Capacity planning and control in operations management pdf

And control is the process of coping with changes in these variables slack et al. Capacity planning in production and operation management. Start studying operations management chapter 5strategic capacity planning. Design capacity minus allowances such as personal time, maintenance, and scrap. Globalizationhas increased the importance and the complexity of capacity decisions. It is a simple task to plan the capacity in case of stable demand. The benefits of production planning and control are as follows. Measurement of capacity planning in production and operations. Lecture notes, operations management, chapter 1, 2, 4, 6, 7. Strategic capacity planning process in construction business. Capacity planning forms part of the capacity management process within the itil foundation framework and its included in many itil foundation practice exams.

Dec 17, 2019 capacity planning forms part of the capacity management process within the itil foundation framework and its included in many itil foundation practice exams. The term operations management encompasses planning, implementing, and supervising the production of goods or services. This especially includes planning and production control ppc processes. Furthermore it is an activity which can furthermore it is an activity which can profoundly affect the efficiency and effectiveness of the operation. Planning control in operations management pdf within the constraints imposed by its design, an operation has to be run on an ongoing basis. An examination of demand planning and inventory classification the following faculty members have examined the final copy of this dissertation for form and content, and recommend that it be accepted in. Operations managers, with an unstable and uncertain demand forecasts are faced. Decision making planning and control assignment the organisation i have chosen to examine from an operations management and decision making standpoint is mcdonalds, a worldwide chain of fast food restaurants, which are run either by a franchise, an affiliate or by the corporation itself. Capacity planning unit introduction capacity planning is vital in operations management. As stated at the top of this blog, capacity management includes planning activities, management activities, and optimization. Nov 05, 2015 includes topics such as, defining and measuring capacity determinants of effective capacity evaluating capacity alternatives make or buy decisions costvolume analysis planning service. If you have some experience with capacity management, it might make sense to start with a maturity assessment. A technique used to identify and measure overall capacity of production is. Title how to initiate a capacity planning and management process for a rapid deployment unit of a security service company thesis supervisor anasse bouhlal month and year november 2011 pages 77 abstract support services group ltd.

Apr 15, 2020 enabling use of standard variable costing in lean production. Jul 25, 2019 capacity planning is part of the overall capacity management cycle. Volume 31, 2020 vol 30, 2019 vol 29, 2018 vol 28, 2017 vol 27, 2016 vol 26, 2015 vol 25, 2014 vol 24, 20 vol 23, 2012 vol 22, 2011 vol 21, 2010 vol 20, 2009 vol 19, 2008 vol 18, 2007 vol 17, 2006 vol 16, 2005 vol 15, 2004. The course uses handson exercises based upon company inventory information to both see and do, enabling participants to achieve a solid understanding of both the principles. Demand forecasting, planning, and management lecture to 2007 mlog class september 27, 2006 larry lapide, ph. Design and simulation of a capacity management model. Chapter 10,11 en12 30 inventory is created to compensate for the differences in timing between supply and demand input process inventory. Case studies and examples organizing and planning for. Another is the need to disclose proprietary information. Operation planning and control are an important part of the organisation. Capacity management, capacity planning, support services.

Production planning and control operations management 1. It has to see that production process is properly decided in advance and it is carried out as per the plan. Improving the production planning and control process. Assess the difficulties of matching capacity to demand. Capacity planning is concerned with the capacity of an entity with the demand. Capacity planning is vital in operations management. Now customize the name of a clipboard to store your clips. Capacity measures the rate that the operation can transform inputs into outputs.

Capacity planning can be difficult at times due to the complex influence of market forces and. To facilitate generalization of the research findings, all the. The maximum output rate or service capacity an operation, process, or facility is designed for. Planning and control are an essential ingredient for success of an operation unit. The strategic capacity planning undertaken by organization for 2 to 3 years of a time frame is referred to as medium term capacity planning. Demand forecasting supports corporatewide planning activities level of forecast strategic years tactical quarterly tactical monthsweeks operational dayshours purposes business planning capacity planning brand plans financial planning budgeting sales planning manpower planning shortterm capacity planning master planning inventory. Clipping is a handy way to collect important slides you want to go back to later.

