World Class Manufacturing focuses on continual improvement in quality, cost, lead time, flexibility and customer service. It adopts concepts from Japanese manufacturing including just-in-time production, total quality control, total preventive maintenance, and computer integrated manufacturing. The goals are to reduce waste, defects, downtime and costs through standardized processes, employee involvement, and data-driven problem solving. A flexible manufacturing system allows for both batch and job production using general purpose tools, enhancing operational flexibility.
Manufacturing has evolved considerably since the advent of industrial revolution. In current global and competitive age, it is very important for organization to have manufacturing practice which is lean, efficient, cost-effective and flexible.
World class manufacturing is a collection of concepts, which set standard for production and manufacturing for another organization to follow. Japanese manufacturing is credited with pioneer in concept of world-class manufacturing. World class manufacturing was introduced in the automobile, electronic and steel industry.
Manufacturing has evolved considerably since the advent of industrial revolution. In current global and competitive age, it is very important for organization to have manufacturing practice which is lean, efficient, cost-effective and flexible.
World class manufacturing is a collection of concepts, which set standard for production and manufacturing for another organization to follow. Japanese manufacturing is credited with pioneer in concept of world-class manufacturing. World class manufacturing was introduced in the automobile, electronic and steel industry.
“Lean” is a management philosophy based on the Toyota Production System (TPS). With Lean Manufacturing, you will be able to enhance value for your customers by improving and smoothing the process flow and eliminating waste. Simply put, with Lean, you will be able to increase productivity and create greater customer value with less resources.
By teaching this presentation, managers and employees will have a better understanding of the Lean principles and approach to eliminating waste, and will be more forthcoming to lead and participate in the Lean implementation process.
LEARNING OBJECTIVES
1. Acquire knowledge on the key concepts and principles of Lean
2. Describe the common Lean methods and tools for waste elimination and value creation
3. Describe the key roles in Lean deployment
4. Define the success factors for sustaining a Lean culture
CONTENTS
1. Introduction to Lean Manufacturing
2. Key Concepts of Lean
3. Lean Methods & Tools
4. Lean Roles
5. Sustaining a Lean Culture
To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations
In this presentation, we will discuss about world class manufacturing focusing on customer based principals, global markets, achieving world class, global competition reality, importance of automation in production and operations. We will also talk about global competitiveness, competitive priorities of manufacturing, recent trends, various attributes of excellent companies, overview on various world class suppliers, buyers, manufacturers. Present scenario of global business conditions, performance of world class manufacturers, world class service delivery and customer focused principals will also be discussed.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
“Lean” is a management philosophy based on the Toyota Production System (TPS). With Lean Manufacturing, you will be able to enhance value for your customers by improving and smoothing the process flow and eliminating waste. Simply put, with Lean, you will be able to increase productivity and create greater customer value with less resources.
By teaching this presentation, managers and employees will have a better understanding of the Lean principles and approach to eliminating waste, and will be more forthcoming to lead and participate in the Lean implementation process.
LEARNING OBJECTIVES
1. Acquire knowledge on the key concepts and principles of Lean
2. Describe the common Lean methods and tools for waste elimination and value creation
3. Describe the key roles in Lean deployment
4. Define the success factors for sustaining a Lean culture
CONTENTS
1. Introduction to Lean Manufacturing
2. Key Concepts of Lean
3. Lean Methods & Tools
4. Lean Roles
5. Sustaining a Lean Culture
To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations
In this presentation, we will discuss about world class manufacturing focusing on customer based principals, global markets, achieving world class, global competition reality, importance of automation in production and operations. We will also talk about global competitiveness, competitive priorities of manufacturing, recent trends, various attributes of excellent companies, overview on various world class suppliers, buyers, manufacturers. Present scenario of global business conditions, performance of world class manufacturers, world class service delivery and customer focused principals will also be discussed.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit: http://www.welingkaronline.org/distance-learning/online-mba.html
Lean IT - Why IT Service Management needs itBoonNam Goh
IT Service Management is sometimes (usually?) implemented badly even if best practices such as ITIL is used. The implementation usually carry out the letter but not the spirit of such best practices. Lean IT helps to apply Lean principles to IT so as to ensure that IT processes are streamlined and provide value to the user/customer. Lean also has techniques that help IT to innovate and transform.
10 steps to achieve world-class manufacturing maintenance practicesUMSConferences
Lean maintenance practices cut costs and improve production by minimizing downtime. it is possible to implement production maintenance best practices, and doing so will save time and money while increasing production in the long run. Here are 10 steps you can follow to establish Lean maintenance best practices at your manufacturing operation.
All we are doing is looking at the time line from the moment the customer gives us an order to the point wen we collect the cash. And we are reducing that time line by removing the non-value added wastes.
Apresentação de líder do Pilar Desenvolvimento de Pessoas para metodologia WCM (Word Class Manufacturing). Apresentação da metodologia aplicada no desenvolvimento de profissionais do setor de produção. Lógica, aplicação e resultados estão apresentados no anexo.
From the available source following PPT explains about the strategy applied by walmart and its opreation management. It deals with its operation of obtaining of materials & its mangement.
Il lavoro di tesi entra nel merito delle trasformazioni legate all’introduzione di nuove forme di organizzazione del lavoro e della produzione, in particolare, nel settore dell’industria automobilistica italiana, la Fiat, partendo dai temi classici dell’organizzazione scientifica del lavoro fino ad arrivare all’ultima frontiera dell’organizzazione del lavoro in fabbrica, il “World Class Manufacturing” cercando di capire quale impatto ha avuto quest’ultimo non soltanto a livello del sistema aziendale, ma anche nel comportamento e nelle strategie dell’attore sindacale, attraverso delle interviste a esponenti delle principali federazioni sindacali, al management Fiat e ai lavoratori.
Implementation of Lean Manufacturing System for Successful Production System ...IJERA Editor
In manufacturing industries lean manufacturing is a broadly accepted philosophy. There are more requirements of research and studies. To investigate the needs, techniques, benefits of lean manufacturing and approaches for implementation Lean manufacturing is a leading manufacturing paradigm has applied in many economy sectors, where we have to reduce manufacturing cost, improving product quality, reducing cost of poor quality, and quick to respond and “first to market to customer needs are critical to competitiveness and success. Lean methods and principle focus on the continuous improvement and engages employees reducing the intensity of materials, time, and capital necessary for meeting a customer’s needs. Successful implementation of lean manufacturing is very important to increase quality and waste reduction. By implementation of lean manufacturing there are various benefits such as waste elimination, reduction in reworking, financial benefits, lead time reduction and lower inventory levels.
This power point slide is all about the contemporary trends in quality engineering and management.every one should have a knowledge about the quality engineering in a 21st century.quality gives you more success in life.i had been giving you some techniques use in quality engineering program for a business purpose.
Implementation of Lean Manufacturing Principles in FoundriesIJMER
It is the general perception that the foundry industries are inherently more efficient and have a relatively less requirement for major improvement activities. Managers and engineers have also been hesitant to implement lean manufacturing tools and techniques to the continuous sector because of typical and identical characteristics that sector. These include costly and special purpose inflexible machines, options of modifications in machines are limited ,long setup times, and the general difficulty in producing in small batches.
Lean manufacturing technology when applied appropriately in a process industry , can help in eliminating waste , enhance the quality of product , attain better and smooth control on operations and thereby reducing the production cost and production time .
Understanding the Need of Implementation of Lean Techniques in Manufacturing ...ijtsrd
In competitive environment lean manufacturing is necessary in every industry. Lean production is a standard manufacturing mode of the 21st century All the manufacturing industries have put a continuous efforts for its survival in these current world. In order to handle the critical situations manufacturers are trying to implement new and innovative techniques in their manufacturing process. Later on lean was formulated and developed as the solution to the fluctuating and competitive business environment. Due to rapid change in business environment the manufacturing organization are forced to face challenges and complexities in the competition. The concept of lean manufacturing was developed for maximize the resource utilization and minimize the wastes. The main focus of the lean manufacturing is to satisfy customer demands for high quality and low cost. The technique not only identifies the reasons for waste but also helps in its removal through marked principles and guidelines. Lean Manufacturing is an efficient and fast growing approach in the world of competition. Lean manufacturing utilizes a wide range of tools and techniques the choice of tools is based on the requirement. Many parameters contribute success of lean. Organizations which implemented lean manufacturing have higher level of flexibility and competitiveness. However, lean manufacturing provides an environment that is highly conducive to waste minimization. The majority of the study focuses on single aspect of lean element, only very few focuses on more than one aspect of lean elements, but for the successful implementation of lean the organization had to focuses on all the aspects such as Value Stream Mapping VSM , Cellular Manufacturing CM , U line system, Line Balancing, Inventory control, Single Minute Exchange of Dies SMED , Pull System, Kanban, Production Leveling etc., G. K. Kiran Kumar ""Understanding the Need of Implementation of Lean Techniques in Manufacturing Industries: A Review "" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-3 , April 2019, URL: https://www.ijtsrd.com/papers/ijtsrd23194.pdf
Paper URL: https://www.ijtsrd.com/engineering/mechanical-engineering/23194/understanding-the-need-of-implementation-of-lean-techniques-in-manufacturing-industries-a-review-/g-k-kiran-kumar
What is Lean Manufacturing? Lean Manufacturing is nothing but all about build a product in the most efficient and effective manner. This technique focuses on reducing waste and improving manufacturing processes.
