After completing this lesson you should be able to
explain what aggregate planning is and how it is useful
identify the variables decision makers have to work with in aggregate planning and some of the possible strategies they can use
prepare aggregate plans and compute their costs
describe the basic concepts of master production scheduling
prepare an MPS
explain the differences between the Push and Pull systems in Production Planning and Control
Production Planning Hierarchy Master Production Scheduling Production Planning and Control Systems Pond Draining Systems Aggregate Planning Push Systems Pull Systems Focusing on Bottlenecks Long-Range Capacity Planning
Production Planning Horizons Master Production Scheduling Production Planning and Control Systems Pond Draining Systems Aggregate Planning Push Systems Pull Systems Focusing on Bottlenecks Long-Range Capacity Planning Long-Range (years) Medium-Range (6-18 months) Short-Range (weeks) Very-Short-Range (hours - days)
Total demand for all products. Must use the same unit of measure to facilitate planning at the highest level of a firm
When the types of items produced are similar, an aggregate production unit can correspond to an “average” item
When many different types of items are produced it would be more appropriate to consider aggregate units in terms of: weight (tons of steel), volume (gallons of gasoline), amount of work required (labor-hours, machine-hours), or dollar value
Assume that the final assembly line has a weekly capacity of 12000 hours available. Each product A requires 0.88 hours of final assembly capacity, and each product B and C require 0.66 and 1.08 hours respectively.
Compute the actual final assembly hours required to produce the MPS for three products ( referred to as the load) .
Compare the load to the final assembly capacity available in each week.