The document provides an overview of operations management concepts related to aggregate planning. It discusses aggregate planning strategies like adjusting production rates, workforce levels, and inventory levels. It provides examples of using graphical and mathematical methods to develop aggregate plans for a roofing supplier. Different planning options are evaluated like maintaining a constant workforce, subcontracting, and hiring/firing to match production to fluctuating demand forecasts.
A) Operations performance is vital for any organization
B) The quality objective
C) The speed objective
D) The dependability objective
E) The flexibility objective
F) The cost objective
G) Trade-offs between performance objectives
A) Operations performance is vital for any organization
B) The quality objective
C) The speed objective
D) The dependability objective
E) The flexibility objective
F) The cost objective
G) Trade-offs between performance objectives
Aggregate planning is an operational activity that does an aggregate plan for the production process, in advance of 6 to 18 months, to give an idea to management as to what quantity of materials and other resources are to be procured and when, so that the total cost of operations of the organization is kept to the minimum over that period.
Although forecasts are typically developed by the marketing function, the operations function is often called on to assist in forecast development. More important, though, is the reality that operations is a major user of forecasts. Chapter 3 provides important
insights on forecasting as well as information on how to develop and monitor forecasts.
To get more for less is the Philosophers' Stone – for managers, politicians and economists. This book explains the practical steps that operational managers can take to improve productivity in all types of business and in the public and not-for-profit sectors. It brings together good practice from different managerial disciplines and pays particular attention to the theory and application of lean in manufacturing, services and administration.
Collinson Grant has helped lots of firms renew themselves. Our work has gone under many descriptions: improving gross margins, restructuring, cost reduction, applying lean techniques, and turning around performance. We have helped managers achieve results quickly to respond to changes in the market and the activities of competitors, or to restore profitability and satisfy the demands of investors. Our basic goal remains unchanged: to achieve better financial results by improving effectiveness, removing wasted effort, and making fundamental improvements in productivity to help cope with new, more challenging circumstances. Find out more at www.collinsongrant.com or email pmackenzie@collinsongrant.com
Aggregate planning is an operational activity that does an aggregate plan for the production process, in advance of 6 to 18 months, to give an idea to management as to what quantity of materials and other resources are to be procured and when, so that the total cost of operations of the organization is kept to the minimum over that period.
Although forecasts are typically developed by the marketing function, the operations function is often called on to assist in forecast development. More important, though, is the reality that operations is a major user of forecasts. Chapter 3 provides important
insights on forecasting as well as information on how to develop and monitor forecasts.
To get more for less is the Philosophers' Stone – for managers, politicians and economists. This book explains the practical steps that operational managers can take to improve productivity in all types of business and in the public and not-for-profit sectors. It brings together good practice from different managerial disciplines and pays particular attention to the theory and application of lean in manufacturing, services and administration.
Collinson Grant has helped lots of firms renew themselves. Our work has gone under many descriptions: improving gross margins, restructuring, cost reduction, applying lean techniques, and turning around performance. We have helped managers achieve results quickly to respond to changes in the market and the activities of competitors, or to restore profitability and satisfy the demands of investors. Our basic goal remains unchanged: to achieve better financial results by improving effectiveness, removing wasted effort, and making fundamental improvements in productivity to help cope with new, more challenging circumstances. Find out more at www.collinsongrant.com or email pmackenzie@collinsongrant.com
Beginners Guide to Production Management - In Tamil LanguageAnanth Palaniappan
This presentation is aimed at helping small and medium businesses in their Production / Operations Management. The module starts with an introduction to the function, Roles and Responsibilities of executives in the function, Key tools and methodologies, Lean Manufacturing Principles (including 5S) and various templates for MIS analysis. This Presentation is in Tamil Language. Please visit www.businessense.in to download this document.
Electric and gas companies continue to be faced with: attrition or slow growth, at best, volatile commodity prices, uncertain demand, shrinking margins, and continued competition from evolving technologies. This report examines the tools and techniques used to improve and manage productivity.