Productivity Improvement using Lean Manufacturing '“ A Case Study at Muththam...ijtsrd
At the present scenario, the Lean Manufacturing has become a worldwide phenomenon. A large number of organizations are following Lean technologies and experiencing vast improvement in quality, production, customer service and profitability. Muththamizh industries in Palani is a manufacturing company that manufactures variety of agricultural oriented machines. In this work to adopt the Lean manufacturing concept in this industry by using Value Stream Mapping (VSM) technique and to reduce the wastes such as long lead time, defects, material waste etc. Our project focuses on creating current and future state value stream maps which, when implemented will decrease the current lead time of manufacturing thereby improving the productivity of industrial shop floor. From their products, the team chose Chaff cutter machine as a product family and worked on them. From the Current Value Stream Map created the lead time for the product is found to be 3 to 3.34 days right from the processing of raw materials till the product is ready to be shipped. From the map created, various stages that contains bottlenecks in production were clearly identified and remedial measures were taken to eliminate those bottlenecks. Various lean tools such as Kaizen Bursts, 5S and other methods to eliminate the wastes were identified and implemented effectively. After remedial measures were adopted the data is tracked again and Future Value Stream Map is drawn. From the map it was clear that the lead time for the product was reduced to a certain extent of up to 4 hours. Therefore our primary goal of the object was achieved by adopting lean techniques and the productivity and efficiency of the organization was increased. G. Saravanan | R. Karthikeyan | S. Mohamed Nasrulla"Productivity Improvement using Lean Manufacturing “ A Case Study at Muththamizh Industries" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-2 | Issue-4 , June 2018, URL: http://www.ijtsrd.com/papers/ijtsrd12836.pdf http://www.ijtsrd.com/engineering/mechanical-engineering/12836/productivity-improvement-using-lean-manufacturing--a-case-study-at-muththamizh-industries/g-saravanan
Lecture 25 conversion cycle -wolrd class companies & lean manufacturing-...Habib Ullah Qamar
World class companies and lean manufacturing, What is world class company and it characteristics. How lean Manufacturing and its principles with tools and techniques automate production process. CAD, CAM, and CNC .
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
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Tata Group Dials Taiwan for Its Chipmaking Ambition in Gujarat’s DholeraAvirahi City Dholera
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It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
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RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
"𝑩𝑬𝑮𝑼𝑵 𝑾𝑰𝑻𝑯 𝑻𝑱 𝑰𝑺 𝑯𝑨𝑳𝑭 𝑫𝑶𝑵𝑬"
𝐓𝐉 𝐂𝐨𝐦𝐬 (𝐓𝐉 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬) is a professional event agency that includes experts in the event-organizing market in Vietnam, Korea, and ASEAN countries. We provide unlimited types of events from Music concerts, Fan meetings, and Culture festivals to Corporate events, Internal company events, Golf tournaments, MICE events, and Exhibitions.
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"𝐄𝐯𝐞𝐫𝐲 𝐞𝐯𝐞𝐧𝐭 𝐢𝐬 𝐚 𝐬𝐭𝐨𝐫𝐲, 𝐚 𝐬𝐩𝐞𝐜𝐢𝐚𝐥 𝐣𝐨𝐮𝐫𝐧𝐞𝐲. 𝐖𝐞 𝐚𝐥𝐰𝐚𝐲𝐬 𝐛𝐞𝐥𝐢𝐞𝐯𝐞 𝐭𝐡𝐚𝐭 𝐬𝐡𝐨𝐫𝐭𝐥𝐲 𝐲𝐨𝐮 𝐰𝐢𝐥𝐥 𝐛𝐞 𝐚 𝐩𝐚𝐫𝐭 𝐨𝐟 𝐨𝐮𝐫 𝐬𝐭𝐨𝐫𝐢𝐞𝐬."
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
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2. Core text books.
1. Production & Operation
Management by S.N. Chary
2. World Class manufacturing
B.S Sahay
Reference Book : Operation Management
Jay Heizer & B.Render
8th Edn
National Manufacturing
Competitiveness council
report. 2009
2
3. World Class Manufacturing is a set of concepts,
principles, policies and techniques for managing
and operating a manufacturing company. It is
driven by the results achieved by the Japanese
manufacturing resurgence following World War II,
and adapts many of the ideas used by the
Japanese in automotive, electronics and steel
companies to gain a competitive edge. It primarily
focuses on continual improvement in quality, cost,
lead time, flexibility and customer service.
3
4. WORLD CLASS MANUFACTUING CONCEPT DRIVES :
QUALITY
LEAD
HIGH MORAL
& SAFETY
TIME
CONTINUAL REDUCTION
IMPROVEMENT
COST FLEXIBILITY
REDUCTION IN OPERATION & PROCESS
5. Framework for Continuous Improvement
Companies that are pursuing world-class status may follows four dominant
principles of which these companies may choose one or more.
1.Just-in-Time (JIT) - The JIT principle focuses on the elimination of waste, with
waste defined as anything other than the minimum amount of equipment,
materials, parts, space, and workers' time, that are absolutely essential to add
value to the product.
2. Total Quality Control (TQC) Under the TQC principle, everyone in the
organization must be involved in improving the product's quality to meet
customer needs. The emphasis is placed on defect prevention rather than
defect detection and development of an attitude of "do it right the first time."
3. Total Preventive Maintenance (TPM) - With the TPM principle, machines and
equipment are maintained so often and so thoroughly that they rarely ever
break down, jam, or misperform during a production run.
4. Computer Integrated Manufacturing (CIM) - CIM involves the integration of
the company's operations from design, production, and distribution to after-
sales service and support in the field through the use of computer and 5
information technologies."
6. Transition of manufacturing Sector
High
Acceptance issue WCM
Image & quality Global
Issue. Competitiveness
Lean manufacturing
Consumer
Uncontested market
Expectation
.Manufacturing
Traditional Process Excellence
Manufacturing for cost competitiveness
Practices & innovation
Low
Local Global
Competition 6
7. Time to Market is shortening : Rapid introduction of
new products puts pressure on manufacturing facilities
to profitably produce a larger variety in smaller
volumes. Manufacturing firms have to adopt to new
processes, new materials, new vendors, new shop
floor layouts, new ways of reducing cycle times,
new designs etc. to deliver these products .
The real challenge is therefore to improve substantially
on several dimensions viz : quality, technology, shop
floor practices, supply chain coordination, and new
product introduction over a short period of time.
7
8. Manufacturing shift
Mass Production lean Production Mass Customization
Scientific CAD/CAM ERP
management EDI/ TQM Lean SCM
Process KAIZAN Agile manufacturing
MRP Six Sigma Build to order
PERT/CPM SCM
Lean Cost Focus
manufacturing Quality focus
Customization
focus
8
9. MANTRA FOR GLOBAL COMPETITIVENESS IN
MANAUFACTURING FIRMS ARE :
•Product mix change
•Conformance to quality
•Volume change
•Product customization
•On time delivery
•Research on New product
development
•Quick design changes
•Price competitiveness
9
10. A Perspective of Indian Manufacturing sector
Extract of Report submitted to NMCC by IIM Bangalore
March 2009.
The Indian Manufacturing sector has traversed a diversified
path to industrial development within the country. While its
share in the GDP has declined over the years, its growth rate
in recent years has been impressive (a CAGR of close to 8
percent in the last eight years). Very few countries in the
world can boast of such a diversified industrial base of
significance: from textiles & apparel to steel, from chemicals
to machine tools, from consumer goods to avionics. And then
there is the automobile and the auto-component industry with
engineering & service design that has created an industrial
dynamics that only a few countries in the world have been
able to achieve. 10
11. Concerns of Indian manufacturing sector
Studies have indicated that the productivity of the manufacturing
industry in India is approximately 1/5th of the productivity in the
manufacturing industry of United States Of America. It is about ½ as
compared to the productivity levels in South Korea as well as Taiwan.
Labor productivity has escalated only to a small extent in case of India
in comparison to United States Of America, on the contrary, labor
productivity has increased manifold in Taiwan & Korea .
• While ' Indian Manufacturing Industry ' is competing in the global
marketplace and registering growth on YoY basis, in sector areas ,
large sections of ' Indian manufacturing' sector still suffers from
bottlenecks like –
1. Use of primitive technology or under utilization of technology.
2. Poor infrastructure.
3. Over staffed operations & high operation cost
4. Low flexibility in manufacturing process
5. Expensive financing and bureaucracy 11
12. New Competitive Challenges
Today, Indian firms are facing a very different competitive scenario as
compared to the past. They are facing competition from imports and from
MNCs in the domestic markets. Firms also have to compete as new
entrants in global markets. Earlier, firms would segregate these two
markets and serve them with different quality products and services,
compromising on quality in the home market. This is no longer possible.
Therefore, many strategies that may have worked in the past are not likely
to succeed in the future.
The cost structure of Indian manufacturing plants shows that materials
constitute 66 percent of total costs, direct labour 10 percent and
overheads 24 percent.
This implies that management initiatives to control manufacturing costs
need to be focussed to reduce material costs and overheads.
12
13. Efforts to control material related costs may need to address several
issues including rejects and rework on the shop floor, identifying
alternative materials, and better materials management and
sourcing.
The new competition is in terms of reduced cost, improved quality,
products with higher performance, a wider range of products, and
better service - all delivered simultaneously.
Indian firms have quite often followed an opportunistic approach to
growth as opposed to a capability driven approach that seeks to
strengthen key aspects of manufacturing
13
15. Logistics were organized around the principle of mass
production.
