SYSTEMS AND SUPPLY CHAIN MANAGEMENT SPECIALIZATION.

rd 3

SEMESTER. IISWBM
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PRINCIPLES OF SYSTEMS AND SUPPLY CHAIN MANAGEMENT & TOTAL QUALITY MANAGEMENT.

PAPER CODE : SSCO1

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DEMAND FORECASTING

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MANUFACTURING OPERATIONS AND DECISION SUPPORT SYSTEM IN SUPPLY CHAIN MANAGEMENT.

PAPER CODE : SSCO2

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TOPICS.
1. 2. Overview of Manufacturing Operations, Modular Concept and Control in SCM. Production Planning and Control : a. Batch Production. b. Mass Production and Assembly Line Systems. c. Application of Heuristics. Job Shop Schedule Designs : Production Plans and Planning Methodology. Inventory Control, Policies in Manufacturing including Raw Material and Finished Product Batch and Continuous Schemes & Control Parameters. Overview of ERP, KANBAN and JIT in Production and SCM applications. Quality Circles in Manufacturing Operations Support.

3. 4.

5. 6.

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POURING LIQUID METAL FROM ARC FURNACE TO LADDLE

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DEFINITIONS
PRODUCTION IS THE PROCESS OF CONVERSION OF THE INPUTS TO OUTPUTS. IN MORE DETAILS, PRODUCTION IS THE PROCESS OF CONVERTING INPUTS IN THE FORMS OF RAW MATERIALS, MEN, MACHINERIES , ENERGY ETC. INTO OUTPUTS AS USABLE GOODS AND SERVICES FOR CONSUMERS. MANUFACTURING IS MORE NARROWLY ATTRIBUTED TO PRODUCTION OF GOODS. THE TERM OPERATIONS INCLUDE BOTH THE MANUFACTURING OF GOODS AND PRODUCTION OF SERVICES.
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PRODUCTION MANAGEMENT
PRODUCTION ENGINEERING IS THE APPLICATION OF TECHNOLOGY IN THE AREAS OF PRODUCT DESIGN, MANUFACTURING AND SERVICING. PRODUCTION MANAGEMENT IS THE PLANNING, ORGANIZING AND CONTROLLING OF THE PRODUCTION FUNCTION.

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OPERATIONS MANAGEMENT AS A SYSTEM

An Operation or Production SYSTEM receives inputs in the form of machines, materials, men, money, utilities and information. These inputs are changed in a conversion SUBSYSTEM into the desired products and services which are called outputs. A portion of the output is monitored in the CONTROL SUBSYSTEM to determine if it is acceptable in terms of QUANTITY, QUALITY and COST.
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CONVERSION PROCESS
INPUTS

OUTPUTS
MEN MONEY MACHINES MANAGEMENT MATERIALS SYSTEMS ENERGY

CONVERSION PROCESSES

GOODS AND SERVICES

MONITOR / CONTROL

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TIME LAG FROM INVENTION TO PRODUCTION OF GOODS AND SERVICES

I I N V E N T I N N O

V
A T I O N

O N

T E C H N O L O G Y

E N G I N E E R I N G

O P E R A T I O N S

GOODS AND SERVICES

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ELEMENTS OF OPERATION STRATEGY

POSITIONING THE PRODUCTION SYSTEM PRODUCT / SERVICE PLANS OUTSOURCING PLANS PROCESS AND TECHNOLOGY PLANS STRATEGIC ALLOCATION OF RESOURCES FACILITY PLANS : Capacity Location Layout
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DECISION MAKING IN POM

STRATEGIC DECISIONS Decisions about Product, Processes and Facilities. OPERATING DECISIONS Decisions about Planning Production to meet the Demand, CONTROL DECISIONS Decisions about Planning and Controlling Operations Day to day - Manning, Quality, Services, Costs and Maintenance
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WORLD ECONOMY.
It is well known today that since 2008 the world economy has undergone an unprecedented change. The Developed Countries have undergone economic recession. The Developing Countries like China, India and Brazil have managed the recession well and in addition started having some control over global economy. The Under-developed Countries are as usual dictated by others.

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TODAYS MARKET.
It is a known fact that every countrys Economy is Market driven today. Globalization has removed the Market Barriers of every country. It is also known that todays Market is Customer oriented. Todays Customers are Global. They are Affluent. They are Quality Conscious. They want Immediate Response.
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ECONOMY MARKET - SUPPLY CHAIN.

It is therefore obvious and imperative that as the economy and market fluctuates from boom and slump, suppliers, manufacturers, distributors, retailers and customers are either directly or indirectly affected as parts of the supply chains they belong to. Ultimately it boils down to : Minimizing Cost of Inputs Optimum Pricing of Product or Service Supply Chain Coordination Optimizing Customer Response.
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STRATEGY
Business Strategy is a long range game plan of an organization and provides a road map of how to achieve the corporate mission. These strategies are embodied in the companies business plan, which includes a plan for each functional area or Value Chain in a company business. Any company to be successful in its business there must be a Strategic Fit of Operations and Supply Chain Strategies, meaning the goals and missions of all the Value Chain Components and Supply Chain must be congruent.
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THE VALUE CHAIN

FINANCE ACCOUNTING INFORMATION TECHNOLOGY HUMAN RESOURCE

New Product Development

Marketing and Sales

Operations

Distribution

Service

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CORPORATE MISSION
A Corporate Mission is a set of long range goals unique to each organization and including the kind of business the company wants to be in, who its customers are, its basic beliefs about business, and its goals of a. survival, b. growth and c. profitability.
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COMPETENCIES
Distinctive Competencies or weaknesses represent great competitive advantages or disadvantages in capturing markets. The competencies may be : Automated production technology, A skilled and dedicated workforce, An ability to quickly bring new products into production, A talented sales force One of the weaknesses may be : Worn-out production equipment.
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COMPETITIVE PRIORITIES
Competitive Priorities may be defined as the customers desires, wishes to meet their requirements from the products / services in order of the ability of the manufacturer to provide them. Once the competitive priorities are set for a product or service, operations strategy must then determine the required production system needed to provide the priorities for the product or service

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COMPETITIVE PRIORITIES
Competitive Priority
Low Production Costs

Definition

Some Ways of Creating

Unit Cost of each product / service, including labour, materials and overhead costs

Redesign of products / services. New technology. Increase in Production rates. Reduction of Scrap / Waste. Reduction of Inventories.

Fast Delivery.

Delivery Performance
On-time Delivery

Larger Finished Goods Inventories. Faster Production rates. Quicker Shipping Methods. More Realistic Promises. Better Control of Production of Orders Better Information Systems.
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COMPETITIVE PRIORITIES
Competitive Priority
High Quality Products / Services

Definition

Some Ways of Creating

Customers perception of degree of excellence exhibited by products / services

Improve products / services : Appearance Malfunction or defect rates Performance and function Wear, endurance ability After sales service.
Change in types of process used Use of advanced technologies Reduction of amount of work in process through lean manufacturing Increase in capacity.

