1. Compare and contrast level production strategy with chase strategy in terms of relevance,
applications, costs and benefits
Under the chase strategy, production is varied as demand varies. With the level strategy,
production remains at a constant level in spite of demand variations. In companies that
produce to stock, this means that finished goods inventory levels will grow during low
demand periods and decrease during high demand periods.
What is the difference between a chase strategy and a level strategy in sales and
operations planning?
ANS: A level production strategy plans for the same production rate in each time period. A
chase demand strategy sets the production rate equal to the demand in each time period. ...
Production is set to match demand and doesn't carry any leftover products. Jan 14, 2020
How is level plan different than chase plan?
The level aggregate plan maintains the same size workforce and produces the same output
each period. Inventories and backorders absorb fluctuations in demand. Chase aggregate
plans change the capacity each period to match demand.
What are the key differences between level strategy and chase strategy in aggregate
production planning formulation?
Advantage of level strategy is steady workforce. Disadvantage of level strategy is high
inventory and increase back logs. As the name suggests, chase strategy looks to dynamically
match demand with production. Advantage of chase strategy is lower inventory levels and
back logs.
What is a chase strategy?
The chase strategy refers to the notion that you are chasing the demand set by the market.
Production is set to match demand and doesn't carry any leftover products. This is a lean
production strategy, saving on costs until the demand – the order – is placed.
What companies use Chase strategy?
United parcel service and Wal-Mart are examples of companies that use chase strategy.
During the holiday season beginning in November, United Parcel Service and Wal-Mart hire
seasonal workers to meet the increase in volume.
What is the level strategy?
A business level strategy definition can be summarized as a detailed outline which
incorporates a company's policies, goals, and actions with the focus on being how to deliver
value to customers while maintaining a competitive advantage.
2. An operations manager’s role is to balance priority and capacity. Discuss how manufacturing
planning and control system helps to do that.
Manufacturing planning and control (MPC) effectively plans and controls the
manufacturing process, which encumbers everyone within the process such as materials,
machines, people, and suppliers. All manufacturing facilities need some form of
manufacturing planning and control (MPC) and the information to efficiently manage the
flow of materials and effectively utilize people and equipment while also coordinating
internal activities with those of suppliers. Manufacturing planning and control (MPC) is an
essential function of production and oversees areas such as resource planning, production
planning, demand management, master production scheduling, capacity planning, and
more. With manufacturing planning and control, there are various features that allow you
to benefit from utilizing the software. Manufacturing planning and control software is an
essential component of manufacturing operations and can enhance your facility with ease.
Features of Manufacturing Planning and Control for Production
The features of manufacturing planning and control for production pertain to
the following:
Capacity Planning - Capacity planning is the process of determining the
production capacity that is needed by an organization to meet the changing
demand for its production. With manufacturing planning and control, you are
able to have thorough insight into your capacity plan and establish a plan
utilizing your available capacity, inventory, available material, customer
proximity, and efficiency of running the plant.
Resource Scheduling - Resource scheduling pertains to the action of
efficiently assigning resources to jobs, tasks, or projects that are needed to be
completed. This also pertains to scheduling start and end dates for each tasks
or project based on resource availability. Resource scheduling is an integral
component of any operation and it is essential to have some form of software
that aids with this concept. Resource scheduling aids in various ways
including providing a basis for monitoring and regulating project activities.
MPC allows for a tool within the software to aid with this concept and
effectively assign tasks to individuals/machines.
Inventory Planning - All manufacturing companies should strive for low
inventory or just-in-time (JIT). Inventory is essentially viewed as stacks of
cash that are being set on fire, which is why it is very important to limit your
inventory costs. With MPC, it effectively utilizes data for demand as well as
various other components of the software to ensure that little inventory is held
at all times.
Alerts - In the past, if you were not at the factory, you may not have known
that a machine was down or that production isn’t running efficiently. With the
integration of new technology, there are alert systems that tell individuals
when a machine is not working properly or if there is something needed to be
fixed at the factory. Alerts are very important for your supply chain and
allowing for you to get your production back on track as soon as possible.
Gantt Charts - Gantt Charts allow you to have a visual representation of your
production. Through the utilization of bars, you can easily see how long a task
will take until you are able to move onto the next one. Instead of having to
manually write out the charts yourself, MPC ultimately can create these for
you, thus allowing you to have more time for other tasks within the facility.
PlanetTogether’s Advanced Planning and Scheduling (APS) Software is
essential for modern-day manufacturers that are seeking to enhance their
overall operation. Advanced Planning and Scheduling (APS) Software
enables manufacturers to be able to alter their production plan and locate areas
that are in need of efficiency enhancement. APS software also allows for the
utilization of “What If” Scenarios and enables for a visualization of the most
advantageous production process within your manufacturing facility. APS
software is a must have for manufacturers that are seeking to maintain a
competitive edge while also optimizing their overall supply chain process.
Advanced Planning and Scheduling Software
Advanced Planning and Scheduling (APS) software has become a must for
modern-day manufacturing operations due to customer demand for increased
product mix and fast delivery combined with downward cost pressures. APS
can be quickly integrated with a ERP/MRP software to fill gaps where these
system lack planning and scheduling flexibility and accuracy. Advanced
Planning and Scheduling (APS) helps planners save time while providing
greater agility in updating ever-changing priorities, production schedules, and
inventory plans.
Create optimized schedules balancing production efficiency and delivery
performance
Maximize output on bottleneck resources to increase revenue
Synchronize supply with demand to reduce inventories
Provide company-wide visibility to capacity
Enable scenario data-driven decision making
Implementation of Advanced Planning and Scheduling (APS) software will
take your manufacturing operations to the next level of production efficiency,
taking advantage of the operational data you already have in your ERP.
3. Discuss exploding and offsetting in MRP with an example
A Material Requirements Planning (MRP) system is a planning and decisionmaking tool used in the production process which analyses current inventory
levels vs production capacity and the need to manufacture goods, based on
forecasts. MRP schedules production as per bills of materials while
minimizing inventory. The technique is computerized and looks at
requirements within a fixed period.
What are the main features of an MRP system?
A master production schedule: A statement of the planning including orders,
forecasts and capacity.
Bill of materials (BOM): All the materials and components required to make
the final product.
Inventory status file: Stock records that allow gross requirements to be
adjusted to net requirements.
How does an MRP system work?
Step 1. Exploding: achieved by using the Bill of Materials (BOM), i.e. how
many components are needed to prepare one item of manufacturing?
Step 2. Netting: the net quantity of material calculated by computing the
difference between the stock available in the factory from the overall, gross
requirement. This figure is provided by exploding.
Step 3. Offsetting: lead time is estimated for the entire operation that helps
practitioners to compute the expected time for manufacturing. It also advises
when the manufacturing process should begin so that items are available on
the promised date.
What are the advantages of an MRP system?
A Material Requirements Planning (MRP) system is a planning and decisionmaking tool used in the production process which analyses current inventory
levels vs production capacity and the need to manufacture goods, based on
forecasts. MRP schedules production as per bills of materials while
minimizing inventory. The technique is computerized and looks at
requirements within a fixed period.
The MRP system is widely credited for playing a crucial part in decreasing
factory inventory. It also assists in manufacturing industrial products that are
more complex
MRP focus is on what materials are required and when they need to be
sourced. It is also helpful in product customisation
MRP has historically been seen as giving additional advantage because it is
known to schedule and track every order whether for production or purchase