Low cost was to be achieved through high volume. This led
firms to hold large inventories of incoming materials, work-in-
progress and finished products, just-in-case anything might
go wrong and interrupt the flow of production. Machinery was
designed to produce one type of products, and machine
changeovers were to minimum.
Quality procedures were designed so as not to get in the way
of production-flow. So quality inspection was placed at the
end of the production line, and faulty products were reworked
before delivery.
These principles of mass production were appropriate as long
as markets were stable and undemanding. As markets
became more heterogeneous and changeable, new principles
15
of production had to be established.
16. Principles of World Class Manufacturing : WCM is a process
driven approach where implementations usually involve the
following philosophies and techniques:
1. Make-to-order
2. Streamlined flow
3. Small lot sizes
4. Families of parts
5. Doing it right the first time
6. Cellular manufacturing
7. Total preventive maintenance
8. Quick changeover
16
17. 9. Zero Defects
10. Just-in-time
11. Variability reduction
12. High employee involvement
13. Cross functional teams
14. Multi-skilled employees
15. Visual signaling
16. Statistical process control
These sixteen practices helps an organization to achieve
a position of world class manufacturing.
17
19. WCM has following inherent advantage
•Logistics are designed so that flexibility can be ensured.
•Producing in small batches to satisfy varied and volatile
markets.
•Inventories are organized on a "just-in-time" basis, and
production flows through the plant as single units rather
than in large batches.
•Attention is paid to rapid changeover and simpler and
more flexible machinery is often used.
•Instead of checking quality at the end of the line, quality is
assured at each stage of the production process, so that no
defects are allowed to pass through the plant. 19
23. Lean manufacturing Model ( TPS House )
Integrated SCM People & Team Work Self triggered stops
Just In Time Common Goal , Cross Process driven
Continuous flow Trained high morale Error proofing
Pull system In station quality
Quick change Continuous Improvement Control
over
Waste reduction
Problem solving
5 Why;s
Leveled production
Standard manufacturing process
Visual Management
23
24. Lean Manufacturing & Toyota Production System.
Lean manufacturing practices works on the premise of
eliminating waste and being flexible and open to
change . It is a team based approach to identifying and
eliminating waste (non-value adding activities) through
continuous improvement by flowing the product at the pull of
the customer in pursuit of perfection.
The Toyota Production System is a philosophy of
manufacturing that was created by the Toyota Corporation.
TPS, has become synonymous with Lean Manufacturing.
TPS defined three types of waste: “Muda“( non value-added
work), “Muri" (overburden) and “Mura“( unevenness). By
eliminating waste, overall quality can be improved and
production time as well as cost can be reduced. 24
25. TPS defined three types of waste known as 3 M’s of
TPS.
“Muda“( non value-added work),
“Muri" (overburden)
“Mura“( unevenness).
By eliminating waste, overall quality can be improved
and production time as well as cost can be reduced.
25
26. Toyota Production System ( TPS) & 3 M’s
The Toyota seven wastes are as follows:
The TPS identifies seven wastes specifically and collectively
called as “wastes”.
1. Over-production
2. Motion (of operator or machine)
3. Waiting (of operator or machine)
4. Conveyance,
5. Processing itself
6 .Inventory (raw material)
7. Correction (rework and scrap).
Lean manufacturing aims to improve the manufacturing
process by eliminating seven wastes in all their forms.
26
29. TPS approach to reduce waste.
1. Reduce setup times - Employees at Toyota were made
responsible for their own setups thus reducing the
wastefulness of this process .
2. Small-lot production - The process of economically
producing a variety of things in small quantities rather than
producing things in large batches.
3. Employee involvement and empowerment - Employee are
divided into teams and even those in supervisory positions
work along side other employees on the production line as
part of the team.
4. Quality at the source - Product defects are identified and
corrected as soon as they occur or at the source.
29
30. 5. Equipment maintenance - Operators of the equipment
are also assigned to take care of their maintenance since
these should be the individuals who know the equipment
best.
6. Pull production - The work performed at each stage of
the process is dictated solely by demand for materials
from the immediate next stage (also known as "Just in
Time").
7. Supplier involvement - Suppliers are treated as partners
and are also trained in the TPS methods.
30
32. Theory of Constraints
Eli Goldratt is the creator of the Theory of Constraints (TOC)
Theory of Constraints (TOC) is an overall management
philosophy that aims to achieve goal of a system by
eliminating bottle neck in the process.
TOC focuses on critcal areas which influence the system’s
efficency and productivity.
1) The management thinking processes and their implication
to execution and human behavior .
2) The constraints in critical business activity & its implication
to processes flow in the service operation.
The constraints can be broadly classified as either an internal
constraint or a market constraint ( suppler constraint) .
32
33. Theory of Constraints is based on the premise that the rate of
revenue generation is limited by constraining process (i.e. a
bottleneck).
Only by increasing throughput (flow) at the bottleneck process or
elminating the bottleneck , can overall throughput be increased.
The key steps to overcome constraint are:
1. Articulate the goal of the organization.
2. Identify the constraint (the thing that prevents the organization
from obtaining more of the goal.
33
34. 3. Decide how to exploit the constraint.
Subordinate all other processes to above decision (align
all other processes to the decision made above)
The primary methodology used to overcome constraints
is refered as Drum-Buffer-Rope (DBR) approach.
34
35. 1. The drum is the physical constraint of the plant: the work
center or machine or operation that limits the ability of the
entire system to produce more. The rest of the plant follows
the beat of the drum.
2.The buffer protects the drum, so that it always has work
flowing to it. Buffers in DBR methodology advocates time as
the unit of measure, rather than quantity of material. This
makes the priority system operate strictly based on the time .
3. The rope is the work release mechanism for the plant.
( Trigger ). It Pulls work into the system just when required
rather than earlier than a buffer time which creates high
work-in-process and slows down the entire system.
35
36. Marching to the Drum Beat of the Drummer
Constraint linked to Inventory available to Buffer time
Market demand Overcome the constraint
Drum Beat Proactive
Virtual stock Process
Of the plant
buffer
36
37. Traditional system calls for buffers at several points in
the system. Simplified DBR requires only a single
buffer at shipping point.
Drum - The constraints, linked to market demand, is the
drumbeat for the entire plant.
Buffer - Time/inventory that ensures that the constraint
is protected from disturbances occurring in the system.
Rope - Material release is "tied" to the rate of the
constraint.
37
38. The Simplified- Drum, Buffer Rope ( S-DBR)
provide the basis for building a production
schedule that is highly immune to disruption,
avoids creating excess inventory, and uses
small batches to minimize overall lead time.
Thus S-DBR is used to mitigate and often
prevent those disruption which happens in
Production process.
38
39. Lean Manufacturing Model
Integrated SCM Self triggered stops
People & Team Work
Just In Time Process driven
Common Goal , Cross
Continuous flow Error proofing
Trained high morale
Pull system In station quality
Quick change Control
over Continuous Improvement
Waste reduction
Problem solving
5 Why;s
Leveled production
Standard manufacturing process
Visual Management
39
40. 7 Essential principles of Lean manufacturing
1. Pull Inventory Control. Work moves based on
the needs of the downstream operation starting
from the customer need.
2. Automation: Equipment intelligently recognizes
& eliminates process variation with human like
intervention. Technology support from ERP,
CAD/CAM etc
3. JIT Inventory : WIP & supplies arrive at the
process location as they are needed.
40
41. 5. Visual control. : Management by sight of
equipment & process Variation.
6. Standardized work process & procedures. All
activities are defined in advance &
characterizes by process consistency.
7. Pursuit of perfection. There is no end to the
process of reducing , waste , time cost &
mistake.
8. Continuous work flow : Alignment of
machines are such that it drives continuous
work flow without interruption.
41
42. A flexible manufacturing system (FMS) is a group of numerically-controlled
machine tools, interconnected by a central control system. The various
machining cells are interconnected, via loading and unloading stations, by
an automated transport system. Operational flexibility is enhanced by the
ability to execute all manufacturing tasks on numerous product designs in
small quantities and with faster delivery.
It has been described as an automated job shop and as a miniature
automated factory. It is an automated production system that produces one
or more families of parts in a flexible manner. Automation and flexibility
presents the possibility of producing nonstandard parts to create a
competitive advantage.
43. Flexible Manufacturing
System
Batch Production
or
Job production
Dedicated machinery or General-purpose tools
Cost savings but Costly, and may not
lacks flexibility reach full capacity
44. FMS is limited to firms involved in batch production or job shop
environments. Normally, batch producers have two kinds of equipment
from which to choose: dedicated machinery or general-purpose tools.
Dedicated machinery results in cost savings but lacks flexibility. General
purpose machines such as lathes, milling machines, or drill presses are all
costly, and may not reach full capacity.
Flexible manufacturing systems provide the batch manufacturer with another
option that can make batch manufacturing just as efficient and productive as
mass production.
Two kinds of manufacturing systems fall within the FMS spectrum. These
are assembly systems, which assemble components into final products and
forming systems, which actually form components or final products.
A generic FMS is said to consist of the following components:
A set of work stations containing machine tools that do not require significant
set-up time or change-over between successive jobs. Typically, these
machines perform milling, boring, drilling, tapping, reaming, turning, and
grooving operations.
45. An automated and flexible material-handling system ( Guided vehicle )
permits jobs to move between any pair of machines so that any job routing
can be done more efficiently .
