Premium Essay

Operations and Supply Chain Management - Planning & Control

In: Business and Management

Submitted By chunanitube
Words 1187
Pages 5
Class 08 – Planning & Control

BUFW M570-01W: Operations and Supply Chain Management Planning & Control:
Chapter 19 – Sales & Operations Planning Chapter 20 – Inventory M anagement

Learning Objectives
Understand what sales and operations planning is and how it coordinates manufacturing, logistics, service, and marketing plans. Construct and evaluate aggregate plans that employ different strategies for meeting demand. Explain yield management and why it is an important strategy.

Joseph Khamalah, Ph.D.
2

What Is Sales and Operations Planning?
Sales and operations planning is a process that helps firms provide better customer service, lower inventory, shorten customer lead times, stabilize production rates, and give top management a handle on the business. The process consists of a series of meetings, finishing with a high-level meeting where key intermediate-term decisions are made. This must occur at an aggregate level and also at the detailed individual product level.


Major Sales & Operations Planning Activities

Aggregate means at the level of major groups of products.

3

4

Sales & Operations Planning Activities – Overview
Sales and operations planning was coined by companies to refer to aggregate planning.

Types of Planning
Long-range planning • Planning focusing on a horizon greater than 1 year, usually performed annually Intermediate-range planning • Planning focusing on a period from 3 to 18 months, time increments are weekly, monthly, or quarterly Short-range planning • Planning covering a period from 1 day to 6 months with daily or weekly time increments
5 6

The new terminology is meant to capture the importance of cross-functional work. Aggregation on the supply side is done by product families, and on the demand side it is done by groups of customers.

1

Class 08 – Planning & Control

Aggregate Operations Plans...

Similar Documents

Premium Essay

Material Management Proposal

...Material Management Proposal OPS/HC571 December 12, 2011 Christopher Kelley Material Management Proposal Material management department is typically responsible for directing the supply chain. Material management is an umbrella department that has many other functions (e.g., central store, laundry and linen operations, and sterile processing). The core purpose of material management is to direct and control the movements of goods in an efficient manner through a hospital system (Langabeer, 2008). This material management proposal document will elaborate on the role materials management plays within a hospital and the role of operations managers in this process. This document will further identify possible constraints a hospital may experience in its supply chain, the potential effects and justification on implementing a new collaborative planning process, and provide suggestions on how to manage a hospital supplied during a disaster. Role of Materials and Operations Management The role of materials and operations management plays within a hospital system is vital to the success of any health care organization. According to Langabeer (2008) material management controls significant resources and have total expenditures, or spending at 50% of a hospital budget. Materials management not only directs and controls the supply chain of a health care organization it is responsible for managing the flow of goods throughout the hospital and carry out supply and resource......

Words: 1614 - Pages: 7

Premium Essay

Supply Chain Management Case Study

...Supply Chain Management (SCM) is the wider concept of looking at the business needs from the sourcing till the production of the final product and delivering it to the customer. SCM attempt to centrally control or link the sourcing, the production, the shipment, the warehousing and distribution of products. The purpose is to ensure the whole business know what is happening when and where. By managing the international supply chain, companies are able to cut wastage and become more lean and mean, be more competitive and provide products faster. Being more lean and mean will drive the company to keep tighter control of internal inventories, production, distribution, sales and the inventories held and forecasted are all key elements in the SCM....

Words: 1123 - Pages: 5

Premium Essay

Operation Management

...Topic 1 I Operations Management 1 List of Key Topics 1. Introduction to Operations Management 2. Performance Objectives & Operations Strategy 3. The Design of Products and Services 4. Facilities Location 5. Demand Forecasting and Capacity Management 6. Process Types 7. Facilities Layout and Flow 8. Process Design and Technology 9. Performance Improvement o Operations Management All organizations have an operations function Operations Function of an Airline – Fly passengers Operations Function of a Hotel – To provide accommodation 1 Operations Management is broad term for a range of activities to ensure that function is carried out efficiently and effectively The Evolution of Operations Management The Production Era; The Sales Era; The Marketing Era Operations differ in terms of The Volume of their output The Variety of their output The Variation of their output The Visibility which customers have of the process 2 Topic 2 Performance Objectives & Operations Strategy The Systems Approach 1 Synistanai – “bring together” or “combine” 2 Bringing together a set of interrelated parts to accomplish a set of objectives. 3 4 Transformational Model 5 Inputs Transformation Outputs 6 7 Operations Performance Objectives Quality – Doing things...

