Cybernetics in Supply Chain Management

1. CYBERNETICS IN MANUFACTURING SUPPLY CHAIN MANAGEMENT {AI - E|R|P} SYSTEM FUNDAMENTALS
L | C | LOGISTICS
PLANT MANUFACTURING AND BUILDING FACILITIES EQUIPMENT
Engineering-Book
ENGINEERING FUNDAMENTALS AND HOW IT WORKS
August 2020
Expertise in Process Engineering Optimization Solutions & Industrial Engineering Projects Management
Supply Chain Manufacturing & DC Facilities Logistics Operations Planning Management
Production Planning| Procurement| Inventories| Production Operations | Warehousing & Transportation | Maintenance

2. Cybernetics in Supply Chain Management
Database
AI ApplicationPlanner
Dash Board
Production
Maintenance Warehouse
Transporation
ERP
Management
Dash Board
Planning
Quality
Customer Service
ProcurementFinance &
Accounting

3. In Manufacturing; the Supply Chain central function is the
Production Planning; however there are no standard production
planning models, procedures and mathematical algorithms which
could be used across industries, or even among companies
producing the same Finished Goods. Usually the planner has to
develop its own ones, or use off the shelves software with great
limitations and degree of difficulty to use it in their environment
For this reason, production planning is a fundamental component of
the Cybernetic Black Box and Feedback control box, and a major
concern for the Operations Research practitioner, developing
mathematical algorithms, computer procedures, computer real time
communication systems; using barcode scanners, PLC attached
sensors, servomechanisms, automation information computer
systems, and computer communications mobile devices
The problem of a good Plant Utilities, as well as a good production
machinery and equipment layout; including a sound production
process is not addressed in this document; it is part of an
integrated Industrial, Mechanical, Electrical, Instruments and
Thermodynamics Engineering works; besides the work of civil
engineers and building architect; result of a professional Plant
Design, and equipment-machinery technology selected, put in place
Cybernetics in Supply Chain Management

4. The central manufacturing components of the supply Chain to
manage are: new customers orders , queueing customer orders,
customer back orders, Raw Materials inventory, WIP Production
inventories, buffer stocks inventory, customer FG inventory,
shipping FG, new RM suppliers purchase orders, outstanding RM
purchase orders, installed production capacity, reserved production
capacity, in use WIP production capacity, idle capacity
Other dynamic components in manufacturing planning are:
Engineering production machinery-equipment, building and plant
utilities maintenance, plant manufacturing sanitation, production
operations, production quality control, process control, plant safety
control and other R&D production projects affecting the WIP
production operation
Planning is the central function in the whole system arrangement to
fulfill the requested customer order JIT
This document is to illustrate as one example the role played by
the Operations Research practitioner in the development of a
cybernetic dynamic simulation model of a manufacturing Supply
Chain System
To develop a dynamic simulation system use whatever computer
tool you have, a procedural or object programming language, or
even an excel spreadsheet; best is to make use of wireless
communication systems, based on your own servers, cloud services
or whatever technology you have, including mobile smart phones
Cybernetics in Supply Chain Management

5. Cybernetics in Supply Chain Management
Stafford Beer coined and frequently used the term
POSIWID (the purpose of a system is what it does) to refer
to the commonly observed phenomenon that the “de facto”
purpose of a system is often at odds with its official
purpose
He said "According to the cybernetician the purpose of a
system is what it does
This is a basic dictum. It stands for bald fact, which makes
a better starting point in seeking understanding than the
familiar attributions of good intention, prejudices about
expectations, moral judgment or sheer ignorance of
circumstances
“HOW DO WE KNOW?….”
“What this sentence says can not be proved”; if this can be
proved, then it is impossible to prove it; but if this can be
disproved, then it follows that it can, after all be proved

6. Operations research (OR) is a discipline that deals with
the application of advanced analytical methods to help
make better decisions. Further, the term operational
analysis is used in the British (and some British
Commonwealth) military as an intrinsic part of capability
development, management and assurance.
It is often considered to be a sub-field of applied
mathematics. The terms management science and decision
science are sometimes used as synonyms.
Employing techniques from other mathematical sciences,
such as mathematical modelling, statistical analysis,
and mathematical optimization, operations research arrives
at optimal or near-optimal solutions to complex decision-
making problems.
Because of its emphasis on human-technology interaction
and because of its focus on practical applications,
operations research has overlap with other disciplines,
notably industrial engineering and operations management,
and draws on psychology and organization science
Operations research is often concerned with determining
the extreme values of some real-world objective:
the maximum (of profit, performance, or yield) or minimum
(of loss, risk, or cost)
Cybernetics in Supply Chain Management
Dr. Ackoff, was a pioneer in the field of operations
research, systems thinking, management science, even
though he resisted the confinement of his work to any
particular methodology, especially due to the changes
of the field of operations research, becoming more
theoretical than practical.
He can also be seen as a pioneer in the early beginning
of complexity theory, not to be mistaken for systems
thinking, “Ackoff, was one of the greatest of the pre-
complexity thinkers and would have said different
things if he had known the science – but he is part of
the heritage”

7. Cybernetics in Supply Chain Management
Feedback control is a process that managers can use to evaluate
how effectively their teams meet the stated goals at the end of a
production process. Feedback control evaluates the team’s
progress by comparing the output the team was planning on
producing to what was actually produced
Simple causal reasoning about a feedback system is difficult
because the first system influences the second and second
system influences the first, leading to a circular argument. This
makes reasoning based upon cause and effect tricky, and it is
necessary to analyse the system as a whole

