Learning Objectives
9 objectives- Understand the fundamental concepts and importance of operations planning and control within organizations.
- Apply various forecasting techniques to predict demand and facilitate decision-making in production and inventory management.
- Develop capacity planning strategies to align resources with business demand and identify bottlenecks.
- Implement inventory management principles to optimize stock levels and reduce costs.
- Design effective production schedules using tools like Gantt charts and critical path analysis.
- Evaluate quality control and assurance methods to maintain and improve operational standards.
- Explore lean operations principles to eliminate waste and enhance productivity.
- Analyze supply chain management processes to improve coordination and flow of goods and information.
- Measure operational performance using KPIs and apply continuous improvement techniques.
Content Outline
PreviewUnit 1008: Operations Planning and Control
1. Introduction to Operations Planning and Control
- Definition and scope
- Role in managing resources, processes, and activities
- Aligning operations with organizational objectives
- Importance of efficiency and effectiveness
2. Forecasting Techniques
- Purpose and importance of forecasting
- Qualitative methods
- Expert opinion
- Delphi method
- Market research
- Quantitative methods
- Time series analysis (moving averages, exponential smoothing)
- Causal models (regression analysis)
- Selecting appropriate forecasting methods
- Accuracy measurement and error analysis (MAD, MSE, MAPE)
3. Capacity Planning
- Definition and objectives
- Types of capacity (design, effective, actual)
- Capacity measurement and evaluation
- Identifying bottlenecks and constraints
- Strategies to adjust capacity
- Capacity expansion
- Capacity reduction
- Demand management
- Tools and techniques for capacity planning
4. Inventory Management
- Importance of inventory control
- Types of inventory (raw materials, work-in-progress, finished goods)
- Inventory costs (holding, ordering, shortage)
- Inventory control models
- Economic Order Quantity (EOQ)
- Reorder point calculation
- Safety stock determination
- Just-in-Time (JIT) inventory approach
- Inventory tracking systems (ABC analysis, RFID, barcoding)
5. Production Scheduling
- Objectives and challenges
- Scheduling techniques
- Gantt charts
- Critical Path Method (CPM)
- Program Evaluation and Review Technique (PERT)
- Prioritization rules (FIFO, LIFO, EDD)
- Resource allocation and utilization
- Reducing lead times and bottlenecks
6. Quality Control and Assurance
- Definitions and differences between quality control and assurance
- Quality standards and frameworks (ISO, Total Quality Management)
- Statistical Process Control (SPC)
- Control charts
- Process capability
- Six Sigma methodology
- Continuous improvement tools (PDCA cycle, Kaizen)
- Root cause analysis and corrective actions
7. Lean Operations
- Introduction to lean principles
- Types of waste (TIMWOOD: Transport, Inventory, Motion, Waiting, Overproduction, Overprocessing, Defects)
- Lean tools and techniques
- Just-in-Time (JIT) production
- Value Stream Mapping
- 5S workplace organization
- Kanban systems
- Benefits and challenges of lean implementation
8. Supply Chain Management
- Overview of supply chain components
- Roles of suppliers, manufacturers, distributors, and retailers
- Integration and coordination mechanisms
- Demand and supply synchronization
- Inventory and logistics management
- Information flow and technology in SCM
- Risk management in supply chains
9. Performance Measurement and KPIs
- Importance of performance measurement
- Types of KPIs in operations planning and control
- Efficiency metrics (e.g., capacity utilization, throughput)
- Effectiveness metrics (e.g., on-time delivery, defect rates)
- Financial metrics (e.g., cost per unit, inventory turnover)
- Setting targets and benchmarks
- Data collection and analysis
- Using KPIs for continuous improvement
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