Week 7 & 8

Week 7 & 8

1. Planning and control

   • Planning
     • Planning is deciding  -What _when -Resources?
   • Control
     • What is happening? Is there deviation from what should be happening? Resources that need to change to get to intended plan
   • Short term
     • Dissaggregated forecasts or actual demand Interventions of resources to stop deviations from plan
   • Medium length
     • Partially disaggregated demand forecasts  financial and operations objectives resources and contingencies
   • Long term
     • financial objectives, resources in aggregate form and forecasts on aggregate resouces

2. Capacity

   • Long term stratergy
     • Amount of capacity will depend on current and future demand, figuring out the optimal level of output for each area.
   • Agrregate demand and capacity
     • what resources do we need in next 2-18 months? Brief overview of what we will require in near future. Medium length planning.
   • Short term capacity

3. Measuring capacity and demand

   • Measure demand, seasonal trends fluctuations dayily weekly monthly etc. Can lead to uncertainty in demand, bull whip affect. Forecasting is key: -Reduces inventory and costs                                - Better service/less stock outages
   • Forecasting techniques
     • Collaboration
       • Suppliers jointly plan key supply chain activities
   • Capacity plans
     • Level
       • Ignore fluctuations and kepp activity level constant
     • Chase Demand
       • Change capacity to mirror demand when possible.
     • Demand mgmt
       • Attempt t change demand to fit capacity
     • Mixed plan
       • Mix of all plans in order to benefit company in best way possible.
     • Yield managment
       • Combination of method to maximise profit potential. Includes over booking by hotels, airlines etc. Must have contingency plans in case all turn up.

4. Design thinking in OM

   • Designing products and services
     • Meet customers needs/expectations. Fits into companies chosen direction.
   • Designing the network
     • Suppliers distributors etc etc
   • Designing layout
     • Arrangment of people and resources in factory/firm. Job design.

5. Process desgin types

   • How a business delivers a good or service to its customers.
   • Project
     • One offs, high customisation, set start and finish time, many skills combined
   • Jobbing
     • Low quantities, customised, not specialised job
   • Batch
     • Higher volumes and vaiety, set up costs. set pathways and repeitive products
   • Mass
     • Higher volume than batch, low variety little or no skills needed. e.g car manufacturing
   • Continuous
     • highly capital intensive very low skills , extremely large volume and low variety.