Production operation management-scheduling PPT

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Production operation management-scheduling PPT

  1. 1. DISTQIBUTION TRANSFORMER COMPANY LIMIETED (DTCL) PRODUCTION OPERATION MANAGEMENT NewGate India Hyderabad, Andhra Pradesh- 500038 Website: www.newgate.in Email: contact@newgate.in Slideshare URL : http://www.slideshare.net/newgateindia
  2. 2. IntroductionDTCL(Distribution Transformer Company Limited)is a Company manufacturing Transformers for Power Sectors.Owing to Financial Crisis,channelised their efforts to tap the Export Market.Previously manufactured only Single Phase Transformers but later expanded to Distribution Transformers.
  3. 3. Issues Faced by EngineeringDepartmentCustomer Specifications varying widely owing to Company going Global.Longer Lead times to meet new Specifications.Rejection at the last moment due to Quality Issues.
  4. 4. List of Activities GivenActivity no. Description 1 Processing and circulation of customer order 2 Preparation of customer drawings 3 Customer drawings to marketing 4 Checking and forwarding to customer 5 Getting approval from customer 6 Preparation of manufacturing drawings 7 Issuing manufacturing drawings to planning 8 Issue from planning to other departments 9 Material procurement-prototype 10 Processing tools required for manufacturing 11 Manufacturing- prototype 12 Material processing-final order execution 13 Manufacturing-final order execution 14 Organizing customer inspection through marketing 16 Dispatch
  5. 5. Activities IncludesActivity no. Description 1 Processing and circulation of customer order 2 Preparation of customer drawings 3 Customer drawings to marketing 4 Checking and forwarding to customer 5 Getting approval from customer 5’ Customer comments 6 Preparation of manufacturing drawings 7 Issuing manufacturing drawings to planning 8 Issue from planning to other departments 8’ Revision 9 Material procurement-prototype 10 Processing tools required for manufacturing 11 Manufacturing- prototype 12 Material processing-final order execution 13 Manufacturing-final order execution 14 Organizing customer inspection through marketing 16 Dispatch
  6. 6. Time of activities Domestic ExportActivity no. Description Order-1 Order-2 Order-1 Order-2 1 Processing and circulation of customer order 2 2 3 3 2 Preparation of customer drawings 30 18 13 16 3 Customer drawings to marketing 2 3 1 1 4 Checking and forwarding to customer 2 1 3 3 5 Getting approval from customer 447 98 396 93 05’ Customer comments 6 Preparation of manufacturing drawings 400 120 400 23 7 Issuing manufacturing drawings to planning 2 3 17 1 8 Issue from planning to other departments 1 2 2 1 08’ Revision 9 Material procurement-prototype 10 Processing tools required for manufacturing 603 228 486 167 11 Manufacturing- prototype 12 Material processing-final order execution 341 160 36 5 13 Manufacturing-final order execution Organizing customer inspection through 14 marketing 16 Dispatch 8 130 18 15 Time in days
  7. 7. Assumptions Domestic ExportActivity no. Description Order-1 Order-2 Order-1 Order-2 1 Processing and circulation of customer order 2 2 3 3 2 Preparation of customer drawings 30 18 13 16 3 Customer drawings to marketing 2 3 1 1 4 Checking and forwarding to customer 2 1 3 3 5 Getting approval from customer 447 98 396 93 05’ Customer comments 6 Preparation of manufacturing drawings 400 120 400 23 7 Issuing manufacturing drawings to planning 2 3 17 1 8 Issue from planning to other departments 1 2 2 1 08’ Revision 9 Material procurement-prototype 10 Processing tools required for manufacturing 603 228 486 167 11 Manufacturing- prototype 12 Material processing-final order execution 341 160 36 5 13 Manufacturing-final order execution Organizing customer inspection through 14 marketing 16 Dispatch 8 130 18 15 Time in days
