ABENOJAR, MILIAN NATALIE

MGT-201 OPERATIONS MANAGEMENT AND TQM

OPERATIONS PLANNING AND CONTROL TECHNIQUES

NICE TO KNOW

When producing something, a system for planning and controlling production is required.

NEED TO DO

Companies need to integrate the production planning and control system, because they are an essential
ingredient for a successful operation unit.

NICE TO EXPAND

Production planning is the process of deciding what products to produce, where, and how to produce
them.

Production control is the process of ensuring that the specified production plans and schedules are met.

Important Techniques Used in This Process:

Gantt Chart is a production scheduling chart that plots time on a horizontal scale and generally shows, for
each order, the start and stop times of each operation.

Network Planning and Control Methods are ways of planning and controlling projects by graphically
representing the project’s steps and the timing and links between these steps.

2 most popular Network Planning and Control Methods:

 PERT (Program Evaluation Review Technique) – was developed to handle uncertain activity
times.

2 major components:

o Events – are the specific accomplishments in a project, represented by circles in a PERT

chart.
o Activities – are the time-consuming aspects of a project, represented by arrows in a PERT
chart.

 CPM (Critical Path Method) – was developed for industrial projects for which activity times
generally were known.

o Critical Path – the sequence in a project that in total requires the most time to complete.

Purchasing is a more important function than many mangers realize. It is important because it gives
businesses a structured way to address their needs. It also allows for more informed financial planning.

Purchasing departments buy all the materials and parts the firm needs to conduct its business, including
the raw materials that go into the firm’s products, as well as machinery, tools, purchase components, and
even paper clips and computer paper.

NEED TO END

Planning is simple and it gives us a sense of purpose, but it is crucial – so, approach to achieving
life balance: it allows us to clearly separate the time we spend working from the time we have for
everything else.