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Slide 10.

Part Three
DELIVER – PLANNING AND
CONTROLLING OPERATIONS
Chapter 10
The nature of planning and control

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
Slide 10.2

The nature of planning and control


Direct

Operations
Design management Develop

Planning and Deliver


control

The market requires…


products and services
delivered to requested time,
quantity and quality
The operation supplies...
delivered products and
services

Figure 10.1 This chapter introduces planning and control


Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
Slide 10.3

Key operations questions

In Chapter 10 – The nature of planning and control – Slack


et al. identify the following key questions…

What is planning and control?

What is the difference between planning and control?


How do supply and demand affect planning and control?

What are the activities of planning and control?

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
Slide 10.4

Planning and control

Planning is a formalization of what is intended to happen at


some time in the future.

A plan does not guarantee that an event will actually happen,


it is a statement of intention.

Although plans are based on expectations, during their


implementation things do not always happen as expected.

Control is the process of coping with any changes that affect


the plan. It may also mean that an ‘intervention’ will need to
be made in the operation to bring it back ‘on track’.

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
Slide 10.5
Case Discussion

Read the case: Joanne manages the schedule (Page 289)

Question:
1. What are the main activities of the planning and
control system that Joanne manages?
2. How does Joanne attempt to meet the,
sometimes conflicting, requirements of customers
and the workshop as she manages the planning
and control system?

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
Slide 10.6

Planning and control (Continued)

Planning is deciding What activities should take place in the


operation?
When they should take place?

What resources should be allocated to


them?

Control is Understanding what is actually happening in


the operation
Deciding whether there is a significant deviation
from what should be happening

(if there is deviation) Changing resources in order


to affect the operation’s activities

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
Slide 10.7

The balance between planning and control


Months/years
Long-term planning and control
Uses aggregated demand forecasts
Determines resources in aggregated form
PLANNING Objectives set in largely financial terms.
Time horizon
Days/weeks/months

Medium-term planning and control


Uses partially disaggregated demand forecasts
Determines resources and contingencies
Objectives set in both financial and operations
terms.

Short-term planning and control


Uses totally disaggregated forecasts or
CONTROL actual demand
Hours/days

Makes interventions to resources to correct


deviations from plants
Ad hoc consideration of operations objectives.

Figure 10.2 The balance between planning and control activities changes in the long, medium and short term
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
Slide 10.8

Planning and control depends on both the nature


of demand and the nature of supply in an
operation

• Some operations produce goods or services ahead of any


firm orders to stock (make to stock planning and control)
• Some operations will start to produce goods or services only
to firm customer orders (make to order planning and control)
• Some operations even start to obtain resources for producing
goods or services only when it needs to (resource to order
planning and control)

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
Slide 10.9

The Nature of Demand

• Independent demand
– Items demanded by external customers (Kitchen
Tables)
– Demand is managed based on forecasts
• Dependent demand
– Items used to produce final products (table top, legs,
hardware, paint, etc.)
– Demand determined once we know the type and
number of final products
– Demand is managed based on calculated plans

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
Slide 10.10

Skateboard Independent Demand

Dependent Demand

Independent demand is uncertain.


Dependent demand is certain.

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
Slide 10.11

P : D ratios for planning & control

Resource to P=D
Dependent
order demand Reducing P will
reduce customer
waiting time

Make to order

Reduced D time
Independent May increase
Make to stock demand speculative activity

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
Slide 10.12

The activities of planning and control

When to
How much to
do things?
do?
“Forward or
Backward” “Capacity
Consideration”
3. Scheduling 1. Loading

4. Monitoring Are activities


2. Sequencing and control going to plan?
In what “Gantt Chart”
order to
do things?

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
Slide 10.13

Loading – The reduction of time available for ‘valuable


operating time

Maximum available time

Valuable operating
time
Not worked
Quality (planned)
losses Slow Not worked
running Equipment Set-up and
(unplanned)
changeovers
equipment ‘idling’ ‘Breakdown’
failure

Figure 10.7 The reduction in the time available for valuable operating time

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
Slide 10.14

1. Loading types: Finite and infinite loading


Finite loading limits the loading on each centre to their capacities, even if it means
that jobs will be late.
Infinite loading allows the loading on each centre to exceed their capacities to ensure
that jobs will not be late
Finite loading Infinite loading

0
1
2
3
4
5
A B C 6
A B C
Work centre Work centre
Figure 10.8 Finite and infinite loading of jobs on three work centres A, B and C. Finite loading limits the loading
on each centre to their capacities, even if it means that jobs will be late. Infinite loading allows the loading on
each centre to exceed their capacities to ensure that jobs will not be late
Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
Slide 10.15

2. Sequencing - In what order to do things?

Sequencing is a decision activity on the order in which the


works will be tackled

Some rules:
1. Physical constraints
2. Customer priority
3. Due date
4. FIFO
5. LIFO
6. Longest operations time
7. Shortest operations time

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
Slide 10.16

Case Discussion

Read the case: The hospital triage system (Page 304)

Question:
1. Why do you think that the triage system is
effective in controlling operations in Accident and
Emergency departments?
2. Are there any dangers in this approach?

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
Slide 10.17

3. Scheduling - When to do things?

Forward scheduling - Starting work as soon as it arrives

Backward scheduling - Starting job at the last possible


moment (e.g. MRP, JIT)

Common method of scheduling - Gantt chart

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
Slide 10.18

Gantt chart showing the schedule for individual jobs over time

Mon Tue Wed Thur Fri Mon Tue


JOB
5 6 7 8 9 12 13

Table

Shelves

Kitchen
units

Bed

Scheduled V
Time now
activity time Actual progress V

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014
Slide 10.19

4. Monitoring and control


The drum, buffer, rope, concept

Buffer of
inventory

Stage or Stage or Stage or Stage or Stage or


process process process process process
A B C D E

Communication rope Bottleneck


controls prior activities drum sets
the beat

Slack, Brandon-Jones and Johnston, Operations Management PowerPoints on the Web, 7th edition © Nigel Slack, Alistair Brandon-Jones and Robert Johnston 2014