8. Cybernetics in Supply Chain Management
1.Simulation may be the only alternative to provide solutions to the problem under study. For example, it is not possible
to obtain transient (time-dependent) solutions for complex queuing models in closed form or by solving a set of equations,
but they are readily obtained with simulation methods
2.Models to be simulated can represent a real-world process more realistically because fewer restrictive assumptions are
required. Examples include the use of nondeterministic lead times in an inventory model, non-Poisson arrivals or service
times in a queuing process, and nondeterministic parameters in a multi period production scheduling and inventory control
problem. Each of these situations results in analytic models that are intractable
3.Changes in configuration or structure can be easily implemented to answer "What happens if . . . ?" questions. For
example, various decision rules can be tested for altering the number of servers in a network of queues
4.In most cases, simulation is less costly than actual experimentation; in other cases, it may be the only reasonable initial
approach, as when the system does not yet exist but theoretical relationships are well-known
5.For many dynamic processes, simulation provides the only means for direct and detailed observation within specified
time limits. The approach also allows time compression, whereby a simulation accomplishes in minutes what might require
years of actual experimentation
With simulation, the analyst creates a model of a system that describes some process involving individual entities such as
persons, products or messages. The components of the model try to reproduce, with varying degrees of accuracy, the actual
operations of the real components of the process. Most likely the system will have time-varying inputs and time-varying
outputs that are affected by random events.
The components of the simulation are interconnected and can often be viewed as a network with complex input-output
relationships. Moreover, the flow of entities through the system is controlled by logic rules that derive from the operating
rules and policies associated with the process being modelled

9. Cybernetics in Supply Chain Management
In computer science, an object can be a variable, a data structure, a function, or a method, and as such, is
a value in memory referenced by an identifier
In the class-based and object-oriented programming paradigms, object refers to a particular instance of a class,
where the object can be a combination of variables, functions, and data structures
In the relational model of database management, an object can be a table or column, or an association between
data and a database entity (such as relating a person's age to a specific person)
Systems Analysis It is a process of collecting and interpreting facts, identifying the problems, and decomposition of
a system into its components. System analysis is conducted for the purpose of studying a system or its parts in order
to identify its objectives.
It is a problem solving technique that improves the system and ensures that all the components of the system work
efficiently to accomplish their purpose. Analysis specifies what the system should do.
Systems Design It is a process of planning a new business system or replacing an existing system by defining its
components or modules to satisfy the specific requirements. Before planning, you need to understand the old system
thoroughly. System Design focuses on how to accomplish the objective of the system. System Analysis and Design
(SAD) mainly focuses on: Systems; Processes; Technology

10. Cybernetics in Supply Chain Management
There are a variety of supply-chain models, which address both the upstream and downstream elements of
supply-chain management (SCM). The SCOR (Supply-Chain Operations Reference) model, measures total supply-
chain performance
It is a process reference model for supply-chain management, spanning from the supplier's supplier to the
customer's customer. It includes delivery and order fulfilment performance, production flexibility, warranty and
returns processing costs, inventory and asset turns, and other factors in evaluating the overall effective
performance of a supply chain
The Global Supply Chain Forum has introduced another supply chain model. This framework is built on eight key
business processes that are both cross-functional and cross-firm in nature
Each process is managed by a cross-functional team including representatives from logistics, production,
purchasing, finance, marketing, and research and development
While each process interfaces with key customers and suppliers, the processes of customer relationship
management and supplier relationship management form the critical linkages in the supply chain

11. Control Algorithms &
Process Procedures
Black Box
Customer FG
New Orders
Back Orders
FG Buffer
Inventory
FG WIP
Production
Customer FG
Queue Orders
Customer FG
in Transit
Customer FG
New Order
Back Orders
BOM RM
Continuous data
Feed Back Box
Continuous data Feed
Back Box
Production
Lines
Maintenance
breakdown
Wt0,
Production
Lines Yield lost
Wt0,
Production Lines
Maintenance
plan Wt0,
+1,+2,+3,+4
Production Lines
Process review
plan Wt0,
+1,+2,+3,+4
Production Lines
Quality review
plan Wt0,
+1,+2,+3,+4
Production Lines
Yield review plan
Wt0,
+1,+2,+3,+4
Production Lines
Operator short
plan Wt0,
+1,+2,+3,+4
Production Lines
RM shortage
plan Wt0,
+1,+2,+3,+4
Objective FG
Production
Plan
Warehouse
Transportation
Production
Operations

12. Customer FG
new order qty
back order qty
FG Buffer
Inventory
RM Inventory
control
RM inbound
shortage Wt0,
+1,+2,+3,+4
Customer FG
Orders Wt0,
+1,+2,+3,+4
FG Stocks on
Hand reserved
Wt0,
+1,+2,+3,+4
FG Stocks on
Hand plan to
produce Wt0,
+1,+2,+3,+4
FG SOH
available Wt0,
+1,+2,+3,+4
FG Production
Lines plan Wt0,
+1,+2,+3,+4
Production
Lines adjust
plan Wt0,
+1,+2,+3,+4
RM inbound
ETA Wt0,
+1,+2,+3,+4
Customer FG
Queue orders
qty
Queue FG
Orders Wt0,
+1,+2,+3,+4
Objective FG
Production Plan
RM Production
Lines plan Wt0,
+1,+2,+3,+4
FG Packing
Production
Lines plan Wt0,
+1,+2,+3,+4
FG Stocks on
Transit
Schedule
FG Stocks on
Transit Wt0,
+1,+2,+3,+4
FG Customer
Order deliver
Wt0,
+1,+2,+3,+4
FG Customer
Order short
excess Wt0,
+1,+2,+3,+4
RM/FG/WIP
Packing Stocks
24/7
Production WIP
FG production
plan WIP Wt0,
+1,+2,+3,+4
FG Stocks on
Hand Logistics
issues WIP Wt0
+1,+2,+3,+4
FG WIP
production
Feedback
control
FG outbound
delivery
schedule Wt0
+1,+2,+3,+4
Control
Algorithms &
Process
Procedures
Black Box

