Chapter 8 Flashcards
What are the characteristics of Strategic Planning?
Long Range (>2 years): Major goals for the company
Goals:
-Cost Reduction
-Production Technology
-Quality
What are the characteristics of Tactical Planning?
Intermediate Range (3 to 18 months):
Analyzes:
-Workforce
-Inventory Levels
-Production Capacity
What are the characteristics of Operational Planning?
Short-Range (1 day to 6 months)
Decomposes the Master Production Schedule in a detailed way (scheduling/control)
What are the external inputs for Production Planning?
Market Demand
Raw Material Availability
Competitions Behaviour
External Capacity
Economic Conditions
What are the internal inputs for Production Planning?
Current Physical Capacity
Current Workforce
Inventory Levels
Activities for Production
What are the three production strategies?
Chase Strategy (Variable Workforce)
Stable Workforce (Variable work hours)
Level Strategy (Stable Workforce/Work Hours)
What are the characteristics of Chase strategy?
Matches order rates by hiring/laying off employees.
Requires a pool of easily trained applicants.
Costs: Hiring, Laying off, and Training.
What are the characteristics of Stable Workforce strategy?
Adjust hours worked through flexible schedules or overtime.
Costs: Idle time and Overtime.
What are the characteristics of Level strategy?
Absorbs demand changes through inventory adjustments, order backlogs or lost sales.
Costs: inventory maintenance, unmet delivery times.
What is a Pure strategy?
A plan which only uses one approach to manage demand fluctuations.
What is a Mixed strategy?
A plan which combines two or more approaches to manage demand fluctuations.
