Intended learning outcomes: Disclose business processes and tasks in planning & control. Explain in detail master planning or long-term planning, Describe detailed planning and execution.
Section 5.1.1: The MRP II Concept and Its Planning Hierarchy
Intended learning outcomes: Explain the business processes in logistics and operations management of an enterprise, structured according to temporal range. Describe the different degrees of detail in planning. Disclose the aim of data management.
The animation shows a Planning Hierarchy, namely three-level planning according to temporal range, a typical feature of the MRP II concept.
To see further information about the different processes, please press the appropriate arrow.
Section 5.2.2: Sales and Operations Planning and Resource Requirements Planning
Intended learning outcomes: Present the concepts of sales plan, production plan, procurement plan, inventory policy, inventory plan, and aggregate plan. Explain sales and operations planning as an iterative master planning process. Disclose an example of iterative planning by comparing three production plans, with zero, two or four changes in production rhythm per year.
The following simulation shows the production planning of one good depending on the demand evoking during a year.
Objective of the planning is to minimize inventory costs and cost of change(s) in the montly production.
Inventory costs are calculated by taking a percentage of the worth of the units laying in the warehouse. Cost of change(s) is the product of number of changes and cost per change.
To get a clue how production planning works, push the buttons in the top left corner.
Section 5.3.1: Basic Principles of Materials Management Concepts
Intended learning outcomes: Present the objectives of materials management. Differentiate between deterministic materials management and stochastic materials management. Differentiate between independent demand and dependent demand. Produce an overview on quasi-deterministic materials management, fill rate, cumulative fill rate, stockout, backorder.
The animation shows how to calculate the cumulative service level.
Click on the arrow in the top left corner to select the level of output.
Section 5.3.2: Overview of Materials Management Techniques
Intended learning outcomes: Disclose the basic classification of detailed planning techniques in materials management. Explain the additional classification for unique demand or demand for high-cost items with a discontinuous demand pattern. Produce an overview on techniques such as Kanban, order point technique, CPFP (cumulative production figures principle), and MRP (material requirements planning).
The following animation distinguishes among the common techniques of materials management (shown in parentheses) according to the accuracy and the relationship of demand, the frequency of the consumer demand, and production or procurement costs as well.
Drag the fields into the prepared scheme in the correct way
Section 5.3.4: Infinite Loading and Finite Loading — Overview of Scheduling and Capacity Management Techniques
Intended learning outcomes: Differentiate between infinite loading and finite loading. Explain the classification of techniques for capacity management in dependency upon flexibility of capacity and flexibility of order due date. Produce an overview on order-oriented infinite loading, order-wise infinite and finite loading, operations-oriented and order-oriented finite loading, constraint-oriented finite loading, load-oriented order release (Loor), capacity-oriented materials management (Corma).
Exercise: The animation groups techniques for scheduling and capacity management in nine sectors in dependency upon quantitative flexibility of capacity and flexibility of the order due date.
If you press the plus button, you will be able to see a definition. When you roll over some sectors, you might be able to see an example about it.
Section 5.7.4 Scenario: Master Planning Case
Intended learning outcomes: Work out and explain various variants of the production planand inventory plan as well as the resulting procurement plan, on the basis of a long-term sales plan of a company in the wood industry.
Solution: For Variant 2 of the production plan, production per month is one-twelfth of the total annual demand. This results in raw material requirements of about 4900 m3 per month.
A mouse click on the icon “go to procurement plan” takes you to calculation of the procurement plan for the chosen variant; once there, click on “calculate.” The upper section shows the production plan for all variants; the lower section shows the raw material requirements. Run the mouse over the product identification numbers in the left-most column to see whether two to three precut panels can be cut out of a raw board.
To create another variant of the production plan, you can click again on the icon “return to production plan” and the raw material requirements can be calculated for that plan as well.
You can view the animated solution on the Internet here.
For all calculations, click on the “calculate” icon.
