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Operations Management - Introduction to Operations Management

Planning activities - Introduction to Operations Management

   Posted On :  22.06.2018 07:25 am

All other activities are initiated from the production plan and each area is dependent on the interaction of the activities.

Planning activities
 
 
All other activities are initiated from the production plan and each area is dependent on the interaction of the activities. Typically, a plan addresses materials, equipment, human resources, training, capacity and the routing or methods to complete the work in a standard time. In order to do a good sales forecast, you should base it on a history of firm orders.
 
The production plan initially needs to address specific key elements well in advance of production in order to ensure an uninterrupted flow of work as it unfolds.
 

Material Ordering

 
 
Materials and services that require a long lead time or are at an extended shipping distance, also known as blanket orders, should be ordered in advance of production requirements. Suppliers should send you materials periodically to ensure an uninterrupted pipeline
 

Equipment Procurement

 
 
Procuring specialized tools and equipment to initiate the production process may require a longer lead time. Keep in mind that the equipment may have to be custom made or simply difficult to set up. This type of equipment may also require special training
 

Bottlenecks

 
 
These are constraints or restrictions in the process flow and should be assessed in advance so you can plan around them or eliminate them before you begin production. When you assess possible bottlenecks, be aware that they may shift to another area of the process. Dealing with bottlenecks is a continual challenge for any business
 

Human Resources Acquisitions and Training

 
 
Key or specialized positions may demand extensive training on specialized equipment, technical processes or regulatory requirements. These employees should be interviewed thoroughly about their skills. When hiring them, allow sufficient time for training and be sure that they are competent in their work before the job begins. This will ensure that your process or service flows smoothly
 
The production plan provides a foundation to schedule the actual work and plan the details of day-to-day activities. As sales orders come in, you will need to address them individually based on their priority. The importance of the sales order will determine the work flow and when it should be scheduled. After this, you should evaluate whether or not you are ready for production or to offer the service. You will need to determine:
 
1.      If the inventory is available at the point where work is to start? If not, then the work needs to be rescheduled when supplies become available. There is no point in scheduling work that you will not be able to complete
 
2.      Are your resources available? Do you have the necessary staff to complete the task? Are the machines being used?
 
3.      Does the standard time fit within the open time allowed? If not, then the work should be rescheduled
 
4.      You should be careful to minimize risk factors; allowing too many what-ifs can delay delivery and be counter productive
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