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Production Planning

Production Planning . A good planning system should answer these 4 points: What are we going to make, and when ? What does it take to make them ? What do we have ? What do we need ?. Production Planning . Priority and Capacity Priority is ………. what is needed how many are needed

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Production Planning

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  1. Production Planning A good planning system should answer these 4 points: What are we going to make, and when ? What does it take to make them ? What do we have ? What do we need ?

  2. Production Planning Priority and Capacity Priority is ………. what is needed how many are needed and when to produce. The market establishes priority. Manufacturing is responsible to devise means to satisfy demand. Capacity is the capability of the manufacturing to produce goods. Depends upon the resources the company has – Men, material, machines and money The 5 levels of manufacturing planning and control. At each level there is a check on the priority and available capacity. Production Plan The prod plan is based on the objective given by the business plan. Quantities of each product group that must be produced in each period

  3. Planning Levels Figure adapted from the CPIM Exam Content Manual, APICS, 1997

  4. Production Control Reprinted with permission, J.R. Tony Arnold, Introduction to Materials Management, second edition, Prentice-Hall, 1996

  5. MPS OBJECTIVES It is the link between the PP and what manufacturing will actually produce. The MPS drives the Material Requirements plan The MPS is a priority plan for manufacturing with the objectives as follows To maintain the desired level of customer service by maintaining FG inventory or by scheduling to meet the demand. To make optimum use of resources MPS is for END items ONLY . It is a plan of what is to be produced and when. It is not rigid and is possible to make changes that are consistent with the market place and existing capacity. Inputs are from. Forecasts for end items. Actual orders received from the customers

  6. MPS Changes To The Plan Can Occur: • If customer change or cancel orders. • If our machine breaks down, or new machine added • Our supplier supply us late Frozen Zone: Slushy Zone: Liquid zone:

  7. Lead Time Queue Setup Run Wait Move Queue Time waiting at a work center before operation begins Setup Time required to prepare the work center for operation Run Time performing operation Wait Time waiting after operation ends before it is moved Move Time physically moving between operations (work center) Lead-Time Elements Adapted from Material and Capacity Requirements Planning Certification Review Course, 1993, APICS

  8. Scheduling Objective Of scheduling  to meet the delivery dates and to make the best use of manufacturing resources It involves establishing the start and end dates for each operation to complete an item SCHEDULING is a time table for planned production Most orders are processed on different machines and it is necessary to calculate when the orders must be started and completed on each machine so that the due date can be met. Scheduling is process of ordering the jobs in front of each resource with a view to optimize performance Example: In a dental hospital if there are 10 patients for consulting and treatment in a 4 hours period we have to schedule the 10 of them generally one after the other. Forward scheduling: Activities of material procurement start when the order is received, regardless of due date. Operations are scheduled forward from this date. This method is used to decide the early delivery date of the product Backward scheduling: Activities are scheduled back from the due date. Used to decide as to when the order must be started Example : EXAMS !!!

  9. Scheduling Rules Shortest processing time (SPT): Chooses the job with the least processing time among the competing list and schedules it ahead of the others Longest processing time (LPT): The job with the longest processing time is scheduled ahead of other competing jobs Earliest Due Date (EDD): Establishes priorities on the basis of the due date for the jobs. Critical Ratio (CR):Critical ratio estimates the criticality of the job by computing a simple ratio using processing time information and due date. A smaller value of CR indicates that the job is more critical. First Cum First Served (FCFS): Schedules jobs simply in their order of job arrival

  10. MRP LogicSome terminologies • The iterative process of computing all requirements at a level and then moving down the level is known as explosion in MRP • Product Structure graphically depicts the dependency relationships among various items that make up the final product • A Bill of Material (BOM) is a list of all materials needed to assemble or put together one unit of the final product Basic Building Blocks • Existence of multiple levels of dependency • Product Structure – Bill of Materials (BOM) • Time phasing the requirement • Incorporating lead time information

  11. MRP Inputs & Outputs Master Production Schedule Product Structure File Inventory Master File Material Requirements Planning Planned Order Releases Work Orders Purchase Orders Rescheduling Notices

  12. Material Requirements PlanningDefined • Materials requirements planning (MRP) is the logic for determining the number of parts, components, and materials needed to produce a product. • MRP provides time scheduling information specifying when each of the materials, parts, and components should be ordered or produced.

  13. Product Structure TreeAn illustration using telephone Telephone Level 0 Base Unit (1) Hand Set (1) Connecting Cable (1) Connecting Jack (2) Level 1 Operating Unit (1) Panel Board (1) B. Cover Plate (2) Lug (4) Speaker (1) Mic. (1) H. Cover Plate (2) Level 2 Button Assy. (1) Control Panel (1) Level 3 Screw (12) Button (12) Screw (4) Screw (2) Screw (3) Dial (3) Level 4

  14. MANUFACTURED PURCHASED BOM : Refrigerator Refrigerator Level 0 Compressor Cabinet Condenser Level 1 Motor Shell Door Body Assembly Level 2 Alloy Level 3 Inner Body Outer Body Level 4 Alloy

  15. Single level BOMTelephone Example

  16. Indented BOMTelephone Example

  17. LT = 2 Spares A 4x50=200 B(4) C(2) D(2) E(1) D(3) F(2) Next, we need to start scheduling the components that make up “A”. In the case of component “B” we need 4 B’s for each A. Since we need 50 A’s, that means 200 B’s. And again, we back the schedule up for the necessary 2 weeks of lead time.

  18. MRP Reports • Planned orders to be released at a future time. • Order release notices to execute the planned orders. • Changes in due dates of open orders due to rescheduling. • Cancellations or suspensions of open orders due to cancellation or suspension of orders on the master production schedule. • Exception reports used to point out serious discrepancies, such as late or overdue orders

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