13. Customer ID,
new order #,
order by ID,
order Date
Customer ID
Shipment to
LDT, EDT, EAT
Wt1,+2,+3,+4
new order #,
Item(#s) Qty’s
Line #s
WIP old order#
Item(#s) Qty’s
Line #s
In Transit
order #’s
Item(#s) Qty’s
back order’s #,
Item(#s) Qty’s
Line #s
Customer FG
Orders Wt0,
+1,+2,+3,+4
item #s line #s
capacity available
Wt0, +1,+2,+3+4
New order #
item#s lines#s
required capacity
Wt0,+1,+2,+3,+4
New order #
item#s lines#s to
reserve capacity
Wt0,+1,+2,+3,+4
New order #
item#s lines#s
new capacity left
Wt0,+1,+2,+3,+4
Feedback
control
FG Stocks in
Transit
Schedule
Customer FG
Old orders in
Transit Wt0,
+1,+2,+3,+4
FG Customer
All Orders
transit Wt0,
+1,+2,+3,+4
FG Customer
All Order short
excess Wt0,
+1,+2,+3,+4
Customer FG
Old Order short
excess Wt0,
+1,+2,+3,+4
RM/FG
WIP/Packing
Stocks 24/7
Production Wt0
FG production
plan Wt0,
+1,+2,+3,+4
FG Stocks on
Hand Logistics
issues Wt0,
+1,+2,+3,+4
FG new
customer order
production plan
Wt0,+1+2+3+4
FG new
customer order
item # line #
Wt0,+1+2+3+4
FG Production
Plan
Customer ID,
Queue order#,
order by ID,
order Date
Queue FG item
Orders Wt0,
+1,+2,+3,+4
RM Inventory
control
New order #
item’#s BOM
RM qty required
BOM RM’s
suppliers
LDT, ETD, ETA
Plan BOM RM
order’s qty
For Wt0,
+1,+2,+3,+4
Plan BOM RM
delivery ETA
Wt0+1+2+3+4
RM delivery
shortage Wt0,
+1,+2,+3,+4
FG Buffer
Inventory SOH
Planned buffer
Item(#s) Qty
ETA Wt0,
+1,+2,+3,+4
requires buffer
Item(#s) Qty
Wt0,+1,+2,+3+4
Short/Left buffer
item#s Qty, Wt0,
+1,+2,+3,+4
Plan new buffer
stocks item #s
Qty, Wt0,
+1,+2,+3,+4
FG item buffer
Stocks plan
Wt0,
+1,+2,+3,+4
Black box

14. Wt0 CAP
WtoBack O qty
W+1Queue qty
New O qty
If BO qty>cap
Then cap,
else BO qty
W+n
If Queue qty>cap
Then cap,
else Qeu qty
If New qty>cap
Then cap,
else New qty
Week Clock
If cap then
BO=BO-cap
Else BO=0,
cap=cap-BO
If cap then
Qeu=Qeu-cap
Else Que=0,
cap=cap-Que
If cap then
New=New-cap
Else New=0,
cap=cap-New
Update
Wt0 CAP
Update
Back O qty
Update
Queue qty
Update
New O qty
Update
W+1 CAP
Update
W+nCAP
Wto
W+1
W+n
Week Clock

15. Control Algorithms &
Procedures Process
Black Box
RM
Customer
Inventory
RM
inbound
quality
RM storage
ABC
demand
RM
Customer
Demand
RM
purchasing
RM Arriving
inspection
Feed Back Box Feed Back Box
Production
Lines
Maintenance
breakdown
Wt0,
Production
Lines Yield lost
Wt0,
Production Lines
Maintenance
plan Wt0,
+1,+2,+3,+4
Production Lines
Process review
plan Wt0,
+1,+2,+3,+4
Production Lines
Quality review
plan Wt0,
+1,+2,+3,+4
Production Lines
Yield review plan
Wt0,
+1,+2,+3,+4
Production Lines
Operator short
plan Wt0,
+1,+2,+3,+4
Production Lines
RM shortage
plan Wt0,
+1,+2,+3,+4
RM storage
ABC picking
Production
Operations
Warehouse
Transportation
Objective FG
Production
Plan

16. RM customer
Inventory
feedback
Customer order
Item # BOM
RM buffer SOH
Item # BOM
buffer outstanding
OQ ETA
Item #BOM buffer
stock to reserve
Item # BOM
required stock to
buy ETA
RM Customer
Demand
Customer item#
BOM demand
forecast
Demand plan
Customer
item# BOM buffer
stock required
Customer item#
BOM substitute
item# BOM
Substitute
item # BOM
buffer SOH
RM purchasing
Item # BOM
suppliers LDT
ETD, ETA
Item # BOM
Suppliers
procurement
forecast
Item # BOM
outstanding PO’s
ETD, ETA
Item # BOM
PO to supplier and
confirmed by
supplier
RM inbound
inspection
Item # BOM
inbound PO
inspections
Item# BOM
ABC staging
RM inbound
quality
Item # BOM
Quality Control
Accept/Reject
ABC staging
RM storage ABC
demand
Item # BOM
space available
for picking & Bulk
storage
RM storage ABC
outbound
picking
Item # BOM
readiness for
picking &
production
Item # BOM
Move in to ABC
picking station &
Bulk storage
schedule
Item# BOM
ABC storage
allocation plan
Item# BOM
ABC storage
allocation route
Delivery routing
to production line
and schedule
Outbound/WIP
Materials vehicle
handling KANBA
schedule
Inbound Materials
vehicle handling
KANBA and move
confirmed
Item # BOM
Move in to ABC
picking station &
Bulk storage
move confirmed
Outbound/WIP
Materials vehicle
handling KANBA
move confirmed
Quality inspection
confirmed

17. Feedback
control
Production Lines
Maintenance
plan Wt0,
+1,+2,+3,+4
Production Lines
Process review
plan Wt0,
+1,+2,+3,+4
Production Lines
& Utilities QA
review plan Wt0,
+1,+2,+3,+4
Production Lines
Yield review plan
Wt0,
+1,+2,+3,+4
Production Lines
Operator short
plan Wt0,
+1,+2,+3,+4
Production Lines
RM shortage
plan Wt0,
+1,+2,+3,+4
Production Lines
Maintenance
breakdown Wt0,
Production Lines
Yield lost Wt0,
Production Lines
Gemba Walk &
Proactive
Maintenance
Gemba walk
team to inspect
production lines
utilities/buildings
Plan Proactive &
Gemba walk
maintenance &
repairs Wt0
Proactive
Maintenance
utilities/buildings
production lines
Confirm
Maintenance
plan Wt0,
+1,+2,+3,+4
Confirm
Maintenance
spare parts Wt0,
+1,+2,+3,+4
Confirm
Maintenance
repairs Wt0,
+1,+2,+3,+4
Production
machines &
equipment
performance
Production
Energy supply
performance
Raw materials &
WIP materials
QA performance
Production Lines
RM & WIP
spoils/damaged
Wt0,
+1,+2,+3,+4
Production Lines
RM & WIP QC
rejection Wt0,
+1,+2,+3,+4
Confirm
Production Lines
RM/WIP
shortage Wt0,
+1,+2,+3,+4
Audit Production
Lines & Utilities
QA plan Wt0,
+1,+2,+3,+4
Audit Production
Lines & Utilities
repairs Wt0,
+1,+2,+3,+4
Confirm done
Production Lines
& Utilities
repairs Wt0,
+1,+2,+3,+4
OEE = A x P x Q
Wt0,
+1,+2,+3,+4
Availability%
Performance%
Quality% Wt0
+1,+2,+3,+4
MTTR MTBF
Wt0+
1,+2,+3,+4
Production Lines
Operator absent
Wt0,
+1,+2,+3,+4
Production Lines
Operator low
performance
Wt0,
+1,+2,+3,+4
Production Lines
Operator
performance
Wt0,
+1,+2,+3,+4

