Chapter 10 Planning and control - cc.sspu.cncc.sspu.cn/download/f33fad6f-833c-4ac1-bd6e-1fffb46dd570.pdf · Chapter 10 Planning and control. Slack, Brandon-Jones and Johnston, Essentials

Slack, Brandon-Jones and Johnston, Essentials of Operations Management, 1st Edition, © Slack, Brandon-Jones and Johnston, 2011

Chapter 10

Planning and control


Slack et al’s model of operations management

Design

Deliver

Direct

Develop

Operations Management

Lean synchronis-

ation


Capacity manag-ement

Supply network

management

Inventory management


In Chapter 10 - The nature of planning and control – Slack et. al. identify the following key questions…….

What is planning and control?

How do supply and demand affect planning and control?

What are the activities of planning and control?

How can enterprise resource planning (ERP) help

planning and control?

Key operations questions


•Planning is a formalization of what is intended to happen at some time in the future

•A plan does not guarantee that an event will actually happen, it is a statement of intention

•Although plans are based on expectations, during their implementation things do not always happen as expected

•Control is the process of coping with any changes that affect the plan. It may also mean that an ‘intervention’ will need to be made in the operation to bring it back ‘on track’



Planning is deciding

Control is

what activities should take place in the operationwhen they should take place

What resources should be allocated to them

understanding what is actually happening in the operation

deciding whether there is a significant deviation from what should be happening

(if there is deviation) changing resources in order to affect the operation’s activities



PLANNING

CONTROL

Significance of planning and controlTi

me

horiz

onH

ours

/day

sD

ays/

wee

ks/m

onth

sM

onth

s/ye

ars Long-term planning and control

Uses aggregated demand forecastsDetermines resources in aggregated formObjectives set in largely financial terms

Medium-term planning and controlUses partially disaggregated demand forecastsDetermines resources and contingenciesObjectives set in both financial and operations terms

Short-term planning and controlUses totally disaggregated forecasts or actual demandMakes interventions to resources to correct deviations from plantsAd hoc consideration of operations objectives


Dependent and independent demand

Dependent demande.g. input tyre store in automobile plant

Demand for tyres is governed by the number of automobiles planned

to be made

For every automobile that are planned to be made, five tyres will be

needed


Demand for tyres is largely governed by

random factors

ACE TYRES

Demand for tyres is governed by the type of car arriving, the fluctuations in the number of cars arriving and how

many tyres need replacing

Dependent and independent demand

Independent demande.g. tyre fitting service


P : D ratios

DP

Produce to stock

DP

Part produce to order

DP

Resource to order

Customer orders

Deliver to customer

Allow time for delivery

Produce product / service

Allow time for creation

Obtain resources

Allow time for resourcing

DP

Produce to order


P : D ratios

Resource to order

Make to stock

Make to order

Dependent demand

Independent demand

Each product or service large

compared with total capacity of

the operation

Each product or service small

compared with total capacity of

the operation


Scheduling Loading

SequencingMonitoring and control

When to do things?

In what order to do

things?

How much to do?

Are activities going to plan?

The activities of planning and control



Process stage

Week 12

Week 13

Week 14

Week 15

Week 16

Week 17

Week 18

Job A Job B Job C Job D Job E

Job A Job BJob Y Job X

Job A Job BJob Z Job XJob Y

Job A Job BJob X Job C

Gantt chart showing the schedule for jobs at each process stage

Initial spec

Pre- coding

Coding

Compact. check

Final test

Job A Job BJob W Job C Job D


JOB Mon 5

Tue6

Wed 7

Thur 8

Fri 9

Mon 12

Tue 13

Table

Shelves

Kitchen units

Bed

Actual progressTime now

V

V

Gantt chart showing the schedule for individual jobs over time

Scheduled activity time


JOB Mon 5

Tue6

Wed 7

Thur 8

Fri 9

Mon 12

Tue 13

Wood preparation

Assembly

Finishing

Paint

Scheduled activity time Actual progress

T

B

B T

S K

S S S

K

KTS

B T

Non-productive timeV

V

Time now


Shift allocation for the technical “hot line” (a) on a daily basis (b) on a weekly basis

(a)Shift pattern (24 hour clock)

Peter

Jo

Walter Jo

Marie Claire Jo

04:00 08:00 12:00 16:00 20:00

Peter X X X X O O X

Marie X X X X X O O

Claire X X X X O O X

Walter O X X X X X O

Jo O X X X X X O

Mon Tue Wed Thu Fri Sat Sun

Number of staff required

3 5 5 5 3 2 2

(b)X OFull day Day off

Shift allocation


Operation or processInput Output

Compare / re-plan

InterventionPlans

A simple model of control

Monitor


Pull and push philosophies of planning and control


The drum, buffer, rope, concept

Stage or process

B

Stage or process

A

Stage or process

D

Stage or process

E

Buffer of inventory

Stage or process

C

Bottleneck drum sets the beat

Communication ropecontrols prior activities


Web-integrated Enterprise Resource Planning (Collaborative Commerce,

c-commerce)

Enterprise Resource Planning (ERP)

Manufacturing Resource Planning (MRPII)

Increasing integration of information systems

Incr

easi

ng im

pact

on

the

who

le s

uppl

y ne

twor

k

The development of ERP

Material Requirements

Planning (MRP)


Integrated database

ERP integrates several systems

Purchasing and supply

applications

Operations applications

Financial applications

Strategic reporting

applications Sales and marketing

applications

Delivery and logistics

applications

Service applications

HRM applications

Senior management and stakeholders

Employees

Supp

liers

Cus

tom

ers

Fron

t-offi

ce s

taff

Back

-offi

ce s

taff

Employees

Documents

Chapter 10 Planning and control - cc.sspu.cncc.sspu.cn/download/f33fad6f-833c-4ac1-bd6e-1fffb46dd570.pdf · Chapter 10 Planning and control. Slack, Brandon-Jones and Johnston, Essentials