Words: 1294 - Pages: 6

Premium Essay

Success

...Management Training Courses Accelerated. Modular. Experiential Operations Management Course Planning, building and managing enterprise operations Course Methods:  Experiential workshop (action learning course) Course Venue:     Las Vegas, Nevada, USA Course Duration:  4 days Course Time:       9AM-4PM Course Dates:      Management Training Courses Calendar Course Fees:       $3,999 | Option 2: Operations Management Courses Online: $995 Why IIM?:            CEO Club | Training Excellence | Client Testimonials Course Audience:  * COO's Team: Operations Managers, Procurement Managers, Supply Chain Managers, Production Managers, Manufacturing Managers, Warehousing Managers, Inventory Managers, Quality Managers, R&D Managers, Innovation Managers, Project Managers, Entrepreneurs, and Operations Management Consultants. Course Objectives:  * Provides an understanding of operations management framework * Offers experiential analysis to understand the challenges of COOs and Operations Managers * Provides an understanding of the functions and practices of production and operation managers * Training topics include supply chain management, research and development (R&D), manufacturing, project management and quality management * Provides insights on how to develop strategies, initiatives and programs to introduce and sustain competitive operations in organizations * Focuses on lean six sigma best practices, tools and models to develop......

Words: 1175 - Pages: 5

Premium Essay

Fin 370 Week 3 Strategic Initiative Paper

... Strategic Initiative Paper Harley-Davidson’s strategic plan is to improve the quality, accurately forecast the associated costs of returns and allowances, and to maintain the firm’s reputation of satisfying customers. Their financial plan involves taking steps to make sure the company can grow and be profitable in the future. There are plenty initiatives that affect the organization’s financial planning and costs and revenue of the supply chain. It is important to stay ethical when trying to supplant other motorcycle companies as the world’s number-one motorcycle when taking these initiatives. Strategic Planning Initiative Harley-Davidson’s 2013 annual report discusses several strategic initiatives. Specifically, their quality control initiative will require financial planning to support successful implementation of the initiative and add value to the company. Harley’s alignment of strategic planning and financial planning will affect costs, sales, and Harley's ability to finance future capital projects. The 2013 Harley-Davidson Annual Report identifies their quality control initiative as an effort in early detection of quality issues, and improvement of manufacturing processes to avoid recalls, legal costs, and delays in introducing new products to the market. Furthermore, the company wishes to improve its methods of estimating potential costs associated with warranty claims, recalls, and class action suits. Under their current methods, they are likely to......

Words: 1519 - Pages: 7

Premium Essay

Market Structures

...Market Structures Allan Williams ECO/GM561 July 26, 2013 Steve Fritch The MRP for the manufacturing of the Riordan electric fans. Materials Requirement Planning (MRP) is a scheduling procedure for production processes that have several levels of production. Given information describing the production requirements of the several finished goods of the system, the structure of the production system, the current inventories for each operation and the lot sizing procedure for each operation, MRP determines a schedule for the operations and raw material purchases. This add-in provides all the features necessary to formulate and solve small examples (www.me.utexas.edu). The material requirement planning of Riordan manufacturing is designed to supply the required material for creating the parts of electric fan in order to produce the components at each phase of assembly line production. The receiving department collects the raw material, which is processed in the molding department to make it suitable for generating parts of the fan after being polished and trimmed in the trimming department. These parts are further processed in the assembly department to make larger components such as fan blades or fan housings. The packaging departments puts each parts of the fan in right package with adequate labeling so that it can be delivered to distribution center through shipping department (University of Phoenix, 2004). Factors that might affect choosing the Hangzhou,......

Words: 1076 - Pages: 5

Premium Essay

Operations Management

...Operations Management Supply Chain Nathalia Gomez Kean University Abstract Supply chain management is the management of the flow of goods. It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. It is the streamlining of a business' supply-side activities to maximize customer value and to gain a competitive advantage in the marketplace. Supply chain management represents an effort by suppliers to develop and implement supply chains that are as efficient and economical as possible. Supply chains cover everything from production, to product development, to the information systems needed to direct these undertakings. “Supply management can be viewed as both an emergent field of practice and an emerging academic domain. Supply chain management is ultimately about influencing behavior in particular directions and in particular ways. The underlying logics, drivers, enablers and barriers merit and require close attention.” (Storey,2006) Typically, Supply Chain Management will attempt to centrally control or link the production, shipment and distribution of a product. By managing the supply chain, companies are able to cut excess fat and provide products faster. This is done by keeping tighter control of internal inventories, internal production, distribution, sales and the inventories of the company's product purchasers. Supply Chain Management is based on the idea that......

