Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Chapter 10 The nature of planning and control Pearson Education Ltd. Jules Selmes

Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Design Planning and control Operations strategy Improvement Capacity planning and control The operation supplies... delivered products and services The market requires… products and services delivered to requested time, quantity and quality

Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston In Chapter 10 – The nature of planning and control – Slack et al. identify the following key questions: What is planning and control? How do supply demand affect planning and control? What are the activities of planning and control? Key operations questions

Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston 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’. Planning and control

Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Planning is deciding Control is what activities should take place in the operation when they should take place what resources should be allocated to them 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. Planning and control (Continued)

Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston PLANNING CONTROL Significance of planning and control Time horizon Hours/days Days/weeks/months Months/years Long-term planning and control Uses aggregated demand forecasts Determines resources in aggregated form Objectives set in largely financial terms 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 actual demand Makes interventions to resources to correct deviations from plans Ad hoc consideration of operations objectives.

Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Dependent and independent demand Dependent demand e.g. input tyre store in automobile plant Dependent demand e.g. input tyre store in automobile plant Demand for tyres is governed by the number of automobiles planned to be made For every automobile that are planned to be made, five tyres will be needed

Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Dependent and independent demand (Continued) Demand for tyres is largely governed by random factors. ACE TYRES Demand for tyres is governed by the type of car arriving, the fluctuations in the number of cars arriving and how many tyres need replacing. Independent demand e.g. tyre-fitting service Independent demand e.g. tyre-fitting service

Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston P : D ratios D P Produce to stock D P Part produce to order D P Resource to order Customer orders Deliver to customer Allow time for delivery Produce product/service Allow time for creation Obtain resources Allow time for resourcing D P P Produce to order

Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston P : D ratios (Continued) Resource to order Make to stock Make to order Dependent demand Independent demand Each product or service (large) compared with total capacity of the operation Each product or service (small) compared with total capacity of the operation

Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Scheduling Loading Sequencing Monitoring and control When to do things? In what order to do things? How much to do? Are activities going to plan? The activities of planning and control

Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Quality losses Slow running equipment Equipment ‘idling’ ‘Breakdown’ failure Set-up and changeovers Not worked (unplanned) Valuable operating time Maximum available time Loading – The reduction of time available for ‘valuable operating time’ Not worked (planned)

Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston 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 Work centre ABC ABC Finite loading Infinite loading Weeks Finite and infinite loading

Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston In Accident and Emergency departments, patients arrive at random. Medical staff must rapidly devise a schedule. Patients with serious illness need urgent attention. Less urgent cases will have to wait. Routine non-urgent cases will have the lowest priority of all. The hospital triage system

Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Triage in the police

Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Process stage Week 12 Week 13 Week 14 Week 15 Week 16 Week 17 Week 18 Job A Job B Job CJob DJob E Job A Job B Job Y Job XJob AJob B Job Z Job X Job Y Job A Job B Job X Job C Gantt chart showing the schedule for jobs at each process stage Initial spec Pre-coding Coding Compact. check Final test Job AJob B Job W Job C Job D

Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston JOB Mon 5 Tue 6 Wed 7 Thur 8 Fri 9 Mon 12 Tue 13 Table Shelves Kitchen units Bed Actual progress Time now V V Gantt chart showing the schedule for individual jobs over time Scheduled activity time

Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston JOB Mon 5 Tue 6 Wed 7 Thur 8 Fri 9 Mon 12 Tue 13 Wood preparation Assembly Finishing Paint Scheduled activity time Actual progress T B B T S S K S S S K K T S B T Non-productive time V V Time now Gantt chart by activity

Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Pull and push philosophies of planning and control Push control Work centre Instruction on what to make and where to send it DEMAND FORECAST OR CENTRAL OPERATIONS, PLANNING AND CONTROL SYSTEM

Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Pull control Work centre DEMAND Pull and push philosophies of planning and control (Continued) Work centre Request Delivery

Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Pull and push philosophies of planning and control (Continued)

Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Shift allocation for the technical ‘hot line’ (a) on a daily basis (b) on a weekly basis (a) Shift pattern (24-hour clock) Peter Jo Walter Jo MarieClaire Jo 04:00 08:00 12:00 16:00 20:00 Peter X X X X O O X Marie X X X X X O O Claire X X X X O O X Walter O X X X X X O Jo O X X X X X O Mon Tue Wed Thu Fri Sat Sun Number of staff required (b) X O Full day Day off Shift allocation

Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston Operation or process Input Output Compare / replan Intervention Plans A simple model of control Monitor

Slack, Chambers and Johnston, Operations Management, 6 th Edition, © Nigel Slack, Stuart Chambers, and Robert Johnston The drum, buffer, rope, concept Stage or process B Stage or process A Stage or process D Stage or process E Buffer of inventory Stage or process C Bottleneck drum sets the beat Communication rope controls prior activities