UCT OM M5U1 Video 1 Transcript
UCT OM M5U1 Video 1 Transcript
Video 1 Transcript
In this video, we will look at the goals of planning and scheduling production and where they
fit in the demand management planning hierarchy.
Production planning
ROUSSEAU: Operations managers are responsible for medium-range and short-term plans. In
the context of organisations, medium-range production plans cover a period of between 3
and 18 months and use forecasts to determine the quantity and timing of production for
groups of products. They are bound by resource constraints, for example, plant size,
technology, equipment, and budgets that result from the long-term strategic decisions made
by companies.
So, for instance, a tour operator will use demand forecasting to plan the mix of private tours,
package tours, domestic tours, university study tours, and adventure tours to offer over the
tourist seasons for the next 3 to 18 months. How much working capital the tour operator has
at their disposal, the number and type of vehicles they own, their supply of tourist guides, and
the number of full-time staff will all affect what they can take on over the medium term.
Manufacturing organisations use a rolling master production plan for planning. This will be
covered more in the notes for this module.
Production scheduling
ROUSSEAU: The same tour operator I just referred to will then schedule the work in detail.
This involves deciding who will be involved as well as when their contributions will be most
necessary and most useful. So, this means assigning staff to create itineraries and then
mapping them to packages, scheduling tourist guides for set dates, blocking out
accommodation and transportation, pre-booking tourist activities, defining what materials
are needed – to list some of the more obvious tasks.
Conclusion
ROUSSEAU: The goal of planning and scheduling is to meet forecast demand while minimising
costs over the planning period. Planning is about determining what and how much needs to
be done and is more general in nature. Scheduling determines when operations will be
performed and by whom in granular detail for individual products. As you engage with this
module, consider what manufacturing and service sectors can learn from one another's
planning and scheduling best practices.