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The document discusses various aggregate planning strategies and techniques. It describes level capacity and chase demand strategies. It also discusses techniques for aggregate planning including trial and error, linear programming, and rough cut capacity planning. Master production scheduling is discussed as the process of matching manufacturing output to customer orders over a planned time horizon. Key elements of master scheduling include the master schedule, time fences, projected inventory levels, and available-to-promise dates.

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51 views33 pages

Lumper Presentation by Slidesgo

The document discusses various aggregate planning strategies and techniques. It describes level capacity and chase demand strategies. It also discusses techniques for aggregate planning including trial and error, linear programming, and rough cut capacity planning. Master production scheduling is discussed as the process of matching manufacturing output to customer orders over a planned time horizon. Key elements of master scheduling include the master schedule, time fences, projected inventory levels, and available-to-promise dates.

Uploaded by

aj dump
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Aggregate

Planning Pure
Strategies
ANGEL JESAIAH L. SALUMBIDES
Level Chase
capacity Demand
strategy Strategy
LEVEL CAPACITY
STRATEGY:
● seeks to produce an aggregate plan that
maintains a steady production rate
and/or a steady employment level.

● In order to satisfy changes in customer


demand, the firm must raise or lower
inventory levels in anticipation of
increased or decreased levels of
forecast demand
advantages
• establish higher inventory
levels than are currently needed

• Stable output rates and


workforce
disadvantages

• Greater inventory costs


• Increased overtime and idle
time
• Resource utilizations vary over
time
CHASE DEMAND
STRATEGY:
• Matching capacity to demand;
the planned output for a period is
set at the expected demand for
that period.

• It also implies a great deal of


flexibility on the firm’s part.
advantages
• it allows inventory to be held
to the lowest level possible,
and for some firms this is a
considerable savings

• Labor utilization in high


disadvantages
• cost of adjusting output rates
and/or workforce levels

• results to lower amount of


productivity, quality and
depressed work force.
LEVEL CHASE
CAPACITY DEMAND
STRATEGY STRATEGY
TECHNIQUES FOR
AGGREGATE PLANNING

Numerous techniques are


available to help with the task
of aggregate planning.
1.) 4.)
Determine unit
TRIAL Determine
demand costs

AND 2.)
Determine
5.)
Develop

ERRO capacity alternative plans

3.) 6.)
6.)
R Identify company or select
departmental
select the
best
the one
one that
best satisfies
satisfies
that

policies objectives
objectives
LINEAR
PROGRAMMING
Mercury is the closest planet to the Sun and also the smallest
one in the Solar System. This planet was named after the
Roman messenger god
● is an optimization technique that
allows the user to find a maximum
profit or revenue or a minimum cost
based on the availability of limited
resources and certain limitations
known as constraints.
AGGREGATE
AGGREGATE
PLANNING IN
PLANNING IN
SERVICES
SERVICES
Techniques for controlling
the cost of labor.
 Accurate scheduling of labor hours
 On call labor force to meet unexpected
demand.
 Flexible skilled labor
 Flexible output and working hours
NATIONAL
CHAINS OF SMALL 5 DIFFERENT SERVICE SCENARIOS
SERVICE FIRMS

Aggregate planning: Production


and purchasing are centrally RESTAURANTS HOSPITALS
planned and equal for all stores.
When demand can be influenced The basic model is to
through promotions. It reduces accumulate some inventory Main problems are
costs and manages cash flow.
during peak period and less meeting the changing
Independent Planning: Each during slack periods but demand of patients by
location manages their own using the workforce to allocating money,
production and purchasing level. accommodate changes in staff and supplies.
This is the best solution when demand.
local tastes vary.
AIRLINE 5 DIFFERENT SERVICE SCENARIOS
INDUSTRY
MISCELLANEOU
It consists of schedules for
number of flights on all S SERVICES
routes, number of passengers
that need to be serviced in all Plan for periods that will
flights, number of all air and require more personnel
ground personnel required on and how to efficiently
each plane and site and allocate personnel during
deciding how many seats to low demand periods.
allocate to each fare.
YIELD MANAGEMENT
An approach to maximizing revenue by using a
strategy of variable pricing; prices are set relative to
capacity availability. It is about setting multiple
price points according to customers’ willingness to
pay in order to maximize revenue
Organizations that apply YIELD MANAGEMENT usually
have in common the following characteristics:

Service or
product can be Demand Capacity is
sold in advance to Fluctuates relatively fixed
consumption.

Demand can be Variable Costs Fixed Costs are


segmented. are low high.
MASTER DISAGGREGATION
SCHEDULE
• The result of disaggregating the aggregate plan is master schedule
showing the quantity and timing of specific end items for a scheduled
horizon that covers about six to eight weeks ahead.
• enables marketing to make valid delivery, enables production to
evaluate capacity requirements, and provides necessary information for
production, marketing and senior management with opportunity to
determine whether the business plan and its strategic objectives will be
achieved.
MASTER
SCHEDULER
• Develop Master Production Schedule
• Ensure to maintain desired inventory levels.
• Review requests of new sales order
• Supervise schedule for manufacturing departments
• Supervise company stability
• Monitor continuously all problem inventory
THE MASTER SCHEDULING PROCESS

the detailed planning


process that tracks
manufacturing output
and matches this
against customer
orders that have been
placed
MASTER
PRODUCTION
SCHEDULE

one of the primary outputs of the


master scheduling process
THE MASTER
SCHEDULING
PROCESS
 Make adjustments to fluctuation in
demand;
 Prevent stockouts;
 Improve your efficiency; and
 Perform effective cost control.
DIFFERENT MASTER PRODUCTION SCHEDULING
TECHNIQUES
 In make-to-stock environments, a limited number
of items are assembled from a larger number of
components, for example, video recorders or
computers.
 In a make-to-order environment, many different
finished goods can be produced from a relatively
small number of raw materials.
 Assemble to order environments make use of raw
materials to form basic components and complete
subassemblies.
ROUGH CUT CAPACITY PLANNING
(RCCP)
Validation process of Master Production Schedule

PROS CONS
• Strategic Planning
• Reduce Costs • Time consuming
• Guaranteed Resource • Discipline is needed
Availability
MASTER PRODUCTION
SCHEDULE
Forecasts and Customer Orders
MASTER PRODUCTION
SCHEDULE
Projected On Hand
How to Determine MPS
and Projected On Hand
MASTER PRODUCTION
SCHEDULE
MASTER PRODUCTION
SCHEDULE
Available to Promise
WHAT ARE TIME
FENCES?
Period
1 2 3 4 5 6 7 8 9

                 

                 

“Frozen” “Slushy” “Liquid”


(Firm or Fixed) (Somewhat Firm) (Open)

Frozen-is the near term-phases that is so soon that delivery of a new order would be
impossible
Slushy- is the second phase, and its time fence is usually a few periods beyond the frozen
phase.|
Liquid-is the farthest out on the time horizon.
Sources:
Sources:
Chopra, Sand Peter M. (2004), Supply Chain Management: Strategy, Planning, and Operation. Upper Saddle River, NJ: Pearson Prentice
Hall,

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