Words: 937 - Pages: 4

Premium Essay

Gap Analysis: Kuiper Leda

...Running head: GAP ANALYSIS: KUIPER LEDA Gap Analysis: Kuiper Leda University of Phoenix Gap Analysis: Kuiper Leda Kuiper Leda is an automotive equipment manufacturer that assembles electronic control units and sensors. The organization has been in business for 10 years and has recently begun to manufacture radio frequency identification devices also. Kuiper Leda has recently received an order for 250,000 electronic control units and 35,000 radio frequency identification devices from Midland Motors. Midland Motors has had exceptional business and it is a large auto major. An order from them would benefit Kuiper Leda. It is important that KL produces quality products and delivers them to Midland on time. The order is urgent and Kuiper Leda will need to manufacture and supply higher volumes over its regular orders. The existing ability at Kuiper Leda is inadequate to handle the increased load on the plant. Kuiper will need to discover ways to meet the sudden increase in requirements. Kuiper must decide whether to manufacture one or both products in-house, or outsource some of the production load. Situation Analysis Issue and Opportunity Identification Today, organizations have realized that in supply chain industries, their operations strategy must be aligned with its mission of servicing the customers. If Kuiper Leda accepts the order from Midland Motors, the organization will be forced to manufacture the product in-house, buy the products or......

Words: 1557 - Pages: 7

Premium Essay

Erp Software

...comprehensive system available for managing the demands of complex manufacturing, distribution, and service industries. Its deep functionality gives you unparalleled control over the complexities of your global operations, with over 30 modules covering: * Global Financial Management * Customer Relationship Management * Sales and Configuration Order Management * Enterprise and Supply Chain Planning * Manufacturing Control * Sourcing and Procurement * Project Management * Quality Management * Service Management * Engineering Data Management * Dynamic Enterprise Modeling ERP Enterprise is proven across a wide range of engineering-based industries, including automotive, industrial equipment and machinery, high tech  and electronics and aerospace and defense. It has more than 25 years of manufacturing know how built in and is helping run more than 5,000 companies worldwide. What it Does ERP Enterprise gives you control over every aspect of your manufacturing supply chain, from design through to delivery, and beyond to your after-market service business. The result of years of development investment and focus on core industries, ERP Enterprise delivers the deepest industry functionality available, including capabilities you simply won't find in other systems—all of which add up to more control, fewer modifications, and sharper information to make better decisions. The latest release introduces new technologies that transform your user......

Words: 1316 - Pages: 6

Premium Essay

Supply Chain Management

...Supply Chain Supply chain is the network of vendors of raw materials plants that change important products and the centers of distribution for the products to get to the buyers. Myerson, P. (2015) further refers supply chain as the value of chain, it the network that includes producing and delivering services or products. The integration of customer requirements at the same time, the upstream supplier performance and internal process is mostly known as supply chain management. Supply chain strategies are as significant to a given company in various ways as explained below: According to kamE. et al (November, 2012) supply chain strategies is the movement of products from the initial point until it gets to the buyer and meet their requirements (demand). According to Kam. E. (November 2012) supply chain strategies are so significant to the organization or company because its efficiency lead to the good recognition of revenue. The issues experienced by the product not being available at the right moment decreases the buyers’ commitment to the product. According to the Managementguide.com (2012) many organizations take supply chain as the source of support. The best line between failure and success is measures by the organization’s supply chain Supply chain management is necessary to organization achievement and customer approval because it includes all of the actions that lead to the achievement of the association from start of planning, management of all activities and......

Words: 866 - Pages: 4

Premium Essay

Supply Chain

...Title : Supply Chain Management Course Code : BUS 306 Year of Study : 3 Number of Credits : 3 credits Duration in Weeks : 15 weeks Contact Hours Per Week : Lecture (2.0 hours) Tutorial (1.0 hour) Pre-requisite Course(s) : Nil Course Aims This course aims to provide students with a clear, well-structured and comprehensive understanding of basic concepts and principles of supply chain management. The course will highlight the very important role of supply chain management in creating customer values, and how it plays in today’s global business world. Besides, this course also presents the strategic context in which supply chain managers work. Teaching Approach Both lectures and tutorials will be used. Lectures are designed to introduce the topics and develop students’ understanding of the materials. Tutorials are designed to consolidate what students have learned in the lecture and help them to apply the theories in relevant situations. Participation of students will be vital to the learning process. Current issues in the business fields related to supply chain management will be used extensively to illustrate the practical aspects of the course. Resources Principal Reading 1. Chopra S. & Meindl P., Supply Chain Management – Strategy, Planning, and Operation, Fourth Edition, New Jersey: Pearson Education, 2010. Supplementary Reading: 1. Bozarth, C. & Hanfield, R., Introduction to Operations and Supply Chain Management,......

