W11 Module 9-Aggregate and Operations Scheduling
W11 Module 9-Aggregate and Operations Scheduling
W11 Module 9-Aggregate and Operations Scheduling
From the same source, certain pre-required inputs which are inevitable are cited
and these are the following :
Data and information about the available facilities and resources.
Demand forecasting for the period wherein planning will be done
Different alternative costs and financial resources – cost of ordering cost,
holding inventory, production cost through various production options like
backordering, subcontracting and overtime.
Policies in the organization regarding the utilization of above options
Supply and demand matching over the medium time range up to approximately 1
year into the future is the concerned of aggregate planning. To set the overall output levels
in the near to medium future in the face of fluctuation or uncertain demands is the aim of
aggregate planning. To influence demand as well as supply is the target of aggregate
planning.
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Moreover, the strategies done in the aggregate planning according to the same
source are the following:
A. Level Plans
1. Utilizing a constant manpower and produce the same quantities each time
period
2. To absorb demand peaks and valleys, utilizing inventories and back-orders
3. Better way of utilization of inventories so as to absorb the peak of valleys
and demand
B. Chase Plans
1. By trying to keep pace with the fluctuation of demands, minimize finished
good inventories
2. Matching demands varying either output rate or level of work force .
C. Hybrid Plans
1. Building up inventory ahead of rising demand and to level extreme peaks,
use back-orders.
2. Lay offing workers during breaks.
3. Subcontracting production or to cover up short term peaks, hire temporary
workers to cover short-term peaks
4. During breaks, reassigning workers to preventive maintenance
Methods of aggregate planning was also given by the same source and these are the
following:
1. Determining demand for each period.
2. Determining capacities (regular time, overtime) for each period.
3. Identifying organization policies that are important
4. Determining unit cost for regular time, overtime, holding inventories, back order and
other relevant cost.
5. Create and improve optional procedures and determine the total cost for each
procedure indidually.
6. If acceptable plans appear, the one that satisfies objective the most should be
chosen. Otherwise, returning to step 5 is advisable.
[Type Subject / Course Title Here] 3
[Type Topic Here]
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C. Linear Programming
It is an optimization technique that can be utilized to solve problems
related to aggregate planning.
Yield Management
What is yield management all about? According to Castillejos, C. J. (2017, March 10).
What is Yield Management ? - Hotel and Business. Retrieved August 13, 201 from
https://www.slideshare.net/CarlJeraldCastillejo/what-is-yield-management-hotel-and-
business, yield management refers to the process of the right capacity type to the right kind
of customer at the right price at the right time with the purpose of maximizing yield or
revenue.
Likewise, according to Yield Management (n.d.) Retrieved August 13, 2018 from
https://nptel.ac.in/courses/110106046/Module%208/Lecture%202.pdf , yield
management is also called as revenue management. It is applied by service organization
so as to maximize the yield or revenue from revenue generating, perishable and relatively
fixed capacity. In the early 1980’s, it was originated in airline industries. Yield management
is usually applied in hotels, rentals, freight transport and telecommunications.
Inventory strategies
These are inventory-focused branch. Strategic inventory control so as
to sell it to the right customer at the right time for the right price is involved
in these strategies.
According to the same source, the three essential conditions so as yield management will
be applicable are the following:
Likewise, pros and cons were enumerated by the same source and these are the following:
Before discussing about the purpose of operations scheduling, let us define first the
term, scheduling. According to Subedi, K. (2016, July 17). Presentation on operation
scheduling. Retrieved August 13, 2018, from
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https://www.slideshare.net/kamalsubediletters/presentation-on-operation-scheduling ,
scheduling refers to prescribing of where and when each operation necessary to produce
the products is to be performed. It may also be defined as the process of establishing time
at which to start and complete each event or operation comprising a procedure. The
principal aim and objectives of operations scheduling were also given by the same source
and these are:
PRINCIPAL AIM:
For the purpose of making the production systematically arranged toward the
end of completion of all products by due date, plan the sequence of work.
OBJECTIVES:
1. Meet due date
2. Minimize WIP inventory
3. Minimize the average flow time through the systems
4. Provide for high worker/machine (time) utilization ( ideal time
minimization)
5. Reduce cost related to set up
6. Minimize costs related to production and manpower costs
1. Facilities of physical plant of the required type for processing the scheduled
materials.