A network of supervisory computers that perform some or all of the
following tasks:
1. Directs the routing of jobs through the system
2. Tracks the status of all jobs in progress so it is known where each job is
to go next.
3. Passes the instructions for the processing of each operation to each
station and ensures that the right tools are available for the job.
4. Provides essential monitoring of the correct performance of operations
and signals problems requiring attention.
5. Storage, locally at the work stations, and/or centrally at the system level.
The jobs to be processed by the system. In operating an FMS, the worker
enters the job to be run at the supervisory computer, which then downloads
the part programs to the cell control or NC controller.
46. Benefits
•Less waste
•fewer workstations
•quicker changes of tools, dies, and stamping machinery
•reduced downtime
•better control over quality
•reduced labor
•more efficient use of machinery
•work-in-process inventory reduced
•increased capacity
•increased production flexibility
47. LIMITATIONS OF FMS
It can handle a relatively-narrow range of part
varieties, so it must be used for similar parts (family
of parts) that require similar processing.
Due to increased complexity and cost, an FMS also
requires a longer planning and development period
than traditional manufacturing equipment.
Equipment utilization for the FMS always is not as
high as one would expect.
48. Lack of technical literacy, management
incompetence, and poor implementation of the FMS
process.
If products change ( variation is high ) rapidly, and
performance of the firm is measured on the ability to
introduce new products fast than minimizing cost, in
such scenario, scale is no longer the main concern
and size is no longer a barrier to entry.
49. Traditional FMS
The traditional flexible manufacturing system (FMS) is based on
numerically controlled machines in addition to other value-added,
automatic, material handling facilities. A degree of flexibility within FMS
serves to satisfy demands for a relatively diverse range of products with
a small to medium batch size production.
51. When customer orders come through more randomly with different delivery
dates, product mix changes irregularly and drastically, or the product
diversification increases, downstream processes require randomly
customized parts on flexible schedules to be supplied to their matching
predecessor processes on short notice, extra inventory, equipment, and
labor are needed to meet order variations. In such a case , traditional
FMS is challenged to meet these rapid changes with minimum production
cost and satisfaction. This leads to a new concept called Mass
Customization . A process which delivers sufficient flexibility and rapid
response capability to deal with complex manufacturing situations.
Mass customization system demands a higher degree of flexibility than
traditional FMS. It is highly desirable that each component demonstrates
prompt response capability in managing demand changes in a FMS with
parallel considerations in product costs, quality and reliability to form
the flexibility in an agile mass manufacturing system,
52. Agile Mass Customized Manufacturing System
Manufacturing process focused on the ability to flexibly and rapidly
respond to changing market conditions. As product life cycles get
shortened significantly , manufacturers have found that they can no
longer capture market share and gain higher profits by producing large
volumes of a standard product for a mass market. Success in
manufacturing requires the adoption of methods in customer-acquisition
and order-fulfillment processes that can manage anticipated change
with precision while providing a fast and flexible response to
unanticipated changes .
53. Goal of MCM is to produce and deliver customized products rapidly
while keeping costs at the mass-production level.
MCM implementation strategies can be divided into three different
categories according to the different stages when customization is
introduced in the value-chain:
(1) form MCM, (2) optional MCM, (3) core MCM
Form MCM is the simplest MCM implementation strategy, where
customization is introduced at the delivery stage.
Optional MCM allows customization to take place at the
manufacturing stage. The essential point of this implementation
strategy is to provide a large number of pre-designed, standard options to
customers. It produces the configured products. Customers can only
select options from a predetermined list and request them to be
assembled. ( Dell manufacturing Model )
Core customization integrates customers with the design process.
54. Mass Customized Manufacturing ( MCM )
Steps for mass customization lie in two areas:
1. Design For Mass Customization ( DFMC )
2 Mass Customization Manufacturing (MCM) system.
DFMC emphasizes decoupling of the design and manufacturing process
to reduce costs. In developing MCM, it is important to take DFMC into
consideration in order to reduce the setup time and other volume-related
costs drivers. Modification of product shape and size are limited to
guarantee that fabrication can be performed on the same production line.
Product design for mass customization ( DFMC) calls for Parameterized
products: Parameterized products possess a series of attributes called
parameters. These parameters allow customers to change the actual
design of the product, for example, by creating new sizes, or modifying
performance characteristics. Each parameter can be chosen by
customers within a certain scope, and the scope itself can also be
defined as one of the parameters
55. Success in mass customization manufacturing( MCM) is achieved by
swiftly reconfiguring operations, processes, and business relationships
with respect to customers’ individual needs and dynamic manufacturing
requirements.
MCM system is characterized by four challenging characteristics:
Degrees of flexibility,
Production capability adjustments,
Modularization methods
Dynamic network-control system structure
Modularization methods : Modularization methods in traditional
manufacturing systems are often product-oriented, where modules are
grouped in teams with intercross functions . In an MCM system,
categorization of modules is based on their functionalities: the greater
the diversity of module classifications, the better the system’s potential to
satisfy different customized demands
56. Dynamic-network-control system structure: Control system
structures in FMS are often constructed in a hierarchical mode.
Modules assigned at various closely interactive layers result in the
limitation of the capability for system reconfiguration, reliability,
and system expandability.
Because of the complexity in ever-changing manufacturing
requirements and flexible process routing, fixed and centralized
control is almost impossible in a MCM system.
Dynamic and flexible network utilizations in MCM functional
modules can maximize the strength of each empowered resource,
and hence, the overall risk and costs are reduced. The dynamic
network connections among functional modules are characterized
as :
Instantaneous: Accessing valid resources and reconfiguring functional
modules should be instantaneous.
Low cost: Besides the initial capital investment, it is better to reduce the
recurring system costs.
57. Seamless: A set of system mechanisms needs to be established to ensure
seamless data exchange among customized orders, suppliers, services,
and production controls.
Frictionless: There should be no resource conflicts when a new network is
created. Success in this feature promotes better cost controls and dynamic
network operations.
60. The goal of JIT in manufacturing organization is to continuously
reduce the cost associated with requirement material resource.
Its objective is to achieve cost efficiency through zero
inventory. The goal of JIT process is to reduce excess working
capital held-up on account of material & minimal inventory at WIP
.
The constraints of managing RM inventory are due to :
•Unpredictable quality of supply of material
•Inability to hold tolerances.
•Shortcoming in lead time. ( Erratic delivery )
•Short supply of quantity of material
•Inaccurate forecasting
•Non standard materials being used ( Increased variety )
•Last minute product changes.
61. Steps for implementing JIT in an organization.
1. Do detailed analysis of inventory requirement of all types at
every stage of production process.
2. Estimate the market fluctuations on account of price, supply ,
quality demand etc.
3. Identify reliable source of suppliers who are capable of
supplying material as when required.
4. Take supplier in to confidence & sensitize them the
importance of JIT inventory & build healthy business
relationship with suppliers to have high commitment &
ownership . Use Value engineering approach.
62. 5. Conduct periodic vendor appraisal & follow vendor
rating system of evaluation .
6. Give instant feed back on the supply & suggest
improvement steps.
7. Sign rate contract .
8. Use IT enabled ordering system , ERP .
63. Inventory Control Techniques
Inventory control techniques are used to prevent :
1 financial leakage due o excessive stock & poor
demand , 2 2shortage of inventory
3. Inventory Obsolescence
Plan safety stock for critical & essential items
Build selective control on fast & slow moving
inventory .
Various Inventory control technique used are :
ABC : Always Better Control
VED : Vital Essential & Desirable
SDE : Scarce Difficulty & Easy
FNSD Fast moving , Normal , Slow moving , Dead
64. ABC Classification
100
CLASS C
90 Low annual consumption value
CLASS B
Usage %
Moderate annual Consumption value
70
(Inventory
Value )
CLASS A
High annual consumption value items
0 10 30 100
% items
65. VED analysis : Vital : Without which production process
will come to halt.
Essential : Non availability of such item will affect
the efficiency .
Desirable : It is good if it is available , however
alternate option can be done.
SDE : Scarce ( Short supply )
Difficult ( Imported components )
easily ( Short lead time )
66. Purchase Inventory review system :
Review process is administered on the basis of Fixed
order quantity ( Q system ) and fixed period quantity
system . ( P system )
In Q system , whenever the stock level reaches the RoL
, order is placed for a fixed quantity of material .
RoL is calculated as a sum of demand during the lead
time & variation in demand during lead time ( safety
stock ) and average demand during delivery delays.
( reserve stock )
In p system , stock position is reviewed after every fixed
period & order is placed according to stock position &
demand .
67. Value Engineering or Value Analysis
It is a technique of cost reduction and cost
prevention. It focuses on building necessary
functions at minimum cost with out
compromising on quality, reliability ,performance
& appearance. It helps in identifying unnecessary
costs associated with any material , part
components or service by analysis of function
and efficiently eliminating them with out
impairing the quality functional reliability or its
capacity to provide service. It is a preventive
process.
68. When to apply VE
1. Raw material cost increases suddenly .
2. Vendors are unreliable & organization is highly
dependent on a few select vendor .
3. Cost of manufacturing is disproportionate to
volume of production .
Value analysis is done w.r.t cost associated at:
• Cost Value (Labour , Material & overhead).
• Use Value
• Esteem Value ( Look & finish )
• Performance Value ( Reliability , Safety , Service &
Maintenance )
69. Value = Performance ( Utility)
Cost
Vendor analysis is done to minimize the cost incurred due
to a supplier Inefficiency or inability .