Customer Service and Flexibility

Ability to quickly change production to other products / services, customer responsiveness.

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COMPETITIVE PRIORITIES
All these Competitive Priorities can not normally be applied for a single product or service at the same time. Business Strategy determines the mix of these priorities that is appropriate for each product or service. Once the competitive priorities are set for a product or service, operations strategy must then determine the required production system needed to provide the priories for the product or service.

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OPERATIONS STRATEGY
Elements of Operations Strategy may be classified as : Positioning the Production System. Product / Service plans. Outsourcing Plans. Process and technology Plans. Strategic Allocation of Resources. Facility Plans Capacity, Location and Layout.
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CORPORATE MISSION ASSESSMENT OF GLOBAL BUSINESS CONDITIONS DISTINCTIVE COMPETENCIES OR WEAKNESSES

BUSINESS STRATEGY

PRODUCT / SERVICE PLANS

DEVELOPING OPERATIONS STRATEGY

COMPETITIVE PRIORITES COST, TIME, QUALITY AND FLEXIBILITY

OPERATIONS STRATEGY POSITIONING THE PRODUCTION SYSTEM. PRODUCT SERVICE PLAN. OUTSOURCING PLAN. PROCESS AND TECHNOLOGY PLAN. STRATEGIC ALLOCATION OF RESOURCES. FACILITY PLAN. CAPACITY. LOCATION AND LAYOUT
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Long Range (Years)

Long Range Capacity Planning

Medium Range 18 Months)

(6-

Aggregate Planning

Short Range (Weeks to Months) Short Range (DaysWeeksMonths)

Master Production Scheduling

PRODUCTION PLANNING AND CONTROL IN MANUFACTURING

Production Planning & Control

Pond Draining System

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Push System (MRP)

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Pull System (JIT)

Focusing on Bottlenecks (TOC)

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Resources required to make specific products model Labour hours, Materials, Machines, Capacities

Production Planning & Control System

Plans for (1)Production Schedules of parts and assemblies, (2) Schedules of purchased materials, (3) Shop floor Schedules machine changeovers, batch movements, (4) Workforce Schedules.
Focusing on Bottlenecks (TOC) Used in all types of production, but more benefits obtained in Job Shops.

Pond Draining System Used in all types of Production. Best for products with truly random demand.

Push System (MRP) Used in all types of production, mass production, but more benefits obtained in Job Shops.

Pull System (JIT) Used in all types of Production, but most successful applications are in repetitive, mass manufacturing.

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PRODUCTION PLANNING AND CONTROL SYSTEMS

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SUPPLY CHAIN - DEFINITION

A supply chain is a sequence of processes and flows of products, information and funds that take place within and between different stages of the supply chain and combine to fill a customer need for a product. The supply chain not only includes the manufacturer and the suppliers, but also the transporters, the warehouses, retailers and customers. A supply chain is dynamic and involves the constant flow of P-I-F(Product-Information-Fund) between stages. The objective of every supply chain is to maximize the overall value generated.

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SUPPLY
RAW MATERIAL

CHAIN

MANAGEMENT
MATERIALS FUND

PRODUCTION PROPCESS

COMPONENTS PACKAGING ITEMS PRODUCT SOURCING IMPORTED MATERIALS

INFORMATION
PACKAGING FINISHED GOODS INVENTORY WARE HOUSE

DEPOT DISTRB. CENTRE

WORK-INPROGRESS

BOUGHT-IN-PARTS

UTILIZATION

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SUPPLY

MATERIAL MANAGEMENT
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END USERS

CUSTOMER CUSTOMER ORDER CYCLE

RETAILER REPLENISHMENT CYCLE DISTRIBUTOR MANUFACTURING CYCLE MANUFACTURER

SUPPLY CHAIN PROCESS CYCLE

PROCUREMENT CYCLE SUPPLIER

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Manufacturing Configuration Capability and Flexibility of a Supply Chain - Questions

1. Where should the plants be located, and what degree of flexibility should be built into each ? What capacity should each plant have ? 2. Should plants be able to produce for all markets, or only specific contingency markets ? 3. How should markets be allocated to plants, and how frequently should this allocation be revised ? 4. What kind of flexibility should be built into the distribution system ? 5. How should this flexible investment be valued ? 6. What actions may be taken during product design to facilitate the flexibility ?
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STRATEGIC FIT
For any company to be successful in its business venture there must be a Strategic Fit between the Competitive Strategy and Supply Chain Strategy and closely linked to the following keys : The Competitive strategy and all functional strategies must fit together to form a coordinated overall strategy. Each functional strategy must support other functional strategies and help a firm reach its competitive goal. The different functions in a company must appropriately structure their processes and resources to be able to execute their strategies successfully.

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PLANNING DEMAND AND SUPPLY IN SUPPLY CHAIN MANAGEMENT

BY MANAGING SUPPLY AND DEMAND MANAGERS CAN MAXIMIZE OVERALL PROFITABILITY. MANAGE SUPPLY TO IMPROVE SYNCHRONIZATION IN THE SUPPLY CHAIN IN THE FACE OF PREDICTABLE VARIABILITY. MANAGE DEMAND TO IMPROVE SYNCHRONIZATION IN THE SUPPLY CHAIN IN THE FACE OF PREDICTABLE VARIABILITY. USE AGGREGATE PLANNING TO MAXIMIZE PROFITABILITY WHEN FACED WITH PREDICTABLE VARIABILITY.
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MANAGING SUPPLY AND DEMAND

Often companies divide the task of demand and supply management between different functions. Marketing typically manages demand and operations typically manages supply. Separating the supply and demand management decisions makes it increasingly difficult to coordinate the supply chain, thereby decreasing profit. Therefore, maximizing profitability depends on these decisions being made in a coordinated fashion.

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MANAGING SUPPLY.
A firm can vary supply of product by controlling a combination of the following two factors : Production Capacity Inventory. The objective is to maximize profit, which for our discussion, is the difference between revenue generated from sales and the total cost associated with capacity and inventory. In general, companies use a combination of varying capacity and inventory when managing supply.

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MANAGING SUPPLY. MANAGING CAPACITY.

When managing capacity to meet predictable variability, firms use a combination of the following approaches : Time flexibility from workforce. Use of seasonal workforce. Use of subcontracting. Use of dual facilities dedicated and flexible. Designing product flexibility into the production processes.

