pp10 Final PDF

10.
Chapter 10 The nature of planning and control
Pearson Education Ltd. Jules Selmes
10.1
Slack, Chambers and Johnston, Operations Management, 6th Edition, Nigel Slack, Stuart Chambers, and Robert Johnston 2010
10.2
Capacity planning and control

Operations strategy
Design
Improvement Planning and control
Capacity planning and control

The market requires products and services delivered to requested time, quantity and quality The operation supplies... delivered products and services
10.2
10.3
Key operations questions

In Chapter 10 The nature of planning and control Slack et al. identify the following key questions: What is planning and control? How do supply demand affect planning and control? What are the activities of planning and control?
10.3
10.4
Planning and control
Planning is a formalization of what is intended to happen at some time in the future. A plan does not guarantee that an event will actually happen, it is a statement of intention. Although plans are based on expectations, during their implementation things do not always happen as expected. Control is the process of coping with any changes that affect the plan. It may also mean that an intervention will need to be made in the operation to bring it back on track.
10.4
10.5
Planning and control (Continued)

what activities should take place in the operation when they should take place what resources should be allocated to them
Planning is deciding
Control is
understanding what is actually happening in 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 operations activities.
10.5
10.6
Significance of planning and control

Months/years
Long-term planning and control

Uses aggregated demand forecasts Determines resources in aggregated form
PLANNING
Objectives set in largely financial terms
Time horizon
Days/weeks/months
Medium-term planning and control

Uses partially disaggregated demand forecasts Determines resources and contingencies Objectives set in both financial and operations terms
Short-term planning and control

Hours/days
CONTROL
Uses totally disaggregated forecasts or actual demand Makes interventions to resources to correct deviations from plans Ad hoc consideration of operations objectives.
10.6
10.7
Dependent and independent demand

Dependent demand e.g. input tyre store in automobile plant
Demand for tyres is governed by the number of automobiles planned to be made
For every automobile that are planned to be made, five tyres will be needed
10.7
10.8
Dependent and independent demand (Continued)

Independent demand e.g. tyre-fitting service
ACE TYRES
Demand for tyres is governed by the type of car arriving, the fluctuations in the number of cars arriving and how many tyres need replacing.
Demand for tyres is largely governed by random factors.
10.8
10.9
P : D ratios
Customer orders Obtain resources Produce to stock
P D
Produce product/service
Deliver to customer
Part produce to order

P D
Produce to order
P D
Resource to order
D P
Allow time for resourcing
Allow time for creation
Allow time for delivery
10.9
10.10
P : D ratios (Continued)
Resource to order Dependent demand
Each product or service (large) compared with total capacity of the operation
Make to order
Make to stock
Independent demand
Each product or service (small) compared with total capacity of the operation
10.10
10.11
The activities of planning and control

When to do things? How much to do?
Scheduling
Loading
Sequencing In what order to do things?
Monitoring and control Are activities going to plan?
10.11
10.12
Loading The reduction of time available for valuable operating time
Maximum available time Valuable operating time

Quality losses Not worked (planned) Slow Not worked Set-up and running Equipment (unplanned) changeovers equipment idling Breakdown failure
10.12
10.13
Finite and infinite loading
Finite and infinite loading of jobs on three work centres A, B and C. Finite loading limits the loading on each centre to their capacities, even if it means that jobs will be late. Infinite loading allows the loading on each centre to exceed their capacities to ensure that jobs will not be late.
Finite loading Infinite loading
0 3 2 1
4 5 A B C Work centre A B C Work centre 6
10.13
10.14
The hospital triage system
In Accident and Emergency departments, patients arrive at random. Medical staff must rapidly devise a schedule. Patients with serious illness need urgent attention. Less urgent cases will have to wait. Routine non-urgent cases will have the lowest priority of all.
10.14
10.15
Triage in the police
10.15
10.16
Gantt chart showing the schedule for jobs at each process stage
Process stage
Week 12
Week 13
Job B
Week 14
Week 15
Week 16
Job D
Week 17
Week 18
Job E
Initial spec Job A
Job C
Pre-coding
Job W
Job A
Job B
Job C
Job D
Coding
Job X
Job A
Job B
Job C
Compact. check
Job Y
Job X
Job A
Job B
Final test
Job Z
Job Y
Job X
Job A
Job B
10.16
10.17
Gantt chart showing the schedule for individual jobs over time
JOB Mon 5 Tue 6 Wed 7 Thur 8 Fri 9 Mon 12 Tue 13
Table Shelves
Kitchen units Bed
10.17
Scheduled activity time
Actual progress
Time now
10.18
Gantt chart by activity

