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In My Presentation
1.

Personal Details

Curriculum vitae

Name
Address

Phone Number
Place/Date of Birth
Sex
Marital Status
Religion
Nationality
2.

: Akbar Setiadi Kusnadi
: Binong Permai Blok P 5 / 27, Binong, Curug,
Kab. Tangerang
: 0838-0615-2521
: Jakarta, 13 Sept 1993
: Male
: Single
: Islam
: Indonesian

Education Details
1. 2000 – 2006 SDN Binong II, Kab. Tangerang
2. 2006 – 2008 SMPN 6 Tangerang
3. 2008 – 2011 SMAN 7 Tangerang
4. 2011 – Now STMT Trisakti (Management Logistic & Material)
Manufacturing and
materials management
By Akbar Setiadi K
INTRODUCTION
This chapter aims to give the reader an overview
of some of the most common forms of
manufacturing planning and control techniques.
It is not intended to examine these systems in
great depth but rather to explain the basic
principles of the various approaches and explain
some of the terminology.
The following approaches will be covered:
• just-in-time;
•manufacturing resource planning (MRPII),
incorporating material requirements planning
(MRP);
•flexible fulfilment or, as it has come to be
known, postponement.
Source: handbook onf logistics and distribution management 2006 hal.182
Push and pull systems
• A 'push' system of manufacturing is one where goods
are produced against the expectation of demand. In
other words, goods are not produced specifically to
order but are produced against a forecast demand.
• A 'pull' system of manufacturing is one where goods
are only produced against known customer orders. This
is because only actual orders from customers are being
produced on the production line. None of the goods
are being made to keep as finished product stocks that
may be sold at a later date.
Source: handbook onf logistics and distribution management 2006 hal. 183
Dependent and independent demand
• Dependent demand is created by the demand for the
constituent parts of the finished product. In other
words, because it is planned to make a given finished
product, this decision triggers the demand for all the
constituent parts of that product.
• Independent demand is quite the opposite. In this
situation the schedulers do not have a clear view of
customer demand and are therefore forced to forecast
demand in the best way they can
Source: handbook onf logistics and distribution management 2006 hal. 183
Cellular manufacturing
A lean method of producing similar products
using
cells,
or
groups
of
team
members, workstations, or equipment, to
facilitate operations by eliminating setup and
unneeded costs between operations. Cells
might be designed for a specific
process, part, or a complete product. They are
favorable for single-piece and one-touch
production methods and in the office or the
factory
Source: http://www.businessdictionary.com/definition/cellular-manufacturing.html #
ixzz2gzJ9CcH8
JUST-IN-TIME
Just In Time (JIT) adalah suatu sistem produksi yang dirancang
untuk mendapatkan kualitas, menekan biaya, dan mencapai
waktu penyerahan seefisien mungkin dengan menghapus
seluruh
jenis
pemborosan
yang
terdapat
dalam proses produksi sehingga perusahaan mampu
menyerahkan produknya (baik barang maupun jasa) sesuai
kehendakkonsumentepatwaktu
Source:. d.wikipedia.org/wiki/Just_In_Time_(JIT)
JUST IN TIME
Elimination of
wasted time

Finished product
stocks

Right first time

Movement
through the
manufacturing
process

Kanban
Elimination of wasted time
Because only customers' orders are being
produced and the speed of the production
process is known, it is possible to synchronize
deliveries of raw materials to the end of the
production line (or to the precise point on the
production line in some cases) with little time
to spare before use. The whole purpose of this
exercise is to reduce the working capital used
in the overall manufacturing system.
Source: handbook onf logistics and distribution management 2006 hal. 185
Movement through the manufacturing
process
If materials move through the system in a
straight line it is reasonable to suppose that
the minimum distance has been covered. In
many manufacturing systems this is not
always possible. In fact it has been identified
in some manufacturing processes that
components and sub-assemblies are moved
around the factory in a very erratic pattern
before they all come together in the finished
product.
Source: handbook onf logistics and distribution management 2006
hal. 185
Kanban

•
•
•
•
•
•

kanban is a card that is used to accommodate the needs of material
parts preformance operation process. Kanban system is an
information system which harmoniously controlling the production
of products in the quantities required at the time required in each
process (Monden, 2000).
In a JIT production system, kanban system is supported by the
following matters (Monden, 2000):
accelerate production
standardization of work
Setup time reduction
improvement activities
The design of the machine layout
Autonomasi