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CAPACITY PLANNING
CAPACITY PLANNING IS BASICALLY CONCERNED WITH MATCHING THE RESOURCES TO DEMAND. STABLE DEMAND MAKES TASK OF CAPACITY PLANNING SIMPLE WHILE FLUCTUATION IN DEMAND CREATE PROBLEMS CONCERNING THE ACQUISITION OF RESOURCES AND MATCHING THEM WITH DEMAND LEVELS. CAPACITY DECISIONS ARE GENERALLY STRATEGIC IN NATURE.
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CAPACITY PLANNING STRATEGIC DECISIONS.

Expected Growth of the Market and Companys share of the Market. Accuracy of the Market Forecast. Should capacity be created in few locations each with large capacity or many locations with small capacity? Running of the plant in how many shifts per day, how many days per week and how many days per year. What percentage of requirement can be met by outsourcing ? Policy for meeting temporary shortfalls by overtime/ holiday working ?
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CAPACITY PLANNING MEASUREMENT

1. 2. MEASUREMENT OF CAPACITY CAN BE EXPRESSED IN TERMS OF : Number of units to produce per unit of time ( per day, per week, per month or per year ). Thousands of vehicles per month incase of a automobile Factory Million Tonnes of Steel per year in case of a Steel Plant. Labour Hours or Machine Hours per day. Bed Days for Hospitals. ETC.

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LICENSED , INSTALLED AND RATED CAPACITY

LICENSED CAPACITY denote the capacity licensed by the concerned Government authorities. INSTALLED CAPACITY represents the capacity provided for at the time of installation of the plant. RATED CAPACITY is the capacity based on the highest production rate established by actual trials.
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CAPACITY DETERMINING FACTORS

PLANT MACHINERIES AND EQUIPMENT. TECHNOLOGY APPLIED. DEGREE OF AUTOMATION. NUMBER OF WORKING SHIFTS / DAY LABOUR SKILL AND EFFICIENCY. INCENTIVE SCHEMES AND EFFECTIVENESS. DEGREE OF OUTSOURCING. UPDATION OF KNOWLEDGE AND SKILL.

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PRODUCTION PLANNING AND CONTROL

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PRODUCTION PLANNING IN MANUFACTURING

LONG RANGE CAPACITY PLANNING AGGREGATE PLANNING MASTER PRODUCTION SCHEDULING PRODUCTION PLANNING & CONTROL SYSTEMS

LONG RANGE YEARS

MEDIUM RANGE 6-18 MNTHS SHORT RANGE SEVERAL WEEKS

POND DRAINING SYSTEMS

PUSH SYSTEMS MRP

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PULL SYSTEMS JIT

FOCUSSING ON BOTTLENECKS
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Long Range (Years)

Long Range Capacity Planning

Medium Range 18 Months)

(6-

Aggregate Planning

Short Range (Weeks to Months) Short Range (DaysWeeksMonths)

Master Production Scheduling

PRODUCTION PLANNING AND CONTROL IN MANUFACTURING

Production Planning & Control

Pond Draining System

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Focusing on Bottlenecks (TOC)

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Resources required to make specific products model Labour hours, Materials, Machines, Capacities

Production Planning & Control System

Plans for (1)Production Schedules of parts and assemblies, (2) Schedules of purchased materials, (3) Shop floor Schedules machine changeovers, batch movements, (4) Workforce Schedules.
Focusing on Bottlenecks (TOC) Used in all types of production, but more benefits obtained in Job Shops.

Pond Draining System Used in all types of Production. Best for products with truly random demand.

Push System (MRP) Used in all types of production, mass production, but more benefits obtained in Job Shops.

Pull System (JIT) Used in all types of Production, but most successful applications are in repetitive, mass manufacturing.

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World Class Manufacturing

Impossible?
Do you know those departments? With all these funny texts on the wall like we make the impossible come true immediately, miracles will cost more time. If you want get anything done there, you got another thing coming and yet. Customers all over the world become more demanding every day. Organizations need departments capable of realizing tomorrow what seemed impossible today. This is the World Class Manufacturing principle.
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World Class Manufacturing

Meaning Every commercial organization is focused on making profit. Manufacturing companies are special within these enterprises because they make their products themselves. The objectives of Manufacturing Companies are to satisfy the needs of the customer who wants: 1.Products of consistent high quality 2.Delivery On Time In Full amount ordered 3.Products at the lowest possible cost level.

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World Class Manufacturing

World Class Manufacturing [WCM] is the collective term for the most effective methodologies and techniques to realize these objectives.
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World Class Manufacturing

WCM is the result of many centuries of production knowledge and ability. Starting with the guild structure in the Middle Ages, this knowledge and ability evolved via the manufacturing in the 18th century, scientific management/mass production, socio-technology and lean production in the twentieth century into the State-of-the-Art manufacturing companies in the beginning of the 21st century:

World Class Manufacturing.

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World Class Manufacturing

Philosophy
WCM starts from the theoretically ideal situation; this means that involved employees have the production processes always run without losses. Then one goes back to reality and focuses on differences between the ideal and real process. This difference is called loss. WCM aims to eliminate this loss.

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World Class Manufacturing

WCM aims to eliminate loss in respect of two things of overriding importance: One learns not to accept losses Creation of ownership, meaning that people carrying out a certain production process, feel ownership of this process and initiate improvements, as well as implement them.
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World Class Manufacturing

Well-known WCM methodologies and techniques are :
TPM. EFQM. Kaizen. TQM. Six Sigma. JIT. Lean Manufacturing.

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World Class Manufacturing

Thus the four main characteristics of WCM are successively: 1. Make losses visible 2. Improving in team format 3. Organizing process-oriented 4. Standardize working methods. People who are directly involved in carrying out the processes of additional value are here the internal customers. All others should be supportive and derive their existence from their positive influence on the production process.
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Mass Production System

Mass Production system is meant to be the method of production of goods in high level quantity and lower price per unit. Though the Mass Production System allows lower pricing it doesnt produce low-quality products. It produces standard goods with the means of precision and inter-changeable parts manufacturing. This process is characterized by Mechanization to achieve the higher volume, material with rapid flow throughout the organization for the different stages of manufacturing. Careful monitoring on the Quality Standards of the products and the time duration of labour hours, this is made it workable.
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Mass Production System

Tools and interchangeable Parts of Machine: It is the basis of the Mass Production System. The machine tool industry utilized it to manufacture machines which in turn produce large volume of parts and components with accuracy. Assembly Line : An assembly line is a manufacturing process (most of the time called a progressive assembly) in which parts (usually interchangeable parts) are added to a product in a sequential manner to create a finished product much faster than with handcrafting-type methods.
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Assembly Line
Assembly lines are designed for the sequential
organization of workers, tools or machines, and parts. The motion of workers is minimized to the extent possible. All parts or assemblies are handled either by conveyors or motorized vehicles such as fork lifts, or gravity, with no manual trucking. Heavy lifting is done by machines such as overhead cranes or fork lifts. Each worker

typically performs one simple operation.

