HOW CIM IMPROVES INVENTORY?

1. HOW CIM IMPROVES INVENTORY? Z. Merve AlptekinDerya DelibaşSelcan Babür Alev Eminoğlu Birsen Kayhan Mehtap Altuntaş

2. What is CIM? Computer-integrated manufacturing (CIM) is the use of computer techniques to integrate manufacturing activities. These activities encompass all functions necessary to translate customer needs into a final product. CIM should not mix with FMS.

3. What is FMS? The flexible manufacturing system (FMS) is a configuration of computer-managed numerical work stations where materials are automatically handled and machine loaded. It consists of CNC machines, a cell computer and a robot.

4. The Cell Controller The cell computer (typically a programmable logic controller) is interfaced with the microprocessors of the robot and the CNCs. The supervision and coordination among the various operations in a manufacturing cell is also performed by the cell computer.

5. The Cell Robot In many applications, the cell robot also performs tool changing, staging of tools in the tool changer, and inspection of tools for breakage or expressive wear. When necessary, the robot can also initiate emergency procedures such as system shut-down.

6. CIM vs FMS

7. CIM vs FMS In order to achive CIM, there must be many connected FMS’s and used computer softwares and hardwares must be integrated to each other. Because of that, our lab is NOT CIM lab. It includes only two flexible manufacturing cell which are CNC machine and assembly unit. In assembly unit there are two processes; ball filling unit and gluing.

8. WHAT IS INVENTORY? Inventory is a list for goods and materials, or those goods and materials themselves, held available in stock by a business. Keeping inventory for meeting customer demand is essential. However balancing the amount required for keeping in inventory and its related cost needs a control system.

9. Types of Inventory Raw materials are inventory items that are used in the manufacturer's conversion process to produce components, subassemblies, or finished products. Work-in-process (WIP) is made up of all the materials, parts (components), assemblies, and subassemblies that are being processed or are waiting to be processed within the system. A finished good is a completed part that is ready for a customer order. Therefore, finished goods inventory is the stock of completed products.

10. AUTOMATIC INVENTORY Automatic Identification and Data Capture (AIDC) refers to the methods of recognizing objects, getting information about them and entering that data or feeding it directly into computer systems without any human involvement. Automatic identification and data capture technologies include barcodes, RFID, OCR, magnetic stripes, smart cards and biometrics.

11. BARCODING IN TOFAS/FIAT The versions change according to their accessories, the country that the car is being produced, and the type of the car, the description of the car and the picture list of the car. After this selection we select the desired Doblo version. There are a lot of types of Doblo but in the example below you will see that the type Combi has 28 different versions in itself. When we select the parts that are used in the assembling line of Doblo are shown. If we select a part from these we see the details that are required for the parts installation.

12. BODY ENGINE LUX • Fergone • Panoroma • Cambo • Malibu • Connect • LL0 BASE • LL1 ELEGANCE • LL2 • 1242cc 8V • 1596cc 16 V • 1910 DS Asp • 1910 DS JTD STANDARD ACCESSORIES Floor • Immobilizer(With varying codes) • Follow me home • Heater • Front seat belts • Rear seat belts • Torpedo • Passenger seat compartment VERSION 412 010,011,012,013,110,112,113,132,133,210,212,213,331,332,333,411,412,413,511,512,513,611,612,613,411,711,712,713,811,813 Engine Body Lux

13. Benefits of Inventory Software Some of the benefits that the best software incorporates include: • Reduce unnecessary raw materials by with MRP (Material Requirements Planning) • Eliminate excess stored finished goods through JIT (Just-In-Time) planning • Connect directly to suppliers via EDI (Electronic Data Interface) to ensure supplies are ordered when needed • Reduce hours spent counting inventory through barcode/RFID accountability • Spend less time locating inventory with location-based tracking • Lot tracking and FIFO (First-In-First-Out) capabilities

14. INVENTORY MANAGEMENT TECHNIQUES • MRP AND MRP II. MRP and MRP II are computer-based resource management systems designed for items that have dependent demand. MRP and MRP II look at order quantities period by period and, as such, allow discrete ordering (ordering only what is currently needed).

15. INVENTORY MANAGEMENT TECHNIQUES • JUST-IN-TIME (JIT) Just-in-time (JIT) is a philosophy that advocates the lowest possible levels of inventory. JIT espouses that firms need only keep inventory in the right quantity at the right time with the right quality. The ideal for JIT is one, even though one hears lot size the term "zero inventory" used.

16. LEAN MANUFACTURING Lean Production is defined as a production type that consists no unnecessary component and failure, cost, inventory, production area, loss and customer displeasure are at minimum level in its structure. In production and management, lean production uses “no mistake”, “continuos improvement”, “perfection”, “attendance of workers” and “ just in time” for describing its production style.

