Planing and control in general 1


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Planing and control in general 1

  1. 1. Planning and Control in General • What is planning and control? • What is difference between planning and control? • How does the nature of demand affect planning and control? • What is involved in planning and control?
  2. 2. Concepts We need to Understand • dependent demand and independent demand • make-to-stock, make-to-order, resource-to- order • loading, sequencing, scheduling and monitoring • pull and push systems
  3. 3. Planning and Control – Reconcile Supply and Demand Supply of products and services Planning and Control Demand for products and services Operation resources Required time, quantity and quality of products and services Customer requirements
  4. 4. Planning is deciding Control is what activities should take place in the operation and their quantities when they should take place what resources should be allocated to them understanding what is actually happening in the 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 and Control
  5. 5. Significance of planning or control Timehorizon Hours/daysDays/weeks/monthsMonths/years Medium-term Planning and Control Uses partially dissaggregated demand forecasts Determines resources and contingencies Objectives set in both financial and operations terms Long-term Planning and Control Uses aggregated demand forecasts Determines resources in aggregated form Objectives set in largely financial terms Short-term Planning and Control Uses totally dissaggregated forecasts or actual demand Makes interventions to resources to correct deviations from plans Ad hoc consideration of operations objectives PLANNING CONTROL
  6. 6. Planning and control needs…. Information on Demand levels Information on Resources
  7. 7. Dependent and Independent Demand Dependent demand e.g. input tyre store in car plant Demand for tyres is governed by the number of cars planned to be made Demand for tyres is largely governed by random factors ACE TYRES Independent demand e.g. tyre fitting service
  8. 8. Dependent and Independent Demand -defining them Demand = forecasts + known orders • Dependent demand – the demand is mainly coming from known orders. • Independent demand – the demand is mainly coming from forecasted figures.
  9. 9. P and D for the Different Types of Planning and Control Purchase Make Deliver D P Purchase Make Deliver Purchase Make Deliver D P Make to stock Make to order Resource to order P D Where D is demand time and P is total throughput time.
  10. 10. MAKE TO STOCK Purchase And … – ‘make-to-stock and assemble-to-order’ Planning and Control Make Parts Assemble Deliver D P Order ASSEMBLE TO ORDER
  11. 11. Resource-to-order Make-to-order Make-to-stock Dependent Demand Independent Demand Each product or service large compared with total capacity of each operation Each product or service small compared with total capacity of each operation
  12. 12. Planning and Control Activities Sequencing MonitoringScheduling Loading Are activities going to plan? When to do things? In what order to do things? How much to do?
  13. 13. Loading – the amount of work allocated in terms of time Maximum time available Normal time available Not worked Planned time available Planned running time Set-ups Available time Actual running time Down time
  14. 14. Sequencing – the order in which the work will be tackled Various sequencing rules are used in operations: - Customer priority; - Due date; - LIFO - last in first out; - FIFO - first in first out; Longest operation time first; - Shortest operation time first. -
  15. 15. Scheduling – the details on starts and finishes of jobs Gantt Chart • Created by American industrial engineer Henry Gantt (1861-1919) • In a table format • Two dimensions-jobs (tasks) and time • the horizontal axis is directly proportional to time • Easy to draw and use for a day-to-day plan
  16. 16. JOB Mon 6th Tue 7th Wed 8th Thur 9th Fri 10th Mon 13th Tue 14th Table Shelves Kitchen units Bed Time now Scheduled activity time Actual progress Gantt Chart for Job Progress
  17. 17. JOB Mon 6th Tue 7th Wed 8th Thur 9th Fri 10th Mon 13th Tue 14th Wood preparation Assembly Finishing Paint Time now Scheduled activity time Actual progress T B B T S K S S S K KTS B T Gantt Chart for Work Centers Non- productive time
  18. 18. Pull and Push Control CENTRAL OPS. PLANNING AND CONTROL SYSTEM Work centre DEMANDWork centre Work centre Work centre Instruction on what to make and where to send it FORECAST PULL CONTROL Work centre Work centre Work centre Work centre DEMAND Request Request Request Request Delivery Delivery Delivery Delivery PUSH CONTROL KNOWN ORDERS
  19. 19. True or False If the demand of a product is mainly from forecasts, we call this type of demand independent demand. Resource-to-order planning and control is used for dealing with independent demand. Time is the only important aspect in planning and control activities
  20. 20. Summary • The three dimensions of planning and control are: timing, quantity (volumes) and quality • The difference between dependent and independent demand is the % of known orders or forecasts of the total demand • Types of planning and control are: ‘make-to-stock’, ‘make-to-order’, ‘resource-to- order’, ‘make-to-stock and assemble- to-order’ • Planning and control activities are: loading, sequencing, scheduling and monitoring