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Part Three – “Planning and Control” Chapter 10 – “The Nature of Planning and Control” Chapter 11 – “Capacity Planning and Control” Chapter 12 – “Inventory Planning and Control” Chapter 13 – “Supply Chain Planning and Control” Chapter 1 – “!"P” Chapter 1# – “$u%t&in&Ti'e Planning and Control” Chapter 1( – “Pro)ect Planning and Control” Chapter 1* – “+uality Planning and Control”

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Part Three – “Planning and Control”

Chapter 10 – “The Nature of Planning and Control”

Chapter 11 – “Capacity Planning and Control”

Chapter 12 – “Inventory Planning and Control”

Chapter 13 – “Supply Chain Planning and Control”

Chapter 1 – “!"P”

Chapter 1# – “$u%t&in&Ti'e Planning and Control”

Chapter 1( – “Pro)ect Planning and Control”

Chapter 1* – “+uality Planning and Control”

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Chapter 10 – “The Nature of 

Planning and Control”

 a “plan” i% a %et of intention% a% to ,hat i% %uppo%ed to happen

 “control” i% the 'onitoring of ,hat actually happen% and 'a-ing change%

a% nece%%ary

 an operation i% influenced .y the nature of %upply and nature of de'and/

 de'and 'ay .e uncertain in the long&ter' and %hort&ter' 'a-ing

foreca%ting difficult

 “dependent” de'and i% de'and ,hich i% relatively predicta.le .ecau%e it i%dependent on %o'e -no,n factor%

 “independent” de'and i% de'and ,hich i% unpredicta.le providing no

vi%i.ility of cu%to'er order%

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10 – The Nature of Planning and Control

 3 ,ay% of re%ponding to de'and/

 “re%ource to order”

 operation %tart% organi%ing re%ource% ,hen the order i% confir'ed

 in ca%e% of unpredicta.ility

 “'a-e to order”

 operation organi%e% re%ource% due to %o'e confidence .ut 'a-e% only ,hen

certain

 “'a-e to %toc-”

 operation produce% good% ahead and put% to %toc-

 in ca%e% of lo, ri%- or co%t

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10 – The Nature of Planning and Control

 P/ ratio% define ,here the proce%% i% in .et,een re%ource&to&order and

'a-e&to&%toc-4/

 P 5 total throughput ti'e

  5 de'and ti'e

order 

Purcha%e 6a-e eliver 

'a-e to %toc-

'a-e to order 

re%ource to order 

P

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10 – The Nature of Planning and Control

 there are planning and control activitie%/

 loadin g /

 a'ount of ,or- allocated to a ,or- center 

 “finite loading” allocate% ,or- to a %et li'it ,hich i% the e%ti'ate of capacity

 ,or- a.ove thi% li'it i% not accepted

 “infinite loading” doe% not li'it accepting ,or- .ut trie% to deal ,ith it

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10 – The Nature of Planning and Control

 %e7uencing/

 the order in ,hich ,or- ,ill .e tac-led

 affected .y/

 phy%ical con%traint%

 cu%to'er priority

 due date

 8I9: la%t in fir%t out4

 9I9: fir%t in fir%t out4

 S:T %horte%t operation ti'e fir%t4

 e%pecially advantageou% ,hen operation% .eco'e ca%h con%trained

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10 – The Nature of Planning and Control

 %chedulin g /

 a detailed ti'eta.le %ho,ing ,hen )o.% %hould %tart and fini%h

 “for,ard %cheduling” involve% %tarting ,or- a% %oon a% it arrive%

 “.ac-,ard %cheduling” involve% %tarting )o.% at the la%t po%%i.le 'o'ent to

prevent latene%%

 through ;antt chart%

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10 – The Nature of Planning and Control

 'onitoring and controlling the operation /

 to en%ure planned activitie% are happening

 pu%h %y%te'%/

 each ,or- center pu%he% out ,or- ,ithout con%idering ,hether the ne<t ,or- centercan 'a-e u%e of it or not

 idle ti'e0 inventory and 7ueue% often are characteri%tic%

 pull %y%te'%/

 pace and %pecification of ,hat i% done are %et .y cu%to'er 

 =trigger%> 'ove'ent -an.an4

 le%% li-ely to re%ult in .uild up of inventory

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10 – The Nature of Planning and Control

input Operation output

intervention plan monitor  

compare/replan

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Chapter 11 – “Capacity Planning and

Control”

 “capacity” of an operation i% the 'a<i'u' level of value added activity

over a period of ti'e that it can achieve

 capacity con%traint% of the operation are tho%e operating at the =ceiling>  –

.ottlenec-%

 “capacity planning and control” i% the ta%- of %etting capacity of  an

operation %o that it can re%pond to de'and%

 capacity planning ,ill influence the # perfor'ance factor%

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11 – Capacity Planning and Control

 there are 3 'ain %tep% in capacity planning and control/

 'ea%ure de'and and capacit y /

 de'and foreca%t %hort&ter' 'ediu'&ter'??4

 de'and fluctuation% %ea%onally are predicta.le

 de'and fluctuation% in %hort&ter' ,ee-ly daily4 are predicta.le

 foreca%ting de'and i% unavoida.ly co'ple< and not accurate

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11 – Capacity Planning and Control

 output i% the 'o%t i'portant 'ea%ure of capacity .ut input can al%o .e u%ed

 “theoretical de%ign capacity” doe% not cater for 'aintenance and other -no,n

lo%%e%

 capacity after con%ideration of -no,n lo%%e% i% -no,n a% “effective capacity”

 “actual output” i% the value after lo%%e% ,hich ,ere not accounted for 

 utili%ation 5 ratio of output@de%ign capacity

 efficiency 5 ratio of output@effective capacity

 :!! overall e7uip'ent effectivene%%4

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11 – Capacity Planning and Control

 identify alternative capacity plan % /

 level capacity plan/

 ignore fluctuation% and -eep activity level% con%tant

 po%%i.le for  non&peri%ha.le good%

 'aterial% proce%%ed and put into %toc- in anticipation of .eing %old later 

 cha%e de'and plan/

 ad)u%t capacity to reflect de'and fluctuation%

 not appealing for producer% of non&peri%ha.le product% or ,here large capital

inve%t'ent i% re7uired

 ad)u%t% capacity .y/

 overti'e

 varying %iAe of ,or-force

 part&ti'e %taff 

 %u.&contracting

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11 – Capacity Planning and Control

 'anage de'and/

 change de'and to fit capacity availa.ility

 tran%fer cu%to'er de'and fro' pea- to 7uiet period%

 u%e pricing o.)ective% to achieve tran%fer 

 “yield 'anage'ent”  – u%ing capacity to it% full potential to 'a<i'i%e yield0 e%pecially in

operation% ,ith fi<ed capacitie% airline%4

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11 – Capacity Planning and Control

 choo%ing a capacity planning and control approac h /

 a cu'ulative plot can a%%e%% fea%i.ility of capacity

cu'ulative

output

capacity4

cu'ulativede'and

cu'ulative productive day%

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11 – Capacity Planning and Control

 B%%e%%de'and and

capacity

de'and foreca%t

capacity 'ea%ure'ent

Identify

capacityplan%

level capacity plan

cha%e capacity plan

'anage de'and

Choo%e

capacity

planning and

control

cu'ulative

pre%entation%

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