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Assembly Line
According to Henry Ford: The principles of assembly are these: (1) Place the tools and the men in the sequence of the operation so that each component part shall travel the least possible distance while in the process of finishing. (2) Use work slides or some other form of carrier so that when a workman completes his operation, he drops the part always in the same placewhich place must always be the most convenient place to his handand if possible have gravity carry the part to the next workman for his operation. (3) Use sliding assembling lines by which the parts to be assembled are delivered at convenient distances.
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PRODUCTION PLANNING
Production Planning is a pre-production activity that involves : Determination of optimal production schedule Sequence of operations Economic batch quantity Optimal job assignment and Dispatching priorities for sequencing of jobs Machine loading Manpower deployment Off-loading

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PRODUCTION CONTROL
Production Control is a complementary activity to production planning which monitors and takes remedial actions to prevent the variations of the actual outputs from the planned ones. Inventory Control Time management Quality control Cost reduction and Cost control Maintenance and Asset care Dispatching Expediting / Follow up / Progressing
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PRODUCTION PLANNING AND CONTROL

Production planning and control encompasses the following areas : Materials. Methods. Machines and equipments. Manpower. Routing. Estimating. Inspection. Cost control. Dispatching. Loading and Scheduling
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LONG RANGE CAPACITY PLANNING

TOP MANAGEMENT DECIDES LONG RANGE PLANS FOR : 1. FACILITIES, PLANT LOCATION, LAYOUT, SIZE AND CAPACITIES 2. MAJOR SUPPLIERS PLAN AND AMOUNT OF VERTICAL INTEGRATION 3. PROCESSING PLANS NEW PRODUCTION TECHNOLOGY NEW PRODUCTION PROCESS NEW SYSTEMS OF AUTOMATION
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AGGREGATE PLANNING
DIVISION OPERATION MANAGER MAKES PALN FOR : EMPLOYMENT, LAYOFFS, HIRINGS, RECALLS, VACATION, OVERTIME, PART-TIME EMPLOYEES INVENTORIES UTILITIES FACILITY MODIFICATIONS MATERIALS SUPPLY CONTRACTS
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MASTER PRODUCTION SCHEDULE

Master Production Scheduling takes the short range capacity that was determined by the aggregate plan and allocates it to orders for end items. The Master Production Schedule (MPS) sets the quantity of each end item to be completed in a definite time bound program. The objectives of MPS are : 1. To schedule end items to be completed promptly and when promised to customer. 2. To avoid overloading or underloading the production facility so that production capacity is efficiently utilized andlow production cost result.
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MATERIAL REQUIREMENTS PLANNING (MRP)

MRP is a computer based system that takes the MPS as given; explodes the MPS into the required amount of raw materials, parts, components, subassemblies and assemblies needed in each week of the planning horizon; reduces the material requirement to account for materials that are in inventory or on order; and develops a schedule of orders for purchased materials and produced parts over the planning horizon.
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MASTER PRODUCTION SCHEDULING

FACTORY OPERATIONS MANAGER PLANS FOR : PRODUCT MIX QUANTIES OF PRODUCTION SCHEDULES OF PRODUCTION TIMINGS OF THE PRODUCTION OF THE FINISHED GOODS OFF-LOADED COMPONENTS
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MATERIAL REQUIREMENTS PLANNING (MRP)

MRP systems are based on the philosophy that each raw material, part, subassemblies and assembly needed in production should arrive simultaneously at the right time and in right quantity to produce the end items in the MPS. MRP controls the flow of the above and achieves : 1. Improved customer service. 2. Reduction of Inventory investment. 3. Improved production and plant operational efficiency.

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BILLS OF MATERIAL
Once the MPS is prepared, end items in the MPS can be exploded into the assemblies, subassemblies, parts, components and raw materials required. Each product therefore has such a list called a bill of materials or indented bill of materials A Bill of Material is a list of all finished products, the quantity of each material in each product and the structure (assemblies, subassemblies, parts, raw materials and their and their relationship) required to produce one unit of a product or end item.
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THE MRP SYSTEM

Order Forecast Inventory Transaction Data

Inventory Status File

Master Production Schedule Bill of Materials File

MRP SYSTEM

Primary Output

Changes in Planned Orders Planned Order Schedule Planning Reports

Performance Reports Exception Reports

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INPUTS
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OUTPUTS

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PRODUCTION PLANNING AND CONTROL SYSTEMS

FACTORY OPERATIONS MANAGER PLANS FOR : PRODUCTION SCHEDULES FOR PARTS AND ASSEMBLIES TO MANUFACTURE SCHEDULES FOR PURCHASE MATERIALS SHOP FLOOR SCHEDULES : 1. MACHINE CHANGE OVERS 2. BATCH MOVEMENTS WORKFORCE SCHEDULES
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PRODUCTION PLANNING AND CONTROL

PRODUCTION PLANNING AND CONTROL MAY BE OF THE FOLLOWING SYSTEMS : POND DRAINING SYSTEMS PUSH SYSTEMS (MRP) PULL SYSTEMS (JIT) FOCUSSING ON BOTTLENECKS (TOC)

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PRODUCT FOCUSED PRODUCTION

The term Product-focused production is used to describe a form of production processing organization in which production departments are organized according to the type of product / service being produced. Product-focused production is also sometimes called Production Line or Continuous Production. Products /services tend to follow direct linear paths without backtracking or side tracking. Product-focused organization is applied to two general forms of production : 1. Discrete Unit Manufacturing and 2. Process Manufacturing.
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PRODUCT FOCUSED PRODUCTION

Discrete unit manufacturing refers to the manufacture of distinct or separate products , like automobiles. Such products may be produced in batches. In discrete unit manufacturing, the term Product-focused is also sometimes used synonymously with the term Production Line or Assembly Line. In Process Manufacturing, flows of materials are moved between production operations such as grinding, cooking, screening, mixing separating, reducing, distilling etc. This form of production is common in food, brewing, chemical, petroleum refining, petrochemicals and cement industries.

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Raw Materials

Components

PRODUCTFOCUSED PRODUCTION
5
Assemblies Finished Goods

Raw Materials

Components

Subassemblies

Production Operations Product or Material Flow

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BATCH PRODUCTION
Batch Production is a Product Focused production often called a Flow Shop because products follow along direct linear routes. Large batches of several standardized products are produced in the same production system. Because products are produced in batches, the production system must be changed over when a different product is to be produced. A key issue in product focused batch type production is the size of the batches. Two approaches to this issue are EBQ and Run-out Method.

