Aggregate Production Planning

Prepared BY : FARHAN MUKHTAR AQIB ALI KASHIF KHAN AZAD ANSARI FAISAL SUHAIL

Jamia Hamdard University

AGGREGATE PRODUCTION/OPERATION PLANNING It is a planning exercise done for operations using data at an aggregate

level. Its about translating demand forecasts into production and capacity

levels over a fixed planning horizon. Assumes the demand forecast is fairly accurate. It helps firms in arriving at the quantity and timing of resources to be

committed to ensure continuous flow of goods and services to customers.

It generally uses an aggregate unit of production.

EXAMPLE OF APP At the end of an aggregate production planning exercise, a garment

manufacturer may arrive at the following planI. Produce at the rate of 9k meters of cloth everyday during the months of

January to March, increase it to 11k meters during April to August and change the production rate to 10k meters during September to December.

II. Carry 10% of monthly production as inventory during the first 9 months of production.

III. Work on a one-shift basis through out the year with 20% overtime during July to October.

WHY IS PRODUCTION PLANNING NECESSARY Demand Fluctuations: Organizations hardly experience a stable or even

demand, the demand for garments in India is high during august to October due to the festive season. Meeting surges in demand requires some prior planning.

Capacity Fluctuation: While demand fluctuations happen on account of seasonality, there are fluctuations in capacity too.

WHY IS PRODUCTION PLANNING NECESSARY Difficulty level in altering production rates: Different complex production

system requires different amount of prior planning and coordination with related system on the supplier and distributive sides.

Benefits of multi period planning: It is known that planning just for a period with no consideration of potential events in the near future amounts to a knee-jerk reaction than any attempt to reach optimal and cost saving decisions.

PLANNING STRATEGIES

Level strategyMaintain a stable workforce working at constant output rate; absorb demand variations with inventory, backlogs, or lost sales.

Chase strategyMatching the production rate to exactly meet the order rate by hiring and laying off workers as the order rate varies.

Mixed strategyA combination of chase and level strategies to match supply and demand.

PURE AND MIXED STRATEGY

Pure StrategyA combination of chase and level strategies to match supply and demand.

Mixed StrategyEither a chase strategy when product exactly matches demand or a level strategy when production remains constant over a specified number of periods.

Production / Operation Scheduling

Scheduling is the process of arranging, controlling and optimizing work and workloads in a production process or manufacturing process.

 Scheduling is used to allocate plant and machinery resources, plan human resources, plan production processes and purchase materials.

The production schedule involves project plan of how the production budget will be spent over a given timescale, for every phase of a business project.

The scheduling process in movie making starts with the script, which is analysed and broken down, scene by scene, onto a sequence of breakdown sheets, each of which records the resources required to execute the scene. These resources include:

* Cast Actors *Special Equipment *Special Effects *Wardrobe *Make-up/Hair *Stunts *Extras/Silent Bits *Vehicles/Animals *Production Notes *Sound Effects/Music

Production / Operation Scheduling (Contd.) With the help of the operations scheduling, two very important factors or the aspects of the

resources within an organization that can be pertained are as follows – 1. Allocating the resources within an organization.

2. Setting up the time – table. In today’s competitive world, the orders that are placed either from the side of the customer

or from the side of the assembly benches – are to be completed on or before the contracted or the promised date.  (For fulfilling this, operations scheduling plays a very critical and an essential role and completely ensures that these dates are met.)

Operations scheduling has a direct affect on the effectiveness of the production function. The priority planning and the shop floor control and the scheduling elements ultimately determine the performance of the production system

(If the operations scheduling is carried out in an efficient manner, then there occurs a considerable improvement in the performance in the delivery. Also helps in the achievement of the goals that have been set by the company. Efficient operations scheduling playa a very critical part in the reduction of the production lead times.)

OBJECTIVES OF OPERATION SCHEDULING Maximizing the delivery performance i.e. meeting the delievery dates. Minimizing the inventory. Reducing the manufacturing time. Minimizing the production cost Minimizing the worker costs

FUNCTIONS OF OPERATION SCHEDULING Allocation of the resources. Shop floor control Making maximum use of the plant at minimum possible cost. Ensure that needs of the manpower are optimum. Determination of the sequence of job. Getting quick feedback from the shops regarding delays and various

interruptions. Posses up to date information for the availability of the materials, expected

delievery dates etc. Possess up to date data on the machine regarding its breakdown,servicing

etc.

CONCLUSION (OPERATION SCHEDULING)

The impact of scheduling can be increased by focusing on the schedules of bottleneck resources so as to maximize the flow of total value added funds.

If the operations scheduling is carried out in an efficient manner, then there occurs a considerable improvement in the performance in the delivery.

It helps in the achievement of the goals that have been set by the company.

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