18. Properties of Lean Manufacturing It is a sum because: In every level of organization, it consists of the attendance of all workers and the union of ideas and aims. It is implemented on all of the regions and activities of the firm. It is quality because: It consists of the quality of managers’ and workers’works. It consists of product and service quality. It is control because: Error creators are determined instead of picking out errors and Main points are controlled Some systems are developed to prevent repetition of errors.

19. Lean Provides Better Inventory Control Lean manufacturing eliminates unnecessary processes, arranges the stages of continuous processes and uses continuous improvement techniques. These improvements provides better inventory control.

21. Inventory Cutting In order to achieve lean production improvement starts in small work teams. By these improvements, setup-time is reduced. By using small lot production system, lead time is reduced. Application of Kanban and JIT production provides Inventory cutting. In order to reduce inventory , CIM must be implemented.

22. LEAN VS TRADITIONAL

23. Lean Production Methods Kanban Mix Loading and Production Smoothing One-piece Flow Synchronization between machines U-lines, Shojinka, Work Rotations Poka-Yoke and Autonomation Total Productive Maintenance(TPM) Single Minute Exchange of Dies(SMED)

24. 1. KANBAN One of the principles of the lean manufacturing is to produce a product at the required time and required amount. The aim is to prevent the factory from producing unnecessary products. To achieve this every production station should produce the amount that the next station can insert into its process. This production style can be called as pulling system.

25. Pull System In the pull system, the production schedule is given to the station 1. The station 1 accordingly makes the first component and pushes it to the station 2 and so on. In this way, along with the material flow station 1 is giving the information target also to the station 2, that how many components it needs to make.

27. Push System In the push system, the production schedule is given to the station 4. the station 4 demands the number of components required from station 3 and so on. In this way the information is passed on from station 4 to station 3, that how many components it needs to make.

29. TOFAS WAREHOUSE AUTOMATION SYSTEM TOFAS main production database is called NPRC. According to include datas, orders are given with 2 ways: internal and external. Internal orders are made within departments. External orders are given to supplier automatically with the amount of recorded data.

30. TOFAS WAREHOUSE AUTOMATION SYSTEM When orders come to TOFAS entrance some of the supplied parts goes quality control to inspection others go directly to warehouse. After inspection process non-conformity parts send to shipping zone for giving back to supplier. However, the conforming parts are used in workshop for production.

31. INFORMATION FLOW at TOFAS

32. Information Flow Databases POINT: ( CAR PRODUCTION SYSTEM ) WMF ( WORLD MATTERIAL FLOW ) MPM ( COST SYSTEM ) IQF ( INDICATORI QUALITA FORNITORI ) SGV ( SISTEMI GESTIONE VELOCE ) DBP ( DISTINTA-BASE PRODUZIONE ) NPRC ( SUPPLIERS PROGRAMS ) PDP ( PROGRAMMA DALLA PRODUZIONE )

33. Information Flow Aplications The core car production system is called POINT and the production tree management application is called DBP, the supplier determination application is called SGV and export parts orders management is called WMF.

34. Information Flow The information flow within departments is managed via the integrated computer systems. As an example of the information flow within a department, the information flow of the production planning and MRP department is provided.

35. Production Planning Department Information Flow The production planning department enters the 6 month’s production plans to FIAT system (PDP) by evaluating the production parameters entered to FIAT system (POINT). The department performs specific simulations on the production plans and decides on a production plan. During the simulations, the working calendar, production capacity and type details for each brand is taken into account.

36. INFORMATION FLOW at TOFAS

37. Production Planning Department Information Flow The production planning department uses the order estimations entered to the system by the commercial channel logistics services. The decided production plan (DPD) is sent to the NPRC supplier system weekly. By this flow each car is only produced within the production plan and order number. The production planning and MRP department performs these operations by using the PDP system and the information is used and shared among the department via this system.

38. TOFAS SYSTEM All these production related systems integrate on an application called NPRC in TOFAS to structure master production plan data. This information is transferred from production departments both to FIAT Italy and to TOFAŞ local systems.

39. Master production schedule Market Demand Manufacturing Finance Marketing Production plan MRP Adjust master schedule Rough-cut capacity planning Capacity planning Adjust production plan No Yes Requirements schedules No Yes Problems? Problems? HOW CIM IMPROVES INVENTORY?

40. CONCLUSION As can be seen in figure CIM integrates all business functions (MRP, MPS, Capacity Planning etc.) with other departments (Finance, Marketing, Manufacturing etc.) within organization.

41. Thank you for listening… QUESTIONS?