18. Feedback
control
Production Lines
Maintenance
breakdown Wt0,
Production Lines
Yield lost Wt0,
Production
Operations
Warehouse
Transportation
Confirm
production plan
RM readiness
Confirm Energy
supply readiness
Confirm
machines setting
readiness
Confirm
Operators &
Technicians
readiness
Confirm RM
preparation
readiness
Confirm WIP
Materials
Handling
readiness
Confirm FG
storage
readiness
Confirm FG
delivery
transportation
readiness
Start Production
Operation
IF Production
Operation stop
Register time &
reason to stop
IF Production
line breakdown
Register time
IF Production
has spoils
damage register
qty & time
IF production is
delayed register
qty, reason &
time
IF production
setting has spoil
or damage
register qty,
reason & time
IF WIP transport
is delayed
register where,
time, machine
IF production
line is idle
waiting register
time, reason

19. Cybernetics in Supply Chain Management
The preferred OEE calculation is based on the three OEE Factors: Availability, Performance, and Quality.
Availability
Availability takes into account all events that stop planned production long enough where it makes sense to track a
reason for being down (typically several minutes).
Availability is calculated as the ratio of Run Time to Planned Production Time:
Availability = Run Time / Planned Production Time
Run Time is simply Planned Production Time less Stop Time, where Stop Time is defined as all time where the
manufacturing process was intended to be running but was not due to Unplanned Stops (e.g., Breakdowns) or Planned
Stops (e.g., Changeovers).
Run Time = Planned Production Time − Stop Time

20. Cybernetics in Supply Chain Management
Performance
Performance takes into account anything that causes the manufacturing process to run at less than the maximum
possible speed when it is running (including both Slow Cycles and Small Stops).
Performance is the ratio of Net Run Time to Run Time. It is calculated as:
Performance = (Ideal Cycle Time × Total Count) / Run Time
I
deal Cycle Time is the fastest cycle time that your process can achieve in optimal circumstances. Therefore, when it is
multiplied by Total Count the result is Net Run Time (the fastest possible time to manufacture the parts).
Since rate is the reciprocal of time, Performance can also be calculated as:
Performance = (Total Count / Run Time) / Ideal Run Rate
Performance should never be greater than 100%. If it is, that usually indicates that Ideal Cycle Time is set incorrectly (it
is too high).

21. Cybernetics in Supply Chain Management
Quality
Quality takes into account manufactured parts that do not meet quality standards, including parts that need rework.
Remember, OEE Quality is similar to First Pass Yield, in that it defines Good Parts as parts that successfully pass through
the manufacturing process the first time without needing any rework.
Quality is calculated as:
Quality = Good Count / Total Count
This is the same as taking the ratio of Fully Productive Time (only Good Parts manufactured as fast as possible with
no Stop Time) to Net Run Time (all parts manufactured as fast as possible with no stop time).
OEE
OEE takes into account all losses, resulting in a measure of truly productive manufacturing time. It is calculated as:
OEE = Availability × Performance × Quality

22. Cybernetics in Supply Chain Management
Mean time to repair (MTTR) is a basic measure of the maintainability of repairable items.
It represents the average time required to repair a failed component or device.
Expressed mathematically, it is the total corrective maintenance time for failures divided by the total number of
corrective maintenance actions for failures during a given period of time
Mean time between failure (MTBF) gives insight on how long equipment is expected to run smoothly
MTBF is a metric for repairable items while mean time to failure (MTTF) is for non-repairable items
Accurate recording data is the foundation of tracking MTBF as a maintenance metric and maintenance software makes
this task easier

23. Cybernetics in Supply Chain Management
KPI's in Plant Maintenance.
Mean Time Between Failures and Mean Time To Repair are two important KPI's in plant maintenance management and
lean manufacturing.
Mean Time Between Failures = (Total up time) / (number of breakdowns)
Mean Time To Repair = (Total down time) / (number of breakdowns)
"Mean Time" means, statistically, the average time.
The two most common are “mean time to repair” (discussed above) and “mean time to recovery.” Mean Time To
Recovery is a measure of the time between the point at which the failure is first discovered until the point at which the
equipment returns to operation.
So, in addition to repair time, testing period, and return to normal operating condition, it captures failure notification
time and diagnosis
Process optimization is the discipline of adjusting a process so as to optimize (make the best or most effective use of)
some specified set of parameters without violating some constraint.
The most common goals are minimizing cost and maximizing throughput and/or efficiency.
This is one of the major quantitative tools in industrial decision making

24. Cybernetics in Supply Chain Management
Database
AI ApplicationPlanner
Dash Board
Production
Maintenance Warehouse
Transporation
ERP
Management
Dash Board
Planning
Quality
Customer Service
ProcurementFinance &
Accounting

25. Cybernetics in Supply Chain Management
Control Algorithms &
Process Procedures
Black Box
Continuous data
Feed Back Box
Continuous data Feed
Back Box