Connector Corner: Automate dynamic content and events by pushing a buttonDianaGray10
Here is something new! In our next Connector Corner webinar, we will demonstrate how you can use a single workflow to:
Create a campaign using Mailchimp with merge tags/fields
Send an interactive Slack channel message (using buttons)
Have the message received by managers and peers along with a test email for review
But there’s more:
In a second workflow supporting the same use case, you’ll see:
Your campaign sent to target colleagues for approval
If the “Approve” button is clicked, a Jira/Zendesk ticket is created for the marketing design team
But—if the “Reject” button is pushed, colleagues will be alerted via Slack message
Join us to learn more about this new, human-in-the-loop capability, brought to you by Integration Service connectors.
And...
Speakers:
Akshay Agnihotri, Product Manager
Charlie Greenberg, Host
Search and Society: Reimagining Information Access for Radical FuturesBhaskar Mitra
The field of Information retrieval (IR) is currently undergoing a transformative shift, at least partly due to the emerging applications of generative AI to information access. In this talk, we will deliberate on the sociotechnical implications of generative AI for information access. We will argue that there is both a critical necessity and an exciting opportunity for the IR community to re-center our research agendas on societal needs while dismantling the artificial separation between the work on fairness, accountability, transparency, and ethics in IR and the rest of IR research. Instead of adopting a reactionary strategy of trying to mitigate potential social harms from emerging technologies, the community should aim to proactively set the research agenda for the kinds of systems we should build inspired by diverse explicitly stated sociotechnical imaginaries. The sociotechnical imaginaries that underpin the design and development of information access technologies needs to be explicitly articulated, and we need to develop theories of change in context of these diverse perspectives. Our guiding future imaginaries must be informed by other academic fields, such as democratic theory and critical theory, and should be co-developed with social science scholars, legal scholars, civil rights and social justice activists, and artists, among others.
The Art of the Pitch: WordPress Relationships and SalesLaura Byrne
Clients don’t know what they don’t know. What web solutions are right for them? How does WordPress come into the picture? How do you make sure you understand scope and timeline? What do you do if sometime changes?
All these questions and more will be explored as we talk about matching clients’ needs with what your agency offers without pulling teeth or pulling your hair out. Practical tips, and strategies for successful relationship building that leads to closing the deal.
Smart TV Buyer Insights Survey 2024 by 91mobiles.pdf91mobiles
91mobiles recently conducted a Smart TV Buyer Insights Survey in which we asked over 3,000 respondents about the TV they own, aspects they look at on a new TV, and their TV buying preferences.
Essentials of Automations: Optimizing FME Workflows with ParametersSafe Software
Are you looking to streamline your workflows and boost your projects’ efficiency? Do you find yourself searching for ways to add flexibility and control over your FME workflows? If so, you’re in the right place.
Join us for an insightful dive into the world of FME parameters, a critical element in optimizing workflow efficiency. This webinar marks the beginning of our three-part “Essentials of Automation” series. This first webinar is designed to equip you with the knowledge and skills to utilize parameters effectively: enhancing the flexibility, maintainability, and user control of your FME projects.
Here’s what you’ll gain:
- Essentials of FME Parameters: Understand the pivotal role of parameters, including Reader/Writer, Transformer, User, and FME Flow categories. Discover how they are the key to unlocking automation and optimization within your workflows.
- Practical Applications in FME Form: Delve into key user parameter types including choice, connections, and file URLs. Allow users to control how a workflow runs, making your workflows more reusable. Learn to import values and deliver the best user experience for your workflows while enhancing accuracy.
- Optimization Strategies in FME Flow: Explore the creation and strategic deployment of parameters in FME Flow, including the use of deployment and geometry parameters, to maximize workflow efficiency.
- Pro Tips for Success: Gain insights on parameterizing connections and leveraging new features like Conditional Visibility for clarity and simplicity.
We’ll wrap up with a glimpse into future webinars, followed by a Q&A session to address your specific questions surrounding this topic.
Don’t miss this opportunity to elevate your FME expertise and drive your projects to new heights of efficiency.
