Case Study: Monument Engineering Ltd

Aggregate Planning

Mike Simpson, Andrea Genovese

• Publisher: Kogan Page
• Year: 2016
• ISBN:
  9780749477745
• Edition: 1
• Topic: Betriebswirtschaft
• Subtopic: Operations

Planning how a company uses its resources can be done in several ways depending upon the type of company it is and the production processes involved. The case study provides essential guidelines on how to create a successful aggregate plan through analysing stock levels, production rate and customer demand.Aimed at students on operations management courses, this case study analyses how companies can sell a range of products of the same kind, such as screwdrivers. The authors assess how the same processes and equipment are used to make these products, no matter what size the items are. Thus, all the products can be scheduled together (aggregated) when they are being pushed through the production system. This improves the company's processes. Mike Simpson and Andrea Genovese have explained the role of stocks in the organization, their effect on break-even points and strategies for managing them to meet customers' needs. In this case study they present how to transform forecast demand and capacity plans into an aggregate plan, and consider key production questions and issues. The case study also includes graphs for measuring demand against production rate and guides the reader through the calculations and analysis process through a question and answer format.

CASE STUDY

OPERATIONS MANAGEMENT

Monument Engineering Ltd

Aggregate planning

Mike Simpson and Andrea Genovese

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AUTHOR BIOGRAPHIES

dr mike simpson and dr andrea genovese

andrea genovese is a Lecturer in Logistics and Supply Chain Management at The University of Sheffield Management School.

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Introduction

Planning how a company uses its resources can be done in several ways depending upon the type of company and the production processes involved. Very often companies selling a range of products of the same kind (eg screwdrivers) make several different sizes of the products (eg small, medium and large screwdrivers). However, the same processes and equipment are used to make screwdrivers no matter what size the items are (within reason). Thus, all the screwdrivers can be scheduled together (aggregated) when they are being planned through the production system.

Useful definitions

Resource management: Deals with all the resources within the company (eg labour, materials, equipment, facilities, information, technical expertise and skills) and creates plans which are executed and controlled to produce goods and services as required by the customers. The objectives of resource management are to: (i) maximize profit; (ii) maximize customer satisfaction; (iii) minimize costs; and (iv) maximize benefits to the various stakeholders involved.

Aggregate pl...