26. Cybernetics in Supply Chain Management
Customer ID Customer O # item # FG pack size 1x40" TEU BOM #
Back Order ID Customer O # 2235 ml Pet filling station 1x40' 72000 1 2
FG units/truck 72,000 Back Order 0 2
machines RM/hr RM/shift lt/hr lits/shift PET/hr
13 8,248 74,230 1,731 15,573 7,363
13 - - - -
PET/shift PET/pp pp/truck PET /truck PETtrucks 1x Silo CAP
66,270 3,600 20 72,000 1 10,642
- 0 - - -
-
RM/truck truck/silo RMT/shift truck min hrs/shift shifts
10,458 1.02 7 20.90 9 1
- - 0.00 0.00
PET's - FG PET damaged, spoiled, wasted - 0.0% 1 - 634.46
ml/RM 0.21 FG PET re-works - 0.0% RM hrs Stop 0 0.0% PET stop hrs 0 0.0%
ml/PET 0.24 FG PET QC on Hold - 0.0% RM@hrs stop - 0.0% PET@hrs stop - 0.0%
RM/PET 1.12 FG PET on hold released - 0.0% Planned RM - 100%Planned PET - 0%
SOH not used RM@hrs stop - RM production lost machine stop Net RM - 0.0% Net PET - 0.0%
Planned RM - RM damaged, spoiled, wasted - 0.00% Net - QC Hold - 0.0%
Net RM -
RM machines break down or stop 0 PET machines 0 SOH lit no used - 0.0%
hrs down or stop 0 PET hrs stop 0
RM machines on maintenance 0 PET Maintain 0 PET lost - 0.0%
hrs on maintenenace 0 hrs Maintenan 0 PET reworks - 0.0%
RM machines stop by QC 0 PET mach QC 0 PET QC on hold - 0.0%
hrs stop by QC 0 hrs stop by QC 0 PET used - 0.0%

27. Cybernetics in Supply Chain Management
Customer ID Customer O # item # FG pack size 1x40" TEU BOM #
Queue ID Customer O # 2235 ml Pet filling station 1x40' 72000 1 2
FG units/truck 72,000 Queue Order 0 2
machines RM/hr RM/shift lt/hr lits/shift PET/hr
13 8,248 74,230 1,731 15,573 7,363
13 - - - -
PET/shift PET/pp pp/truck PET /truck PETtrucks 1x Silo CAP
66,269 3,600 20 72,000 1 10,642
- 0 - - -
-
RM/truck truck/silo RMT/shift truck min hrs/shift shifts
10,458 1.02 7 20.90 9 1
- - 0.00 0.00
PET's - FG PET damaged, spoiled, wasted - 0.0% 1 - 634.46
ml/RM 0.21 FG PET re-works - 0.0% RM hrs Stop 0 0.0% PET stop hrs 0 0.0%
ml/PET 0.24 FG PET QC on Hold - 0.0% RM@hrs stop - 0.0% PET@hrs stop - 0.0%
RM/PET 1.12 FG PET on hold released - 0.0% Planned RM - 100%Planned PET - 0%
SOH not used RM@hrs stop - RM production lost machine stop Net RM - 0.0%Net PET - 0.0%
Planned RM - RM damaged, spoiled, wasted - 0.00% Net - QC Hold - 0.0%
Net RM -
RM machines break down or stop 0 PET machines 0 SOH lit no used - 0.0%
hrs down or stop 0 PET hrs stop 0
RM machines on maintenance 0 PET Maintain 0 PET lost - 0.0%
hrs on maintenenace 0 hrs Maintenan 0 PET reworks - 0.0%
RM machines stop by QC 0 PET mach QC 0 PET QC on hold - 0.0%
hrs stop by QC 0 hrs stop by QC 0 PET used - 0.0%

28. Cybernetics in Supply Chain Management
Customer ID Customer O # item # FG pack size 1x40" TEU BOM #
1
473 ml Pet filling station 1x40'
38400 1 1
FG units/truck 38,400 New Customer Order 5 1
machines RM/hr RM/shift lt/hr lits/shift PET/hr
13 8,248 74,230 1,731 15,573 3,658
13 50.57 5.62 87,537.05 52.48
PET/shift PET/pp pp/truck PET /truck PETtrucks 1x Silo CAP
32,925 1,920 20 38,400 1 10,642
5.83 100 192,000 5.00 39.19
187,000 4.87
RM/truck truck/silo RMT/shift truck min hrs/shift shifts
10,458 1.02 7 20.90 9 1
39.88 39.88 52.48 5.83
PET's 192,000 FG PET damaged, spoiled, wasted 5,000 2.6% 1 52.48 634.46
ml/RM 0.21 FG PET re-works 5,000 2.6% RM hrs Stop 17 2.5% PET stop hrs 11 21.0%
ml/PET 0.47 FG PET QC on Hold 10,000 5.2% RM@hrs stop 10,786 2.5% PET@hrs stop 40,241 21.0%
RM/PET 2.25 FG PET on hold released 0 0.0% Planned RM 432,889 100%Planned PET 192,000 100%
SOH not used RM@hrs stop 10,786 RM production lost machine stop Net RM 417,103 96.4% Net PET 151,759 79.0%
Planned RM 432,889 RM damaged, spoiled, wasted 5,000 1.16% Net - QC Hold 141,759 73.8%
Net RM 417,103
RM machines break down or stop 5 PET machines 1 SOH lit no used 19,041 21.8%
hrs down or stop 1 PET hrs stop 5
RM machines on maintenance 3 PET Maintain 1 PET lost 5,000 2.6%
hrs on maintenenace 1 hrs Maintenan 3 PET reworks 5,000 2.6%
RM machines stop by QC 3 PET mach QC 1 PET QC on hold 10,000 5.2%
hrs stop by QC 3 hrs stop by QC 3 PET used 156,759 81.6%

