Production Planning and Control 12 July 2005 <ul><li>Production Planning is one of the main function of a production Manag...
Decision-making in Operations Management <ul><li>Operations managers are decision makers. </li></ul><ul><li>What makes the...
Problem ? Quantitative Analysis Logic Historical Data Market research Scientific analysis Modeling Qualitative Analysis Em...
The Planning Process <ul><li>Planning </li></ul>Short Term Medium Term  ( begins once long term  capacity decisions are ma...
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Production Planning And Control

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Production Planning And Control

  1. 1. Production Planning and Control 12 July 2005 <ul><li>Production Planning is one of the main function of a production Manager. This is concerned with determining the QUANTITY and TIMING of production for the FUTURE. Isn’t it DIFFICULT! </li></ul><ul><li>Production manager try to determine the BEST way to meet forecasted demands by: </li></ul><ul><ul><li>Adjusting production rates </li></ul></ul><ul><ul><li>Adjusting manpower levels </li></ul></ul><ul><ul><li>Inventory levels </li></ul></ul><ul><ul><li>Overtime works </li></ul></ul><ul><ul><li>subcontracting </li></ul></ul>
  2. 2. Decision-making in Operations Management <ul><li>Operations managers are decision makers. </li></ul><ul><li>What makes the difference between a Good Decision and a Bad Decision? </li></ul><ul><li>“ Good’ decision = logic + Data + Alternatives </li></ul><ul><li>Steps </li></ul><ul><li>Define the problem and the factors that influence it </li></ul><ul><li>Establish decision criteria and goals </li></ul><ul><li>Formulate a model (relation between goals and variables) </li></ul><ul><li>Identify and evaluate alternatives </li></ul><ul><li>Select BEST alternative </li></ul><ul><li>Implement the decision </li></ul>
  3. 3. Problem ? Quantitative Analysis Logic Historical Data Market research Scientific analysis Modeling Qualitative Analysis Emotions Intuition Personal experiences Rumors Decision
  4. 4. The Planning Process <ul><li>Planning </li></ul>Short Term Medium Term ( begins once long term capacity decisions are made. Monthly and quarterly plans, AGGREGATE PRODUCTION PLAN – related to operation managers – Tactical Scheduling decisions) Long Term ( Facility Location and expansion, New product development, Research funding, investment over several years, strategic issues – related to Top Management)

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