UiPath Test Automation using UiPath Test Suite series, part 3DianaGray10
Welcome to UiPath Test Automation using UiPath Test Suite series part 3. In this session, we will cover desktop automation along with UI automation.
Topics covered:
UI automation Introduction,
UI automation Sample
Desktop automation flow
Pradeep Chinnala, Senior Consultant Automation Developer @WonderBotz and UiPath MVP
Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...James Anderson
Effective Application Security in Software Delivery lifecycle using Deployment Firewall and DBOM
The modern software delivery process (or the CI/CD process) includes many tools, distributed teams, open-source code, and cloud platforms. Constant focus on speed to release software to market, along with the traditional slow and manual security checks has caused gaps in continuous security as an important piece in the software supply chain. Today organizations feel more susceptible to external and internal cyber threats due to the vast attack surface in their applications supply chain and the lack of end-to-end governance and risk management.
The software team must secure its software delivery process to avoid vulnerability and security breaches. This needs to be achieved with existing tool chains and without extensive rework of the delivery processes. This talk will present strategies and techniques for providing visibility into the true risk of the existing vulnerabilities, preventing the introduction of security issues in the software, resolving vulnerabilities in production environments quickly, and capturing the deployment bill of materials (DBOM).
Speakers:
Bob Boule
Robert Boule is a technology enthusiast with PASSION for technology and making things work along with a knack for helping others understand how things work. He comes with around 20 years of solution engineering experience in application security, software continuous delivery, and SaaS platforms. He is known for his dynamic presentations in CI/CD and application security integrated in software delivery lifecycle.
Gopinath Rebala
Gopinath Rebala is the CTO of OpsMx, where he has overall responsibility for the machine learning and data processing architectures for Secure Software Delivery. Gopi also has a strong connection with our customers, leading design and architecture for strategic implementations. Gopi is a frequent speaker and well-known leader in continuous delivery and integrating security into software delivery.
Software Delivery At the Speed of AI: Inflectra Invests In AI-Powered QualityInflectra
In this insightful webinar, Inflectra explores how artificial intelligence (AI) is transforming software development and testing. Discover how AI-powered tools are revolutionizing every stage of the software development lifecycle (SDLC), from design and prototyping to testing, deployment, and monitoring.
Learn about:
• The Future of Testing: How AI is shifting testing towards verification, analysis, and higher-level skills, while reducing repetitive tasks.
• Test Automation: How AI-powered test case generation, optimization, and self-healing tests are making testing more efficient and effective.
• Visual Testing: Explore the emerging capabilities of AI in visual testing and how it's set to revolutionize UI verification.
• Inflectra's AI Solutions: See demonstrations of Inflectra's cutting-edge AI tools like the ChatGPT plugin and Azure Open AI platform, designed to streamline your testing process.
Whether you're a developer, tester, or QA professional, this webinar will give you valuable insights into how AI is shaping the future of software delivery.
11. The Planning Process Figure 13.1 Long-range plans (over one year) Research and Development New product plans Capital investments Facility location/expansion Intermediate-range plans (3 to 18 months) Sales planning Production planning and budgeting Setting employment, inventory, subcontracting levels Analyzing operating plans Short-range plans (up to 3 months) Job assignments Ordering Job scheduling Dispatching Overtime Part-time help Top executives Operations managers Operations managers, supervisors, foremen Responsibility Planning tasks and horizon
12. Aggregate Planning Quarter 1 Jan Feb Mar 150,000 120,000 110,000 Quarter 2 Apr May Jun 100,000 130,000 150,000 Quarter 3 Jul Aug Sep 180,000 150,000 140,000
24. Aggregate Planning Options Table 13.1 Option Advantages Disadvantages Some Comments Changing inventory levels Changes in human resources are gradual or none; no abrupt production changes. Inventory holding cost may increase. Shortages may result in lost sales. Applies mainly to production, not service, operations. Varying workforce size by hiring or layoffs Avoids the costs of other alternatives. Hiring, layoff, and training costs may be significant. Used where size of labor pool is large.
