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    Chapter 7

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    Thức Nguyễn
    The document discusses planning and control in operations management, which involves activities like scheduling, loading, sequencing, and monitoring work to reconcile market demands with available resources. Key aspects covered include how volume and variety, supply and demand uncertainty, and throughput versus demand times affect planning and control approaches. The document also examines loading, sequencing, scheduling, and monitoring as specific planning and control activities used in operations.

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    Chapter 7

    Uploaded by

    Thức Nguyễn
    20 views28 pages
    The document discusses planning and control in operations management, which involves activities like scheduling, loading, sequencing, and monitoring work to reconcile market demands with available resources. Key aspects covered include how volume and variety, supply and demand uncertainty, and throughput versus demand times affect planning and control approaches. The document also examines loading, sequencing, scheduling, and monitoring as specific planning and control activities used in operations.

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    The document discusses planning and control in operations management, which involves activities like scheduling, loading, sequencing, and monitoring work to reconcile market demands with available resources. Key aspects covered include how volume and variety, supply and demand uncertainty, and throughput versus demand times affect planning and control approaches. The document also examines loading, sequencing, scheduling, and monitoring as specific planning and control activities used in operations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    20 views28 pages

    Chapter 7

    Uploaded by

    Thức Nguyễn
    The document discusses planning and control in operations management, which involves activities like scheduling, loading, sequencing, and monitoring work to reconcile market demands with available resources. Key aspects covered include how volume and variety, supply and demand uncertainty, and throughput versus demand times affect planning and control approaches. The document also examines loading, sequencing, scheduling, and monitoring as specific planning and control activities used in operations.

    Copyright:

    © All Rights Reserved
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    of 28

    Operation

    Management
    Chapter 7
    Planning and Control in Operation
    Management

    8/31/2022 Lam Hoang Phuong 1


    What is planning and control?

    Planning and control is concerned with the activities that attempt to


    reconcile the demands of the market and the ability of the operation’s
    resources to deliver.

    Planning and controlling are inter-related to each other. Planning sets


    the goals for the organization and controlling ensures their
    accomplishment.

    8/31/2022 Lam Hoang Phuong 2


    Lam Hoang Phuong

    What is planning and control?

    Planning decides the control


    Planning and control involve process and controlling
    scheduling, co-ordinating provides sound basis for
    and organizing operations planning. In reality, planning
    activities. and controlling are both
    dependent on each other.

    8/31/2022 3
    Lam Hoang Phuong

    Planning vs Controlling

    Planning is a formalization of what is intended to happen at some time in the future.


    A plan is a course of actions which need to be done in order to achive pre-set goals.

    Plan is made based on forecasting and expectations. But the environments change
    thus plan can not guarantee goals achievement.

    Controlling is activities ensuring that goals can be achieved by monitoring changes of


    environment and implementing necessary actions to keep everything in the right way.

    8/31/2022 4
    • Operations which produce a high variety of services or
    products in relatively low volume will have customers with
    different requirements and use different processes from
    The volume– operations which create standardized services or products in
    high volume.
    variety
    effect on
    planning and
    control

    Lam Hoang Phuong 5


    Lam Hoang Phuong

    How do supply and demand affect planning


    and control

    Uncertainty in supply and demand:

    • Uncertainty makes it more difficult for planning and control.


    • Planning and control systems should be able to cope with uncertainty in demand.

    Dependent and independent demand:

    • Dependent demand: Some operations can predict demand with relative certainty because
    demand for their services or products is dependent upon some other factor which is known well.
    • Independent demand: future demand is supplied without knowing exactly what that demand will
    be; or in the terminology of planning and control, they do not have firm ‘forward visibility’ of
    customer orders.

    8/31/2022 6
    Lam Hoang Phuong

    Responding to demand
    • Demand can be responded in various ways depending
    on types of products or services.

    • The planning and control activity will vary depending


    on how much work is done before demand is known.

    • The process of planning and controlling can start as


    soon as the customers confirm the contract with the
    company or before that.

    8/31/2022 7
    P: throughput time
    D: the amount of time from
    ordering to receiving

    Responding
    to demand
    Lam Hoang Phuong

    • P : D ratio contrasts the total length of time customers have


    to wait between asking for the service or product and
    receiving it, called the demand time, D , and the total
    throughput time from start to finish, P.
    • Throughput time is how long the operation takes to design
    the service or product (if it is customized), obtain the
    resources, create and deliver it.
    P : D ratios • The larger the P : D ratio the more speculative the
    operation’s planning and control activities will be.
    • By reducing their P : D ratio, operations reduce their
    degree of speculative activity and also reduce their
    dependence on forecasting (although bad forecasting will
    lead to other problems).