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BATCH PRODUCTION
Product focused batch type manufacturing have the following characteristics : Products are of standard designs including parts and components. Products may be produced to inventory rather than to customer orders. Production steps are coupled together in product layouts. Production rates are greater than demand rates for products. The pipeline nature of the production line results in continuous flow from operation to operation until dispatched at the end.
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BATCH PRODUCTION
In Product Focused systems that produce products in batches, a key issue is the size of the batch. Two approaches to this issue are : 1. EBQ for the production lots and 2. Run-out method.

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EBQ FOR PRODUCTION LOT.

PRODUCTION OCCURS AND FLOWS
INTO INVENTORY AT A RATE ( p ) WHICH IS GREATER THAN THE USAGE OR DEMAND RATE (d) AT WHICH THE MATERIAL IS FLOWING OUT OF INVENTORY INVENTORY LEVEL THEREFORE BUILDS UP AT A RATE OF ( p-d ) DURING PRODUCTION AND NEVER REACH THE LEVEL Q

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EBQ FOR PRODUCTION LOT.

MAXIMUM INVENTORY LEVEL = INVENTORY BUILD UP RATE x PERIOD OF DELIVERY = (p d)(Q/p) AVERAGE INVENTORY LEVEL = (Q/2){(p-d)/p} ANNUAL CARRYING COST = (Q/2){(p-d)/p}C ANNUAL ORDERING COST = (D/Q)S TOTAL ANNUAL STOCKING COST (TCS) = (Q/2){(p-d)/p}C + (D/Q)S
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EBQ FOR PRODUCTION LOT.

ECONOMIC ORDERING QUANTITY FOR PRODUCTION LOT IS GIVEN BY THE FORMULA

EBQ = (2DS/C {p/(p-d)}

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EBQ FOR PRODUCTION LOT.

INVENTORY LEVELS

Q
OP

MAXIMUM INVENTORY

(p-d)(Q/p)

LEAD TIME SUPPLY BEGINS SUPPLY ENDS

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TIME

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EBQ FOR PRODUCTION LOT.

PROBLEM. XYZ CO. ARE TO DESPATCH 10,000 VALVES PER YEAR. THE INVENTORY CARRYING COST IS 0.40 Rs. PER VALVE PER YEAR. Rs. 5.50 IS REQUIRED TO COMPLETE AN ORDER. CONSIDERING 250 WORKING DAYS PER YEAR AND A PRODUCTION OF 120 VALVES PER DAY DETERMINE THE PRODUCTION LOT SIZE. ANS. 643 UNITS
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EBQ FOR PRODUCTION LOT.

SOLUTION TO PROBLEM HERE, D = 10,000 UNITS S = 5.50 Rs. C = 0.40 Rs. d = 10,000/250 = 40 UNITS p = 120 UNITS EOQ = Q = (2DS/C){ p/(p-d)} = (2 x 10,000 x 5.5/ 0.4){120/(120-40)} = 642.26 i.e. 643 NO. OF VALVES
SKG 92

RUN-OUT METHOD
Run-out Method is developed in capacity constrained production operations when batches of products are produced on the same production lines. This method attempts to use the total production capacity available in each time period to produce just enough of each product so that if all production stops, the finished goods inventory for each product runs out at the same time. It does not attempt to set economic production lot sizes for products, but recognizes that products share production capacity and allocates the available capacity among products.

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93

RUN-OUT METHOD EXAMPLE.

The Rock-Hard Wood Putty Company is planning its production for the next week. All wood putty products at Rock-Hard must be processed through 20 Mixer-Extruders at its at its Hoogly plant. RockHard has a total of 1600 extruder-hours per week of production capacity based on its six month aggregate capacity plan. Rock-Hards scheduling department is reviewing the inventory levels, machine-hrs required per 1000 kg and forecasted usage for its five principal products. Develop a production schedule for the extruders by using the run-out method.
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1. First convert inventory on hand and the forecasts into extruder-hours (1) Product (2) Finished Goods Inventory (000 kg) (3) Extruder Time Required (Hours per 000 kg) (4) Forecasted Demand for Next Week (000 kg) (5) Inventory in Extruder- Hrs [(2) x (3)] (6) Forecasted Demand for Next Week in Extruder-Hrs. [(4) x (3)]

A
B C D

160.00
210.00 200.50 150.60

1.0
2.0 2.5 1.5

100.00
200.00 200.00 160.00

160.00
420.00 501.25 225.90

100.00
400.00 500.00 240.00

170.20

1.5

100.00

255.30
Total :1562.45

150.00
Total : 1390.00
95

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RUN-OUT METHOD
2. Next, compute the aggregate run-out time(in weeks). This value represents the amount of time that the last unit of an item would remain in inventory beyond the week being planned, assuming that the future weekly demands are the same as the forecasted demand for the next week. This value is computed by dividing the inventory balance at the end of the week being planned (which is the numerator of the fraction that follows) the demand per week.

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RUN-OUT METHOD
Total Inventory on Hand in Extruder-Hrs

Aggregate Run-out = Forecasted Demand for Next Week in Extruder-Hrs. Time

Total ExtruderHrs. Available per Week

Forecasted Demand for Next Week in Extruder-Hrs.

= =

1562.45 + 1600.00 1390.00 1390.00 1275 Weeks.

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97

RUN-OUT METHOD
3. Next, develop a weekly production schedule that uses the 1600 hours of Extruder time. (7) (8) (9) (10) Product Desired Ending Inventory At End of Next Week (000 kg) (4) X 1.275 Desired Ending Inventory and Forecast. (000 kg) (7) + (4) Required Production. (000 kg) (8) (2) Extruder-Hrs. Allocated to Products. (9) X (3)

A
B C

127.50
255.00 255.00

227.50
455.00 455.00

67.50
245.00 254.50

67.50
490.00 636.25

D
E

204.00
127.50

364.00
227.50

213.40
57.30

320.10
85.95 Total : 1599.80

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98

Mass Production System

Mass Production system is meant to be the method of production of goods in high level quantity and lower price per unit. Though the Mass Production System allows lower pricing it doesnt produce low-quality products. It produces standard goods with the means of precision and inter-changeable parts manufacturing. This process is characterized by Mechanization to achieve the higher volume, material with rapid flow throughout the organization for the different stages of manufacturing. Careful monitoring on the Quality Standards of the products and the time duration of labour hours, this is made it workable.
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Mass Production System

Tools and interchangeable Parts of Machine: It is the basis of the Mass Production System. The machine tool industry utilized it to manufacture machines which in turn produce large volume of parts and components wit accuracy. Assembly Line : An assembly line is a manufacturing process (most of the time called a progressive assembly) in which parts (usually interchangeable parts) are added to a product in a sequential manner to create a finished product much faster than with handcrafting-type methods.
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Assembly Line
Assembly lines are designed for the sequential
organization of workers, tools or machines, and parts. The motion of workers is minimized to the extent possible. All parts or assemblies are handled either by conveyors or motorized vehicles such as fork lifts, or gravity, with no manual trucking. Heavy lifting is done by machines such as overhead cranes or fork lifts. Each worker

typically performs one simple operation.

