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7/27/2019 PM lecture 6.doc
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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”
7/27/2019 PM lecture 6.doc
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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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