Vendor cost to be considered are :
•Opportunity loss due to poor quality ( High rejection cost )
•leading to machine & labour idle time.
•High re-work cost
•Inconsistent lead time
•Inability to meet the demand of the manufacturer
•Poor Credit terms
70. Value engineering procedure:
Constantly evaluate the inventory costs associated &
benchmark against the best in practice.
As & when the cost of manufacturing increases
disproportionately, identify an alternate source for contract
manufacturing & monitor the quality & standards.
Use more standard parts which can be sourced easily
Develop more suppliers ( at least 4 to5 for one part.) &
minimize dependency on one supplier.
Audit the supplier’s work premise & rate them on the
performance .
Conduct quarterly vendor meet & share the highlights &
concerns .
72. MRP MRP1 ERP
Material requirement planning Manufacturing resource Enterprise resource
in manufacturing organization. Planning in manufacturing Planning
organization
Inventory planning Production planning Business planning
& control & control
Material planning Material, Machine Man Machine
Method Man Material, Method
& Money
The essence of the progress was based on seamless integration and analysis of
information on various resources required by a manager to make an effective
decision.
73. MRP vs. ERP — Manufacturing management systems have
evolved in stages over the past three plus decades, from a simple
means of calculating materials requirements to the automation of
an entire enterprise.
As frequent changes in sales forecasts happened entailing
continual readjustments in production, as well as inflexible fixed
system parameters, MRP (Material Requirement Planning)
evolved into a new concept : Manufacturing Resource Planning
(or MRPII ) and finally the generic concept Enterprise Resource
Planning (ERP)
Prior to the concept of ERP systems, a manufacturing organization
faced tremendous difficulty in planning & controlling of resources
like people , finance WIP inventory at plant , machine status etc
due to lack of integrated & updated information about resources.
74.
75. Advantage of ERP in a manufacturing organization.
Integration among different functional areas to ensure
proper communication, productivity and efficiency
Integration of Design engineering & collaboration.
(CAD & CAM )
Order tracking, from acceptance through fulfillment
The revenue cycle, from invoice through cash receipt
Managing inter-dependencies of complex processes
BOM .
Tracking the three-way match between purchase orders
(what was ordered), inventory receipts (what arrived),
and costing (what the vendor invoiced)
The accounting for all of these tasks: tracking the
revenue , cost and profit at a granular level.
76. Disadvantages
Customization of the ERP software is limited.
Re-engineering of business processes to fit the "industry
standard" prescribed by the ERP system may lead to a
loss of competitive advantage.
ERP systems can be very expensive (This has led to a
new category of "ERP light" solutions)
ERPs are often seen as too rigid and too difficult to adapt
to the specific workflow and business process of some
companies, cited as one of the main causes of their failure.
Many of the integrated links need high accuracy in other
applications to work effectively. A company can achieve
minimum standards, then over time "dirty data" will reduce
the reliability of some applications.
79. The CPFR® ( Collaborative planning , forecasting
& replenishment
A shared process of creation between two or more
parties with diverse skills and knowledge delivering
a unified approach that provides the optimal
framework for customer satisfaction.
Voluntary Inter Industry Commercial Standards (VICS)
•A set of guidelines supported and published
by the Voluntary Inter industry Commerce
Standards (VICS) Association ,Trading partners
to share their plans for future events, and then
use an exception-based process to deal with
changes or deviations from plans.
80. CPFR is a business practice that combines the
intelligence of multiple trading partners in the planning and
fulfillment of customer demand.
CPFR is a strategy for improving supply chain efficiency
and effectiveness by making demand transparency, drive
the execution of the supply chain participants to maximize
value for the end-customer.
Fundamentally, the aim of CPFR is to convert the supply
chain from a disjointed, ineffective and inefficient “push”
system to a coordinated “pull” system based upon end
customer demand.
81.
82.
83. CPFR Process Model.
The driving premise of CPFR is that all supply chain participants develop a
synchronized forecast. Every participant in a CPFR process — supplier,
manufacturer, distributor, retailer — can view and amend forecast data to
optimize the process from end to end. Essentially, CPFR puts an end to
guesswork in forecasting. It means that manufacturers and retailers share
their plans, with detailed knowledge of each others’ assumptions and
constraints.
The target objectives for CPFR process include the following:
• Increased in-stock at shelf
• Reduce average transit inventory
• Increased sales
• Reduce operating expense
• Reduce cost of goods
• Reduced lead time/cycle time
• Decreased account receivables
• Reduced forecast error +/- 10%
(Source: University of Denver Supply Chain Round table: “CPFR Overview.” Value
Chain Collaboration Associates, Inc
84. The CPFR® Process Model Seller
FRONT END AGREEMENT Collaborative
Planning
JOINT BUSINESS PLAN
CREATE SALES FORECAST Collaborative
IDENTIFY EXCEPTIONS Forecasting
RESOLVE EXCEPTIONS
CREATE ORDER FORECAST
Buyer
IDENTIFY EXCEPTIONS
RESOLVE EXCEPTIONS
GENERATE ORDER
85. Phase I — Planning
This phase relates to people, processes, and developing of trust. Partners must
break down cultural barriers and company-centric perceptions so they can view
the bigger picture. Partners have to share a unified vision to make the process
work. First, partners must define their relationships and identify what processes
need to be changed to allow stronger collaboration. Next, “trigger” points for
alerts must be identified and assignment charts developed that designate who
responds to the alerts and in what time frame. Overall,
suppliers may have to change compensation plans and move away from “push”
plans, so that shared forecasts can “pull” information through the processes.
Specific benchmarks and key performance indicators (KPIs) must then be
established to determine the efficacy of the shared plan.
The two major steps in this plan are :
1. Developing a front-end agreement
2. Creating a joint business plan.
86. Phase II — Forecasting
Collaborative forecast of end-user demand continues through all aspects of supply
chain planning, providing support for both long-term and day-to-day decisions.
Analysis like “what-if ” , forecasting planners can quickly and easily determine the
financial and operational effects of any action throughout the supply chain.
In Phase II, an organization creates the sales forecast, which then feeds into the
order forecast. A large quantity of information rapidly permeates the entire
process. A single, collaborative forecast is created with dynamic capability to
address the complexities in the business environment.
Using advanced demand planner ( software modules ) , organizations can build
multi-dimensional models, which may include product hierarchies, geographies,
channels, and specific customers. Causal variables such as pricing, promotions, and
new store openings can also be completely integrated. In addition, historical data can be
combined with near real-time variations in the channel to get the most accurate forecast.
87. Phase III — Executing
During 3rd phase of CPFR , front-end planning and forecasting come
together with supply chain execution. Using Order Promising software
module , companies can instantly determine where orders can best be
satisfied — from inventory at any location, planned production orders, or
purchase receipts. When there is a promotion (such as a new store
opening or product launch), Order Promising allows companies to quote
future delivery dates or other key information related to the event. Order
Promising provides the real-time information essential to good customer
service.
Manufacturing, warehousing, order fulfillment, and transportation plans
are completely synchronized into an integrated package to monitor and
ensure on-time execution of the order delivery process.
88. Collaborative commerce in Retail
Process view of Supply Chain in collaborative
commerce .
SUPPLIER SUPPLY CHAIN
Supply chain design
Demand forecasting
PLAN
Inventory planning SOURCE Retail Store
CUSTOMER
DELIVER
Distribution planning
Allocation
Transportation Planning
Order Fulfillment
Delivery scheduling Visibility, Event Management
CATEGORY
& coordination & Track & Trace
Management
Warehouse Management Reverse Logistics
Procurement Inventory Management Trade Management
In sourcing/out sourcing Transportation
management
Relationship
Management
89.
90. Managing Manufacturing Lead time ( MLT ) is an essential
task in any organization to deliver the goods as per the
customer order lead time.
MLT depends on the nature of manufacturing process. The
four types of manufacturing process are :
ETO ( Engineer to Order)
MTO ( Manufacture to Order )
ATO ( Assemble to Order )
MTS (Made to Stock )
Design Procure Manufacture Assemble Ship ETO
Lead Time
90
92. Production Process.
Standardization Non standardization
Variation
Flow (Mass) Batch Job Project/ Turn
Production production production key production
MTS ETO
Standard parts & Non standard low volume
High Volume
Plant location
Plant Layout
Production process
92
93. Mass or Flow production
Flow or mass production employs special types of machines specially
designed for mass scale productions . It involves decomposition of the
production task in to minute details & are grouped them according to the
norms of production.
An assembly line consisting of workstations in a sequence meant to do a
portion of the work , feed the parts and components machined to
assembly line .Material moves continuously at a uniform average rate
through the sequence of workstations .
When to deploy mass production .
•When production quantities are large & variations are small .
•Demand for a single product is very high .
•It must justify economy of scale.
93
94. Advantages of Flow production :
•Smooth flow of material from one station to next in a logical
order.
•Result in small WIP inventory due to well connected process.
•Effective production time can be short if the processes in the
production is not in efficient .
•Low labour skill is required and can be automated easily .
•Low labour training is required.
•Material movement is less & less WIP inventory storage
space required.
94
95. Disadvantages :
1.Complete line stoppage if a machine breakdown.
2.High preventive maintenance cost
3.Plant layout is dictated by the product . Any change in the product design
will call for a major change in plant layout .
4.Line balancing is essential in the assembly line to attain line efficiency .
( Grouping of task to ensure that sum of the time of the work elements
performed at a work station ( station time ) does not exceed the cycle time
LE = STi ST = Station time for i station
K x ( CT) K = total no of work station
CT= cycle time
5.Low degree of manual supervision .