Source: http://file2shared.wordpress.com/sistem-kanban/
Right first time
Quality problems in the form of scrapped or reworked
products are waste of the first order. The Japanese
developed several strategies to counter this problem. In
one case they built their factory with no area to store
scrap on the principle that having an area for scrap
encouraged its production. Quality circles were created,
where workers were allocated time specifically given over
to discussing quality issues and their elimination, the
target being zero defects. The philosophy of Kai zen, or
continuous improvement, was engendered as a working
culture in these organizations with support at the very
top. Systems of quality management such as total quality
management (TQM) and ISO 9000 seek to achieve the
same ends.
Source: handbook onf logistics and distribution management 2006 hal. 186
Finished product stocks
These stocks only contain goods produced to a
specific customer order. This too contributes
to a reduction in working capital. Because of
the needs of brevity it has only been possible
to skim the surface of the JIT philosophy.
Subjects such as the reduction of set-up and
change over times, team working and
empowerment,
total
productive
maintenance, levelled production schedules
and many more are arguably no less
important.
Source: handbook onf logistics and distribution management 2006
MANUFACTURING RESOURCE PLANNING
(MRPII)
Although MRP pre-dates MRPII, it is easier to see MRP in the
context of MRPII rather than the other way round.
As the name implies, manufacturing resource planning deals with
more than simply production scheduling. Whilst the basic material
requirements planning system is incorporated into MRPII, the wider
system brings other activities into the picture. The objective is to
harmonize and control more of the activities within the production
plant. Areas outside an MRP system but included in an MRPII
system usually are:
• maintenance management;
• cost accounting;
• stock management;
• sales orders;
• procurement;
• personnel levels.
Source: handbook onf logistics and distribution management 2006 hal. 186
MATERIAL REQUIREMENTS PLANNING
(MRP)
Material requirements planning (MRP) is a computerbased inventory management system designed to
assist production managers in scheduling and placing
orders for items of dependent demand. Dependent
demand items are components of finished goods—
such as raw materials, component parts, and
subassemblies—for which the amount of inventory
needed depends on the level of production of the final
product. For example, in a plant that manufactured
bicycles, dependent demand inventory items might
include aluminum, tires, seats, and bike chains.
Source: http://www.inc.com/encyclopedia/material-requirementsplanning-mrp.html
The master production schedule (MPS)
The MPS is a list of all the products or services
to be supplied within a specific period of time.
This period of time must be sufficiently long to
allow for the ordering and delivery of required
sub-assemblies and parts, as well as allowing
sufficient time for manufacturing the product
in question. The schedule may be made up of
forecast demand and actual known demand,
ie customers' orders
Source: handbook onf logistics and distribution management 2006 hal. 188
The bill of requirements
This is also referred to as the bill of materials (BOM). As
explained earlier, this will list all the subassemblies, components and parts required in total to
produce all the goods listed in the master schedule. It
will also show the different levels at which these
constituent parts are put together in order to produce
the finished goods.
For example, the finished product may contain two
sub-assemblies that together complete the product
(see Figure 10.1).
This level is described as
Source: handbook onf logistics
management 2006 hal. 188

and

distribution
Source: handbook onf logistics and distribution management 2006 hal. 189
Opening stock
The master schedule and the bill of requirements
together form the framework of what is required
and when it is required, but two other factors must
be fed into the computer program at the same time.
The first of these will be the current level of
unallocated stocks of parts, components and subassemblies available for immediate use. There will
be in total larger stocks on hand but these will
already have been allocated to production via the
system and are therefore unavailable. This
information will, of course, modify any orders for
raw materials placed on suppliers.
Source: handbook onf logistics and distribution management 2006 hal. 190
FLEXIBLE FULFILMENT (POSTPONEMENT)
flexible fulfilment is a method of
manufacturing that attempts to delay the final
definition of a product to the last possible
stage in the supply chain - hence the popular
description of 'postponement' for this system.

Source: handbook onf logistics and distribution management 2006 hal. 191
THE EFFECTS ON DISTRIBUTION ACTIVITIES
The effects on distribution systems of just-in-time (JIT)
deliveries have led to more frequent deliveries of
smaller quantities to stringent delivery timetables. This
has had effects on vehicle fleets and scheduling as well
as developments in linked information systems
between manufacturer, supplier and transport
provider. Without these developments, JIT would be
virtually impossible. Distribution requirements
planning (DRP) systems were developed as a logical
extension of MRP systems. The principles have simply
been extended into a forward distribution planning
system.
Source: handbook onf logistics and distribution management 2006 hal. 192
SUMMARY
•
•
•
•
•

•

This chapter has provided an overview of materials management in
the production area as a part of supply chain management.
Explanations of the following were included:
push and pull systems;
cellular manufacturing;
dependent and independent demand;
the philosophy of just-in-time, including a description of the 'seven
wastes', Kanban, and a 'right first time' approach to quality
management;
manufacturing resource planning (MRPII) and material requirements
planning (MRP);
flexible fulfilment, which has come to be known as postponement
Finally, the effects of these manufacturing planning and control
systems on distribution activities were briefly discussed.

