In Class Lecture 11/1/2010

Monday, November 01, 2010 7:46 PM

Good Book: Checklist Manifesto

Went over Mid-Term First

Do Activity on This week's PP for the Activity folder

Went over PowerPoint for this week

Forecasting Why? Budget Investments based upon this Demand Dependent (to be planned) This can be found by using the independent demand (below) Independent (to be forecast) Can be influenced through promotions, incentives, and pricing Types Qualitative, Time, Associate (or casual), Simulation Components of Demand Level Trend Seasonality Cycles with the weather, or something else, like peak days of a week, etc. You can treat seasonality separately to make forecasting easier OR you can use the complete year or period, etc. Cyclicity Business cycle Irregular Variation Unusual things Random Variation No way to forecast but lumped as random Auto correlated Today's demand has an effect on tomorrows Common Types of Trends Linear Asymptotic Exponential S-curve J-curve Planning for Operations Strategic Business Plan (up to 10 years) Forecasts Sales Plan/ Operations Plan/ Financial Plan aka Aggregate Plan (medium term: months; in terms of aggregate units) (---Disaggregate---) + actual orders
Master Production Schedule (short term: weeks; in terms of end items) (---Explode---)

+ BOM (Build of Material), inventory records, lead time information, Materials Requirement Planning (MRP) (days or hours; in terms of all components, parts, sub assemblies, purchased items, .) Production activity control/ Purchase plans

In Class Lectures Page 1

Order entry & promise

Production (Aggregate) plan

Resource requirement plan

FAS
(final assembly schedule)

MPS
(master production schedule)

Rough cut Capacity planning

MRP
(materials requirement plan)

CRP
(capacity requirement plan)

Purchasing & PAC

(production activity control)

Input/output control Operations sequencing

Plan in a systematic way, such as create the above flow charts but maybe even broken down within each level to its own flow c hart for the processes

In Class Lectures Page 2

Planning leads to detailed plans for EVERY activity

In Class Lectures Page 3