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Operations Planning

Operations Planning



basic theory of operations planning

basic theory of operations planning



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  • May you share this PP powerpoint to me? This is a good Planning overview. I'm preparing ERP Operation Planning concept to teach my students in a college. It'll be much helpful if you can send me the PowerPoint file. My email id is JidapaERP@yahoo.com. Thanks in advance.
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  • @chris0359 can you give me your email pls.i want to ask you some thing
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  • thank you sir,
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  • Production Planning Good One Great work Keep it up...!!!
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    Operations Planning Operations Planning Presentation Transcript

    • Production/Operations Planning
      An Overview
    • Operations Planning
    • Introduction
      Meaning: Organization of an overall manufacturing/operating system to produce a product
      Objective: to provide a physical system together with a set of operating guidelines for efficient conversion of raw materials, human skills & other inputs into finished products
    • Factors Determining Production Planning Process
      Main difference between two companies’ planning processes is the differences in the economic & technological conditions of the company’s operations.
      Volume of production
      Nature of production processes
      Nature of operations
    • Variants in Manufacturing Approach
      Manufacturing to order
      Manufacturing for stock & sell under repetitive batch
      Manufacturing for stock & sell under continuous process
    • Production Planning Levels
      Hierarchical levels
      Strategic planning
      Tactical planning
      Operational Planning
      Time span
      Long range
      Intermediate range
      Short range
    • Production Planning Functions
    • Master production schedule (MPS)
    • Introduction
      MPS sets the quantity of each finished product to be completed in each time period of the short range planning horizon.
      MPS is developed by reviewing market forecasts, customer orders, inventory levels, facility loading & capacity information regularly.
    • MPS Objectives
      To schedule end items to be completed promptly & when promised to customers
      To avoid overloading or under loading the production facility so that production capacity is efficiently utilized & incur low production costs
    • MPS Functions
      Translating aggregate plans
      Evaluating alternative master schedules
      Generating material requirements
      Generating capacity requirements
      Facilitating information processing
      Maintaining valid priorities
      Utilizing capacity effectively
    • Forecasts & customer orders
      End products & Service parts
      Domestic & International
      Aggregate plan
      Tentative MPS
      Revise Master Schedule
      Revise Master Schedule
      Trial fit on
      MRP system
      CRP system
      Are materials adequate?
      Are capacities adequate?
      Firm MPS
      To MRP & CRP systems
      MPS Flow Chart
    • Capacity requirement planning (crp)
    • CRP
      Meaning: CRP is a technique to determine the labor & equipment capacities needed to meet the objectives.
    • Aggregate Plan
      Rough-cut Capacity Planning
      Work center status file
      Shop routing file
      Orders converted into load
      Is capacity modification feasible?
      Load projection report(infinite loading)
      Is capacity adequate?
      Planned orders & released orders
      Workload report (finite loading)
      Work orders
      Purchase orders
      CRP Flow Chart
      Input/output control
    • Planning Activity
      Infinite Loading: Process of loading work centers with all the loads when they are required without regard to the actual capacity of work centers.
      Finite Loading: Done automatically with computerized loading system limiting the load assigned to work centers in each period as per the available capacity at each work center.
    • Material requirement planning (mrp)
    • Material Requirement Planning(MRP)
      MRP is a computer based information system for ordering & scheduling of dependent demand inventories.
      The technique to plan for procurement or manufacture of the specific components that will be required to produce the required quantities of end products as per the production schedule indicated by MPS is called MRP technique.
    • Objectives of MRP
      Improve customer service by meeting delivery schedules promised & shortening delivery lead times
      Reduce inventory costs by reducing inventory levels
      Improve plant operating efficiency by better use of productive resources
    • Purpose of MRP
      Control inventory levels
      Assign operating priorities
      Assign capacity to load production systems
    • MRP Advantages
      Reduced inventory
      Reduced idle time
      Reduced setup time
      Ability to change MPS
      Ability to price more competitively
      Better customer service
      Better response to market demand
      Reduced sales price
    • MRP System also enables…
      Aids capacity planning
      Helps mangers to use the planned schedule before actual release orders
      Tells when to expedite or de-expedite
      Delays or cancels orders
      Changes order quantities
      Advances or delays order due dates
    • MRP Disadvantages
      Lack of top management commitment for MRP as a closed-loop, integrated strategic planning tool
      Presented & perceived as a complete stand-alone system to run a firm, rather than as part of the total system
      The issue of how MRP can be made to function with just-in-time production system