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Forecasting, Planning and Scheduling managementsupport

This website provides an outline of forecasting, planning, and scheduling strategies for improved management. It covers topics such as MRP and ERP, decline maturity, product design, capacity decisions, and more.

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Forecasting, Planning and Scheduling managementsupport

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  1. Forecasting, Planning and Schedulinghttp://www.managementsupport.com

  2. Outline • Forecasting • Planning • Scheduling • MRP & ERP

  3. Decline Maturity Introduction Growth Practical to change price or quality image Strengthen niche Best period to increase market share R&D product engineering critical Cost control critical Poor time to change image, price, or quality Competitive costs become critical Defend market position Fax machines Drive-thru restaurants 3 1/2” Floppy disks Company Strategy/Issues CD-ROM Sales Station wagons Internet Color copiers HDTV Little product differentiation Cost minimization Over capacity in the industry Prune line to eliminate items not returning good margin Reduce capacity Standardization Less rapid product changes - more minor changes Optimum capacity Increasing stability of process Long production runs Product improvement and cost cutting Product design and development critical Frequent product and process design changes Short production runs High production costs Limited models Attention to quality Forecasting critical Product and process reliability Competitive product improvements and options Increase capacity Shift toward product focused Enhance distribution OM Strategy/Issues Strategy and Issues During a Product’s Life

  4. Forecasting Approaches Qualitative Methods Quantitative Methods • Used when situation is vague & little data exist • New products • New technology • Involves intuition, experience • e.g., forecasting sales on Internet • Used when situation is ‘stable’ & historical data exist • Existing products • Current technology • Involves mathematical techniques • e.g., forecasting sales of color televisions

  5. Overview of Qualitative Methods • Jury of executive opinion • Pool opinions of high-level executives, sometimes augment by statistical models • Delphi method • Panel of experts, queried iteratively • Sales force composite • Estimates from individual salespersons are reviewed for reasonableness, then aggregated • Consumer Market Survey • Ask the customer

  6. Marketplace and Demand Research and Technology Relationships of the Aggregate Plan Product Decisions Process Planning & Capacity Decisions Demand Forecasts, orders Work Force Raw Materials Available Inventory On Hand Aggregate Plan for Production External Capacity Subcontractors Master Production Schedule, and MRP systems Detailed Work Schedules

  7. Choosing a Scheduling Method • Qualitative factors • Number and variety of jobs • Complexity of jobs • Nature of operations • Quantitative criteria • Average completion time • Utilization (% of time facility is used) • WIP inventory (average # jobs in system) • Customer waiting time (average lateness)

  8. Priority Rules for Dispatching Jobs FCFS • First come, first served • The first job to arrive at a work center is processed first • Earliest due date • The job with the earliest due date is processed first • Shortest processing time • The job with the shortest processing time is processed first • Longest processing time • The job with the longest processing time is processed first • Critical ratio • The ratio of time remaining to required work time remaining is calculated, and jobs are scheduled in order of increasing ratio. EDD SPT LPT CR

  9. Marketing Customer Demand Production Capacity Inventory Finance Cash Flow Human Resources Manpower Planning Aggregate Production Plan Procurement Supplier Performance Management Return on Investment Capital Engineering Design Completion Inputs to the Production Plan

  10. MRP Benefits • Increased customer satisfaction due to meeting delivery schedules • Faster response to market changes • Improved labor & equipment utilization • Better inventory planning & scheduling • Reduced inventory levels without reduced customer service

  11. Distribution Resource Planning • DRP requires: • Gross requirements, which are the same as expected demand or sales forecasts • Minimum levels of inventory to meet customer service levels • Accurate lead times • Definition of the distribution structure

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