1. N ATURE OF PLANNING AND CONTROL Chapter 10

2. P LANNING & CONTROL IN OPERATIONS Planning and control is one of the major responsibilities of operations. Planning and control is related to two major components: Market Requirements What Operations resources can offer What is planning ? Planning is about what should happen in the future. Plan is not a guarantee that an event will happen, but its just an intention. What is control? Control deal with changes that happens in the scheduled plan. Control makes adjustments which allow the operation to achieve its objectives.

3. P URPOSE OF PLANNING AND CONTROL The main purpose of planning and control is to make a connection between supply and demand. Three categories of planning and control: 1. Long –term - Long – term the operations managers make plans concerning what they intend to do, what resources needed and what objectives to be achieved. But here only likely demand is taken. And the importance is just for planning, not control. For example Hospital planning for 200 patients, 2. Medium – term – In Medium – term the planning and control is based the total demand. 3. Short – term - there is very little chance for changes. And the resources are ready. Demand is known.

4. T HE VOLUME – VARIETY EFFECT ON PLANNING AND CONTROL When volume is low and variety is high: Planning will be short -term. For example an architect, who will only be able to design, if there is a request for a particular type of building. So he arrange resources and staffing according to the request. Control will be detailed, because if there is a delay in one part of the job, the other part will be affected. The response or delivery will be slow. When volume is high and variety low: The delivery will be fast. Planning will be long term. And the strength of operation is low, because if a generator fails, the operation will fail to deliver, but can fix the same with additional options.

5. T HE SUPPLY AND DEMAND IN PLANNING & CONTROLLING The nature of decision on planning and control is depending on supply and demand. There is uncertainty in demand and supply. A fast food outlet in a shopping centre does not know, how many people will arrive and what they will order. But predictions can be made on certain factors such as the lunch and tea-time periods or a sudden storm. Dependant demand and independent demand Demand that you can predict easily. This is because you can derive the demand from other factors. For example a company that makes ice cream can easily predict the demand according to the season. Independent demand A demand that is not directly connected to any visible factors. So predicting demand is based on guesses. For example the supermarket, where supermarket doesn’t know how many customers will come on a particular day. But need to use guesses and assumptions to make predictions.

6. D IFFERENT METHODS OF PLANNING AND CONTROL IN VARIOUS DEMAND SITUATIONS dependant demand – operation start process of production only it needs to. So, the operations that buy – in resources and produce only when demanded by customers are know as Resource –to-order. create –to-order or make-to-order – operations produce the products only when the demand arises. But the stock of resources are available to make fast delivery. Make –to-stock – operations that produce products before they are demanded by the customer. This is to save cost and time. Real Estate business is an example. P:D Ration- a technique to understand the total time that a customer wait between the booking and delivery, and the total throughput or production time for the same.

7. P LANNING AND CONTROL ACTIVITIES There 4 types of planning and control activities as follows: 1. Loading - amount of work given to a work centre. Or how much to do? a. Finite loading – allocating work up to the capacity b.Infinite loading – allocate the work irrespective of the capacity. 2. Sequencing - the order in which the things to move. Priorities a. Customer priority b. Due Date c. Last in first out d. First in first out e. Longest operation time ( the lengthy part first) f. The shortest part first 3. Scheduling 4. Monitoring and control – planning activites

8. S CHEDULING The detailed timetable of what work to be done. Scheduling is difficult in operation, because the machine and the staff got different capacities and skills. 1, Forward scheduling Load the work as it comes 2, Backward scheduling Starting the job, at a time when they should be finished exactly, or when they are due. 3,Gantt Charts Method of scheduling 4,Rostering A method to schedule the staff.

9. M ONITORING AND CONTROLLING OPERATION push control – work is sent to work stations as it is finished in the previous work station. Pull control – work station request the work from the previous station only when required. drum, buffer and rope An approach coming from the theory of constraints. Theory of constraints ? Theory of constraints means the focus on the capacity or bottleneck parts of an operation.