2. The personnel or the worker who has the experience and skills in operating the
equipment and in performing the involved work type.
3. Needed purchased parts and materials
Scheduling is relevant tools for manufacturing where it can have a major effect on
the process productivity. Different strategies were presented in Modern Methods for
Manufacturing, Planning and Scheduling (n.d.) Retrieved August 13, 2018 from
http://www.mmscience.eu/content/file/MM_Science_201519.pdf and these are as follows:
Production order scheduling using spreadsheets can be done with the use of
“Excel or similar. The approach utilized here is creating with the heading at the
top of each column in the form of and with universal formulas which can be copied
and pasted down a column, and work on every row.
Usually this is the first step in scheduling. For each product requirement, it is
a weekly or monthly break-down for a definite time period. With this which serve as
the running total production requirement record, the entrepreneur is in better
position to shift the production from one product to another whenever there is a
change of production requirements. The master schedule serves as the basis for all
subsequent activities related to scheduling. It is followed by operator schedule. He
is the one who fixes the required time in doing work piece with the given machine
or which shows the required time to do each detailed job operation with a given
process or machine.
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Through scheduling, greater importance in job order manufacturing is
acquired . Speedy execution of job at each center point is enabled through this
scheduling. Scheduling is of utmost importance to small scale industry because it
brings out operations’ efficiency and at the same tie reduces cost price. Four types
of schedules should be maintained by the small entrepreneur so as to have a close
stage scrutiny and these are the production schedule, enquiry schedule, shop
schedule and an arrears schedule . Among the four, a shop schedule is the most
relevant and most suited to the small scale industry’s needs as it enables a foremen
to see at a glance the following:
4. Loading
In this step, the execution of the schedule plan as per the route chalked out.
It includes the giving of work assignments to the operators at their machines or
workplaces. Who will do the work is determined by loading while routing
identifies where and when it shall be done is determined by scheduling.
5. Production control
6. Dispatching
7. Follow-up
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8. Inspection
9. Corrective measures
Service scheduling
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Employee satisfaction is a significant sustainability factor and high service quality.
Because of this, the same source proposed a scheduling program which will solve
problems with the following characteristics:
Employees have flexible contracts. Strict shift will not be imposed instead
each individual employee has contract with specified available working day
in a week or month. However, the said flexibility in one’s working pattern will
constrains the availability of employees throughout the planning horizon.
With the use of service requirements, demand for services is given. In each
requirement, start and completion service time, the skill level which is needed
to give the said service and the weight which will determine the level
requirement priority are included.
There are restrictions that are derived from the laws and regulations like rest
time between work assignments, maximum time which a jobholder can work
within a week and others will be given to employee contracts.
Fairness between the needs of employees to be determined and observed.
The scheduling model proposed by the same source has the following objectives:
ollege/cbj/Teaching%20Aggregate%20Planning%20in%20Operations%20Manage
ment.pdf
4. Castillejos, C. J. (2017, March 10). What is Yield Management ? - Hotel and Business.
Retrieved August 13, 201 from
https://www.slideshare.net/CarlJeraldCastillejo/what-is-yield-management-hotel-
and-business
5. Yield Management (n.d.) Retrieved August 13, 2018 from
https://nptel.ac.in/courses/110106046/Module%208/Lecture%202.pdf
6. Subedi, K. (2016, July 17). Presentation on operation scheduling. Retrieved August 13,
2018, from https://www.slideshare.net/kamalsubediletters/presentation-on-
operation-scheduling
7. Anand, P. (n.d.). LESSON 8 PRODUCTION PLANNING AND CONTROL. Retrieved
August 13, 2018, from
http://www.academia.edu/4679944/LESSON_8_PRODUCTION_PLANNING_AND_CO
NTROL,
8. Operations Management for Service Providers (n.d.) Retrieved August 13, 2018
from http://open.lib.umn.edu/exploringbusiness/chapter/11-6-operations-
management-for-service-providers/
9. Modern Methods for Manufacturing, Planning and Scheduling (n.d.) Retrieved August
13, 2018 from http://www.mmscience.eu/content/file/MM_Science_201519.pdf
10. Employee Scheduling in Service Industries with Flexible Employee Availability and
Demand (n.d.) Retrieved August 13, 2018 from
https://pdfs.semanticscholar.org/2e17/77762d73da7f830a17ae353ba4295488b9c
7.pdf
Online Supplementary Reading Materials
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