25. Aggregate Planning Options Table 13.1 Option Advantages Disadvantages Some Comments Varying production rates through overtime or idle time Matches seasonal fluctuations without hiring/ training costs. Overtime premiums; tired workers; may not meet demand. Allows flexibility within the aggregate plan. Sub-contracting Permits flexibility and smoothing of the firm’s output. Loss of quality control; reduced profits; loss of future business. Applies mainly in production settings.
26. Aggregate Planning Options Table 13.1 Option Advantages Disadvantages Some Comments Using part-time workers Is less costly and more flexible than full-time workers. High turnover/ training costs; quality suffers; scheduling difficult. Good for unskilled jobs in areas with large temporary labor pools. Influencing demand Tries to use excess capacity. Discounts draw new customers. Uncertainty in demand. Hard to match demand to supply exactly. Creates marketing ideas. Overbooking used in some businesses.
27. Aggregate Planning Options Table 13.1 Option Advantages Disadvantages Some Comments Back ordering during high-demand periods May avoid overtime. Keeps capacity constant. Customer must be willing to wait, but goodwill is lost. Many companies back order. Counter-seasonal product and service mixing Fully utilizes resources; allows stable workforce. May require skills or equipment outside the firm’s areas of expertise. Risky finding products or services with opposite demand patterns.
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33. Roofing Supplier Example 1 Table 13.2 Month Expected Demand Production Days Demand Per Day (computed) Jan 900 22 41 Feb 700 18 39 Mar 800 21 38 Apr 1,200 21 57 May 1,500 22 68 June 1,100 20 55 6,200 124 = = 50 units per day 6,200 124 Average requirement = Total expected demand Number of production days
34. Roofing Supplier Example 1 Figure 13.3 70 – 60 – 50 – 40 – 30 – 0 – Jan Feb Mar Apr May June = Month 22 18 21 21 22 20 = Number of working days Production rate per working day Level production using average monthly forecast demand Forecast demand
35. Roofing Supplier Example 2 Table 13.3 Plan 1 – constant workforce Cost Information Inventory carrying cost $ 5 per unit per month Subcontracting cost per unit $10 per unit Average pay rate $ 5 per hour ($40 per day) Overtime pay rate $ 7 per hour (above 8 hours per day) Labor-hours to produce a unit 1.6 hours per unit Cost of increasing daily production rate (hiring and training) $300 per unit Cost of decreasing daily production rate (layoffs) $600 per unit
36. Roofing Supplier Example 2 Table 13.3 Plan 1 – constant workforce Total units of inventory carried over from one month to the next = 1,850 units Workforce required to produce 50 units per day = 10 workers Cost Information Inventory carry cost $ 5 per unit per month Subcontracting cost per unit $10 per unit Average pay rate $ 5 per hour ($40 per day) Overtime pay rate $ 7 per hour (above 8 hours per day) Labor-hours to produce a unit 1.6 hours per unit Cost of increasing daily production rate (hiring and training) $300 per unit Cost of decreasing daily production rate (layoffs) $600 per unit Month Production at 50 Units per Day Demand Forecast Monthly Inventory Change Ending Inventory Jan 1,100 900 +200 200 Feb 900 700 +200 400 Mar 1,050 800 +250 650 Apr 1,050 1,200 -150 500 May 1,100 1,500 -400 100 June 1,000 1,100 -100 0 1,850
