Professional Documents
Culture Documents
Capacity Planning
Capacity Planning
Capacity Planning
Production-Planning Hierarchy
Aggregate Planning
Master Production Scheduling
Types of Production-Planning and Control Systems
Wrap-Up: What World-Class Companies Do
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Many companies fail to execute strategy
The
TheVision
VisionBarrier
Barrier
Only 5 % of the
work force under-
under-
stand the strategy
The
TheManagement
Management
The
ThePeople
PeopleBarrier
Barrier
Barrier
Barrier
Only 25% of 99 of
of 10
10 companies
companies 85% of executive
managers have fail to execute teams spend less
personal objectives
strategy!! *) than one hour/month
and incentives linked
discussing strategy
to the strategy
60% of organisations
dont link budgets
to strategy
The Resource
Barrier
Higher strategic
Mission
Mission decision
Corporate
Corporate Strategy
Strategy
Business
Business strategy
strategy
Functional
Functional Strategy
Strategy
Strategic
SCM/Logistics
SCM/Logistics strategy
strategy decisions for
logistics
Capacity
Capacity Issues
Issues
Aggregate
Aggregate plans
plans Tactical decisions
Master
Master Schedule
Schedule for logistics
Short-term
Short-term schedules
schedules Operational
decisions
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Production Planning Horizons
Long-Range
Long-Range Capacity Planning
(years)
Medium-Range
Aggregate Planning
(6-18 months)
Short-Range
Master Production Scheduling
(weeks)
Entire
Long-Range Capacity Planning
Product Line
Product
Aggregate Planning
Family
Specific
Master Production Scheduling
Product Model
Medium- Range Product Division operations managers make plans for (1)
(6-18 months) family: e.g. Aggregate employment layoffs, hiring, recalls, vacations, overtime,
Ford F-series Planning part-time employees; (2) inventories; (3) utilities; (4) facility
trucks/ modifications; (5) material supply contracts.
Short-Range A specific
Master Factory operations managers make plans for master
(several weeks product
Production production schedules the quantity and timing of the
to a few model: e.g.,
Scheduling production of finished goods and end items.
months) Ford F-150
Resources required to make Factory operations managers make plans for (1) production
specific product model: e.g. labour Production schedules of parts and assemblies to be manufactured; (2)
Planning & schedules of purchased materials; (3) shop-floor schedules
hours, materials and components , Control
production capacities. Systems machine changeovers, batch movements; (4) workforce
schedules.
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Inputs
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Capacity Planning
Definition
The capacity of an operation is its maximum
throughput in a specified time
The CAPACITY of a supply chain sets the
maximum amount of product that can be
delivered to final customers in a given time
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Type of capacity
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Bottleneck
Flow of
material
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Working Example
1. The main bottling plant at Pakola Soft drinks has a capacity
of 80,000 liters a day and works a seven day week.
2. It fills standard bottles of 750 ml, and these are passed to a
packing area which can form up to 20,000 cases a day with
12 bottles each. The packing area works a five day week.
3. The cases are taken to warehouses by a transport company
whose 8 lorries can each carry 300 cases, and make up to 4
trips a day for 7 days a week.
4. There are two main warehouses, each of which can handle up
to 30,000 cases a week. Local deliveries are made from the
warehouses by a fleet of small vans that can handle
everything passed to them by the warehouse. What is the
capacity of this part of the distribution system? How can
Pakola increase the capacity?
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Capacity of distribution at Pakola Softdrinks Plant
Bottleneck
Bottling
Packing Transport Delivery
Plant area Company Warehouse van
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Matching capacity and demand
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Matching capacity and demand
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Matching capacity and demand
There are several ways of meeting the demand of 100 units
week
Working a single shift on weekdays would need 100/30 = 3.33
testers. If IPO only employs full time testers, she has to round
this up to 4. Then the utilization of each would be 3.33/4= 0.83
or 83%
Employing 3 testers full-time, and one part-time tester for
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Resource Requirement Planning
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