95
96. Batch production
Batch production : When a variety of products to be made & volumes
are not large , batch production is followed.
•It uses general purpose machines or flexible machine system which
can be used to produce variety of products.
•Material flow is more complex than mass production.
•Plant Layout is designed keeping in mind the variety & their flow
pattern .
•Production cycle time are larger as compared to mass production.
•Production scheduling follows a particular sequence in which jobs
should be done at the work center.
•Optimal batch size determination for economy is essential.
96
97. Manufacturing Economic batch Quantity
Items are produced & consumed simultaneously for a portion
of the cycle time. The rate of consumption is uniform through
out the year & cost of production remains same irrespective of
production lot .
I max = t p x ( P-D)
Q
Q = Pxtp , tp = Q/P
P = production rate
D D= consumption rate
P P – D = inventory build up rate
Q = Inventory at t1
tp
Cycle 2 DXCs P
EBQ = Ci ( P-D )
97
98. I max = t p x ( P-D)
= Q/P x ( P-D)
= Q x (1- D/P)
Av annual Inv = Q/2 x ( 1- D/P)
Av Annual Inv Cost = Q/2 x (1- D/P) Ci
Annual set up cost = D/Q x C s
Q/2 x(1-D/P) Ci = D/Q x Cs
Q2 =
2 x D x Cs
(P-D )Ci
P
Economic 2x Dx C x P
Q= s
Batch Qty C i P-D
98
99. A manufacturing unit has annual demand of 10000 valves.
Each valve costs Rs 32. The product engineering
department estimates the setup cost as Rs 55 & holding
cost as 12.5 % of the valve. The production rate is uniform
at 120 valve/day. Production happens for 250 days in a
year.
Calculate optimal batch size & total inventory cost on the basis of optimal policy.
Find the number of set ups on the basis of optimal batch .
Ci= 12.5% of 32 = Rs 4 , D= 10000/250 = 40 units /day
EBQ = 2 x 10000 x 55 ( 120/120-40) = 642 valves.
4
(10000/642)x 55 + 642/2 ( 120-40/120) x 4
856.8 + 856.35 = Rs 1713.15 /yr
No of setups = 10000/ 642= 16 Approx
99
100. Disadvantages :
Longer and irregular flow lines result in expensive material handling
process.
Larger WIP inventory High grade skilled workers & operators are
required.
Total production time required is relatively larger.
Job Production :
In job production, similar machines are used to produce variety of
jobs of smaller quantity . As nature of demand is unpredictable, &
each job order being unique, it requires varying processing time &
distinct routing process through a number of machines in the factory.
Job shop consists of general purpose machine clubbed in different
production centers.
Each job requires a unique scheduling as there are n jobs to be
100
processed by m machines so as to meet the due date.
101. •Managing total processing time ( make Span)
•Minimizing idle machine time
•The make span depends on number of jobs to be processed & number of
machine available, their due date, job shop layout , the manner in which the
jobs arrive at the factory.
•Planning for the job shop involves deciding the order of priority for the jobs
waiting to be processed in a queue to achieve the desired objective.
•Attaining Shortest processing time( SPT sequencing rule ) is key to job work.
•It helps to minimize lateness of the job . ( Job completion time - Due date)
•Other approaches are first come first serve ( FCFS)
•Prioritize the job with earliest due date.
101
102. Managing Large & complex production work
Project Work ).
A large complex task comprising of multiple activities to
be performed from manufacturing to delivery, installation
& commissioning requires tight scheduling coordination
& monitoring of activities from start to end for timely
completion of work to avoid monetary loss & high
customer satisfaction.
Cost ,Time & Performance are the basis of such project
activity.
Interrelationships between the activities need to be
understood by the operation team.
Erection of a manufacturing plant. Manufacturing of
ships , airbus etc.
102
103. •It requires a specific layout ( project layout ) to handle each
part of the project.
•Heavy machinery and material handling equipments are
required to manage the projects.
•Tight control and monitoring of resource are the essence of
the project.
•All such production activities are done using project
techniques called CPM ( Critical Path Method ) & PERT
( Project Evaluation & Review Technique)
CPM deals with project management involving deterministic
time estimates .
When activity durations of the project are not deterministic &
probabilistic, PERT is used. 103
105. PLANT LAYOUT
Plant layout is a floor plan of the physical facilities used for
ease in production system. It is an spatial arrangement of
physical facilities to increase the productivity in the shop
floor.
An economic layout decision helps to achieve long run
efficiency in operation . It creates competitive
advantageous in terms of capacity, processes , flexibility,
cost and quality of work life
105
106. If the operational system suffers from :
1. Poor on-time performance
2. Long production lead-times
3. High WIP and/or finished goods inventory
4. High overtime
5. Lots of expediting and rescheduling
6. Wandering or stationary bottlenecks
7. Reluctance to take on new business
. . . then it implies that organization's
production layout has constraints.
106
107. Layout decisions .
.
Key benefits are : Higher utilization of people , equipment
and space, Improved flow of information , & material
Improved Employee morale & safer working condition,
Minimize material handling cost .
Types of layout are :
• Fixed position layout
• Process layout,
• Work cell layout, ( Group Layout )
• Product layout.
107
112. Product layout : Machines & auxiliary service are
located according to the processing sequence of the
product . This is also called line layout. Material
flows in a uniform rate & operations are carried out
in a balanced way.
RM Sawing Turing bending drilling Grinding
FG Packing Quality Inspection Painting
approval
112
114. Advantages product layout
1.Simple production Planning & control .
2.For high volume standard outputs, machine & work force
utilization is high.
3.Operator skill can be relatively low as he is trained for one kind
of operation.
1. Limitation : Breakdown of one machine will cause stoppage of
work in down /up stream level.
2. Last minute change in product design will require major
alteration in layout .
3. Heavy investment is required in material handling equipments
, machinery etc.
114
115. Process layout : Deals with low volume high variety
production activity ( intermittent production ) . The product
manufactured undergoes different sequence of operation. It
provides flexibility in equipment and labour assignments .
The break down of one machine will not halt the processes.
It is good for wide variety of product production in different
size. RM
Sub
Job Process Assembly Dispatch
Heat Sawing &
Treatment Shearing
Grinding
Turning
Milling Drilling
Bending Wielding 115
shop
116. Process layout
1. A high degree of flexibility in terms of task allocation
to machines exists.
2. Relatively low investment in machines .
3. Operators are multi skilled.
4. Handles diversity in task better.
Limitation
1. High care in PP&C required.
2. WIP inventory will be large.
3. High grades of skilled work force will be required.
4. Material handling cost will be high
116
117. Manufacturing system based on Cellular layout
A manufacturing system wherein the equipment and
workstations are arranged in an efficient sequence that
allows a continuous and smooth movement of inventories
and materials to produce products from start to finish in a
single process flow, while incurring minimal transport or
waiting time .
In order to set up a single process flow (or single product
flow) line, it is necessary to locate all the different equipment
needed to manufacture the product together in the same
production area. This calls for a improved production layout.
117
118. A work cell is defined as a collection of
equipment and workstations arranged in a
single area that allows a product or group of
similar products to be processed completely
from start to finish.
It is, in essence, a self-contained mini-
production line that caters to a group of
products that undergo the same production
process. Cellular manufacturing involves the
use of work 'cells.
118
119. Work cell layout : A combination of product & process
layout. It provides the benefits of both layout to the
business. Work cell
Unit 1 Unit II
Job A
Job B
Assembly line Unit iii
Unit V Unit IV
119
120. Work Cell layout will provide standardization &
rationalization of products , good estimates , effective
machine operation , high productivity , reduce set up time,
less down time , better through put etc.
Work cell / Group layout will not be feasible for all kinds of
operations. However the layout can meet the requirements
of batch production system . When the product mix
manufactured is very dissimilar it will not be advisable to
have group layout.
120
121. Benefits of Cellular layout
1. Cellular layout helps to eliminate over production and
reduce waste.
2. Cellular manufacturing helps reduce waste by reducing
defects that result from processing and product
changeovers. Since products or components move
through a cell one piece at a time, operators can quickly
identify and address defects.
3. Allowing operators to stop production when defects occur
prevents wasted material and time.
121
122. 4. In a conventional queue process, it is difficult to
identify and respond to defects until the entire batch is
produced or numerous pieces are processed.
5.Reducing defects has several benefits such as :
•Fewer defects decreases the number of products that
must be scrapped.
•Fewer defects also means that the raw materials,
energy, and resulting waste associated with the scrap
are eliminated.
•Fewer defects decreases the amount of energy, raw
material, and waste used or generated to fix defective
products that can be re-worked.
122
123. 6.Cellular layouts typically require less floor space for equal
levels of production. Reductions in square footage can
reduce energy use for heating, air conditioning and lighting.
It can also reduce the resource consumption and waste
associated with maintaining the unneeded space (e.g.,
fluorescent bulbs, cleaning supplies).
7.Cellular manufacturing layouts and automation can free
workers to focus more closely on equipment maintenance
and pollution prevention, reducing the likelihood of spills and
accidents.
123
124. Fixed position layout : The space required is
very large , meant for large bulky products .
Heavy engineering equipments. Ship yard , Air
repair base. Equipment and people are fixed to
an operation area.