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Assembly Line
According to Henry Ford: The principles of assembly are these: (1) Place the tools and the men in the sequence of the operation so that each component part shall travel the least possible distance while in the process of finishing. (2) Use work slides or some other form of carrier so that when a workman completes his operation, he drops the part always in the same placewhich place must always be the most convenient place to his handand if possible have gravity carry the part to the next workman for his operation. (3) Use sliding assembling lines by which the parts to be assembled are delivered at convenient distances.
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1/25/2014

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108

ASSEMBLY LINE MANUFACTURING

Consider the assembly of a car: assume that certain steps in the assembly line are to install the engine, install the hood, and install the wheels (in that order, with arbitrary interstitial steps); only one of these steps can be done at a time. In traditional production, only one car would be assembled at a time. If engine installation takes 20 minutes, hood installation takes five minutes, and wheel installation takes 10 minutes, then a car can be produced every 35 minutes.

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110

ASSEMBLY LINE MANUFACTURING

In an assembly line, car assembly is split between several stations, all working simultaneously. When one station is finished with a car, it passes it on to the next. By having three stations, a total of three different cars can be operated on at the same time, each one at a different stage of its assembly.
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ASSEMBLY LINE MANUFACTURING

After finishing its work on the first car, the engine installation crew can begin working on the second car. While the engine installation crew works on the second car, the first car can be moved to the hood station and fitted with a hood, then to the wheels station and be fitted with wheels. After the engine has been installed on the second car, the second car moves to the hood assembly. At the same time, the third car moves to the engine assembly. When the third cars engine has been mounted, it then can be moved to the hood station; meanwhile, subsequent cars (if any) can be moved to the engine installation station.
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ASSEMBLY LINE MANUFACTURING

Assuming no loss of time when moving a car from one station to another, the longest stage on the assembly line determines the throughput (20 minutes for the engine installation) so a car can be produced every 20 minutes, once the first car taking 35 minutes has been produced.
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COMPONENT-A
OPERATION

COMPONENT-B
OPERATION

COMPONENT-C
OPERATION

OPERATION

OPERATION

OPERATION

OPERATION

OPERATION

OPERATION

OPERATION

OPERATION

OPERATION

SUB-ASSY

SUB-ASSY

SUB-ASSY

ASSEMBLY
SKG PRODUCT LAYOUT 114

ASSEMBLY LINE MANUFACTURING

FG

Assembly Line

Cellular Manufacturing
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115

Subassembly SKG

PLANT LAYOUT - CELLULAR

IN CELLULAR MANUFACTURING MACHINES ARE GROUPED INTO CELLS AND CELLS FUNCTION SOMEWHAT LIKE A PRODUCT LAYOUT ISLAND WITHIN A LARGER JOB SHOP OR PROCESS LAYOUT EACH CELL IN A CM LAYOUT IS FORMED TO PRODUCE A SINGLE PARTS FAMILY A FEW PARTS WITH COMMON CHARACTERISTICS
SKG 116

CELLULAR MANUFACTURING
LATHE
RAW MATERIAL

SAW

MILLING

PRODUCTION CELL
FINISHED PRODUCT

DEBURRING

DRILLING

GRINDING
SKG 117

PLANT LAYOUT -- CELLULAR

A CM LAYOUT IS MADE FOR THE FOLLOWING REASONS : MACHINE CHANGEOVERS ARE SIMPLIFIED MATERIAL-HANDLING COSTS ARE REDUCED PRODUCTION IS EASIER TO AUTOMATE PARTS CAN BE MADE FASTER LESS IN PROCESS INVENTORY REQUIRED TRAINING PERIODS FOR WORKERS ARE SHORTENED
SKG 118

FLEXIBLE MANUFACTURING SYSTEM

SOMETIMES ALSO CALLED FLEXIBLE MACHINING SYSTEMS KITS OF MATERIALS AND PARTS ARE LOADED ON THE AUTOMATED MATERIAL HANDLING SYSTEM. COMPUTER IS PROGRAMMED TO RUN ALL THE MACHINES SUCH THAT ON COMPLETION OF OPERATIONS IN EACH MACHINE MATERIALS WILL BE TRANSFERRED AUTOMATICALLY TO THE NEXT MACHINE TILL ALL THE OPERATIONS ARE COMPLETED FOR THE FINISHED PRODUCT.

SKG

119

COMPUTER

WORKER

PALLET

T
MACHINE

T
MACHINE

T
MACHINE

TT

TOOL

UNLOAD

PALLET TRANSFER SYSTEM

P A R T S
120

LOAD
SKG A FLEXIBLE MANUFACTURING SYSTEM

PLANNING PRODUCT LAYOUT

The analysis of the production lines is the central focus of the analysis of the product layout. The product design and the market demand for the products ultimately determine the technological process steps and the required production capacity of production lines. The number of workers, attended and unattended machines and the tools required to provide the market demand must then be determined. This information is provided by LINE BALANCING.

SKG

121

PLANNING PRODUCT LAYOUT

LINE BALANCING
Line Balancing is an analysis process that tries to equally divide the work to be done among workstations so that the number of workers or workstations required on a production line is minimized. The goal of analysis of production lines is to determine how many workstations to have and which tasks to assign to each workstation so that the minimum number of workers and the minimum amount of machines are used to provide the required amount of capacity.
SKG 122

LINE BALANCING TERMINOLOGY.

PRODUCTION LINES HAVE WORKSTATIONS AND WORKCENTRES ARRANGED IN SEQUENCE ALONG A STRAIGHT OR CURVED LINE. A WORKSTATION IS A PHYSICAL AREA WHERE A WORKER WITH TOOLS OR A WORKER WITH ONE OR MORE MACHINES OR AN UNATTENDED MACHINE LIKE A ROBOT PERFORM A PARTICULAR SET OF TASKS. A WORKCENTRE IS A SMALL GROUPING OF IDENTICAL WORKSTATIONS, WITH EACH WORKSTATION PERFORMING THE SAME SET OF TASKS.

SKG

123

LINE BALANCING TERMINOLOGY.

TASK Elements of work. TASK PRECEDENCE The sequence or order in which the tasks must be performed. TASK TIME The amount of time in minutes a trained worker or an unattended machine takes to perform a task. CYCLE TIME The time in minutes between products coming off the end of a production line. NUMBER OF WORKSTATIONS WORKING The amount of work to be done at a Workcentre expressed in terms of the Workstations. 28 hrs of work at a Workcentre during a 8 hr shift would be equivalent to 28/8 or 3.5 Workstations working.
SKG 124

LINE BALANCING TERMINOLOGY.

