📊

Operations Management: Planning and Control

Jul 23, 2024

Lecture Notes

Operations Management: Planning and Control

Introduction

  • Emphasis on Planning and Control after operations design.
  • Operation Design: Focuses on organizing business, determining the physical form, and structure of the process.
  • Planning and Control: Focuses on continuous action, manufacturing products, providing services to meet client needs.

Distinction between Planning & Control and Design

  • Design: Passive activity, determines broad limits of operations process.
  • Planning and Control: Active process to manufacture products or render services.

Reconciling Demand and Supply

  • Reconciliation of demand side (client needs) and supply side (products/services).
  • Dimensions of reconciliation:
    • Volume: Quantity of products or services.
    • Timing: When products/services can be provided
    • Quality: Consistency with consumer expectations.

Tasks in Planning and Control

  • Loading Tasks: Volume of work allocated to work centre.
  • Sequencing of Tasks: Order in which tasks are performed.
  • Scheduling of Tasks: Detailed roaster for task timing and completion.

Capacity in Planning and Control

  • Capacity: Maximum value-added activity over time under normal conditions.
  • Understanding Capacity:
    • Nature of machinery/equipment.
    • Informed by demand forecast.
    • Adjust capacities based on peak and normal times (e.g., electricity usage in winter vs. summer).

Steps in Capacity Planning

  1. Determine total demand and required capacity.
  2. Identify alternative capacity plans:
  • Level Capacity Plan: Constant capacity, ignore demand fluctuations.
  • Chase Demand Plan: Adjust capacity based on demand fluctuations.
  • Demand Management Plan: Adjust demand to match capacity.
  1. Select the most suitable capacity planning and control approach.

Techniques in Capacity Planning

  • Moving Average Demand Forecasting: Basing current demand on previous demand.
  • Cumulative Representation: Graphically evaluating effects of capacity plans.
  • Inventory: Stocks of raw materials and finished goods, control supply chain.

Quality in Planning and Control

  • Quality: Value added to the product, meeting consumer expectations.
  • Quality Gap: Difference between expected and perceived quality.
  • Steps to ensure quality:
    1. Define Quality Characteristics: Performance ability, appearance, reliability, durability, serviceability.
    2. Measure Quality Characteristics.
    3. Set Standards for Quality: Aim for zero defects, maintain high standards.
    4. Control Quality: Check products/services against set standards.
    5. Identify and Rectify Quality Gaps.
    6. Continuous Improvement.

Operations Improvement

  • Determine current performance to guide improvements.
  • Performance Standards:
    • Historical: Compare with past performance.
    • Target: Predetermined standards.
    • Competitor: Compare with competitors' performance.
    • Absolute: Compare with theoretical maximum performance.
  • Identify priority areas for improvement.
  • Breakthrough Improvement: Large-scale, dramatic changes.
  • Continuous Improvement: Small, regular incremental changes.

Failure Prevention and Recovery

  • Types of failures:
    • Design Failure: E.g., product design errors.
    • Facility Failure: Equipment/machine breakdowns.
    • Staff Failures: Mistakes or lack of skills.
    • Supplier Failures: Non-compliance with agreements.
    • Customer Failures: Incorrect use of products/services.
  • Identify, prevent, and have contingency plans for failures.

Total Quality Management (TQM)

  • Ensuring high-quality products to satisfy consumer needs and expectations.
  • Aim for quality in all parts of the business, involve all employees.
  • ISO 9000 Series: Internationally standardized quality management.
  • Implementation Factors:
    • Integrate TQM with overall business strategy.
    • Support from top managers and employees.
    • Teamwork, feedback, communication.
    • Training in quality techniques and methods.

Summary

  • Covered operations design, planning and control, detection and recovery of failures, and ensuring product quality.
  • Importance of continuous improvement and quality management in operations.

End of Lecture

Full transcript