RESOURCE MANAGEMENT. CHAPTER 13. DAVID A. COLLIER AND JAMES R. EVANS. 13-1 Describe the overall frameworks for resource planning framework in both goods-producing and service-providing organizations. 13-2 Explain options for aggregate planning.
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DAVID A. COLLIER AND JAMES R. EVANS
13-1Describe the overall frameworks for resource planning framework in both goods-producing and service-providing organizations.
13-2Explain options for aggregate planning.
13-3Describe how to evaluate level production and chase demand strategies for aggregate planning.
13-4Describe ways to disaggregate aggregate plans using master production scheduling and material requirements planning.
13-5Explain the concept and application of capacity requirements planning.
ill Carr, the manager of a retail pharmacy in a high-growth suburban location exclaimed, “The corporate office just doesn’t get it! They set a budget and staffing level that doesn’t fit this location. I can’t do the work and ensure accuracy of the patients’ prescriptions when the corporate office gives me an annual budget for only two pharmacists and two pharmacy technicians”.
The store was part of a national pharmaceutical chain with over 1,000 locations in the United States. The pharmacy was open 16 hours a day on Monday through Saturday and 10 hours on Sunday. Carr established two shifts for these professionals but they were now exhausted. The most senior pharmacist had already threatened to quit if something wasn’t done to correct the problem soon. Carr also had considered reducing the time the store was open, but that would hurt store revenue.
Think about planning a party or some student-related function. What resources do you need to pull it off, and how might you plan to ensure that you have everything at the right time and in the right quantity?
Resource Management deals with the planning, execution, and control of all the resources that are used to produce goods or provide services in a value chain.
Resources include materials, equipment, facilities, information, technical knowledge and skills, and of course, people.
Framework for Resource Management Planning for Goods and Services
Aggregate planningis the development of a long-term output and resource plan in aggregate units of measure.
Disaggregationis the process of translating aggregate plans into short-term operational plans that provide the basis for weekly and daily schedules and detailed resource requirements.
Execution refers tomoving work from one workstation to another, assigning people to tasks, setting priorities for jobs, scheduling equipment, and controlling processes.
Exhibit 13.2 Two Levels of Disaggregation for Many Service Organizations
Example Aggregate Planning Variables and Revenue/Cost Implications
Level Aggregate Production Plan for Golden Beverages
(Excel Agg Plan – Level Template)
Chase Demand Strategy for Golden Beverages
(Excel Agg Plan – Chase Template)
Disaggregation Framework for Manufacturing Plans and Schedules
Production of a single product (A), which requires the components B, C, and D.
Exhibit 13.12 Example MPS
An ordering schedule that covers the gross requirements for each week is called lot-for-lot (LFL).
Exhibit 13.13 MRP Record for Item C Using the Lot-for-Lot (LFL) Rule
The fixed order quantity rule (FOQ)uses a fixed order size for every order or production run.
Exhibit 13.14 Item B Fixed Order Quantity (FOQ) Lot Sizing MRP Record
The periodic order quantity (POQ)orders a quantity equal to the gross requirement quantity in one or more predetermined time periods minus the projected on-hand quantity of the previous time period.
Exhibit 13.15 Item D Fixed Period Quantity (POQ) Lot Sizing and MRP Record
Summary of MRP Explosion for Bill of Material in Exhibit in 13.10
Capacity Requirements Planning (CRP) is the process of determining the amount of labor and machine resources required to accomplish the tasks of production on a more detailed level, taking into account all component parts and end items in the materials plan.
Note: Exhibits 13.22 and 13.23 are found as Excel files in the OM4 Data Workbook on the CourseMate web site.