JOB Wood preparation Assembly Mon 5
T
Tue 6
Wed 7
S
Thur 8
Fri 9
K
Mon 12
Tue 13
Finishing
Paint
10.18
Scheduled activity time
V Time now
Non-productive time Actual progress
10.19
Pull and push philosophies of planning and control
Push control
CENTRAL OPERATIONS, PLANNING AND CONTROL SYSTEM

Instruction on what to make and where to send it
FORECAST OR
Work centre
Work centre
Work centre
Work centre
DEMAND
10.19
10.20
Pull and push philosophies of planning and control (Continued)
Pull control
Request Work centre Delivery Work centre
Request Work centre Delivery
Request Work centre Delivery
Request DEMAND Delivery
10.20
10.21
Pull and push philosophies of planning and control (Continued)
10.21
10.22
Shift allocation
Shift allocation for the technical hot line (a) on a daily basis (b) on a weekly basis
Mon Number of staff required 3 Tue 5 Wed 5 Thu 5 Fri 3 Sat 2 Sun 2
Peter Walter Marie Jo Claire Jo Jo
Peter Marie Claire Walter Jo
X X X O O
X X X X X
X X X X X
X X X X X
O X O X X
O O O X X
X O X O O
04:00
08:00
12:00
16:00
20:00
X
Shift pattern (24-hour clock)
Full day
Day off
(a)
(b)
10.22
10.23
A simple model of control
Input
Operation or process
Output
Intervention Plans Compare / replan
Monitor
10.23
10.24
The drum, buffer, rope, concept
Buffer of inventory Stage or process A Stage or process B Stage or process C Bottleneck drum sets the beat Stage or process D Stage or process E
Communication rope controls prior activities
10.24

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10.

Chapter 10 The nature of planning and control

Pearson Education Ltd. Jules Selmes

Capacity planning and control

Improvement Planning and control

Capacity planning and control

Key operations questions

Planning and control

Planning and control (Continued)

Significance of planning and control

Long-term planning and control

Objectives set in largely financial terms

Medium-term planning and control

Short-term planning and control

Dependent and independent demand

Demand for tyres is governed by the number of automobiles planned to be made

Dependent and independent demand (Continued)

Demand for tyres is largely governed by random factors.

Part produce to order

Allow time for resourcing

Allow time for creation

Allow time for delivery

The activities of planning and control

Sequencing In what order to do things?

Monitoring and control Are activities going to plan?

Loading The reduction of time available for valuable operating time

Maximum available time Valuable operating time

Finite and infinite loading

4 5 A B C Work centre A B C Work centre 6

The hospital triage system

Triage in the police

Initial spec Job A

Kitchen units Bed

Scheduled activity time

Gantt chart by activity

Scheduled activity time

Non-productive time Actual progress

Pull and push philosophies of planning and control

CENTRAL OPERATIONS, PLANNING AND CONTROL SYSTEM

Pull and push philosophies of planning and control (Continued)

Request Work centre Delivery Work centre

Request Work centre Delivery

Request Work centre Delivery

Request DEMAND Delivery

Pull and push philosophies of planning and control (Continued)

Peter Walter Marie Jo Claire Jo Jo

Peter Marie Claire Walter Jo

Shift pattern (24-hour clock)

A simple model of control

Intervention Plans Compare / replan

The drum, buffer, rope, concept

Communication rope controls prior activities

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