Words: 853 - Pages: 4

Premium Essay

Information Business

...IN SUPPLY CHAIN MANAGEMENT The use of information technology (IT) is considered a prerequisite for the effective control of today’s complex supply chains. Because, today companies are often not considered independent entities, but parts of multi-company, multi-echelon networks, i.e. supply chains, delivering goods and services to the final customer. Companies today are under pressure to better manage the supply chain and to improve efficiency and logistics operations while remaining responsive to changing market conditions and customer demands. As a result, organizations need to adopt IT to support their supply chains and increase their efficiency by achieving tighter cooperation over the supply-chain. Importers and exporters need to know where their product is. Lenders need to know when and how to pay for it. Innovative companies have sprung up to harness the power of the IT, making it easier than ever for logistics managers to track and manage international shipments, and to serve their changing needs as they reach ever further across the globe to source goods. Companies such as Home Depot, Xerox and Sears already use on-demand, Web-based data hubs to identify where their goods are in real time, and if delays along the way should be corrected to avoid broader supply chain disruptions and expensive recovery work. TYPE OF ‘IT’ USE FOR OPTIMIZING SCM The use of IT for optimizing SCM can be divided into (Ref. Figure 1): * Transaction processing * Supply......

Words: 1321 - Pages: 6

Premium Essay

Logistics

...Logistics has an important relationship to manufacturing, marketing, finance, and other areas of the organization * Logistics Interfaces with Operations/Manufacturing * Logistics Interfaces with Marketing * Logistics Interfaces with Other Areas Interfaces w/operations/manufacturing -Length of production runs Balance economies of long production runs against increased costs of high inventories. -Seasonal demand Acceptance of seasonal inventory to balance lead production times. -Supply-side interfaces Stocking adequate supplies to ensure uninterrupted production now a logistics function. -Protective packaging Principal purpose is to protect the product from damage. -Foreign & third party alternatives Some logistics functions are being outsourced. Logistics Interfaces with Marketing: The Marketing Mix – Four Ps * Price * Product * Promotion * Place -Manufacturing and marketing are probably the two most important internal, functional interfaces with logistics. -Other important interfaces now include finance and accounting. Logistics can have a major impact on return on assets and return on investment. Logistics costs reported by cost systems measure supply chain trade-offs and performance. Economic utilities and means that add value to a product or service in the SCM * Production * Form Utility (by assembling parts into finished...

Words: 1640 - Pages: 7

Premium Essay

Towards a Better Understanding of Supply Chain Quality Management Practices

...TOWARDS A BETTER UNDERSTANDING OF SUPPLY CHAIN QUALITY MANAGEMENT PRACTICES Article: International Journal of Production Research • This paper reports the result of a comparative study of quality tools and methods adaptation by operations and supply chain managers. • SCQM is defined as a system based approach to performance improvement that leverages opportunities created by upstream and downstream linkages with suppliers and customers. • Operation management is traditional been explained by some version of an ‘inputs-transformation process- outputs’ view of the productive capability of the firms. From Quality perspective, operation managers have focused on internal activities such as process control process improvement, product design improvement and design of experiment. As a result, more and more six-sigma improvement project evolved. • In addition experts like Deming have long emphasized importance of customers and supplier. • In this paper, it explored the difference between quality management practice of operation managers and each type of managers emphasizes supply chain managers, including what quality tools. Tool can here mean the method such as benchmarking, an approach to improving quality such as process improvement team (PIT) and leadership. Literature review and hypothesis development • Supply chain management has developed as a field from the integration of operations and marketing management. As a result, a linkage with upstream firms –......

Words: 962 - Pages: 4

Premium Essay

Cscp Outline

...Certified Supply Chain Professional Exam Content Outline I. Supply Chain Management (SCM) Fundamentals (30%) A. Overview of supply chain management 1.              Supply chain management process overview 2.              Definitions of supply chain, supply chain management, including reverse supply chain 3.              Value and benefits of supply chain management (using the supply chain to improve profitability and decrease working capital) a. Key stakeholders in the supply chain 4.              Evolution of supply chain management (definition of different stages, recognition, understanding, examples) a. Functional supply chains b. Integrated supply chains (internal and external) c. Value networks B. Aligning supply chain management with corporate strategy 1.              Corporate strategy (strategic and financial planning) 2.              Competitive priorities and future direction (use of visibility, velocity, and variability) 3.              Aligning supply chain strategy and capabilities with corporate strategy 4.              Driving supply chain decisions (e.g. processes, capacities, locations, etc.) with competitive priorities and supply chain strategy 5.              Using ERP to align operations with......

Words: 763 - Pages: 4