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:
UCL ESPO/IAG/POMS PROD 2800 PRODUCTION AND OPERATIONS MANAGEMENT Gestion de la production et des opérations Per AGRELL Lecture 3Aggregate planning
PROD Outline Hierarchical production planning Aggregate production planning – Models – Approaches Yield management
PROD Product structure framework
PROD Customer order point
PROD Production planning Planning problem – Uncertainty – Dimensionality How to make a consistent production planning system over multiple time horizons in a complex, uncertain world?
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
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
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
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
PROD Aggregation rules Products Product Groups Machines Machine Groups Customers Market Regions Operators Labor Centers Products Machines Operators Customers Criteria?Measure?
PROD Time horizon in APP t
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
PROD Decision Inventory level Delivery regime (MTO,MTS) Change in workforce Change of load (overtime) Subcontracting Change of process Complementary lines