Ship Repair base
Boiler manufacturing
124
125. Layout Design tools.
A) Manual Method : 1.Travel chart
2. Systematic Layout planning
B) Computerized Method. ( Using algorithms )
1Automated Layout Design Algorithm ( ALDEP)
2.Computerized Relationship Layout Planning
(CORELAP)
3.Computerized Relative Allocation of Facilities
Technique.( CRAFT)
125
126. Plant layout variables
1.Flow of material 2.Process flow
Relationship of 1&2
Space Space
Requirement Available
Practical Constraints
Develop layout alternatives
126
127. Production Planning & control function
Staff function Line function
Production Physical
Sales & Planning & Production
Marketing Control work
•Planning, coordinating and controlling
fulfillment or OTD cycle.
•Plan & control material , material cost & Vendor
•Plan & control machine schedule, maintenance
&productivity.
•Plan & control plant productivity, safety , hygiene
•Production incentive etc. 127
•Set quality standard .
128. Production Planning & Control
Production Planning and Control (PPC) is a process that
comprises of managing the performance of critical
functions during planning as well as control of production
activity to deliver quality output within the stipulated time
frame at minimum cost of production.
128
129. Production Planning & Control
Production planning function is responsible for planning of
resources like Material , Machine , Manpower , Method &
Money for production activity. Production planning
function deals with two levels of planning :
Prior Planning : All activities such as product development
& design , production cost estimation , vendor
identification , sourcing mechanism , Material planning ,
Order writing etc.
Active planning includes Process scheduling , & routing,
work force allocation , machine scheduling , Capacity
scheduling, Finite capacity scheduling , Tool planning
Material handling & movement etc. 129
130. PP&C function is responsible for managing the overall
cycle time during production process since
Cycle time is directly related to production rate .
CT ( Cycle Time ) = Productive time / Demand per
period
If the output per day from a manufacturing shop is 24
cylinders operatign in a single shift ,
= 8 X60/24 = 20 Min is cycle time for one cylinder.
Since the actual time available would be less than the ideal
time ie 8hrs on account of various delays viz operator
efficiency , break etc, set up , the effective cycle time
would be less than 20 min .
As demand increases & lead time need to be minimized
to be competitive in the market , PP&C has to manage
Effective cycle time.
130
131. OTD cycle time = production time + delivery time (MTS)
= order time + Production time + delivery time ( MTO)
= order time + Supplier lead time + integration time
+ delivery time ( ATO )
= Order time + Supplier lead time ( ETO)
+ subcontractor’s lead time
+ Production time
+ Delivery time
+ Installation &commissioning time
PP&C owns the prime responsibility in a manufacturing organization to ensure that
OTD cycle is in accordance with the realistic customer’s acceptation of delivery time.
131
132. Responsibilities of PP&C function
1.Material Planning
•Forecasting inventory
•Preparing material budget
•Make or buy decision analysis
•Estimating individual requirements of parts ( BOM )
•Raising material indent
•2.Inventory Control
•ABC analysis
•SDE& VED inventory analysis
•Fix Economic Batch Order
•Building safety stock & re-order level.
3.Subcontract Activity
Vendor evaluation ( value engineering )
Monitor out source activity
Outsource to subcontractors
Make vendor inspection schedules
Handling & movement of materials
Disposal of scrap inventory 132
134. RM demand estimation Inform sales Sales dept.
According to sales order the expected delivery schedule
Raise Develop Aggregate
work Master
order
Production plan Production
Schedule
Create Capacity Monitor
MRP/ requirement Schedule
& take corrective
BOM plan Action Execution
Machine &
operator
schedule
Material Requirement Planning process : When a production system
operates through dependent demand , technique used to determine
the requirement of RM for production is called MRP. 134
135. Material requirement planning MRP process.
Explode
Demand into Analyze
bill of material ( BOM) Make or Buy
decision
Demand
aggregation Check Inventory
Stock
(Stocking Policy ) Make Buy
N Y
Raise Stock
Raise production . Raise subcontract
Purchase availability
work order contract
Indent
135
136. EOQ Assumption : Demand Constant & No lead time
Q
Q/2
ROP
Time
Lead time
D Lt = Av demand x LT
Stock level = EOQ + DLt ( When supplier lead time not
constant )
Stock level = EOQ + Dlt + variation in demand ( when
136
demand fluctuates )
137. Make or Buy decision .
Criteria of make : 1. Finished goods can be made cheaper by the firm.
2.Quality standardization can not be met by out side
party. ( strict quality control. )
3.Supply of the parts are unsteady ( Long lead time)
4.Capacity of production can be used for
manufacturing some other part. ( Fixed cost)
Buy : 1.Heavy investment in the facility
2.Parts are standard and available easily.
3.Demand of the components are seasonal .
4.Patent of some legal implications exists.
5.Cost of buying is less than manufacturing.
137
138. A firm has extra capacity which can be used for production of gears, which
they have been buying form the market at Rs 300 per unit. If the firm makes
gears , it incurs the following cost.
Mat cost Rs 90/unit.
Lab cost 120/unit
Overhead Rs 30/unit . The annual fixed cost of production estimated is Rs
240,000. Projected demand for next 24 months is 4000 units.
Will it be profitable for the firm to manufacturer?
The same capacity can be utilized for producing agri-equipment. In such case
there will be a saving of s 90,000. What should be the decision.
Making /Buying gears
VC/unit = ( Rs 90 + 120+ 30) = Rs 240
Total VC = 4000 X 240 = 9,60,000
Fixed cost = 2,40,000
Total cost = 12,00,000
Purchase cost = ( 4000 x Rs 300/unit ) = 12,00,000
Fixed cost = 2,40,000
Total cost = 14,40,000
Make gears Make Gears and Agri Equipment 138
Rs 12,00,000 12,00,000 – 90,000 = 11,10,000
139. There are two processes to manufacture a particular product in a firm .
Alternatively , they can also buy it from local market. The cost associated
areas follows. The annual demand for the product is 10000 units. When
would it be feasible for the firm to use process A & B .
Cost ( Rs ) process A Processes B Buy
FC/ Year 1,00,000 3,00,000 -----
VC/ unit 75 70 -----
Buy price / unit 80
Cost of Process A = 1,00,000 + 75 x 10000 = Rs 8,50,000
Cost of process B = 3,00,000 + 70 x 10000 = Rs 10,00,000
Cost of buying = 80 x 10000 = 8,00,000
Le t Q be the vol of production.
For Process A 100000 + 75 Q =< 80 Q
100000 =< 5 Q
20000 units
TC A >= TC B
100000 +75Q >= 300000 + 70Q
Q>= 40000
When demand exceeds 20000 units , use process A & beyond 40000, use process B
139
140. Determining Economic production quantity ( batch size )
As volume reduces , the total cost of production becomes unviable
unless
the optimum batch quantity is not produced.
Total cost comprises of two conflicting costs Setup cost ( favors large
batch size )
and inventory holding cost ( favors small batch size )
There are three possible situations
Demand rate > production rate ( shortage will occur )
Demand rate = production rate ( N need of holding inventory )
Demand rate < production rate ( Inventory stock will go
on increasing )
140
141. Cost trade off.
When orders are placed more frequently, the ordering cost is high but
carrying cost lost is low , on the other hand if less frequent orders are placed
ordering cost will be low but carrying cost will be high.
Total cost
Cost
Carrying cost
Total
cost
Ordering cost
Order
Qty 141
142. An item has yearly consumption of 1000 units . The cost related to
sourcing & Making are as under: Decide which option would be better
for the organization.
Source Make
Item cost /unit Rs 6.00 Rs 5.9
Ordering cost 10.00 --
Set up cost -- 50.00
Annual ICC/item 1.32 1.3
Production rate ---- 6000
BUY : EOQ = 123 units
TC = 1000 x 6 + 1000 x 10 + 123 X1.32
_______ _________
123 2
= 6162.48
Make : EBQ = 304 units .
TC = 6229.14
142
143. Inventory Control Techniques
Inventory control techniques are used to prevent :
1 financial leakage due o excessive stock & poor
demand , 2 2shortage of inventory
3. Inventory Obsolescence
Plan safety stock for critical & essential items
Build selective control on fast & slow moving
inventory .
Various Inventory control technique used are :
ABC : Always Better Control
VED : Vital Essential & Desirable
SDE : Scarce Difficulty & Easy
FNSD Fast moving , Normal , Slow moving , Dead 143
144. ABC Classification
100
CLASS C
90 Low annual consumption value
CLASS B
Usage %
Moderate annual Consumption value
70
(Inventory
Value )
CLASS A
High annual consumption value items
0 10 30 100
% items
144
145. VED analysis : Vital : Without which production process
will come to halt.
Essential : Non availability of such item will affect
the efficiency .
Desirable : It is good if it is available , however
alternate option can be done.
SDE : Scarce ( Short supply )
Difficult ( Imported components )
easily ( Short lead time )
145
146. Purchase Inventory review system :
Review process is administered on the basis of Fixed
order quantity ( Q system ) and fixed period quantity
system . ( P system )
In Q system , whenever the stock level reaches the RoL
, order is placed for a fixed quantity of material .
RoL is calculated as a sum of demand during the lead
time & variation in demand during lead time ( safety
stock ) and average demand during delivery delays.
( reserve stock )
In p system , stock position is reviewed after every fixed
period & order is placed according to stock position .
146
147. The goal of JIT in manufacturing organization is to
continuously reduce the cost associated with requirement
material resource. Its objective is to achieve zero ( minimal )
inventory through out the supply chain, hence implement
good material control. The goal of JIT process is to reduce
excess working capital held-up on account of material ,
minimal inventory at WIP .
