JADWAL RENCANA PRODUKSI

AGGREGATE PLANNING

Endah Rahayu Lestari

 Proses peramalan  informasi jumlah produk
 Buat rencana produksi :
upaya menjabarkan hasil peramalan menjadi
rencana produksi yang layak untuk dilakukan.
Salah satu metode  PERENCANAAN AGREGAT

PERENCANAAN AGREGAT :
 Salah satu metode perencaan produksi
 Menggunakan satuan produksi pengganti  outputnya
tidak dalam tiap jenis produk (individual product)
Aggregate Planning
Aggregate planning is an intermediate planning
method used to determine the necessary resource
capacity a firm will need in order to meet its
expected demand.

Demand
Units

Time
 Overview of Planning Levels
Organizations make capacity decisions on three levels:
 Short-range plans (Detailed plans)
 Machine loading
 Job assignments
 Intermediate plans (General levels)
 Employment
 Output, and inventories
 Long-range plans
 Long term capacity
 Location / layout
 Aggregate Planning
 Determine the resource capacity needed to meet demand
over an intermediate time horizon
 Aggregate refers to product lines or families
 Aggregate planning matches supply and demand
 Objectives
 Establish a company wide game plan for allocating
resources
 Develop an economic strategy for meeting demand
Aggregate Planning

 For intermediate time horizon, 2-12 months

 Not feasible to build new facility
 May be feasible to hire/lay off workers, overtime,
or subcontract
 Adjusting capacity OR managing demand
Quantitative Techniques For AP

 Pure Strategies
 Mixed Strategies
 Linear Programming
 Transportation Method
 Other Quantitative Techniques
 Demand
Examples of Capacity

Units
Adjustment to Meet Demand

Time

1. Producing at a constant rate and using inventory to absorb fluctuations in

demand
2. Hiring and firing workers to match demand
3. Maintaining resources for high demand levels
4. Increase or decrease working hours (overtime and under time)
5. Subcontracting work to other firms
6. Using part-time workers
7. Providing the service or product at a later time period (backordering)
Goal of Aggregate Planning
To develop a realistic production plan on an aggregate level
that will satisfy organizational goals and customer demand
needs at the lowest total cost.
Other objectives should be considered:
 maximize customer service
 minimize inventory investment
 minimize changes in workforce levels
 minimize changes in production rates
 maximize utilization of plant and equipment
Aggregate Planning Process
Operational parameters of AP

Specify operational parameters over the time horizon:

 production rate
 workforce
 Overtime/under time
 machine capacity level
 subcontracting
 backlog
 inventory on hand
Aggregate Planning Inputs
 Resources  Costs
 Workforce  Inventory carrying
 Facilities  Back orders
 Demand forecast  Hiring/firing
 Overtime
 Policies
 Inventory changes
 Subcontracting
 Subcontracting
 Overtime
 Inventory levels
 Back orders

13-12
Aggregate Planning Outputs

 Total cost of a plan

 Projected levels of:
 Inventory
 Output
 Employment
 Subcontracting
 Backordering
 Adjusting Capacity to Meet Demand
Producing at a constant rate and using inventories to
absorb fluctuations in demand ie. changing inventory
levels
Varying work force size (hiring and firing workers) so
that production matches demand
Varying production capacity by increasing or decreasing
working hours (overtime or idle time)
 Options of Adjusting Capacity to
Meet Demand

Using part-time workers to change production rate

Subcontracting work to other firms
Providing the service or product at a later time period
(backordering)
 Strategy Details

 Overtime & under time - common when demand

fluctuations are not extreme
 Subcontracting - useful if supplier meets quality &
time requirements
 Part-time workers - feasible for unskilled jobs or if
labor pool exists
 Backordering - only works if customer is willing to
wait for product/services
Information Needed for an Aggregate Plan
 Demand forecast in each period
 Production costs
 labor costs, regular time ($/hr) and overtime ($/hr)
 subcontracting costs ($/hr or $/unit)
 cost of changing capacity: hiring or layoff ($/worker) and
cost of adding or reducing machine capacity ($/machine)
 Labor/machine hours required per unit
 Inventory holding cost ($/unit/period)
 Stock out or backlog cost ($/unit/period)
 Constraints: limits on overtime, layoffs, capital available,
stockouts and backlogs
 A general procedure/techniques for
Aggregate Planning
1. Determine demand for each period
2. Determine capacities (regular time, over time, and subcontracting)
for each period
3. Identify policies that are pertinent
4. Determine units costs for regular time, overtime, subcontracting,
holding inventories, back orders, layoffs, and other relevant costs
5. Develop alternative plans and compute the costs for each
6. Select the best plan that satisfies objectives. Otherwise return to
step 5.
 Cumulative Graph
Cumulative output/demand