    8/31/2022 9
    Lam Hoang Phuong

    P and D
    times
    depend on
    the
    operation

    8/31/2022 10
    What are the
    activities of planning
    and control?
    • Planning and control
    activities include loading,
    sequencing, scheduling, and
    monitoring and control.

    8/31/2022 Lam Hoang Phuong 11


    Loading

    Loading is the amount of work that is allocated to a work centre.

    The valuable operating time available for productive working, even in the
    best operations, can be significantly below the maximum time available
    because of many reasons.

    For any given level of demand a planning and control system should be
    able to indicate the implications for the loading on any part of the
    operation.
    8/31/2022 Lam Hoang Phuong 12
    Finite and infinite loading

    Finite loading is an approach which only allocates work to a work centre (a person, a
    machine, or perhaps a group of people or machines) up to a set limit. This limit is the
    estimate of capacity for the work centre (based on the times available for loading).

    Infinite loading is an approach to loading work which does not limit accepting work, but
    instead tries to cope with it.

    8/31/2022 Lam Hoang Phuong 13


    Finite and infinite loading

    8/31/2022 Lam Hoang Phuong 14


    • When work arrives, decisions must be taken
    on the order in which the work will be
    tackled. This activity is termed ‘sequencing’.
    The priorities given to work in an operation
    are often determined by some predefined
    set of rules:
    Sequencing • Physical constraints
    • Customer priority
    • Due date (DD)
    • Last in first out (LIFO)
    • First in first out (FIFO)
    • Longest operation time (LOT)
    • Shortest operation time first (SOT)

    8/31/2022 Lam Hoang Phuong 15


    • Steve Smith is a website designer in a business
    school. Returning from his annual vacation, five
    design jobs are given to him upon arrival at work
    (he finished all outstanding jobs before he left).
    He gives them the codes A to E. Steve has to
    decide in which sequence to undertake the jobs.
    Example: He wants both to minimize the average time the
    jobs are tied up in his office and, if possible, to
    meet the deadlines (delivery times) allocated to
    each job.

    8/31/2022 Lam Hoang Phuong 16


    Example:
    Scheduling

    Some operations require a detailed timetable showing at what time or


    date jobs should start and when they should end – this is scheduling.

    Schedules of work are used in operations where some planning is


    required to ensure that customer demand is met.

    8/31/2022 Lam Hoang Phuong 18


    • Supposed a coffee shop opens from 8:00am
    - 10:00pm
    • Peak hours: 10:00am - 1:00pm; 6:00pm-
    9:00pm.
    • Normally: 100 customers/ hour
    Exercise: • Peak hour: 150 customers/ hour
    • 1 staff can serve 25 customers/hour.

    • How many staff do we need for 1 day? Make


    a working schedule for waiting staff.

    8/31/2022 Lam Hoang Phuong 19


    • Forward scheduling involves starting work as soon as it
    Forward and arrives.
    backward • Backward scheduling involves starting jobs at the last
    possible moment to prevent them from being late.
    scheduling

    8/31/2022 Lam Hoang Phuong 20


    Gantt charts

    • Gantt chart is a simple device


    which represents time as a bar, or
    channel, on a chart. The start and
    finish times for activities can be
    indicated on the chart and
    sometimes the actual progress of
    the job is also indicated.

    8/31/2022 Lam Hoang Phuong 21


    • Where the dominant resource in an operation is its
    staff, then the schedule of work times effectively
    determines the capacity of the operation itself.
    Scheduling work
    patterns • The main task of scheduling is to make sure that
    sufficient numbers of people are working at any
    point in time to provide a capacity appropriate for
    the level of demand at that point in time. This is
    often called staff rostering.

    8/31/2022 Lam Hoang Phuong 22


    Scheduling
    work
    patterns
    Lam Hoang Phuong

    Requirements for scheduling work

    • Capacity matches demand;


    • The length of each shift is neither excessively long nor too short to be attractive to staff;
    • Working at unsocial hours is minimized;
    • Days off match agreed staff conditions – in this example, staff prefer two consecutive days
    off every week;
    • Vacation and other ‘time-off’ blocks are accommodated;
    • Sufficient flexibility is built into the schedule to cover for unexpected changes in supply
    (staff illness) and demand (surge in customer calls).

    8/31/2022 24
    Lam Hoang Phuong

    Monitoring and controlling the operation

    Each part of the operation has to be monitored to ensure that planned activities are
    indeed happening. Any deviation from the plans can then be rectified through some kind
    of intervention in the operation, which itself will probably involve some re-planning

    Controlling methods:

    Push and pull control Drum, buffer, rope


    8/31/2022 25
    Push and
    pull control

    8/31/2022 Lam Hoang Phuong 26


    Drum, buffer, rope

    8/31/2022 Lam Hoang Phuong 27


    Thank you!

    8/31/2022 Lam Hoang Phuong 28

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