Because capacity decisions often involve substantial financial and other resources, it is necessary to plan for them far in advance. Capacity planning is the process of determining the production capacity needed by an organization to meet changing demands for its products. An examination of demand planning and inventory classification the following faculty members have examined the final copy of this dissertation for form and content, and recommend that it be accepted in partial fulfillment of the requirement for the degree. The ultimate goal of capacity planning is to meet the current and future level of the requirement at a minimal wastage. The primary aim of the operations management departments challenge to create the required balance between the costs and revenue to get the highest net operational profit, but at the same time to guarantee the quality of the product and service. Wally whistance smith lecture notes, operations management, chapters 1,2,4,6 prof. The number of passengers per flight on an aeroplane. Thats the topic of a recent webinar with tom huntington and per bauer. However, publications concerning this topic are yet scarce and normally characterized by a theoretical focus and or by an emphasis on a particular type of production system kingsman, 2000. Production planning is required for scheduling, dispatch, inspection, quality management, inventory management, supply management and equipment management. Capacity is the rate of productive capability of a facility. Key operations management concepts are bolded for identification purposes.

Youll find insights from subject matter experts in the areas of strategic planning, lean and agile delivery, project portfolio management, resource management, product portfolio management, enterprise architecture, innovation management, and project collaboration. Operations management capacity planning and control notes and revision. Operations planning and control is the second of the foundational. If youre new to capacity management, it might make sense to start with capacity planning. Properly managed capacity can have great benefits for the small business. Chapter 5 strategic capacity planning for products and services. Evaluate and apply the different strategies for matching capacity with demand in the short. Technical note production planning and control for. Operations management capacity planning and control. Capacity, bottleneck, process capacity, flow rate and utilization. Operations managers have responsibilities in both strategy and daytoday production, in either manufacturing or services.

Lecture notes, operations management, chapter 1, 2, 4, 6. There is an interaction between capacity management, quality management, and resources productivity or,i, efficiency management which is at the heart of the planning and control process for operations management d in services. What is capacity management in operations management. Capacity management is a key process in the service design stage of the itil lifecycle.

The capacity can be calculated for every station in a business process. Organisations willing to succeed in global competition have to integrate their internal and external processes. Abstract capacity planning and control is an issue which every operation is faced with. The capacity of your company to meet expected demand should be measured in both the shortterm and the longterm. What is resource management capacity planning planview. Statistical process control for demand pattern monitoring. Production control ensures that production team can achieve required production target, optimum utilization of resources, quality management and cost savings. Capacity management is incomplete without business driven capacity planning. Business planning capacity planning brand plans financial planningbudgeting sales planning.

Learn vocabulary, terms, and more with flashcards, games, and other study tools. This is because, at this level of the planning and control, demand and capacity calculations are usually performed on an aggregated basis which does not discriminate between the different products and services that an operation might produce. Capacity planning is essential to be determining optimum utilization of resource and plays an important role decisionmaking process, for example, extension of existing operations, modification to product lines, starting new products, etc. Pdf production planning and control for remanufacturing. Production planning and control operations management. Problems faced in executing the steps, and the directions of improving the production planning and control process the production planning and control process is prone to numerous disturbances which make it difficult to attain effectiveness of the actions taken. The strategic planning undertaken by organization for a daily weekly or quarterly time frame is referred to as short term capacity planning. Capacity planning and control techniques capacity planning using overall factors cpof capacity bills resource profiles. Measurement of capacity planning in production and. Capacity planning is to be carried out keeping in mind future growth and expansion plans, market trends, sales forecasting, etc. Palumbo school of business administration, rockwell hall, duquesne uni. In operations, management capacity is referred as an amount of the input resources available to produce relative output over period of time. Without capacity planning, an it service provider can either spend excess costs for the realistic business requirements or fall short on.

