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Capacity Planning and Management - Case Study Example

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Capacity Planning and Management Table of Contents Session A 3 Strategic Nature of the Facility Decisions 3 Balancing Supply And Demand 3 Role of Aggregate Planning 4 Material Requirements Planning and Enterprise Resource Planning 4 ERP Forming the Basis of Supply Chain Integration (SCI) 5 Section B 6 Benefits, Costs and Risks of Six Sigma Program 6 Integration of the Six Sigma with the Functional Areas 7 Role of Six Sigma in Corporate Strategy 8 References 9 Bibliography 11 Session A Strategic Nature of the Facility Decisions The facility decisions play a vital role in the businesses and tend to be the long-term capacity planning decisions…
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Capacity Planning and Management
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Download file to see previous pages Further, there is likelihood that the human resource issues in relation to the implementation of the new facilities may arise. It has been noted that the facility decision involves the subjects such as finance, marketing, human resource, accounting and engineering. Therefore, there is requirement of the cross-sectional teams in facility decisions. Balancing Supply And Demand In order to describe the aggregate planning process, the sales and the operation planning (S&OP) can be used. It can be stated that S&OP tends to match the demand as well as the supply by making use of the cross-functional team approach. The diverse cross-functional team tends to meet the general manager for discussing on the sales forecast along with the supply plan and thus take the necessary steps to balance the supply and demand. Role of Aggregate Planning The main task of the aggregate planning is to equalize the supply along with demand of the outputs within the medium-term range. Since the demand of the product seems to be uncertain and fluctuating, with the help of the aggregate planning the general output level for the medium-term future is set. It is not only the yield level that is planned with the help of the aggregate planning method of the operations management but also aggregate planning method tends to determine the suitable resources input mix that can be utilized. It can be stated that the main objective of the aggregate planning is to achieve a plan of production that can make optimum exploitation of the resources of the organization for the purpose of satisfying the expected demand. By making utilization of the ‘level strategy’ and the ‘chase strategy’ or the blend of the two, a firm is able to meet the aggregate demand in the medium-term (Pan & Kleiner, 1995). Material Requirements Planning and Enterprise Resource Planning It can be stated that the manufacturing organizations are required to handle the complexities since there are few thousands of the products, parts, processes and uncertainties that they need to manage. However, it would not be sensible to reveal that there are not any possibilities to manage the uncertain situation. With the assistance of the computerized planning as well as control system named as material requirements planning, it is possible to manage any kind of situation. On the other hand, ERP (Enterprise Resource Planning) is also a significant aspect in operations management. ERP is generally a company wide resource planning system utilized for the purpose of planning along with the controlling of the resources MRP can be utilized to assist the managers to keep the record of the orders via the manufacturing process and thus assist in moving the accurate amount of the material to the production department (Scarlett, 2006). It can be identified that there is requirement of the five elements to make the MRP successful. The five elements are: execution planning, exact data, adequate computer system, and management support and users knowledge. It can be stated ...Download file to see next pagesRead More
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