MINIMUM NUMBER OF WORKSTATIONS The least number of Workstations that can provide the required production, calculated by
Sum of all task times Cycle time

Sum of all task times X demand per hour Productive time per hour

UTILIZATION The percentage of time that a production line is working. This is usually calculated by
Minimum number of workstations
Actual number of workstations X 100

SKG

125

LINE BALANCING METHODS

Researchers have used linear programming, dynamic programming and other mathematical models to study LINE BALANCING problems. HEURISTIC METHODS or methods based on simple rules are used to develop very good solutions but may not be optimal solutions : Incremental Utilization (IU) Heuristic Longest Task Time (LTT) Heuristic

SKG

126

LINE BALANCING PROCEDURE

1.

2.
3.

4. 5.

6. 7.

Determine which tasks must be performed to complete one unit of a particular product. Determine the order or sequence in which the tasks must be performed. Draw a precedence diagram. This is a flow chart wherein circles represent tasks and connecting arrows represent precedence. Estimate task times. Calculate the cycle time. Calculate the minimum number of workstations. Use one of the heuristics to assign tasks to workstations so that the production line is balanced
SKG 127

LINE BALANCING METHODS

The incremental utilization heuristic simply adds tasks to a workstation in order of task precedence one at a time until utilization is 100 % or is observed to fall. This procedure is repeated at the next workstation for the remaining tasks. This incremental utilization heuristic is appropriate when one or more task times is equal to or greater than the cycle time.
SKG 128

LINE BALANCING METHODS

The longest task time heuristic adds tasks to a

workstation one at a time in the order of task precedence. If a choice must be made between two or more tasks, the one with the longest task time is added. Tasks with the shorter times are then saved for fine tuning the solution. The conditions are : 1. It can be used only when each and every task time is less than or equal to the cycle time 2. There can be no duplicate workstations.
SKG 129

WORKED OUT PROBLEM.

A large electronic manufacturer assembles calculators. The assembly tasks are shown in the table. Assemblies are made and moved along by belt conveyers between workstations. It is required to produce 540 calculators per hour. 1. Compute the cycle time per calculator per minute. 2. Compute the minimum number of workstations. 3. How would you combine the tasks into workstations to minimize the idle time? 4. Evaluate your proposal. 5. Assume 54 min. of work in every hour towards allowances.

SKG

130

WORKED OUT EXAMPLE

TASK A B C D E F G PRECEDED BY A A A B, C, D E F
SKG

TIME TO PERFORM(MIN) 0.18 0.12 0.32 0.45 0.51 0.55 0.38

131

H I J K L

G H I J J

0,42 0.30 0.18 0.36 0.42

M
N O TOTAL

K,L
M N

0.48
0.30 0.39 5.36

SKG

132

PROBLEM SOLUTION
1.
Productive Time Per Hour Cycle Time = Demand Per Hour 54 = 540

= 0.100 min

2. Minimum number of Workstations Sum of Task Times X Demand Per Hour =

Productive Time Per Hour

5.36 min Per calculator X 540 Calculators Per Hour 54 minutes Per Hour

= 53.60 Workstations 3. To Balance the Line Draw the precedence Diagram for the Production Line.
SKG 133

PRECEDENCE DIAGRAM
B K

L
PRECEDENCE RELATIONSHIP

TASKS

SKG

134

PROBLEM SOLUTION
ASSIGNING TASKS TO WORKCENTRES

1
WORK CENT RE

2
TASKS

3
MIN/ CALCULATOR

4
NO. OF WORKSTAT ION WORKING (3) /CYCLE TIME

5
ACTUAL NUMBER OF WORKSTA TIONS REQUIRED

6
UTILIZATION OF WORKSTATIO NS {(4) /(5) } X 100

1 1 2

2 2 3 3 3

A A,B C C,D C, D, E C,D,E,F F F, G F, G, H

0.18 0.18+ 0.12= 0.30 0.32 0.32+0.45= 0.77 0.32+0.45+0.51=1.28 .32+.45+.51+.55= 1.83 .55 .55 + .38 = .93 ,55 + .38 + .42 = 1.35
SKG

1.8 3.0 3.2 7.7 12.8 18.3 5.5 9.3 13.5

2 3 4 8 13 19 6 10 14

90 % 100 % 80 % 96.3 % 98.5 % 96.3 % 91.7 % 93 % 96.4 %

135

PROBLEM SOLUTION ASSIGNING TASKS TO WORKCENTRES

1
WORK CENT RE

2
TASKS

3
MIN/ CALCULATOR

4
NO. OF WORKSTAT ION WORKING (3) /CYCLE TIME

5
ACTUAL NUMBER OF WORKSTA TIONS REQUIRED

6
UTILIZATION OF WORKSTATIO NS {(4) /(5) } X 100

3 3 4 4 4 4 4 4

F,G,H,I F,G,H,I,J J J, K J, K, L J,K,L,M J,K,L,M,N J,K,L,M,N,O

.55+.38+.42+.30= 1.65 .55+.38+.42+.30+.18=1.83 .18 .18 + .36 = .54 .18+.36 +.42 = .96 .18+.36+.42+.48 = 1.44 .18+.36+.42+.48+.30=1.74 .18+.36+.42+.48+.30+.39 = 2.13 TOTALSKG

16.5 18.3 1.8 5.4 9.6 14.4 17.4 21.3

17 19 2 6 10 15 18 22

97 % 96.3 % 90 % 90 % 96 % 96 % 96.7 % 96.8 %

136

55

PROBLEM SOLUTION ASSIGNING TASKS TO WORKCENTRES

3. Summarizing the assignment of tasks to workstations on the production line
TASKS IN WORKCENTRES WORKCENTRES ACTUAL NUMBER OF WORKSTATIONS A B 1 C, D, E 2 F, G H, I 3 J, K, L M, N, O 4 T O T A L = 55
137

3.0

13.0

17.0

22.0

SKG

PROBLEM SOLUTION ASSIGNING TASKS TO WORKCENTRES

4. COMPUTING THE UTILIZATION OF THE PROPOSAL UTILIZATION = = = =

Minimum number of Workstations Actual Number of Workstations 53.6 55 0.975

97.5 %

Note : 6 minutes per hour is non-productive due to various allowances in working shift.
SKG 138

SCHEDULING
IN MASS PRODUCTION FACTORIES, OFTEN WORK CENTRES ARE TO TACKLE A NUMBER OF PARTS OR COMPONENTS PRODUCED IN BATCHES. EACH BATCH SIZE IS NORMALLY CALCULATED AS ECONOMIC BATCH QUANTITY (EBQ). EACH JOB FOLLOWS A DISTINCT ROUTE THROUGH VARIOUS WORK CENTRES. MANY DIFFERENT ROUTINGS EXIST BUT THE BEST POSSIBLE ROUTINGS ARE ASSIGNED TO DIFFERENT ORDERS OR JOBS.
SKG 139

SCHEDULING
IN A PROCESS FOCUSSED FACTORIES, OFTEN CALLED JOB SHOPS, JOBS ARE USUALLY PROCESSED IN BATCHES. BATCH SIZES ARE BASED ON EITHER THE CUSTOMER ORDER SIZE OR SOME ECONOMICAL QUANTITY. EACH JOB OR ORDER FOLLOWS A DISTINCT ROUTE THROUGH VARIOUS WORK CENTRES. MANY DIFFERENT ROUTINGS EXIST IN A JOB SHOP AND BEST POSSIBLE ROUTINGS ARE ASSIGNED TO DIFFERENT ORDERS OR JOBS.