37. Roofing Supplier Example 2 Table 13.3 Total units of inventory carried over from one month to the next = 1,850 units Workforce required to produce 50 units per day = 10 workers Cost Information Inventory carry cost $ 5 per unit per month Subcontracting cost per unit $10 per unit Average pay rate $ 5 per hour ($40 per day) Overtime pay rate $ 7 per hour (above 8 hours per day) Labor-hours to produce a unit 1.6 hours per unit Cost of increasing daily production rate (hiring and training) $300 per unit Cost of decreasing daily production rate (layoffs) $600 per unit Month Production at 50 Units per Day Demand Forecast Monthly Inventory Change Ending Inventory Jan 1,100 900 +200 200 Feb 900 700 +200 400 Mar 1,050 800 +250 650 Apr 1,050 1,200 -150 500 May 1,100 1,500 -400 100 June 1,000 1,100 -100 0 1,850 Costs Calculations Inventory carrying $9,250 (= 1,850 units carried x $5 per unit) Regular-time labor 49,600 (= 10 workers x $40 per day x 124 days) Other costs (overtime, hiring, layoffs, subcontracting) 0 Total cost $58,850
38. Roofing Supplier Example 2 Figure 13.4 Cumulative demand units 7,000 – 6,000 – 5,000 – 4,000 – 3,000 – 2,000 – 1,000 – – Jan Feb Mar Apr May June Cumulative forecast requirements Cumulative level production using average monthly forecast requirements Reduction of inventory Excess inventory 6,200 units
39. Roofing Supplier Example 3 Table 13.2 Minimum requirement = 38 units per day Plan 2 – subcontracting Month Expected Demand Production Days Demand Per Day (computed) Jan 900 22 41 Feb 700 18 39 Mar 800 21 38 Apr 1,200 21 57 May 1,500 22 68 June 1,100 20 55 6,200 124
40. Roofing Supplier Example 3 70 – 60 – 50 – 40 – 30 – 0 – Jan Feb Mar Apr May June = Month 22 18 21 21 22 20 = Number of working days Production rate per working day Level production using lowest monthly forecast demand Forecast demand
41. Roofing Supplier Example 3 Table 13.3 Cost Information Inventory carrying cost $ 5 per unit per month Subcontracting cost per unit $10 per unit Average pay rate $ 5 per hour ($40 per day) Overtime pay rate $ 7 per hour (above 8 hours per day) Labor-hours to produce a unit 1.6 hours per unit Cost of increasing daily production rate (hiring and training) $300 per unit Cost of decreasing daily production rate (layoffs) $600 per unit
42. Roofing Supplier Example 3 Table 13.3 In-house production = 38 units per day x 124 days = 4,712 units Subcontract units = 6,200 - 4,712 = 1,488 units Cost Information Inventory carry cost $ 5 per unit per month Subcontracting cost per unit $10 per unit Average pay rate $ 5 per hour ($40 per day) Overtime pay rate $ 7 per hour (above 8 hours per day) Labor-hours to produce a unit 1.6 hours per unit Cost of increasing daily production rate (hiring and training) $300 per unit Cost of decreasing daily production rate (layoffs) $600 per unit
43. Roofing Supplier Example 3 Table 13.3 In-house production = 38 units per day x 124 days = 4,712 units Subcontract units = 6,200 - 4,712 = 1,488 units Cost Information Inventory carry cost $ 5 per unit per month Subcontracting cost per unit $10 per unit Average pay rate $ 5 per hour ($40 per day) Overtime pay rate $ 7 per hour (above 8 hours per day) Labor-hours to produce a unit 1.6 hours per unit Cost of increasing daily production rate (hiring and training) $300 per unit Cost of decreasing daily production rate (layoffs) $600 per unit Costs Calculations Regular-time labor $37,696 (= 7.6 workers x $40 per day x 124 days) Subcontracting 14,880 (= 1,488 units x $10 per unit) Total cost $52,576
44. Roofing Supplier Example 4 Table 13.2 Production = Expected Demand Plan 3 – hiring and firing Month Expected Demand Production Days Demand Per Day (computed) Jan 900 22 41 Feb 700 18 39 Mar 800 21 38 Apr 1,200 21 57 May 1,500 22 68 June 1,100 20 55 6,200 124
45. Roofing Supplier Example 4 70 – 60 – 50 – 40 – 30 – 0 – Jan Feb Mar Apr May June = Month 22 18 21 21 22 20 = Number of working days Production rate per working day Forecast demand and monthly production
