AAOM Handbook

Purpose

To identify the Production Strategy capability of a Process or Productive Unit from the historic performance measures

Quantity

• One set of historical Purpose and Theory measure data for the Process or Productive Unit. • One set of characteristics defining the constraints and opportunities for adjustment of Production strategy parameters.

Quality

The historical data must, as far as possible; • represent stable, or fully understood, performance,

• be conditioned, where necessary, to remove dependent variation. Note that when there is significant storage between elements of the business structure there may be little dependent variation in the data, • represent performance for operating ranges across the performance/effort curve (so that the curve can be interpreted from the data sets), • constitute a representative sample of the process performance, or be extrapolated to account for a limited data set. In defining the Production Strategy constraints and opportunities consider the following. • The maximum of the measured historical distributions. This will be influenced by 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 measured historical distributions. This will be influenced by the; o minimum Throughput Rate, • The spread of the measured historical distributions. This is an indication of the variability in performance displayed by the process. This will be influenced by the; o controlled flexibility of processing resources, o feed quality variation, o output quality variation, o uncontrolled resource quantity or quality variation, and/or o process management (control systems and work management). 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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