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Aggregate Planning and Control Strategies

The document discusses concepts related to production planning and control including aggregate planning, master scheduling, and capacity planning. Aggregate planning deals with groups of similar products or services over time horizons of 3-18 months and helps smooth production rates. Master scheduling assesses feasibility using rough-cut capacity plans and provides specific production information for product families.

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naomi
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21 views4 pages

Aggregate Planning and Control Strategies

The document discusses concepts related to production planning and control including aggregate planning, master scheduling, and capacity planning. Aggregate planning deals with groups of similar products or services over time horizons of 3-18 months and helps smooth production rates. Master scheduling assesses feasibility using rough-cut capacity plans and provides specific production information for product families.

Uploaded by

naomi
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Module 4 : Production Planning and Control /

The time horizon for an aggregate plan is typically:


Select one:

1. 3 to 18 months
2. 24 to 60 months
3. 0 to 3 months
4. None of the above

In the service sector, aggregate planning for the production of high-volume intangible output is directed toward
Select one:

1. finding the size of the workforce to be employed


2. planning for human resource requirements and managing demand.
3. attempting to manage demand to keep equipment and employees working.
4. smoothing the production rate.

The feasibility of the proposed master schedule is assessed using the:


Select one:

1. aggregate plan
2. material plan.
3. rough-cut capacity plan.
4. available-to-promise inventory.

In aggregate planning, planners avoid focusing on individual products or services because:


Select one:

1. capacity can almost always be allocated to different products or services.


2. customers whose demand can't be satisfied out of existing inventory can always be satisfied with other
products or back orders.
3. costs for individual products or services are almost impossible to calculate.
4. focusing on a group of similar products or services tends to be more accurate.

Which one of these is not related to the master scheduling process?


Select one:
1. yield management
2. rough-cut capacity planning
3. time fences
4. available-to-promise

Output measures of capacity are preferred for:


Select one:

1. High-volume processes
2. High customization
3. Flexible flow processes
4. None of the above

The operations area input to the aggregate plan includes:


Select one:

1. Product design changes


2. Workforce capacities
3. Demand forecasts
4. Cost data

Which of the following is NOT a capacity option of aggregate planning?


Select one:

1. varying production rates through overtime or idle time


2. back ordering during high-demand periods
3. changing inventory levels
4. subcontracting

The aggregate planning strategy that is most likely to impact adversely upon the productivity of manufacturing
workers is:
Select one:

1. Layoff of workers
2. Building anticipation inventory
3. Hiring of temporary workers
4. Use of overtime

Utilisation is measured by :
Select one:
1. Effective capacity / Design capacity
2. Actual output / Design capacity
3. Actual output / Effective capacity
4. Design capacity / Actual output

Which of the following functions of the production planning and controlling is related to the time table of
activities?
Select one:

1. Routing
2. Scheduling
3. Dispatching
4. Expediting

Scheduling deals with:


Select one:

1. Number of jobs to be done on a machine


2. Number of machine tools used to do a job
3. Different materials used in the product
4. Fixing up starting and finishing times of each operation in doing a job

Scheduling shows:
Select one:

1. Total cost of production


2. Total material cost
3. Which resource should do which job and when
4. The flow line of materials

Capacity decisions have a direct influence on performance of production system in respect of ___________.
Select one:

1. Delivery performance
2. Quality control
3. Plant size
4. Manpower

Aggregate planning solves problems involving:


Select one:
1. aggregate decisions or stock keeping unit (SKU) level decisions.
2. stock keeping unit (SKU) level decisions rather than aggregate decisions.
3. aggregate decisions rather than stock keeping unit (SKU) level decisions.
4. aggregate decisions and stock keeping unit (SKU) level decisions.

What information does a master production schedule provide that an aggregate plan does not?
Select one:

1. Revenue information for the planning period


2. Specific product family production information
3. Expense information for the planning period
4. A specific machine schedule for each order

Aggregate planning, to be effective, requires inputs from:


Select one:

1. throughout the supply chain.


2. all customers.
3. all departments
4. all suppliers.

Common questions

Powered by AI

Aggregate planning requires inputs from throughout the supply chain to ensure all aspects of production, including procurement, manufacturing, and distribution, are aligned . This coordination helps in creating a comprehensive plan that considers the interdependencies within the supply chain, allowing for efficient and uninterrupted operations while meeting market demands.

Capacity decisions directly impact the operational performance of production systems by influencing delivery performance . Adequate capacity ensures timely fulfillment of orders, reducing lead times and enhancing customer satisfaction. Conversely, incorrect capacity decisions can lead to bottlenecks, delayed deliveries, and decreased reliability in order fulfillment.

Using output measures of capacity in high-volume processes can be challenging as these measures require accurate forecasting and efficient production planning to align output with demand . Discrepancies in production forecasts and actual demand can cause inefficiencies, such as excess inventory or stockouts, ultimately affecting the overall operational efficiency.

Varying production rates through overtime or idle time is a capacity option in aggregate planning that allows for flexibility in meeting demand fluctuations . This approach can help manage peak periods effectively while minimizing labor costs during slower periods by not relying solely on permanent staff adjustments or extensive inventory changes.

Planners avoid focusing on individual products or services because focusing on groups of similar products or services tends to be more accurate for planning purposes . This aggregate focus allows for flexibility in allocating capacity across product lines, optimizing resource usage, and efficiently managing operations without being bogged down by the details of individual products.

The rough-cut capacity plan is used to assess the feasibility of a proposed master schedule by evaluating whether the available capacity resources can meet the schedule's requirements . It ensures that production plans are realistic and resources such as labor, equipment, and materials are adequately allocated to meet forecasted demands.

The master production schedule provides specific product family production information, detailing which products are to be produced in what quantities and when, unlike an aggregate plan that focuses on broader production goals and resource allocation . This specific scheduling helps in aligning production with actual demand and fine-tuning resource deployment.

The typical time horizon for an aggregate plan is 3 to 18 months . Adhering to this timeline is important because it allows organizations to anticipate demand and adjust their workforce, inventory, and production rates accordingly. It provides a balance between long-term strategic planning and short-term operational adjustments, aiding in efficient resource utilization and cost management.

In the service sector, aggregate planning for high-volume intangible outputs focuses on planning for human resource requirements and managing demand rather than physical products . This involves strategies to keep both equipment and employees working efficiently by managing demand and workforce size, emphasizing flexibility and responsiveness to fluctuating service requests.

Aggregate planning strategies like the layoff of workers can negatively impact the productivity of manufacturing workers by reducing workforce morale and continuity . Conversely, strategies like building anticipation inventory and using overtime might strain resources in the short-term but can help meet demand peaks without permanent staff changes, thus influencing productivity dynamically.

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