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6 - Manufacturing Resource Planning

6 - Manufacturing Resource Planning. Dr. Ron Lembke pp. 182-208. How do we account for LT?. System for organizing WIP releases Consider LT for each item Look at BOM to see what parts needed Release so they will arrive just as needed Example Figure 6.2 Order quantity is 50 units

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6 - Manufacturing Resource Planning

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  1. 6- Manufacturing Resource Planning Dr. Ron Lembke pp. 182-208

  2. How do we account for LT? • System for organizing WIP releases • Consider LT for each item • Look at BOM to see what parts needed • Release so they will arrive just as needed • Example Figure 6.2 • Order quantity is 50 units • LT is one week • I’ve added “Net requirements” and “scheduled releases” rows to Figure for clarity

  3. Fig 6.2 6 units short

  4. Fig 6.2 Order 50 units week earlier

  5. Fig 6.2 Ending inventory

  6. Terminology • Projected Available balance • Not on-hand (that may be greater) • Tells how many will be available (in ATP sense) • Planned order releases ≠ scheduled receipts • Only when material has been committed to their production • Move to scheduled receipts as late as possible • Preserves flexibility

  7. Figure 7.3 1605 Snow Shovel 1605 Snow Shovel 062 Nail (4) 13122 Top Handle Assy 048 Scoop-shaft connector 14127 Rivet (4) 314 scoop assembly 118 Shaft (wood)

  8. 314 scoop assembly 314 scoop assembly 019 Blade (steel) 14127 Rivet (6) 2142 Scoop (aluminum)

  9. 13122 Top Handle Assembly 13122 Top Handle Assembly 11495 Welded Top handle bracket Assembly 457 Top handle (wood) 1118 Top handle Coupling (steel) 129 Top Handle Bracket (steel) 082 Nail (2)

  10. BOM Explosion • Process of translating net requirements into components part requirements • Take into account existing inventories • Consider also scheduled receipts

  11. BOM Explosion Example • Need to make 100 shovels • We are responsible for handle assemblies.

  12. 13122 Top Handle Assembly 13122 Top Handle Assembly 11495 Welded Top handle bracket Assembly 457 Top handle (wood) 1118 Top handle Coupling (steel) 129 Top Handle Bracket (steel) 082 Nail (2)

  13. Net Requirements Sch Gross Net Part Description Inv Rec Req Req Top handle assy 25 -- 100 75 Top handle 22 25 Nail (2 required) 4 50 Bracket Assy 27 -- Top bracket 15 -- Top coupling 39 15

  14. Figure 6.5 Sch Gross Net Part Description Inv Rec Req Req Top handle assy 25 -- 100 75 Top handle 22 25 75 28 Nail (2 required) 4 50 150 96 Bracket Assy 27 -- 75 48 Top bracket 15 -- Top coupling 39 15

  15. 13122 Top Handle Assembly 13122 Top Handle Assembly 11495 Welded Top handle bracket Assembly 457 Top handle (wood) 1118 Top handle Coupling (steel) 129 Top Handle Bracket (steel) 082 Nail (2)

  16. Figure 6.5 Sch Gross Net Part Description Inv Rec Req Req Top handle assy 25 -- 100 75 Top handle 22 25 75 28 Nail (2 required) 4 50 150 96 Bracket Assy 27 -- 75 48 Top bracket 15 -- 48 33 Top coupling 39 15 48 --

  17. Timing of Production • This tells us how many of each we need • Doesn’t tell when to start • Start as soon as possible? • Dependent events (oh no, not that!) • (We ignore statistical fluctuations) • Front schedule Cutting approach (Fig. 7.6) p. 231 • Back schedule Fig. 7.7 p.232

  18. Fig 6.8 – 13122 Top Handle Assy p. 233

  19. Fig 6.8 – 13122 Top Handle Assy-2

  20. 13122 Top Handle Assembly X 13122 Top Handle Assembly 11495 Welded Top handle bracket Assembly 457 Top handle (wood) 1118 Top handle Coupling (steel) 129 Top Handle Bracket (steel) 082 Nail (2)

  21. 457 Top Handle One handle for Each assembly

  22. 457 Top Handle

  23. 457 Top Handle

  24. 13122 Top Handle Assembly X 13122 Top Handle Assembly 11495 Welded Top handle bracket Assembly 457 Top handle (wood) 1118 Top handle Coupling (steel) 129 Top Handle Bracket (steel) 082 Nail (2)

  25. 13122 Top Handle Assembly X 13122 Top Handle Assembly 11495 Welded Top handle bracket Assembly X 457 Top handle (wood) 1118 Top handle Coupling (steel) 129 Top Handle Bracket (steel) 082 Nail (2)

  26. 082 Nail (2 required) Two nails for Each assembly

  27. 082 Nail (2 required)

  28. 082 Nail (2 required)

  29. 082 Nail (2 required)

  30. 13122 Top Handle Assembly X 13122 Top Handle Assembly 11495 Welded Top handle bracket Assembly X X 457 Top handle (wood) 1118 Top handle Coupling (steel) 129 Top Handle Bracket (steel) 082 Nail (2)

  31. 11495 Bracket Assembly One bracket for Each assembly

  32. 11495 Bracket Assembly One bracket for Each assembly

  33. 11495 Bracket Assembly One bracket for Each assembly

  34. 11495 Bracket Assembly

  35. 13122 Top Handle Assembly X 13122 Top Handle Assembly X 11495 Welded Top handle bracket Assembly X X 457 Top handle (wood) 1118 Top handle Coupling (steel) 129 Top Handle Bracket (steel) 082 Nail (2)

  36. 129 Top Bracket

  37. 129 Top handle bracket

  38. 13122 Top Handle Assembly X 13122 Top Handle Assembly X 11495 Welded Top handle bracket Assembly X X X 457 Top handle (wood) 1118 Top handle Coupling (steel) 129 Top Handle Bracket (steel) 082 Nail (2)

  39. 1118 Top handle coupling

  40. 1118 Top handle coupling

  41. 1118 Top handle coupling

  42. Other considerations • Safety stock if uncertainty in demand or supply quantity • Don’t let available go down to 0 • Safety LT if uncertainty in arrival time of supply • Place order earlier than necessary • Order quantities • EOQ, Lot-For-Lot, Periodic Order quantity, more to come in ch. 14

  43. Homework • DQ: 3, 7 • Problems: 3,5,6,7

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