  8. 8. Assumptions Domestic ExportActivity no. Description Order-1 Order-2 Order-1 Order-2 1 Processing and circulation of customer order 2 2 3 3 2 Preparation of customer drawings 30 18 13 16 3 Customer drawings to marketing 2 3 1 1 4 Checking and forwarding to customer 2 1 3 3 5 Getting approval from customer 447 98 396 93 05’ Customer comments 3 3 3 3 6 Preparation of manufacturing drawings 400 120 400 23 7 Issuing manufacturing drawings to planning 2 3 17 1 8 Issue from planning to other departments 1 2 2 1 08’ Revision 2 2 2 2 9 Material procurement-prototype 10 Processing tools required for manufacturing 603 228 486 167 11 Manufacturing- prototype 12 Material processing-final order execution 341 160 36 5 13 Manufacturing-final order execution Organizing customer inspection through 14 marketing 3 3 3 3 16 Dispatch 8 130 18 15
  9. 9. Flow Chart SequenceProcessing and Customer Drawing to Customer Checking circulation Drawing marketing Approval 01 02 03 04 05 Manufacturing Drawing 06 05’ Material Customer Requirement 09 comments Details of 10 material 16 07 11 Dispatch Issuing Tools and dies Drawing 14 13 12 08’ 08 Material Distributing to Inspection Manufacturing Revision Processing Departments
  10. 10. Calculating Average Domestic ExportActivity no. Description Order-1 Order-2 Order-1 Order-2 1 Processing and circulation of customer order 2 2 3 3 2 Preparation of customer drawings 30 18 13 16 3 Customer drawings to marketing 2 3 1 1 4 Checking and forwarding to customer 2 1 3 3 5 Getting approval from customer 447 98 396 93 05’ Customer comments 3 3 3 3 6 Preparation of manufacturing drawings 400 120 400 23 7 Issuing manufacturing drawings to planning 2 3 17 1 8 Issue from planning to other departments 1 2 2 1 08’ Revision 2 2 2 2 9 Material procurement-prototype 10 Processing tools required for manufacturing 603 228 486 167 11 Manufacturing- prototype 12 Material processing-final order execution 341 160 36 5 13 Manufacturing-final order execution Organizing customer inspection through 14 marketing 3 3 3 3 16 Dispatch 8 130 18 15 Time in days Calculating Average of order 1 & 2
  11. 11. Average Time in days Domestic ExportActivity no. Description Average Average 1 Processing and circulation of customer order 2 3 2 Preparation of customer drawings 24 14.5 3 Customer drawings to marketing 2.5 1 4 Checking and forwarding to customer 1.5 3 5 Getting approval from customer 272.5 244.5 05’ Customer comments 3 3 6 Preparation of manufacturing drawings 260 211.5 7 Issuing manufacturing drawings to planning 2.5 9 8 Issue from planning to other departments 1.5 1.5 08’ Revision 2 2 9 Material procurement-prototype 10 Processing tools required for manufacturing 415.5 326.5 11 Manufacturing- prototype 12 Material processing-final order execution 250.5 20.5 13 Manufacturing-final order execution 14 Organizing customer inspection through marketing 3 3 16 Dispatch 69 16.5
  12. 12. Question1:Develop a network representation of the executionOf an order for distribution transformers at DTCL.
  13. 13. Question1:Develop a network representation of the executionof an order for distribution transformers at DTCL.Answer 1: Nodal Network PERT AON
  14. 14. PERT CHART 02 03 04 05 05’01 06 D1 D1 09 10 11 07 08 08’ 12 16 14 13
  15. 15. AON CHART02 03 04 05 05’01 06 09 10 11 07 08 08’ 16 14 13 12
  16. 16. Question 2:1. Use the network and develop time estimates for execution of the order.2. What are the key activities that require better managerial control.
