AAOM Handbook

work packages will have been reflected in the Schedule. There may be alternate schedule options that can meet the Strategy tolerances and also deliver better performance outcomes. If the performance predicted for a set of Production and Service Strategies and a Master Operating Schedule do not meet the performance targets the first step is to identify whether all practical Production and Service Strategy and Schedule options have been tested. Large numbers of changes to Production and Production and Service Strategies generally cannot be implemented quickly without high risk of unforeseen consequences. Therefore, in considering the options available to improve the confidence of achieving performance targets it is best to focus on a few, high potential areas. The Pareto principle suggests that 20% of the Strategy and Schedule elements will deliver 80% of the impact on performance.

Purpose

To decide whether there are other practical Production and Service Strategy and Master Operating Schedule options that may meet the performance targets.

Quantity

• One decision whether further practical Production and Service Strategy and Master Operating Schedule options are available.

Quality

In deciding if alternative Strategy or Schedule options are likely to be identified consider: • The size of the gap between the required and predicted performance. • The Pareto ranking of the performance losses resulting from the Production and Service Strategies. • The Pareto ranking of the performance losses resulting from the Master Operating Schedule. • The interval since there has been a rigorous review of Production and Service Strategies. • The probability that technology, strategy specifications, or operating and maintenance practices have changed since the historical Strategy was adopted • The number of iterations/options for the Master Operating Schedule that have been examined.

Time

Options shall be reviewed as required by the Analyse and Improve Process, and at each Business Planning Cycle.

© McAlear Management Consultants 2006

Operational Planning: Set Performance Targets

Updated: August 2018

Page 37