Aggregate planning Exam Questions and Answers Solved Correctly
long range - Answers 1-3+ Years
Involves adding facilities and equipment
Focuses on resources with long lead times
short range - Answers 2-3 months focused on scheduling, production, people, machinery
general referred to as production planning
usually hard to adjust capacity in short term because of existing capacity constrains
why do we aggregate plan - Answers after deciding our target inventory we need to make sure we have
enough capacity to meet anticipated demand
medium range - Answers 2-12 months
Known as aggregate planning
we may have to Add equipment, personnel, or shifts
we may subcontract production and or build or using inventory
process decisions in organisations - Answers most organisations have pre-existing process decisions that
are based off -industry norms and managements competitive strategy
structure processes - Answers project, job, batch line ,continuous / mass customisation
project process - Answers one off types of products hat are usually customer specific and too large to be
moved.
common to see people, equipment, supplies move to where they are being constructed on
eg construction
job process - Answers customer specific low vol products . prod based on customer designs so requires
high skill
E.g, opticians (prescription glasses)
batch process - Answers delivering similar items on a repeat basis , usually large volumes than job
process
, Line Process (Mass Production) - Answers demand is high for a product. companies use assembly line or
repetitive process. Highly automated, using special-purpose equipment. Workers perform the same
tasks repeatedly in a standardized flow.
eg. Manufacturing: Automotive production
eg Services: Fast-food operations
Continuous Process (Continuous Flow Process) - Answers Process flows continuously rather than being
divided into individual steps .Material passes through successive operations ( refining, processing) and
come out as one or more products
Used for high-volume production of commodities.
Characteristics: of continuous process - Answers Utilizes complex, expensive equipment.
Aims for economies of scale by producing in large quantities.
Low cost per unit due to spreading fixed costs over high volume.
Low labor needs - mainly monitoring and maintenance.
Rare in service industries.
mass customisation - Answers process that produces in high volume but also delivers customer specific
product in small batches that can provide competitive advantage for a company and maximum value for
customer
aggregate demand plan aka - Answers sales and operations plan
what's the s&op plan - Answers statement of a company's rate of prod, workforce and inventory levels
based on estimate of customer requirements and capacity limitations
service organisations - Answers focus on labour costs
pure service industries - Answers don't have to manage inventory other than supplies (mro inventory)
aggregate planning - Answers is an operational activity that generates a plan for a prod or service for the
production process for a period of 2-18 month
objective of aggregate planning - Answers ensure supply meets demand over the period and give
management an idea how much and when materials and resources are required while keeping tc of
operations to a minimum
inputs in the aggregate plan - Answers demand forecast, costs of various alternatives and resources
(inventory holding, ordering, production costs in respect to contracting ,backordering and overtime)
mps - Answers Master Production Schedule (MPS) Created by disaggregating the aggregate plan.
long range - Answers 1-3+ Years
Involves adding facilities and equipment
Focuses on resources with long lead times
short range - Answers 2-3 months focused on scheduling, production, people, machinery
general referred to as production planning
usually hard to adjust capacity in short term because of existing capacity constrains
why do we aggregate plan - Answers after deciding our target inventory we need to make sure we have
enough capacity to meet anticipated demand
medium range - Answers 2-12 months
Known as aggregate planning
we may have to Add equipment, personnel, or shifts
we may subcontract production and or build or using inventory
process decisions in organisations - Answers most organisations have pre-existing process decisions that
are based off -industry norms and managements competitive strategy
structure processes - Answers project, job, batch line ,continuous / mass customisation
project process - Answers one off types of products hat are usually customer specific and too large to be
moved.
common to see people, equipment, supplies move to where they are being constructed on
eg construction
job process - Answers customer specific low vol products . prod based on customer designs so requires
high skill
E.g, opticians (prescription glasses)
batch process - Answers delivering similar items on a repeat basis , usually large volumes than job
process
, Line Process (Mass Production) - Answers demand is high for a product. companies use assembly line or
repetitive process. Highly automated, using special-purpose equipment. Workers perform the same
tasks repeatedly in a standardized flow.
eg. Manufacturing: Automotive production
eg Services: Fast-food operations
Continuous Process (Continuous Flow Process) - Answers Process flows continuously rather than being
divided into individual steps .Material passes through successive operations ( refining, processing) and
come out as one or more products
Used for high-volume production of commodities.
Characteristics: of continuous process - Answers Utilizes complex, expensive equipment.
Aims for economies of scale by producing in large quantities.
Low cost per unit due to spreading fixed costs over high volume.
Low labor needs - mainly monitoring and maintenance.
Rare in service industries.
mass customisation - Answers process that produces in high volume but also delivers customer specific
product in small batches that can provide competitive advantage for a company and maximum value for
customer
aggregate demand plan aka - Answers sales and operations plan
what's the s&op plan - Answers statement of a company's rate of prod, workforce and inventory levels
based on estimate of customer requirements and capacity limitations
service organisations - Answers focus on labour costs
pure service industries - Answers don't have to manage inventory other than supplies (mro inventory)
aggregate planning - Answers is an operational activity that generates a plan for a prod or service for the
production process for a period of 2-18 month
objective of aggregate planning - Answers ensure supply meets demand over the period and give
management an idea how much and when materials and resources are required while keeping tc of
operations to a minimum
inputs in the aggregate plan - Answers demand forecast, costs of various alternatives and resources
(inventory holding, ordering, production costs in respect to contracting ,backordering and overtime)
mps - Answers Master Production Schedule (MPS) Created by disaggregating the aggregate plan.
