Chart / Diagram Assignment - Assignment 1 (page 202)

A fully integrated oil company is involved in the following major steps in the business process:

• Searching for new oilfields
• Drilling for oil
• Building a new oil refinery or extending an existing one
• Managing an oil refinery
• Delivering different fuel grades to gas stations
• Managing the sale of non-fuel goods at a gas station

Answer the following:

What are the likely time horizons in capacity planning for each of the above activities?

Fit these activities into the long-, medium-, and short-term time frames introduced in Chapter 7

(see Figure 7.9 on page 190 of the text for a visual example).

Figure 7.9 Operations planning and control systems TASK TIMESCALES PHASE Years Resource planning Determines the resources to meet the aggregate demand forecasts for all services or products in a future time frame, normally a period of between two and five years Planning Medium-term capacity planning Partially disaggregated demand forecasts are used to give a 'rough-cut' review of the necessary resources in terms of staff skill and process types. Will be for periods of six months to two years depending on the type of business involved Scheduling Detailed plans to determine the capacity (staff skills and processes) and materials to meet the service or porduct schedule, together with any contingency plans Control Execution Day-to-day (often hourly) control systems to manage the detailed capacity plans and material requirements to meet the scheduled delivery of services and products to customers Days/hours