Module no 3 - Planning Functions.pptx

PLaning functions

1. Course Code : R4ME4003S Course Title: Operations Management Prerequisites Manufacturing Processes COURSE OUTCOMES The student should be able to – 1. Demonstrate the variations in MPC system for different types of organizations. 2. Outline the processes from forecasting to sales and to use the different production planning techniques 3. Apply the different operations research techniques to solve MPC related problems 4. Evaluate the inventory control decisions

2. Course Title: Operations Management Prerequisites Manufacturing Processes Text Books 1. Krajewski , L. J., Ritzman , L. P. and Malhotra, M. K., Operations Management, Prentice Hall, New Delhi, 2009 2. Ebert, J and Adams, D.J., Production/Operations Management, Prentice Hall of India , New Delhi, 2007 3. Thomas Vollmann , William Berry, Manufacturing planning and control Systems, McGraw Hill Education, Fifth Edition, 2004 4. Premkumar Gupta and Hira, Operation Research, S. Chand Company Ltd., New Delhi , 2007 . 5. Jay Heizer , Barry Render, Jagadeesh Rajashekhar . Operation Management, Person Publication, 3 rd Edition, 2011 .

3. Module 3 : Planning Functions Capacity planning and aggregate planning, Master production schedule, Shop floor Control. MRP, MRP II and Concept of JIT.

4. What do you mean by capacity planning ? Capacity planning is the process by which an organization estimates whether it has the necessary resources to meet all incoming demand over a given period of time, and attribute capacity in the different initiatives according to business priorities. Why is capacity planning important? Capacity planning helps businesses with budgeting and scaling so they can identify optimal levels of operations: Budgeting benefits: Capacity planning helps determine how services are offered, and the appropriate time frames and staff required to meet current demand and cover all operational costs .

5. Broadly speaking, these are the capacity planning goals: 1. Avoid resource shortage issues when undertaking projects and programs that are strategic for the business . 2. Ensure that the organization has all the necessary skills to successfully manage its product and project portfolios . 3. Avoid work environments where there is overcapacity and duplicated resources and skills. Types of capacity planning While in this post we are focusing on capacity planning as the process in which organizations estimate whether they have (and will have) the workforce and skills needed to meet demand, it is not the only type of capacity planning out there.

6. Types of CAPACITY PLANNING WORKFORCE CAPACITY PLANNING. As already explained, it refers to having the necessary human capacity to meet the incoming demand in a satisfactory manner for a given period of time. It is a process by which organizations can decide to hire more staff, reduce headcount or reallocate resources to other roles where they will be more productive. Tool capacity planning: It means having the necessary tools and equipment to deliver the job. Depending on the sector, this may be computer equipment, machinery, transportation, software, tools, etc. Product capacity planning is the process through which a business estimates whether it will have an adequate amount of products and resources to meet demand. For instance, in the case of a large retail company, it involves ensuring there is sufficient stock in stores to meet the demand, as well as an adequate number of cashiers, POS systems, and other necessary resources.

7. Figure1. Steps in Capacity Planning

8. What is meant by aggregate planning? Aggregate planning is  the process of analyzing data and developing a projected schedule for your business . Project and business managers create aggregate plans using information from different aspects of a business, including inventory, sales forecasts, and production. levels . What is an example of an aggregate plan? What Is Aggregate Planning?: Strategies and Tips What is an example of aggregate planning? An aggregate production planning example is when a company manufactures smartphones. The company needs to plan its production and workforce levels to meet the expected demand for its smartphones over the next year.

9. What is the main goal of aggregate planning ? Level Strategy An aggregate planning strategy's goal is to maintain the production rate and workforce level. This necessitates accurate demand forecasting in order to determine whether production levels should be increased or decreased as customer demands grow and shrink .

10. What is the Master P roduction Schedule (MPS)? A master production schedule links sales demand with manufacturing capacity. The purpose of master production scheduling is to create a realistic plan that minimizes overstock while maximizing on-time delivery . What is the purpose of the MPS? MPS helps in minimizing waste, reducing costs, and ensuring that products are delivered on time, thus playing a crucial role in the success of manufacturing businesses and also helping with sustainability standards. What are the four functions of master production schedule The various functions involved in an MPS process are translating production plans, assessing alternative schedules, determining capacity requirements, enabling information processing, and utilizing capacity.

11. Master Production Schedule (MPS)

12. MPS -Steps

13. Material Requirement Planning (MRP) MRP is a system designed to plan manufacturing production. It identifies necessary materials, estimates quantities, determines when materials will be required to meet the production schedule, and manages delivery timing – with the goal of meeting demands and improving overall productivity . O bjective of MRP is to ensure that the right amount of materials are available at the right time and at the right cost to meet customer demand. This includes forecasting customer demand, creating a master production schedule, and creating a material plan to meet the demand.

14. Material Requirement Planning (MRP) The main advantage of MRP II is its ability to integrate and coordinate various resources, such as materials, labor, and capacity, leading to improved production planning, scheduling, and overall operational efficiency.

15. Material Resource Planning II Manufacturing resource planning is abbreviated "MRP II" (or "MRP 2") to distinguish it from material requirements planning (MRP I). Manufacturing resource planning 2 encompasses all the capabilities of MRP I, which focuses on a manufacturer's inventory of raw materials and supplied components. Using MRP II or closed-loop MRP can offer several benefits for manufacturers, such as improved customer service and satisfaction, reduced inventory costs and waste, enhanced production efficiency and productivity, and increased profitability and competitiveness.

16. Material Requirement Planning & Material Resource Planning

17. Numerical on Capacity Planning 1 . Simple numerical deciding capacity of plant 2. Numerical deciding selection of affordable machine. ………..These types cover in class lecture……