AAOM Handbook

Regardless of the simplicity or complexity, effective evaluation of strategy options will require the production of a set of capability histograms for estimated independent process output characteristics for modelling the overall output of the process.

The set of Capability Histograms required for the process modelling may include;

• scheduled service time, • unscheduled service time,

• operating time, • operating rate,

• scheduled interruption frequency, • unscheduled interruption frequency, • ramp-down time,

• ramp-up time, • input quality, • process efficiency, • fixed production costs • variable production costs, • fixed service costs • variable service costs

The Capability Histogram shall be the performance distribution that will result from the Production Strategy choice, for each affected output characteristic for the Productive Unit. The following data relating to the histogram shall be provided; • the values of the minimum, maximum, mean and mode of the distribution, • the 'shape factor' (spread of the distribution – e.g. standard deviation).

Time

The Production Strategy shall be specified during establishment of a process.

Review and validation of Production Strategy shall be based on either a change of targets driven by changing business expectations or the benefit ranking of improvement opportunities identified through analysis of performance.

Resources

Specification of Production Strategy is the accountability of the role identified in the configured flowchart.

© McAlear Management Consultants 2006

Operational Planning: Set Production Strategy

Updated: August 2018

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