Source: handbook onf logistics and distribution management 2006 hal. 193
Ask93

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  • 2. 1. Personal Details Curriculum vitae Name Address Phone Number Place/Date of Birth Sex Marital Status Religion Nationality 2. : Akbar Setiadi Kusnadi : Binong Permai Blok P 5 / 27, Binong, Curug, Kab. Tangerang : 0838-0615-2521 : Jakarta, 13 Sept 1993 : Male : Single : Islam : Indonesian Education Details 1. 2000 – 2006 SDN Binong II, Kab. Tangerang 2. 2006 – 2008 SMPN 6 Tangerang 3. 2008 – 2011 SMAN 7 Tangerang 4. 2011 – Now STMT Trisakti (Management Logistic & Material)
  • 4. INTRODUCTION This chapter aims to give the reader an overview of some of the most common forms of manufacturing planning and control techniques. It is not intended to examine these systems in great depth but rather to explain the basic principles of the various approaches and explain some of the terminology. The following approaches will be covered: • just-in-time; •manufacturing resource planning (MRPII), incorporating material requirements planning (MRP); •flexible fulfilment or, as it has come to be known, postponement. Source: handbook onf logistics and distribution management 2006 hal.182
  • 5. Push and pull systems • A 'push' system of manufacturing is one where goods are produced against the expectation of demand. In other words, goods are not produced specifically to order but are produced against a forecast demand. • A 'pull' system of manufacturing is one where goods are only produced against known customer orders. This is because only actual orders from customers are being produced on the production line. None of the goods are being made to keep as finished product stocks that may be sold at a later date. Source: handbook onf logistics and distribution management 2006 hal. 183
  • 6. Dependent and independent demand • Dependent demand is created by the demand for the constituent parts of the finished product. In other words, because it is planned to make a given finished product, this decision triggers the demand for all the constituent parts of that product. • Independent demand is quite the opposite. In this situation the schedulers do not have a clear view of customer demand and are therefore forced to forecast demand in the best way they can Source: handbook onf logistics and distribution management 2006 hal. 183
  • 7. Cellular manufacturing A lean method of producing similar products using cells, or groups of team members, workstations, or equipment, to facilitate operations by eliminating setup and unneeded costs between operations. Cells might be designed for a specific process, part, or a complete product. They are favorable for single-piece and one-touch production methods and in the office or the factory Source: http://www.businessdictionary.com/definition/cellular-manufacturing.html # ixzz2gzJ9CcH8
  • 8. JUST-IN-TIME Just In Time (JIT) adalah suatu sistem produksi yang dirancang untuk mendapatkan kualitas, menekan biaya, dan mencapai waktu penyerahan seefisien mungkin dengan menghapus seluruh jenis pemborosan yang terdapat dalam proses produksi sehingga perusahaan mampu menyerahkan produknya (baik barang maupun jasa) sesuai kehendakkonsumentepatwaktu Source:. d.wikipedia.org/wiki/Just_In_Time_(JIT)
  • 9. JUST IN TIME Elimination of wasted time Finished product stocks Right first time Movement through the manufacturing process Kanban
  • 10. Elimination of wasted time Because only customers' orders are being produced and the speed of the production process is known, it is possible to synchronize deliveries of raw materials to the end of the production line (or to the precise point on the production line in some cases) with little time to spare before use. The whole purpose of this exercise is to reduce the working capital used in the overall manufacturing system. Source: handbook onf logistics and distribution management 2006 hal. 185
  • 11. Movement through the manufacturing process If materials move through the system in a straight line it is reasonable to suppose that the minimum distance has been covered. In many manufacturing systems this is not always possible. In fact it has been identified in some manufacturing processes that components and sub-assemblies are moved around the factory in a very erratic pattern before they all come together in the finished product. Source: handbook onf logistics and distribution management 2006 hal. 185
  • 12. Kanban • • • • • • kanban is a card that is used to accommodate the needs of material parts preformance operation process. Kanban system is an information system which harmoniously controlling the production of products in the quantities required at the time required in each process (Monden, 2000). In a JIT production system, kanban system is supported by the following matters (Monden, 2000): accelerate production standardization of work Setup time reduction improvement activities The design of the machine layout Autonomasi Source: http://file2shared.wordpress.com/sistem-kanban/
  • 13. Right first time Quality problems in the form of scrapped or reworked products are waste of the first order. The Japanese developed several strategies to counter this problem. In one case they built their factory with no area to store scrap on the principle that having an area for scrap encouraged its production. Quality circles were created, where workers were allocated time specifically given over to discussing quality issues and their elimination, the target being zero defects. The philosophy of Kai zen, or continuous improvement, was engendered as a working culture in these organizations with support at the very top. Systems of quality management such as total quality management (TQM) and ISO 9000 seek to achieve the same ends. Source: handbook onf logistics and distribution management 2006 hal. 186