Many organizations become involved with capacity planning due to changes in demand, technology, the environment, etc. Capacity planning is described as matching the capabilities of an organization with the predicted level of future demand. Sometimes called production management, the field is crossfunctional, tying in with other departments such as sales, marketing, and finance. The study sought to establish the relationship between capacity planning practices and the operational performance of the major hydropower generating stations in kenya. And they talked about the role that teamquest capacity management solutions play at helpsystems. Operations management chapter 5strategic capacity planning. Introduction capacity planning decisions are important to any industry, especially to health care industry because not only it relates to the management of highly specialized and costly resources. Production planning and control presented by manu alias 2.

Apr 06, 2016 production planning and control operations management 1. However, publications concerning this topic are yet scarce and normally characterized by a theoretical focus andor by an emphasis on a particular type of production system kingsman, 2000. If, for example, one worker needs 40 seconds to put together a sandwich, the capacity of this station is 140 per second or 1,5 sandwiches per minute. Effective internal planning and control represents the fundamental block and tackling underlying an organizations efficient and effective operations. The job of operations management om consists of all the activities involved in transforming a product idea into a finished product. Planning is a formalisation of what is intended to happen at some time in the future. Capacity planning practices and operational performance of. Production planning and control is an important task of production manager. Capacity planning and management, and production activity. In addition, operations managers are involved in planning and controlling the systems that produce goods and services. Organizations have capacities or limits that their system can handle. Wally whistance smith lecture notes, operations management, lecture week prof. Pdf strategic operations management radhitya wirawan. Methods and tools for dynamic capacity planning and control are discussed on this paper.

Lecture 5 planning and control 10 the nature of planning. Developing decisionmaker support for management and operations at metroplan orlando, case study html, pdf 1. Capacity planning and management learning outcomes after reading this chapter you should be able to. Inventory planning and control need for products and services at a page 340 10 the nature of planning and control 11 capacity planning and control 12 inventory planning and control operations management, 5e. At this planning level, project acceptance or rejection.

There is a lack of understanding of the different steps of planning process, management at different levels in the organization has not properly engaged in or contributed to planning activities. In order to perform the following calculations, processing time has to be defined as the time that is spent on a certain task e. It is always m processing time with m being the number of resources e. Includes topics such as, defining and measuring capacity determinants of effective capacity evaluating capacity alternatives make or buy decisions costvolume analysis. In this article each of these activities will be outlined in the context of planning the operations of a human service organization. Key control objectives 206 scope 206 control requirements 207 summary 209. Strategic capacity planning for products and services.

Optimised allocation of the production resources and quick. They tackled the role of capacity management in operations management today including the cloud. In other words, operations managers manage the process that transforms inputs into outputs. Exam 2014 questions exam 2014 questions lecture notes, operations management, materials requirement planning and enterprise resource planning, prof. Capacity decisions need acute and careful attention by concerned persons as almost everything of the operations is related with capacity. It ensures that optimum utilization of production capacity is achieved, by proper scheduling of the machine items which reduces the idle time as well as over use. In the context of capacity planning, design capacity is the maximum amount of work that an organization is capable of completing in a given period.

Planning is a prominent piece of the capacity management puzzle. Materials planning and control narrow line price high service level reserve capacity inventory dependability. This is an information management system which initiates, directs, monitors and collects feedback to enable efficient use of all other resources 1. The planview blog is your community for discovery and support in the changing world of work. Define and measure capacity and appreciate the factors that influence it. This book provides good practical approach on how to implement the process, with a view to bringing its benefits to the organization. So much so, capacity planning is sometimes used synonymously with capacity management. Production is related to the conversion of raw materials into finished goods. Operations planning and control is the second of the foundational blocks that contribute to the management of broader operational systems see figure 3.