SKG

140

SEQUENCING RULES
FIRST COME FIRST SERVED (FCFS) : job which is first in the
waiting list. SHORTEST PROCESSING TIME (SPT) : job with the shortest processing time. EARLIEST DUE DATE (EDD) : job with the earliest due date to be delivered. LEAST SLACK (LS) : job with the least slack (time to due date minus total remaining production time. CRITICAL RATIO (CR) : job with the least time to due date divided by total remaining production time. LEAST CHANGEOVER COST (LCC) : job with the minimum changeover cost.
SKG 141

SCHEDULING WITH MINIMUM PRODUCTION TIME

JOHNSONS RULE
A JOB SEQUENCE THAT MINIMIZES THE TOTAL TIME PRODUCING A GROUP OF JOBS WOULD ORDINARILY RESULT IN LOW PRODUCTION COST AND HIGH LABOUR UTILIZATION. WHEN SEVERAL JOBS MUST BE SEQUENCED THROUGH TWO WORK CENTRES WE OFTEN WANT TO SELECT A JOB SEQUENCE THAT MUST HOLD FOR BOTH WORK CENTRES. THIS SITUATION IS EFFECTIVELY ANALYZED BY APPLYING JOHNSONS RULE.

SKG

142

JOHNSONS RULE
1. SELECT THE SHORTEST PROCESSING TIME IN EITHER WORK CENTRE. 2. IF THE SHORTEST TIME IS AT THE FIRST WORK CENTRE , DO THE JOB FIRST IN THE SCHEDULE. IF IT IS AT THE SECOND WORK CENTRE , DO THE JOB LAST IN THE SCHEDULE. 3. ELIMINATE THE JOB ASSIGNED IN STEP 2. 4. REPEAT STEPS 1, 2 AND 3 FILLING IN THE SCHEDULE FROM THE FRONT AND BACK UNTIL ALL JOBS HAVE BEEN ASSIGNED A POSITION IN THE SCHEDULE.

SKG

143

EXAMPLE COMPUTER JOB A

ESTIMATED PROCESSING

TIME
WORK CENTRE 1. MACHINING. 1.50 WORK CENTRE 2. FINISHING. 0.50

B
C

4.00
0.75

1.00
2.25

D
E F

1.00
2.00 1.80
SKG

3.00
4.00 2.20
144

SOLUTION TO THE PROBLEM

1. SELECT THE SHORTEST PROCESSING TIME 0.50 FOR JOB A AT WORK CENTRE 2 , A GOES LAST. 2. SELECT THE NEXT REMAINING SHORTEST PROCESSING TIME 0.75 FOR JOB C AT WORK CENTRE 1, C GOES FIRST. 3. SELECT THE NEXT REMAINING SHORTEST PROCESSING TIME THERE IS A TIE BETWEEN 1.00 FOR JOB B AT WORK CENTRE 2 AND JOB D AT WORK CENTRE 1, B GOES LAST AND D GOES FIRST. 4. SELECT THE NEXT REMAINING SHORTEST PROCESSING TIME 1.80 FOR JOB F AT WORK CENTRE 1, F GOES FIRST. 5. ONLY ONE JOB REMAINS E WHICH FITS IN BETWEEN F AND B.
SKG 145

PROBLEM SOLUTION JOBS TO BEGIN AT THE SAME TIME IN BOTH WORK CENTRES
SEQUENCE : C D F E B A WORK CENTRE 1
C 0.75 D 1.00 C 2.25 0.75 3.00 X F 1.80 D 3.00 6.00 X E 2.00
F 2.20

B 4.00 E 4.00

A 1.50 B 1.0 12.20

X
X

X
0

A 0.5

8.20

13.20 14.2

WORK CENTRE 2

IDLE TIME : X
SKG 146

ALL THE JOBS COMPLETED IN 14.20 HRS

PROBLEM SOLUTION JOBS NEED NOT BEGIN AT THE SAME TIME IN BOTH WORK CENTRES
SEQUENCE : C D F E B A WORK CENTRE 1
C 0.75 X 0 0.75 D 1.00 C 2.25 3.00 F 1.80 E 1.80 D 3.00 6.00 B 4.00 F 2.20 8.20 A 1.50 E 4.00 B 1.0 12.20 X A 0.5 13.70

WORK CENTRE 2

IDLE TIME X

ALL THE JOBS COMPLETED IN 13.70 HRS.

SKG 147

COMPUTERIZED SCHEDULING SYSTEM

Computer software packages are available to help companies develop schedules for each work centre and macro schedules that help coordinate all the jobs to be produced. Regardless of the scope of these packages the scheduling part of the programs ordinarily must perform the following functions : 1. Develop for each work centre daily detailed schedules that indicate beginning and ending times for each order. 2. Develop departmental daily and weekly detailed schedules that are used to coordinate work centres. 3. Generate modified schedules as new customer or work-centre progress information services

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148

COMPUTERIZED SCHEDULING SYSTEM

Before these programs can be used, priority rules for determining the sequence of jobs at work centres must be developed, the necessary set of rules for determining which jobs will be assigned to which work centres must be established, and a system of follow up and feedback within the facility for modifying schedules must be developed. Some computerized scheduling systems focus on managing the schedules of bottleneck operations. This approach is also called Theory of Constraints. Others have called this approach Synchronous Manufacturing or Drum-Buffer-Rope approach
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INVENTORY CONTROL

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150

Inventory Policy
Inventory policies are important enough that production, marketing and financial managers work together to reach agreement on these policies. That there are conflicting views concerning inventory policies underscores the balance that must be struck among conflicting goals Reduce production costs, Reduce inventory investment, Increase customer responsiveness

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151

Why Do We Want to Hold Inventories ?

.

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152

Why Do We Want to Hold Inventories ?

1.
Finished Goods 2. 3.

Essential in produce-to-stock positioning strategies, of strategic importance. Necessary in level aggregate capacity plans. Products can be displayed to customers

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153