  • 14. Finished product stocks These stocks only contain goods produced to a specific customer order. This too contributes to a reduction in working capital. Because of the needs of brevity it has only been possible to skim the surface of the JIT philosophy. Subjects such as the reduction of set-up and change over times, team working and empowerment, total productive maintenance, levelled production schedules and many more are arguably no less important. Source: handbook onf logistics and distribution management 2006
  • 15. MANUFACTURING RESOURCE PLANNING (MRPII) Although MRP pre-dates MRPII, it is easier to see MRP in the context of MRPII rather than the other way round. As the name implies, manufacturing resource planning deals with more than simply production scheduling. Whilst the basic material requirements planning system is incorporated into MRPII, the wider system brings other activities into the picture. The objective is to harmonize and control more of the activities within the production plant. Areas outside an MRP system but included in an MRPII system usually are: • maintenance management; • cost accounting; • stock management; • sales orders; • procurement; • personnel levels. Source: handbook onf logistics and distribution management 2006 hal. 186
  • 16. MATERIAL REQUIREMENTS PLANNING (MRP) Material requirements planning (MRP) is a computerbased inventory management system designed to assist production managers in scheduling and placing orders for items of dependent demand. Dependent demand items are components of finished goods— such as raw materials, component parts, and subassemblies—for which the amount of inventory needed depends on the level of production of the final product. For example, in a plant that manufactured bicycles, dependent demand inventory items might include aluminum, tires, seats, and bike chains. Source: http://www.inc.com/encyclopedia/material-requirementsplanning-mrp.html
  • 17. The master production schedule (MPS) The MPS is a list of all the products or services to be supplied within a specific period of time. This period of time must be sufficiently long to allow for the ordering and delivery of required sub-assemblies and parts, as well as allowing sufficient time for manufacturing the product in question. The schedule may be made up of forecast demand and actual known demand, ie customers' orders Source: handbook onf logistics and distribution management 2006 hal. 188
  • 18. The bill of requirements This is also referred to as the bill of materials (BOM). As explained earlier, this will list all the subassemblies, components and parts required in total to produce all the goods listed in the master schedule. It will also show the different levels at which these constituent parts are put together in order to produce the finished goods. For example, the finished product may contain two sub-assemblies that together complete the product (see Figure 10.1). This level is described as Source: handbook onf logistics management 2006 hal. 188 and distribution
  • 19. Source: handbook onf logistics and distribution management 2006 hal. 189
  • 20.
  • 21. Opening stock The master schedule and the bill of requirements together form the framework of what is required and when it is required, but two other factors must be fed into the computer program at the same time. The first of these will be the current level of unallocated stocks of parts, components and subassemblies available for immediate use. There will be in total larger stocks on hand but these will already have been allocated to production via the system and are therefore unavailable. This information will, of course, modify any orders for raw materials placed on suppliers. Source: handbook onf logistics and distribution management 2006 hal. 190
  • 22. FLEXIBLE FULFILMENT (POSTPONEMENT) flexible fulfilment is a method of manufacturing that attempts to delay the final definition of a product to the last possible stage in the supply chain - hence the popular description of 'postponement' for this system. Source: handbook onf logistics and distribution management 2006 hal. 191
  • 23.
  • 24. THE EFFECTS ON DISTRIBUTION ACTIVITIES The effects on distribution systems of just-in-time (JIT) deliveries have led to more frequent deliveries of smaller quantities to stringent delivery timetables. This has had effects on vehicle fleets and scheduling as well as developments in linked information systems between manufacturer, supplier and transport provider. Without these developments, JIT would be virtually impossible. Distribution requirements planning (DRP) systems were developed as a logical extension of MRP systems. The principles have simply been extended into a forward distribution planning system. Source: handbook onf logistics and distribution management 2006 hal. 192
  • 25. SUMMARY • • • • • • This chapter has provided an overview of materials management in the production area as a part of supply chain management. Explanations of the following were included: push and pull systems; cellular manufacturing; dependent and independent demand; the philosophy of just-in-time, including a description of the 'seven wastes', Kanban, and a 'right first time' approach to quality management; manufacturing resource planning (MRPII) and material requirements planning (MRP); flexible fulfilment, which has come to be known as postponement Finally, the effects of these manufacturing planning and control systems on distribution activities were briefly discussed. Source: handbook onf logistics and distribution management 2006 hal. 193