29. Cybernetics in Supply Chain Management
Customer ID Customer O # item # FG pack size 1x40" TEU BOM #
Buffer ID 1
473 ml Pet filling station 1x40'
38400 1 1
FG units/truck 38,400 Buffer Inventory 7 1
machines RM/hr RM/shift lt/hr lits/shift PET/hr
13 8,248 74,230 1,731 15,573 3,658
13 70.12 7.79 121,378.77 73.48
PET/shift PET/pp pp/truck PET /truck PETtrucks 1x Silo CAP
32,925 1,920 20 38,400 1 10,642
8.16 140 268,800 7.00 54.35
261,800 6.82
RM/truck truck/silo RMT/shift truck min hrs/shift shifts
10,458 1.02 7 20.90 9 1
55.30 55.30 73.48 8.16
PET's 268,800 FG PET damaged, spoiled, wasted 7,000 2.6% 1 73.48 634.46
ml/RM 0.21 FG PET re-works 5,000 1.9% RM hrs Stop 20 2.1% PET stop hrs 11 15.0%
ml/PET 0.47 FG PET QC on Hold 15,000 5.6% RM@hrs stop 12,689 2.1% PET@hrs stop 40,241 15.0%
RM/PET 2.25 FG PET on hold released 0 0.0% Planned RM 606,044 100%Planned PET 268,800 100%
SOH not used RM@hrs stop 12,689 RM production lost machine stop Net RM 578,355 95.4% Net PET 228,559 85.0%
Planned RM 606,044 RM damaged, spoiled, wasted 15,000 2.48% Net - QC Hold 213,559 79.4%
Net RM 578,355
RM machines break down or stop 8 PET machines 1 SOH lit no used 19,041 15.7%
hrs down or stop 1 PET hrs stop 5
RM machines on maintenance 3 PET Maintain 1 PET lost 7,000 2.6%
hrs on maintenenace 1 hrs Maintenan 3 PET reworks 5,000 1.9%
RM machines stop by QC 3 PET mach QC 1 PET QC on hold 15,000 5.6%
hrs stop by QC 3 hrs stop by QC 3 PET used 233,559 86.9%

30. Cybernetics in Supply Chain Management
FG pack size 1x40" TEU machines RM/hr RM/shift lts PET/hr
TOTAL 235 ml - TOTAL - 13 - - - -
TOTAL 473 ml 460,800 TOTAL 12.00 13 120.69 13.41 208,915.82 125.96
TOTAL RM 1,038,932 TOTAL 12.00 120.69 13.41 208,915.82 125.96
TOTAL NET
RM 995,458
RM truck schedule 95.8%
PET/shift pp/truck PET in Truck PETtrucks Silo turns RM/truck RMT/shift truck min hrs/shift shifts
- 0 - - - - - 0 0
14.00 240 448,800 11.69 93.54 95.19 95.19 125.96 14.00
14.00 240.00 448,800 11.69 93.54 95.19 95.19 125.96 14.00
460,800
97.4%PET trucks schedule
dual
station sec/coco coco.min coco/hr hr/shift coco/shift shifts coco/day
15.67 10.57 634.44 9.00 5,709.96 2.00 11,419.92
11 116.31 6,978.84 62,809.56 125,619.12
13 137.46 8,247.72 74,229.48 148,458.96

31. Cybernetics in Supply Chain Management
RM/hr 8,248 14.00 7.00 PET/hr 3,658
hrs/day 18 pp/h 1.91
RM/day 148,464 PET/shift 32,925
RM/truck 10,458 pp/shift 17.15
trucks/day 14.00 PET/day 65,850
RM Silo CAP 10,642 pp/day 34.30
Silo-product 2,394
PET
truck/day 1.71
truck/silo full 4.45 hrs/truck 10.50
production hr 4 32,992 4 32,992 4 32,992 2 16,496
RM truck deliver 4/hr stop 1 hr 15 4 41,832 4 41,832 4 41,832 3 31,374
truck stop 1.07 8,840 1.14 9,432 1.22 10,024 2.02 16,654
RMleft day 1 592 1,184 1,776 8,406

32. Cybernetics in Supply Chain Management
productiondays 7.00 RM Lts
initial stock - -
produce RM 148,464 31,158.0
receive RM 15delivery trucks 156,870
RM left day 1 8,406 1,764.2
initial stock 8,406 1,764.2
produce RM 148,464 31,158.0
receive RM 14delivery trucks 146,412
RM left day 2 6,354 1,333.5
initial stock 6,354 1,333.5
produce RM 148,464 31,158.0
receive RM 14delivery trucks 146,412
RM left day 3 4,302 902.9
initial stock 4,302 902.9
produce RM 148,464 31,158.0
receive RM 14delivery trucks 146,412
RM left day 4 2,250 472.2
initial stock 2,250 472.2
produce RM 148,464 31,158.0
receive RM 15delivery trucks 156,870
RM left day 5 10,656 2,236.4
initial stock 10,656 2,236.4
produce RM 148,464 31,158.0
receive RM 14delivery trucks 146,412
RM left day 6 8,604 1,805.7
initial stock 8,604 1,805.7
produce RM 148,464 31,158.0
receive RM 14delivery trucks 146,412
RM left day 7 6,552 1,375.1

33. Cybernetics in Supply Chain Management
new day out hr left hrs Customer Buffer PET PET PET
Day 1 5.00 7.00 Customer Buffer pp
FG truck 1 18.00 10.50 7.50 1 0 38,400 - 20
FG truck 2 18.00 2.99 15.01 1 0 38,400 - 20
FG truck 3 - 13.49 4.51 1 0 38,400 - 20
FG truck 4 18.00 5.99 12.01 1 0 38,400 - 20
FG truck 5 - 16.48 1.52 1 0 38,400 - 20
FG truck 6 18.00 8.98 9.02 0 1 - 38,400 20
FG truck 7 18.00 1.48 16.52 0 1 - 38,400 20
FG truck 8 - 11.97 6.03 0 1 - 38,400 20
FG truck 9 18.00 4.47 13.53 0 1 - 38,400 20
FG truck 10 - 14.97 3.03 0 1 - 38,400 20
FG truck 11 18.00 7.46 10.54 0 1 - 38,400 20
FG truck 12 - 17.96 0.04 0 1 - 38,400 20
PET trucks 5 7 192,000 268,800 240
FG Buffer stocks on Hand 8 item # U/truck FG total pp
Back Order FG trucks 1 2 72,000 72,000 20
Queue Order FG trucks 4 2 72,000 288,000 80
Customer Order FG trucks 3 1 38,400 115,200 60
FG trucks 8 475,200 160
on plan buffer FG stock 7 1 38,400 268,800 140

