Aggregate Planning - Essay
PRODUCTION MANAGEMENT ASSIGNMENT
Topic:- Aggregate Planning
Submitted by:- ANJANA KRISHNAN FM-673
AGGREGATE PLANNING:
Aggregate planning is the process of developing, analyzing, and maintaining a preliminary, approximate schedule of the overall operations of an organization. The aggregate plan generally contains targeted sales forecasts, production levels, inventory levels, and customer backlogs. This schedule is intended to satisfy the demand forecast at a minimum cost. Properly done, aggregate planning should minimize the effects of short-sighted, day-to-day scheduling, in which small amounts of material may be ordered one week, with an accompanying layoff of workers, followed by ordering larger amounts and rehiring workers the next week. This longer-term perspective on resource use can help minimize short-term requirements changes with a resulting cost savings.
CHARACTERISTICS OF AGGREGATE PLANNING: * Considers a "planning horizon" from about 3 to 18 months, with periodic updating * Looks at aggregate product demand, stated in common terms * Looks at aggregate resource quantities, stated in common terms * Possible to influence both supply and demand by adjusting production rates, workforce levels, inventory levels, etc., but facilities cannot be expanded.
PRODUCTION PLAN (manufacturing aggregate plan):
A managerial statement of the period-by-period (time-phased) production rates, work-force levels, and inventory investment, given customer requirements and capacity limitations.
STAFFING PLAN (service aggregate plan):
It is a managerial statement of the period-by-period staff sizes and labour-related capacities, given customer requirements and capacity limitations.
OBJECTIVES OF AGGREGATE
Topic:- Aggregate Planning
Submitted by:- ANJANA KRISHNAN FM-673
AGGREGATE PLANNING:
Aggregate planning is the process of developing, analyzing, and maintaining a preliminary, approximate schedule of the overall operations of an organization. The aggregate plan generally contains targeted sales forecasts, production levels, inventory levels, and customer backlogs. This schedule is intended to satisfy the demand forecast at a minimum cost. Properly done, aggregate planning should minimize the effects of short-sighted, day-to-day scheduling, in which small amounts of material may be ordered one week, with an accompanying layoff of workers, followed by ordering larger amounts and rehiring workers the next week. This longer-term perspective on resource use can help minimize short-term requirements changes with a resulting cost savings.
CHARACTERISTICS OF AGGREGATE PLANNING: * Considers a "planning horizon" from about 3 to 18 months, with periodic updating * Looks at aggregate product demand, stated in common terms * Looks at aggregate resource quantities, stated in common terms * Possible to influence both supply and demand by adjusting production rates, workforce levels, inventory levels, etc., but facilities cannot be expanded.
PRODUCTION PLAN (manufacturing aggregate plan):
A managerial statement of the period-by-period (time-phased) production rates, work-force levels, and inventory investment, given customer requirements and capacity limitations.
STAFFING PLAN (service aggregate plan):
It is a managerial statement of the period-by-period staff sizes and labour-related capacities, given customer requirements and capacity limitations.
OBJECTIVES OF AGGREGATE