AAOM Handbook

A comprehensive estimate of the performance results of any set of strategies cannot be finalised until the Set Operating Master Schedule and Set Expenditure Schedule processes have also been completed, however, during the Set Production Strategy process some approximations can be made in order to identify the strategy options that are likely to be the most cost effective.

Purpose

To identify the Production Strategy characteristics that will be most significant to delivering the required Process or Productive Unit performance targets.

Quantity

• One set of Production Strategy characteristics relevant to achieving the target performance distribution for a Process/Productive Unit.

Quality

In defining the Production Strategy characteristics consider the following. • The maximum of the target distribution. This will influence choices of the; o maximum Throughput Rate, o maximum Utilisation, o maximum feed quality, o minimum output quality, and/or o maximum quantity of processing resources. • The minimum of the target distribution. This will influence choices of the; o minimum Throughput Rate, • The spread of the target distribution. This is an indication of the flexibility in performance required by the Value Stream. This will influence choices of whether performance variability may be best delivered through varying; o Throughput Rate, o Utilisation, o Feed quality, o Output quality, and/or o resource quantities. • The choice of which parameters to make variable should be based on consideration of; o Practicality (with regard to process technical and product quality specification limits), o impact on yield/recovery, o impact on fixed costs, o impact on variable costs, and/or o process sustainability. The output of this task should be an analysis of the above choices recording the: o minimum Utilisation, o minimum feed quality, o maximum output quality, and/or o minimum quantity of resources.

© McAlear Management Consultants 2006

Operational Planning: Set Production Strategy

Updated: August 2018

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