34. Cybernetics in Supply Chain Management
Customer ID Customer ID Customer ID Customer ID
Back Order PO No 1Queue PO No 4New PO No 8WIP PO No
Order Quantity 1 x 40" TEU 1Order Quantity 1 x 40" TEU 4Order Quantity 1 x 40" TEU 8Order Quantity 1 x 40" TEU 8
Ordered by ID Ordered by ID Ordered by ID Ordered by ID
Order Wt0 DATE Order Wt0 DATE Order Wt0 DATE Order Wt0 DATE
Shipment to Shipment to Shipment to Shipment to
Estimated LDT weeks Estimated LDT weeks Estimated LDT weeks Estimated LDT weeks
ETD week DATE ETD week DATE ETD week DATE ETD week DATE
ETA week DATE ETA week DATE ETA week DATE ETA week DATE
Partial Shipments y/n Partial Shipments y/n Partial Shipments y/n Partial Shipments y/n
Item # 2Item # 2Item # 1Item # same as new customer order 1
Customer ID Customer ID Customer ID Customer ID
Back Order PO No 1Queue PO No 4New PO No 8WIP PO No
Buffer FG stock transfer 1 4 3
Line # Item # Qty Wt0 0line# Item # Qty Wt0 Line# Item # Qty Wt0 back order Line# Item # Qty Wt0 back order 0
Line # Item # Qty Wt+1 line# Item # Qty Wt+1 0Line# Item # Qty Wt+1 queue order Line# Item # Qty Wt+1 queue order 0
Line # Item # Qty Wt+2 0line# Item # Qty Wt+2 0Line# Item # Qty Wt+2 new customer order 3Line# Item # Qty Wt+2 new customer order 3
Line # Item # Qty Wt+3 0line# Item # Qty Wt+3 0Line# Item # Qty Wt+3 new customer order 2Line# Item # Qty Wt+3 new customer order 2
Line # Item # Qty Wt+4 0line# Item # Qty Wt+4 0Line# Item # Qty Wt+4 new customer order 0Line# Item # Qty Wt+4 new customer order 0
Line # Item # Qty Wt+5 0line# Item # Qty Wt+5 0Line# Item # Qty Wt+5 new customer order 0Line# Item # Qty Wt+5 new customer order 0
Line # Item # Qty Wt+6 0line# Item # Qty Wt+6 0Line# Item # Qty Wt+6 new customer order 0Line# Item # Qty Wt+6 new customer order 0
Line # Item # Qty Wt+7 0line# Item # Qty Wt+7 0Line# Item # Qty Wt+7 new customer order 0Line# Item # Qty Wt+7 new customer order 0
ship out item # qty Wt0 1plan ship item# qty Wt0 4ship out item # qty Wt0 buffer stock 3ship out item # qty Wt0 buffer stock 8
ship out item # qty Wt+1 0plan ship item# qty Wt+1 0ship out item # qty Wt+1 back order 0ship out item # qty Wt+1 back order 1
ship out item # qty Wt+2 0plan ship item# qty Wt+2 0ship out item # qty Wt+2 queue order 0ship out item # qty Wt+2 queue order 4
ship out item # qty Wt+3 0plan ship item# qty Wt+3 0ship out item # qty Wt+3 new customer order 3ship out item # qty Wt+3 new customer order 3
ship out item # qty Wt+4 0plan ship item# qty Wt+4 0ship out item # qty Wt+4 new customer order 2ship out item # qty Wt+4 new customer order 3
ship out item # qty Wt+5 0plan ship item# qty Wt+5 0ship out item # qty Wt+5 new customer order 0ship out item # qty Wt+5 new customer order 2
ship out item # qty Wt+6 0plan ship item# qty Wt+6 0ship out item # qty Wt+6 new customer order 0ship out item # qty Wt+6 new customer order 0
ship out item # qty Wt+7 0plan ship item# qty Wt+7 0ship out item # qty Wt+7 new customer order 0ship out item # qty Wt+7 new customer order 0
line# short Item # qty Wt+1 0line# short Item # qty Wt+1 0line# short Item # qty Wt+1 0line# short Item # qty Wt+1 0

35. Cybernetics in Supply Chain Management
Buffer FG SOH for PO No 8
RM preparation line # item #
CAP/Mth 15
FG WIP line # Item # Capacity/Mth
installed 12
FG Packing line# item # CAP/Mth
installed 12
RM/FG WIP/Pack Production
required 5
buffer SOH item # qty
Wt0 7
Line # Item # RM Capacity in use
Wt0 3Line # Item # WIP Capacity in use Wt0 3Line # Item # Pack Capacity in use Wt0
line # item # capacity Qty Wt0 Back
O 0
buffer SOH item # qty
W+1 3
Line # Item # RM Capacity in use
Wt+1 3Line # Item # WIP Capacity in use Wt+1 3Line # Item # Pack Capacity in use Wt+1 3
line # item # capacity Qty W+1
Queue 0
buffer SOH item # qty
W+2 0
Line # Item # RM Capacity in use
Wt+2 3Line # Item # WIP Capacity in use Wt+2 3Line # Item # Pack Capacity in use Wt+2 3line # item # capacity Qty W+2 New 3
buffer SOH item # qty
W+3
Line # Item # RM Capacity in use
Wt+3 3Line # Item # WIP Capacity in use Wt+3 3Line # Item # Pack Capacity in use Wt+3 3line # item # capacity Qty W+3 New 2
buffer SOH item # qty
W+4
Line # Item # RM Capacity in use
Wt+4 0Line # Item # WIP Capacity in use Wt+4 0Line # Item # Pack Capacity in use Wt+4 3line # item # capacity Qty W+4 New 0
buffer SOH item # qty
W+5
Line # Item # RM Capacity in use
Wt+5 0Line # Item # WIP Capacity in use Wt+5 0Line # Item # Pack Capacity in use Wt+5 0line # item # capacity Qty W+5 New 0
buffer SOH item # qty
W+6
Line # Item # RM Capacity in use
Wt+6 0Line # Item # WIP Capacity in use Wt+6 0Line # Item # Pack Capacity in use Wt+6 0line # item # capacity Qty W+6 New 0
buffer SOH item # qty
W+7 7
Line # Item # RM Capacity in use
Wt+7 0Line # Item # WIP Capacity in use Wt+7 0Line # Item # Pack Capacity in use Wt+7 0
line # item # capacity Qty W+7
Buffer 7
RM SOH 1 x 40' TEU 0RM to Purchase 12RM to arrive & ETA RM receive & QC confirm pass QC 12
RM/FG WIP/Pack Production Plan
PO No
Wt0 -3Wt0 3Wt0 3Wt0
line # item # capacity Qty Wt0 Back
O 12
W+1 -3W+1 3W+1 3W+1 line # item # capacity Qty W+1 12
W+2 -3W+2 3W+2 3W+2 line # item # capacity Qty W+2 12
W+3 -3W+3 3W+3 3W+3 line # item # capacity Qty W+3 9
W+4 0W+4 0W+4 0W+4 line # item # capacity Qty W+4 7
W+5 0W+5 0W+5 0W+5 line # item # capacity Qty W+5 7
W+6 0W+6 0W+6 0W+6 line # item # capacity Qty W+6 7
W+7 0W+7 0W+7 0W+7 line # item # capacity Qty W+7 7
line # item # capacity Qty W+8 0
Buffer FG SOH item 1 5
235 ml Pet filling station 1x40'
72000 360,000 RM transfer to Production
Line # Item # reserved Capacity
Wt0
Buffer FG SOH item 2 3
473 ml Pet filling station 1x40'
38400 115,200 Wt0
Line # Item # reserved Capacity
Wt+1
new FG Buffer item 1
235 ml Pet filling station 1x40'
72000 0 W+1
Line # Item # reserved Capacity
Wt+2
new FG Buffer item 2 7
473 ml Pet filling station 1x40'
38400 268,800 W+2
Line # Item # reserved Capacity
Wt+3

