AggPlanning - PKB
AggPlanning - PKB
AggPlanning - PKB
Process planning
Long range
Strategic capacity planning Sales and operations (aggregate) planning Sales plan Aggregate operations plan
Medium range
Logistics
Services
Vehicle capacity planning Vehicle loading Vehicle dispatching Warehouse receipt planning Weekly workforce scheduling Daily workforce scheduling
Order scheduling
Short range
Scheduling
Time Frame
Scheduling Time
Aggregation
Aggregation refers to the idea of focusing on overall capacity, rather than individual products or services.
Aggregation is done according to: Products Labour Time
An Example of Aggregation
Model No. A5532 K4242 L9898 L3800 M2624 M3880 Labour-hours Selling Required Price 4.2 $ 285 4.9 345 5.1 395 5.2 425 5.4 525 5.8 725
If Product Mix is stable with percentages as 32%, 21%, 17%, 14%, 10% and 6% respectively, Then define a standard model with labour-hours = (0.32x4.2) + (0.21x4.9) + (0.17x5.1) + (0.14x5.2) + (0.10x5.4) + (0.06x5.8) = 4.856 labour-hours per unit
An Example of Aggregation
Here, Operations Manager Makes Decisions About Intermediate Range Capacity Without Getting Into Details Of Specific Products, Parts, Or People. Later, He/She Deals With Financial Data, Personnel, Capacity, And Availability Of Raw Material As Well.
An Example of Aggregation
As an intermediate type planning, The aggregate plan interacts with both long range strategies, AND short-term planning activities.
External to firm
Current workforce
Inventory levels
Internal to firm
Level strategy
constant production rate or work force level is maintained over planning horizon
Mixed strategy
both inventory level changes and work force level changes occur
There are several ways for improving the effectiveness in the aggregate planning process:
2000
1000 Build Inv. 0 Jan Feb Mar April May June
Basic Relationships
Workforce
Number of workers at end of previous period Number of new workers at start of the period -
Inventory
Inventory at the end of a period Inventory at end of the previous period Production in current period Amount used to satisfy demand in current period
Cost
Cost for a period = Output Cost (Reg+OT+Sub) + Hire/Lay Off Cost + Inventory Cost + Back-order Cost
Transportation Method
QUARTER EXPECTED DEMAND REGULAR CAPACITY OVERTIME CAPACITY SUBCONTRACT CAPACITY
1 2 3 4
Regular production cost per unit Overtime production cost per unit Subcontracting cost per unit Inventory holding cost per unit per period Beginning inventory
Transportation Tableau
PERIOD OF USE Unused Capacity 9 300 PERIOD OF PRODUCTION Beginning Inventory 1 Regular Overtime Subcontract 2 Regular Overtime Subcontract 3 Regular Overtime Subcontract 4 Regular Overtime Subcontract Demand 900 1500 1600 300 600 1 0 2 3 3 6 4 Capacity
20
25 28
300
23
28 31
100
26
31 34
100
29
34 37
1000 100 500 1200 150 250 500 1300 200 500 1300 200 500 250
1200
20 25 28
23 28 31
26 31 34 23 28 31 20 25 28
1300 200
20 25 28
DisAggregation
The Output of Aggregate Planning is a Production Schedule for family groupings of products. For example, It tells us how many cars to make, But it does not indicate how many of them Should be two-doors, and how many will be four doors.
DisAggregation
A manufacturer firm needs more information to operate. We must know what quantities will be produced for each type of product AND what time. The process of Breaking the Aggregate Plan down into Greater Detail is called DisAggregation.
DisAggregation
Later, Disaggregation results in Master Production Schedule (MPS). This schedule specifies: 1) The sizing and timing of specific item production quantities, 2) The sizing and timing of manufactured or purchased components, 3) The sequence of individual orders or jobs, and 4) The short-term allocation of resources to individual operations.