Transcript PROD 2800 PRODUCTION AND OPERATIONS MANAGEMENT …

UCL ESPO/IAG/POMS
PROD 2800
PRODUCTION AND OPERATIONS MANAGEMENT
Gestion de la production et des opérations
Per AGRELL
[email protected]
Lecture 3
Aggregate planning
Outline
Hierarchical production planning
Aggregate production planning
– Models
– Approaches
Yield management
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Product structure framework
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Customer order point
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Production planning
Planning problem
– Uncertainty
– Dimensionality
How to make a consistent production planning system
over multiple time horizons in a complex, uncertain
world?
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Hierarchical production planning
Defined decision level
–
–
–
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Resource horizon
Demand uncertainty
Process uncertainty
Information
Principles:
Higher levels set resources and targets for next lower level
Postpone detailed decisions until uncertainty is reduced
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HPP example
DECISION LEVEL
Corporate
Plant manager
Shop manager
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DECISION
INFORMATION
Allocates
production (time)
among plants
Annual demand by
item and by region
Determines
seasonal plan by
product type
Monthly demand
for 15 months by
product type
Determines monthly
item production
schedules
Monthly demand
for 5 months by
item
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Business plan
Marketing planning
Financial planning
Production planning
Demand management
Demand forecasts
Aggregate planning
Resource planning
Master production scheduling
Master requirements planning
Inventory control
Order
Order scheduling
Dispatching
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Purchasing
Aggregate planning
Objective
– Adjust resources to meet fluctuating demand.
Means
– Aggregated production rate
– Aggregated workforce level
– Aggregated inventory level
Long-term
– 1-5 years
Uniform measures
Frame for lower level planning
Basis for Facility Location Analysis
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Aggregation rules
Customers
Customers
Customers
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Criteria?
Market Regions
Measure?
Product Groups
Machine Groups
Labor Centers
Products
Products
Products
Machines
Machines
Machines
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Operators
Operators
Operators
Time horizon in APP
t
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Relevant costs
Production
– Direct costs
– Overtime/undertime costs
Capacity change
– Hiring/firing costs
– Extra setup costs, opportunity costs
– Subcontracting
Inventory
– Holding cost
Backorder/shortage costs
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Decision
Inventory level
Delivery regime (MTO,MTS)
Change in workforce
Change of load (overtime)
Subcontracting
Change of process
Complementary lines
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Capacity Strategies
Aggregate demand
t
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Classical LP Models
Dynamic, deterministic, piecewise linear costs
Objective:
– Total expected cost
Decision:
– Inventory/backlog
– Workforce (hiring/firing)
– Workload (overtime)
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Yield management
Demand management
– Segmentation on
Price
Order regime
Service level
– Management of
Duration
Cost
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Price/service duration matrix
Fixed
PRICE
DURATION
Predictable
Unpredictable
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Variable
Summary
Hierarchical planning principle
Aggregated planning
– Level, chase, lead strategies
– Workforce and inventory tradeoffs
Long-term horizon
Linear programming
Yield management
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