain; it affects costs, equipment utilization; employment levels; and customer satisfaction Why Use Aggregate Planning LO 11.1 Aggregate Planning Inputs Resources Workforce/production rates Facilities and equipment Demand forecast Policies Workforce changes Subcontracting Overtime Inventory levels/changes Back orders Costs Inventory carrying Back orders Hiring/firing Overtime Inventory changes subcontracting LO 11.2 Total cost of a plan Projected levels of Inventory Output Employment Subcontracting Backordering Aggregate Planning Outputs LO 11.2 Prominent Aggregate Planning Strategies Maintain