36. Cybernetics in Supply Chain Management
New Order New Order New Order Back Order Queue Order Buffer Stock
1x40" TEU1 1x40" TEU2 1x40" TEU3 1x40" TEU1 1x40" TEU2 1x40" TEU3
5 0 0 7
CO #1 CO #2 CO #3 Back O# Queue O# Buffer Stock
item size #1 item size #2 item size #3 item size #1 item size #2 item size #3
473 ml Pet filling station 1x40' 38400
235 ml Pet
filling station
1x40' 72000
235 ml Pet
filling station
1x40' 72000 473 ml Pet filling station 1x40' 38400
RM units x1 RM units x2 RM units x3 RM units x1 RM units x2 RM units x3
417,103 0 0 0 0 12,689
Silo CAP x1 Silo CAP x2 Silo CAP x3 machines1 machines2 machines3 machines1 machines2 machines3 Silo CAP x1 Silo CAP x2 Silo CAP x3
10642 10642 10642 13 13 13 13 10642 10642 10642
RM/truck1 RM/truck2 RM/truck3 RM/hr1 RM/hr2 RM/hr3 RM/hr1 RM/hr2 RM/hr3 RM/truck1 RM/truck2 RM/truck3
10458 10458 10458 8248 0 0 8248 10458 10458 10458
RM truck1 RM truck2 RM truck3 lt/hr1 lt/hr2 lt/hr3 lt/hr1 lt/hr2 lt/hr3 RM truck1 RM truck2 RM truck3
39.88 1,731.00 0 0 1731 0 0 55.30
shifts Silo1 shifts Silo2 shifts Silo3 lits/shift1 lits/shift2 lits/shift3 lits/shift1 lits/shift2 lits/shift3 shifts Silo1 shifts Silo2 shifts Silo3
87,537.05 0 0 121,379
total Lit1 total Lit2 total Lit3 total Lit1 total Lit2 total Lit3
15573 0 0 15573
shifts1 shifts2 shifts3 shifts1 shifts2 shifts3
5.83 1.509E-05 1.509E-05 8.16
hrs1 hrs2 hrs3 hrs1 hrs2 hrs3
52.48 0.00013581 0.0001358 73.48
PET Units1 PET Units2 PET Units3 PET Units1 PET Units2 PET Units3
192,000 0 0 268,800
PET/pp1 PET/pp2 PET/pp3 PET/pp1 PET/pp2 PET/pp3
1920 3600 3600 1920
pp/truck1 pp/truck2 pp/truck3 pp/truck1 pp/truck2 pp/truck3
20 20 20 20
PET /truck1 PET /truck2 PET /truck3 PET /truck1 PET /truck2 PET /truck3
38400 72000 72000 38400
Packtrucks1 Packtrucks2 Packtrucks3 Packtrucks1 Packtrucks2 Packtrucks3
5 0 0 7

37. Cybernetics in Supply Chain Management
RM Item 1 1.12 Item 2 2.25
RM units X1 1,000,000 FG units X1 892,857 FG units X1 444,444
RM units X2 1,150,000 FG units X2 1,026,786 FG units X2 511,111
RM units X3 980,000 FG units X3 875,000 FG units X3 435,556
RM units X4 1,220,000 FG units X4 1,089,286 FG units X4 542,222
RM units X5 1,500,000 FG units X5 1,339,286 FG units X5 666,667
RM units X6 1,038,932 FG units X6 927,618 FG units X6 461,748
Weighted A 1,180,566 Weighted A 1,054,077 Weighted A 524,696
Std 195,507 Std 174,560 Std 86,892
t student 1.94 t student 1.94 t student 1.94
N 6.00 N 6.00 N 6.00
UL 1,335,648 UL 1,192,543 UL 593,621
LL 1,025,485 LL 915,611 LL 455,771
Forecast X+1 1,200,378 Forecast X+1 1,071,766 Forecast X+1 533,501
Safety Stock 155,082 Safety Stock 138,466 Safety Stock 68,925
C.Order X0 1,355,459 C.Order X0 1,210,231 C.Order X0 602,426
production buffer RM buffer RM FG item 1 3 FG item 2 5
stocks stocks hrs production 38,400 115,200 72,000 360,000
1,038,932 316,526.79 29.74 FGB item 1 7 FGB item 2 0
buffer RM buffer RM 38,400 268,800 72,000 -
shifts days shifts days shifts days
3.30 1.65 8.16 4.08 - -

38. Thank You
L | C | LOGISTICS
PLANT MANUFACTURING AND BUILDING FACILITIES EQUIPMENT
Engineering-Book
ENGINEERING FUNDAMENTALS AND HOW IT WORKS
CYBERNETICS IN MANUFACTURING SUPPLY CHAIN MANAGEMENT {AI - E|R|P} SYSTEM FUNDAMENTALS
Production Planning| Procurement| Inventories| Production Operations | Warehousing & Transportation | Maintenance