Resource Management and Planning Quiz

Resource Management and Planning in Manufacturing and Service Organizations

• Resource Management involves the planning, execution, and control of all resources used in producing goods or services.
• Resources include materials, equipment, facilities, information, technical knowledge, skills, and people.
• Objectives of Resource Management are to maximize profits and customer satisfaction, minimize costs, and maximize benefits for not-for-profit organizations.
• There are three levels of resource planning: Aggregate Planning, Disaggregation, and Execution.
• Aggregate Planning involves developing a long-term output and resource plan in aggregate units of measure.
• Disaggregation is the process of translating aggregate plans into short-term operational plans that provide the basis for weekly and daily schedules and detailed resource requirements.
• Execution involves moving work from one workstation to another, assigning people to tasks, setting priorities for jobs, scheduling equipment, and controlling processes.
• Service firms frequently use all three levels of planning, while some use only the Execution level.
• Enterprise Resource Planning (ERP) integrates all aspects of a business into a unified information system for more timely analysis and reporting of data.
• Two prominent vendors of ERP software systems are SAP and Oracle.
• Managers have various options for developing aggregate plans in the face of fluctuating demand, including demand management, production rate changes, workforce changes, inventory smoothing, and facilities, equipment, and transportation.
• Disaggregation in manufacturing involves Master Production Schedule, Final Assembly Schedule, and Materials Requirement Planning, while Capacity Requirements Planning is the process of determining the amount of labor and machine resources required for production.