Presentation is loading. Please wait.

Presentation is loading. Please wait.

UCL ESPO/IAG/POMS PROD 2800 PRODUCTION AND OPERATIONS MANAGEMENT Gestion de la production et des opérations Per AGRELL Lecture 3Aggregate.

Similar presentations


Presentation on theme: "UCL ESPO/IAG/POMS PROD 2800 PRODUCTION AND OPERATIONS MANAGEMENT Gestion de la production et des opérations Per AGRELL Lecture 3Aggregate."— Presentation transcript:

1 UCL ESPO/IAG/POMS PROD 2800 PRODUCTION AND OPERATIONS MANAGEMENT Gestion de la production et des opérations Per AGRELL Lecture 3Aggregate planning

2 PROD Outline Hierarchical production planning Aggregate production planning – Models – Approaches Yield management

3 PROD Product structure framework

4 PROD Customer order point

5 PROD Production planning Planning problem – Uncertainty – Dimensionality How to make a consistent production planning system over multiple time horizons in a complex, uncertain world?

6 PROD Hierarchical production planning Defined decision level – Resource horizon – Demand uncertainty – Process uncertainty – Information Principles: Higher levels set resources and targets for next lower level Postpone detailed decisions until uncertainty is reduced

7 PROD HPP example Annual demand by item and by region Annual demand by item and by region Monthly demand for 15 months by product type Monthly demand for 15 months by product type Monthly demand for 5 months by item Monthly demand for 5 months by item INFORMATION Allocates production (time) among plants Allocates production (time) among plants Determines seasonal plan by product type Determines seasonal plan by product type Determines monthly item production schedules Determines monthly item production schedules DECISIONDECISION LEVEL Corporate Plant manager Shop manager

8 PROD Marketing planning Business plan Financial planning Production planning Demand management Resource planning Aggregate planning Master production scheduling Master requirements planning Inventory control Order scheduling Purchasing Dispatching Demand forecasts Order

9 PROD Aggregate planning Objective – Adjust resources to meet fluctuating demand. Means – Aggregated production rate – Aggregated workforce level – Aggregated inventory level Long-term – 1-5 years Uniform measures Frame for lower level planning Basis for Facility Location Analysis

10 PROD Aggregation rules Products Product Groups Machines Machine Groups Customers Market Regions Operators Labor Centers Products Machines Operators Customers Criteria?Measure?

11 PROD Time horizon in APP t

12 PROD Relevant costs Production – Direct costs – Overtime/undertime costs Capacity change – Hiring/firing costs – Extra setup costs, opportunity costs – Subcontracting Inventory – Holding cost Backorder/shortage costs

13 PROD Decision Inventory level Delivery regime (MTO,MTS) Change in workforce Change of load (overtime) Subcontracting Change of process Complementary lines

14 PROD Capacity Strategies t Aggregate demand

15 PROD Classical LP Models Dynamic, deterministic, piecewise linear costs Objective: – Total expected cost Decision: – Inventory/backlog – Workforce (hiring/firing) – Workload (overtime)

16 PROD Yield management Demand management – Segmentation on Price Order regime Service level – Management of Duration Cost

17 PROD Price/service duration matrix FixedVariable Predictable Unpredictable DURATION PRICE

18 PROD Summary Hierarchical planning principle Aggregated planning – Level, chase, lead strategies – Workforce and inventory tradeoffs Long-term horizon Linear programming Yield management


Download ppt "UCL ESPO/IAG/POMS PROD 2800 PRODUCTION AND OPERATIONS MANAGEMENT Gestion de la production et des opérations Per AGRELL Lecture 3Aggregate."

Similar presentations


Ads by Google