This document discusses planning and control in operations management. It defines planning as deciding what activities should take place and when, and control as understanding what is actually happening and making changes if needed. The key aspects of planning and control are reconciling supply and demand while considering timing, quantity, and quality. Planning and control types depend on whether demand is dependent or independent, and activities include loading, sequencing, scheduling, and monitoring work.

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. 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. 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. 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. 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. Planning and control needs….
Information on Demand levels
Information on Resources

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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