Inventory Shortage

Inventory Build Up

Cumulative
production
Cumulative
demand
Period
Aggregate Planning Strategies for meeting
uneven demand

 Maintain a level workforce

 Maintain a steady output rate

 Match demand period by period

 Use a combination of decision variables

Capacity and Demand in the aggregate planning

If capacity and demand are nearly equal, emphasis

should be placed on meeting demand as efficiently as
possible.
If capacity is greater than demand the firm might
chose promotion and advertising in order to increase
demand.
If capacity is less than demand the firm might
consider subcontracting a portion of the work load.
Aggregate Planning Strategies
 Aggregate Planning Strategies
 LEVEL scheduling strategy
 Produce same amount every day
 Keep work force level constant
 Vary non-work force capacity or demand options
 Often results in lowest production costs
 CHASE scheduling strategy
 Vary the amount of production to match (chase) the sales forecast
 This requires changing the workforce (hiring & firing)
 Mixed strategy
 The CHASE and the LEVEL strategies are rarely used in their pure
form.
 Combines 2 or more aggregate scheduling options
Level Strategy ...........(1)
 Maintaining a steady rate of regular-time output while meeting
variations in demand by a combination of options.
 Capacities are kept constant over the planning horizon
 The level method allows for a constant rate of production and uses
inventory levels to absorb fluctuations in demand.
 Cost of strategy – holding items in inventory
 When demand is lower than production, inventory
increases
 When demand exceeds production, inventory decreases
 Level Strategy ...... (2)
 Advantages
• Stable output rates and workforce levels
• Worker levels and production output are stable
• Tends to be the preferred strategy of many organizations,
including labor unions.
 Disadvantages
• Greater inventory costs
• Increased labor costs in term of overtime and idle time
• Resource utilizations change over time
Chase Strategy ....... (1)

 Maintaining a steady rate of regular-time output

while meeting variations in demand by a combination
of options.
 The chase method helps firms match production and
demand by hiring and firing workers as necessary to
control output
 Cost of strategy – hiring and firing workers
Chase Strategy ...... (2)

 Matching capacity to demand; the planned output for a

period is set at the expected demand for that period.
 Capacities are adjusted to match demand requirements over the
planning horizon
 ThisThis strategy would not be feasible for industries which
require highly skilled labor or where competition for labor is
fierce.
 This strategy would be cost effective during periods of high
unemployment or when low-skilled labor is acceptable.
 Chase Strategy ...... (3)
 Advantages
• Investment in inventory is low
• Labor utilization is high
 Disadvantages
• The cost of adjusting output rates and/or workforce levels
• Cost of fluctuating workforce levels.
• Potential damage to employee morale
 The Extremes

Level Chase
Strategy
Strategy
Production
Production rate is
equals demand
constant
 PLANNING STRATEGIES FOR AGGREGATE PLANS

Possible Alternatives Possible Alternatives

Strategy during Slack Season during Peak Season

1. Chase #1: vary workforce Layoffs Hiring

level to match demand
2. Chase #2: vary output Layoffs, undertime, Hiring, overtime,
rate to match demand vacations subcontracting
3. Level #1: constant No layoffs, building No hiring, depleting
workforce level anticipation inventory, anticipation inventory,
undertime, vacations overtime, subcontracting,
backorders, stockouts
4. Level #2: constant Layoffs, building antici- Hiring, depleting antici-
output rate pation inventory, pation inventory, over-
undertime, vacations time, subcontracting,
backorders, stockouts
 Ex. Candy Company

Given the following costs and quarterly sales forecasts of a candy company,
compare the two strategies:

Strategy 1: Level production with constant workforce level

Strategy 2: Chase production by varying workforce level

Quarter Sale Forecast  Hiring cost $100 per worker

(LB)  Firing cost $500 per worker
 Inventory carrying cost $0.50 per pound per
Spring 80,000
quarter
Summer 50,000
 Production rate per 1000 pounds per
Fall 120,000 quarter
 employee
Winter 150,000 100 workers
 Beginning workforce