46. Roofing Supplier Example 4 Table 13.3 Cost Information Inventory carrying cost $ 5 per unit per month Subcontracting cost per unit $10 per unit Average pay rate $ 5 per hour ($40 per day) Overtime pay rate $ 7 per hour (above 8 hours per day) Labor-hours to produce a unit 1.6 hours per unit Cost of increasing daily production rate (hiring and training) $300 per unit Cost of decreasing daily production rate (layoffs) $600 per unit
47. Roofing Supplier Example 4 Table 13.3 Table 13.4 Cost Information Inventory carrying cost $ 5 per unit per month Subcontracting cost per unit $10 per unit Average pay rate $ 5 per hour ($40 per day) Overtime pay rate $ 7 per hour (above 8 hours per day) Labor-hours to produce a unit 1.6 hours per unit Cost of increasing daily production rate (hiring and training) $300 per unit Cost of decreasing daily production rate (layoffs) $600 per unit Month Forecast (units) Daily Prod Rate Basic Production Cost (demand x 1.6 hrs/unit x $5/hr) Extra Cost of Increasing Production (hiring cost) Extra Cost of Decreasing Production (layoff cost) Total Cost Jan 900 41 $ 7,200 — — $ 7,200 Feb 700 39 5,600 — $1,200 (= 2 x $600) 6,800 Mar 800 38 6,400 — $600 (= 1 x $600) 7,000 Apr 1,200 57 9,600 $5,700 (= 19 x $300) — 15,300 May 1,500 68 12,000 $3,300 (= 11 x $300) — 15,300 June 1,100 55 8,800 — $7,800 (= 13 x $600) 16,600 $49,600 $9,000 $9,600 $68,200
48. Comparison of Three Plans Table 13.5 Plan 2 is the lowest cost option Cost Plan 1 Plan 2 Plan 3 Inventory carrying $ 9,250 $ 0 $ 0 Regular labor 49,600 37,696 49,600 Overtime labor 0 0 0 Hiring 0 0 9,000 Layoffs 0 0 9,600 Subcontracting 0 14,880 0 Total cost $58,850 $52,576 $68,200
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50. Transportation Method Table 13.6 Costs Regular time $40 per tire Overtime $50 per tire Subcontracting $70 per tire Carrying $ 2 per tire per month Sales Period Mar Apr May Demand 800 1,000 750 Capacity: Regular 700 700 700 Overtime 50 50 50 Subcontracting 150 150 130 Beginning inventory 100 tires
56. Summary of Aggregate Planning Methods Table 13.8 Techniques Solution Approaches Important Aspects Graphical methods Trial and error Simple to understand and easy to use. Many solutions; one chosen may not be optimal. Transportation method of linear programming Optimization LP software available; permits sensitivity analysis and new constraints; linear functions may not be realistic.
57. Summary of Aggregate Planning Methods Table 13.8 Techniques Solution Approaches Important Aspects Management coefficients model Heuristic Simple, easy to implement; tries to mimic manager’s decision process; uses regression. Simulation Change parameters Complex; may be difficult to build and for managers to understand.
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63. Yield Management Example Figure 13.5 Demand Curve Passed-up contribution Money left on the table Potential customers exist who are willing to pay more than the $15 variable cost of the room Some customers who paid $150 were actually willing to pay more for the room Total $ contribution = (Price) x (50 rooms) = ($150 - $15) x (50) = $6,750 Price Room sales 100 50 $150 Price charged for room $15 Variable cost of room
64. Yield Management Example Total $ contribution = (1st price) x 30 rooms + (2nd price) x 30 rooms = ($100 - $15) x 30 + ($200 - $15) x 30 = $2,550 + $5,550 = $8,100 Figure 13.6 Demand Curve Price Room sales 100 60 30 $100 Price 1 for room $200 Price 2 for room $15 Variable cost of room
65. Yield Management Matrix Figure 13.7 Duration of use Unpredictable Predictable Price Tend to be fixed Tend to be variable Quadrant 1: Quadrant 2: Movies Hotels Stadiums/arenas Airlines Convention centers Rental cars Hotel meeting space Cruise lines Quadrant 3: Quadrant 4: Restaurants Continuing care Golf courses hospitals Internet service providers