  17. 17. Question 2:1. Use the network and develop time estimates for execution of the order.2. What are the key activities that require better managerial control.Answer 2:• Calculate critical path time ( Domestic & Export)• Identify the critical activities ( Domestic & Export)
  18. 18. ForDomestic Order
  19. 19. PERT CHART: Domestic Order 3 02 03 04 05 05’ 24 2.5 1.501 272.5 D1 2 06 05 0 D1 260 0 09 2.5 10 11 07 415.5 08 1.5 2 08’ 250.5 69 3 12 16 14 13
  20. 20. PERT CHART: Domestic Order 02 03 04 05 05’ 24 2.5 1.5 272.5 301 0 06 D1 2 D1 260 0 09 2.5 10 11 07 Critical Path: 415.5 08 1.5 01-> 02-> 03->04->06 ->10->07->08->08’->12- >-13->14->16 2 08’ 250.5 69 3 12 16 14 13
  21. 21. Answer 2: Domestic OrderTotal Lead time = Time taken by critical path = Tp (01,02,03,04,06,09,10,11,7,8,8’,12,13,14,16)Total Lead time = 1034 days The key activities that require better managerial control are: 01,02,03,04,06,09,10,11,7,8,8’,12,13,14,16• This activities can be crashed• Time associated with each of this critical activity can be optimized.Slacks• 05:Real Float = 403 days,• 05 & 05’ :Real Float = 400
  22. 22. ForExport Order
  23. 23. PERT CHART: Export Order 3 02 03 04 05 05’ 14.5 1 301 244.5 D1 3 06 05 0 D1 211.5 0 09 9 10 11 07 326.5 08 1.5 2 08’ 20.5 16.5 3 12 16 14 13
  24. 24. PERT CHART: Export Order 3 02 03 04 05 05’ 14.5 1 301 244.5 D1 3 06 05 0 D1 211.5 0 09 9 10 11 07 Critical Path: 326.5 08 1.5 01-> 02-> 03->04->06 ->10->07->08->08’->12- >-13->14->16 2 08’ 20.5 16.5 3 12 16 14 13
  25. 25. Answer 2: Export OrderTotal Lead time = Time taken by critical path = Tp (01,02,03,04,06,09,10,11,7,8,8’,12,13,14,16)Total Lead time = 612 days The key activities that require better managerial control are: 01,02,03,04,06,09,10,11,7,8,8’,12,13,14,16• This activities can be crashed• Time associated with each of this critical activity can be optimized.Slacks• 05: Real float = 294 days,• 05 & 05’: Real Float = 290 days,
  26. 26. Question 3:1. Can you identify activities that require immediate attention. In order to reduce execution time.2. How can DTCL organize the manufacture of transformers so that there will be a significant reduction in execution lead time.
  27. 27. Question 3:1. Can you identify activities that require immediate attention in order to reduce execution time.2. How can DTCL organize the manufacture of transformers so that there will be a significant reduction in execution lead time.Answer 3:1. Draw AON chart. Group activities to work stations. The works station having the most balanced delay ( very high or very low time) compared to other work station needs to be given first attention.2. Then reararnge the activities and group them to work stations and try reducing the balanced delay.
  28. 28. Flow Chart SequenceProcessing and Customer Drawing to Customer Checking circulation Drawing marketing Approval 01 02 03 04 05 Manufacturing Drawing 06 W1 Engineer Drawing 05’ W2 Marketing Dept Material 09 Customer Requirement comments W3 Production Dept Details of 10 material 16 07 11 Dispatch Issuing Tools and dies Drawing 14 13 12 08’ 08 Material Distributing to Inspection Manufacturing Revision Processing Departments
  29. 29. ForDomestic Order
  30. 30. AON: Domestic Order 24 2.5 1.5 272.5 302 03 04 05 05’ 2 26001 06 2.5W1 Engineer Drawing 09 10 11 07 W2 Marketing Dept 415.5 1.5 08 W3 Production Dept 2 3 08’ 69 250.5 16 14 13 12
  31. 31. AON: Domestic Order W1 W2 W3 04,05,05, 08,08,09,10,11Activities 01,02,03,06,07 14,16 ,12,13 2+24+2.5 1.5+272.5+3 1.5+2+415.5 Time +260+2.5 +3+69 +250.5Total Time 291 days 349 days 669.5 daysTotal Processing TimeTp = 291 + 349 + 669.5Tp = 1309.5 daysCycle timeCL= Max ( T1,T2,T3) = Max( 291,249,669.5)CL = 669.5 daysBalance DelayBd = ( n CL - Tp ) X 100 = (3 X 669.5 – 1309 ) X 100 n CL 3 X 669.5Bd = 34.82%
