P370- Aggregate Production Planning
Master Production Scheduling
1st level of disaggregation, break-down into more real end-items, horizon and buckets are no larger than APP (often shorter)
Aggregate Production Planning (APP)
A managerial statement of time-phased production rates, work-force levels, and inventory investment, which takes into account customer requirements (demand) and capacity limitations. Helps us attain our goals.
Nature of APP
Aggregate, time horizon- medium, time buckets- divisions of horizons, rolling horizon, nature of business determines (typically one year with one month buckets)
Three Pure Aggregate Plans
Chase, level, stable workforce
Aggregate
Classes of products, labor or other inputs, geographic location of production, often fictitious (exists only in plan)
Level
Constant workforce/production level with fluctuating inventory levels. Everyone knows # of hours they are working. Lots of waste.
Shop Floor Scheduling
Detailed, actual production schedule
Forecast
Drives the aggregate production plan. The APP is designed to meet this
Planning Horizon
Entire length of a plan
Material Requirements Planning
Extreme detail, down to each nut and bolt
Major Operations Planning Activities
LONG RANGE: Process planning ---> strategic capacity planning --> MEDIUM RANGE: Forecasting and demand management --> Sales and operations (aggregate planning): sales plan/aggregate operations plant --> manufacturing (master scheduling-->material requirements planning --> SHORT RANGE: order scheduling) and services (SHORT RANGE: weekly workforce and customer scheduling---> daily workforce and customer scheduling).
Bill of Materials (BOM)
List of things needed for a project
Lower levels of planning
Master Production Scheduling (MPS), Material Requirements Planning (MRP), Shop Floor Scheudling
Chase
Production and manpower fluctuate together- mimic each other. Reduce wastes, lots of hiring and firing
Sales Inventory Operations Planning (SIOP)
Requires sales plan and aggregate operations plan to work together
Stable Workforce
Size of workforce is constant, but number of hours worked fluctuates. Lots of overtime. The change in the # of hours worked is not indicative of a change in the # of workers.
Buckets
Slivers of time on the planning horizon
Rolling horizon
always have six months of planning in front