Operations Management wk5 - Assignment Example

Operations Management Wk 5 Operations Management Wk 5 What are production-planning strategies and how might youincorporate them into your daily activities? Which strategy would be most appropriate for your organization?(250 words) Production planning strategies involve forecasting techniques, product design planning, layout of business and scheduling (Bailey, n.d.). There are three types of production planning strategies which involve trade-offs in the size of the workforce, work hours, inventory and backlogs, namely: the chase strategy, stable workforce – variable work hours and level strategy (Chase-Jacobs-Aquilano, 2005).

As described by Chase, et al., the chase strategy is when the employees are hired or laid-off, depending on the demand and production rate for the goods (2005). On the other hand, in the stable workforce strategy, the output is varied by changing the work hours through flexible work arrangements. In the level strategy, a stable workforce which works at a constant output rate is maintained. According to Chase, et al. the “shortages and surpluses are absorbed by fluctuating inventory levels, order backlogs, and lost sales” (2005).

Since production planning strategies involve demand forecasting, production planning and work scheduling, an activity where it can be applicable is in buying groceries. One must have an idea of his needs either for the week or month, depending on how often one goes to the grocery. He has to know his level of consumption of grocery items for a certain period of time to ascertain how many of such items he will buy. The production planning strategy which is appropriate for my organization which is a T-shirt manufacturing firm is the stable workforce strategy.2. Provide an example of how material requirements planning systems (MRPs) are used in your organization.

How might MRPs be used to improve processes?(250 words)My organization is a T-shirt manufacturing firm. The material requirements planning systems (MRPs) are used in our organization. First, we get orders from customers and forward these data to the production department. The production department then comes up with a production schedule to meet delivery requirements. The purchasing department is also furnished a copy of the data on the orders to determine the amount of raw materials to order.

The company has a bill of materials on hand which gives information on the amount of materials needed to produce the goods ordered. My company also makes use of an inventory record file which is always kept updateda) What are the pros and cons of MRPs?(reference) 75 wordsAn advantage of the MRP is that the company is able to closely monitor and manage its inventory of raw materials and finished goods. The bill of materials makes it easier to specify the amount of raw materials needed to complete the orders.

The major drawback of the MRP is that it requires accurate data. Another disadvantage of the MRP is that it only considers the materials and not the production capacity nor the conditions in the work area.b) What are some interesting facts? (reference) 75 wordsAn interesting fact on MRP that can be mentioned is that one is able to know what the component parts of each finished product are and how much of each part is used. The structure of a product is also given emphasis. Another interesting fact about MRP is that its success will greatly depend on the accuracy of the inputs such as the forecasted demand for the product and the specific units of materials that go into one finished good.

If there are miscalculations in the inputs, the MRP will not be able to function effectively.c) Give an example of a company effectively using MRPs to improve its process? (reference) 75 words An example of a company which effectively uses the MRP is an aviation company. It uses a bill of materials (BOM) software which is linked to an inventory status file (Ghobbar & Friend, 2004). The benefits of MRP to them are reduced inventory cost, improved scheduling effectiveness and reduced component shortages (2004).

Other benefits pointed out are the improved inventory turn-over rate and a decrease in the shelf stock which brought about better cash flow figures. d) How does it affect employees?? 75 words A difficulty in the implementation of the MRP was experienced by the company. Management believes that there should be proper training and education of the employees before the program is initiated.ReferencesBailey, O. (n.d.). Strategies for production planning. Retrieved September 22, 2011, from Scribd, Inc.

Web site: http://www.scribd.com/doc/38266696/Strategies-for-Production- Planning(2005). Chapter 14 - Aggregate sales and operations planning. In Chase-Jacobs-Aquilano, Operations Management for Competitive Advantage, 11th ed. (pp. 558-585). The McGraw Hill Companies.Ghobbar, A. A., & Friend, C. H. (2004). The material requirement planning system for aircraft maintenance and inventory control: A note. Journal of Air Transport Management , 10, 217-221.