  32. 32. Rearranging Flow Chart SequenceProcessing and Customer Drawing to Customer Checking circulation Drawing marketing Approval 01 02 03 04 05 Manufacturing W1 Engineer Drawing Drawing 06 05’ W2 Marketing Dept Material Customer Requirement 09 comments W3 Production Dept Procurement W4 Dept Details of 10 material 16 07 11 Dispatch Issuing Tools and dies Drawing 14 13 12 08’ 08 Material Distributing to Inspection Manufacturing Revision Processing Departments
  33. 33. Rerranging AON: Domestic Order 24 2.5 1.5 272.5 302 03 04 05 05’ 2 26001 06 2.5W1 Engineer Drawing 09 10 11 07W2 Marketing Dept 415.5 1.5 08W3 Production Dept ProcurementW4 Dept 2 08’ 69 3 250.5 16 14 13 12
  34. 34. Rearranging AON: Domestic Order W1 W2 W3 W4 04,05,05,Activities 01,02,03,06,07 14,16 08,08,12,13 09,10,11 2+24+2.5 1.5+272.5+3 1.5+2 Time +260+2.5 +3+69 +250.5 415.5 Total 291 days 349 days 254 days 415.5 days TimeTotal Processing TimeTp = 291 + 349 + 254 + 415.5Tp = 1309.5 days Balanced DelayCycle time reduced byCL= Max ( T1,T2,T3,T4) = Max( 291,249,254,415.5) 39%CL = 415.5 daysBalance DelayBd = ( n CL - Tp ) X 100 = (3 X 415.5 – 1309 ) X 100 n CL 3 X 415.5Bd = 21.23%
  35. 35. Answer 3: Domestic Order 1. The activities that require immediate attention is the procurement as it takes 415.5 days. 2. It can be done by proper vendor management • By ensuring delivery on time • Properly forecasting the expected demand • Adopting practices to reduce time on logistics • Better inventory management of raw materials with proper defined reorder level. Keep 4 works stations W1 W2 W3 W4 01,02,03,06 04,05,05, Activities ,07 14,16 08,08,12,13 09,10,11
  36. 36. ForExport Order
  37. 37. AON: Export Order 14.5 1 3 244.5 302 03 04 05 05’ 3 211.501 06 9W1 Engineer Drawing 09 10 11 07 W2 Marketing Dept 326.5 1.5 08 W3 Production Dept 2 3 08’ 16.5 20.5 16 14 13 12
  38. 38. AON: Export Order W1 W2 W3 04,05,05, 08,08,09,10,11Activities 01,02,03,06,07 14,16 ,12,13 Time 3+14.5+1+211.5+9 3+244.5+3+3+16.5 1.5+2+326.5+20.5Total Time 239 days 270 days 350.5 daysTotal Processing TimeTp = 239 + 270 + 350.5Tp = 859.5 daysCycle timeCL= Max ( T1,T2,T3) = Max(239,270.350.5)CL = 350.5 daysBalance DelayBd = ( n CL - Tp ) X 100 = (3 X 350.5 – 859.5 ) X 100 n CL 3 X 350.5Bd = 18.26%
  39. 39. Rearranging AON: Export Order 14.5 1 3 244.5 302 03 04 05 05’ 3 211.501 06 9 EngineerW1 Drawing 09 10 11 07W2 Marketing Dept 326.5 1.5 08W3 Production Dept Procurement 2W4 Dept 16.5 3 20.5 08’ 16 14 13 12
  40. 40. Rearranging AON: Export Order W1 W2 W3 W4 04,05,05,Activities 01,02,03,06,07 14,16 08,08,12,13 09,10,11 3+14.5+1+211.5 3+244.5+3+3+1 Time +9 6.5 1.5+2+326.5 20.5 Total Time 239 days 270 days 330 days 20.5 daysTotal Processing TimeTp = 239 + 270 + 330 + 20.5Tp = 859.5 days Balanced DelayCycle time increased byCL= Max ( T1,T2,T3,T4) = Max(239,270,330,20.5) 91%CL = 330 daysBalance DelayBd = ( n CL - Tp ) X 100 = (3 X 330 – 859.5 ) X 100 n CL 3 X 330.5Bd = 34.88 %
  41. 41. Answer 3: Export Order 1. The activities that require immediate attention is the production as it takes 350.5 days. 2. It can be done by proper optimizing the process • By avoiding abnormal wastage • Reducing the error or failure rates • Finding optimal product mix stratigies • Maintaining a constant lead time and safety stock Keep 3 works stations W1 W2 W3 04,05,05, 08,08,09,10,11 Activities 01,02,03,06,07 14,16 ,12,13
  42. 42. Thank YouQuestions Please????

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