The constraints for implementing JIT are :
•Unpredictable quality of supply of material
•Inability to hold tolerances.
•Shortcoming in lead time. ( Erratic delivery )
•Short supply of quantity of material
•Inaccurate forecasting
•Non standard materials being used ( Increased variety )
147
•Last minute product changes.
148. Steps for implementing JIT in an organization.
1.Symptoms : Identify the symptoms leading to inventory issue.
Frequent Stock out
2.Causes : Poor demand forecast & inconsistent supply
Schedule by supplier .
3.Remedy
Pull inventory system .
•Do detailed analysis of inventory requirement of all types at
every stage of production process.
•Estimate the market fluctuations on account of price, supply ,
quality demand etc.
•Identify reliable source of suppliers who are capable of
supplying material as when required.
148
149. •Take supplier in to confidence & sensitize them the
importance of JIT inventory & build healthy business
relationship with suppliers to have high commitment &
ownership . Use Value engineering approach.
•Conduct periodic vendor appraisal & follow vendor
rating system of evaluation .
•Give instant feed back on the supply & suggest
improvement steps.
•Sign rate contract .
• Use IT enabled ordering system , ERP .
149
150. Value Engineering or Value Analysis
It is a technique of cost reduction and cost
prevention. It focuses on building necessary
functions at minimum cost with out
compromising on quality, reliability ,performance
& appearance. It helps in identifying unnecessary
costs associated with any material , part
components or service by analysis of function
and efficiently eliminating them with out
impairing the quality functional reliability or its
capacity to provide service. It is a preventive
process.
150
151. When to apply VE
1. Raw material cost increases suddenly .
2. Vendors are unreliable & organization is highly
dependent on a few select vendor .
3. Cost of manufacturing is disproportionate to
volume of production .
Value analysis is done w.r.t cost associated at:
• Cost Value (Labour , Material & overhead).
• Use Value
• Esteem Value ( Look & finish )
• Performance Value ( Reliability , Safety , Service &
Maintenance ) 151
152. Value = Performance ( Utility)
Cost
Vendor analysis is done to minimize the cost incurred due
to a supplier Inefficiency or inability .
Vendor cost to be considered are :
•Opportunity loss due to poor quality ( High rejection cost )
•leading to machine & labour idle time.
•High re-work cost
•Inconsistent lead time
•Inability to meet the demand of the manufacturer
•Poor Credit terms
152
153. Value engineering procedure:
Constantly evaluate the inventory costs associated &
benchmark against the best in practice.
As & when the cost of manufacturing increases
disproportionately, identify an alternate source for contract
manufacturing & monitor the quality & standards.
Use more standard parts which can be sourced easily
Develop more suppliers ( atleast 4 to5 for one part.) &
minimize dependency on one supplier.
Audit the supplier’s work premise & rate them on the
performance .
Conduct quarterly vendor meet & share the highlights &
concerns . 153
154. MRP vs. ERP — Manufacturing management systems have
evolved in stages over the past three plus decades, from a simple
means of calculating materials requirements to the automation of
an entire enterprise.
As frequent changes in sales forecasts happened entailing
continual readjustments in production, as well as inflexible fixed
system parameters, MRP (Material Requirement Planning)
evolved into a new concept : Manufacturing Resource Planning
(or MRPII ) and finally the generic concept Enterprise Resource
Planning (ERP)
Prior to the concept of ERP systems, a manufacturing organization
faced tremendous difficulty in planning & controlling of resources
like people , finance WIP inventory at plant , machine status etc
due to lack of integrated & updated information about resources.
154
155. MRP MRP1 ERP
Material requirement planning Manufacturing resource Enterprise resource
in manufacturing organization. Planning in manufacturing Planning
organization
Inventory planning Production planning Business planning
& control & control
Material planning Material, Machine Man Machine
Method Man Material, Method
& Money
The essence of the progress was based on seamless integration and analysis of
information on various resources required by a manager to make an effective
decision.
155
156. Advantage of ERP in a manufacturing organization.
Integration among different functional areas to ensure
proper communication, productivity and efficiency
Integration of Design engineering & collaboration.
(CAD & CAM )
Order tracking, from acceptance through fulfillment
The revenue cycle, from invoice through cash receipt
Managing inter-dependencies of complex processes
BOM .
Tracking the three-way match between purchase orders
(what was ordered), inventory receipts (what arrived),
and costing (what the vendor invoiced)
The accounting for all of these tasks: tracking the
revenue , cost and profit at a granular level. 156
157. Disadvantages
Customization of the ERP software is limited.
Re-engineering of business processes to fit the "industry
standard" prescribed by the ERP system may lead to a
loss of competitive advantage.
ERP systems can be very expensive (This has led to a
new category of "ERP light" solutions)
ERPs are often seen as too rigid and too difficult to adapt
to the specific workflow and business process of some
companies, cited as one of the main causes of their failure.
Many of the integrated links need high accuracy in other
applications to work effectively. A company can achieve
minimum standards, then over time "dirty data" will reduce
the reliability of some applications.
157
159. Production Control .
It involves work scheduling Reporting & corrective action.
Production Planning Work order Scheduling
Corrective Action Reporting
Objective : Manufacture & deliver the work order within the
committed time within the resource constraints provided.
•Effective utilization of time .
•Eliminate stress during the production activity
•Cent percent plant capacity utilization
•Minimize cost on waste like overtime, scrap , down time etc.
•Proactive reporting of issues at shop floor , like absenteeism of
workers , non availability of material on account of rejection ,
unplanned breakdown , daily reporting of production status as per
the target plan.
159
160. Scheduling: It deals with working out of optimal time
required to perform each operation and also the time
necessary to perform the entire series as routed,
making allowances for all factors concerned. It mainly
concerns with time element and priorities of a job. The
pattern of scheduling differs from one job to another .
Master Schedule: Weekly or monthly Schedule prepared by
breaking -down of the production requirement for each
product for a definite time period. By having this as a running
record of total production requirements, production manager
is in better position to shift the production from one product
to another as per the changed production requirements. This
forms a base for all subsequent scheduling activities.
160
161. Master schedule Chart
Master schedule chart communicates the following
information related to production schedule.
1. Operator schedule : This schedule informs the shop
manager about the operator detail who is supposed
be reporting for the work in a given shift.
2. Machine schedule : This schedule informs the shop
manager about the type of machine to be used for
doing a job in a given time.
161
162. Reporting of the production progress in the plant.
•Load chart
•Gantt Chart
•Process Chart
162
164. Date & shift
Type of 19.03 19.03 19.03 20.03 20.03 20.03 21.03
Work S1 S2 S3 S1 S2 S3 S1
Sawing
M/c Type: A
Bending
M/c Type: B
Grinding
M/c Type: C
Wielding
M/c Type: D
164
165. A master schedule is followed by operator schedule
which fixes total time required to do a piece of work
with a given machine or which shows the time
required to do each detailed operation of a given job
with a given machine or process.
165
166. 1 a ) Machine scheduling : A process created for effective
utilization of machine in the shop floor on the basis of actual
available time for processing .
It involves Set up time required .
Startup time
Routine maintenance time ( Cooling time, Tool
trail )
Operator efficiency
Total Machine Hr – Delay = Actual Hrs
1 b ) Process scheduling : A method of establishing most
economic & shortest path for production .
Process scheduling requires an understanding the flow of
the work process & create a process sheet or route sheet to
optimize the time.
166
167. Process sheet : It gives the optimum method to do a job ,
thereby fixing the sequence of the operation , link the
ancillary or parallel process to be accomplished . It gives the
details & specification of the machines tools , operator to be
deployed for the job. Delays on account of set up
maintenance etc is communicated to the operator.
Routing: Under this, the operations, their path and
sequence are established.
To perform these operations, the proper class of machines
and personnel required are also worked out. The main aim
of routing is to determine the best and cheapest sequence
of operations and to ensure that this sequence is strictly
followed.
167
168. Preparing process sheet (Routing procedure) involves
following activities.
(1) An analysis of the article to determine what to make and
what to buy.
(2) To determine the quality and type of material
(3) Determining the manufacturing operations and their
sequence.
(4) A determination of lot sizes
(5) Determination of scrap factors
(6) An analysis of cost of the article
(7) Organization of production control forms.
168
169. Process sheet includes the following details of a process.
• Part name to be machined & its engineering drawing &
specification .
•Sequence of the operation to be performed .
•Specify the the machine & tools to be used. ( cutting
tools ,jigs, fixtures )
•Operating machine details like Speed , ,load , cooling time
set up time )
•Operating skill required
•Productivity norm
•Maintenance schedule of the machine
•Subsequent operations
169
170. Process scheduling differs depending upon the nature of
production .
Continuous or mass production : It is done by industrial
engineers at the plant layout stage. It is difficult to alter the plan
& incurs heavy expenditure.
Batch production : In this case a master process sheet is created
& is communicated to the shop floor . As & when the product line
changes it is altered.
Job order. In this case the process sheet is created more often as
the nature of operation varies .
Process schedule acts as a standard operating manual for
process engineers to refer incase of any emergency or accidents.
170
171. Managing project based manufacturing work.
A large complex manufacturing task comprising of
multiple activities to be performed from design to
manufacture, deliver, installation & commissioning
requires tight scheduling coordination & monitoring of
activities from start to end for timely completion of work
to avoid monetary loss & have high customer
satisfaction.
Tight cost control ,Timely completion of work &
Performance are the basis of such manufacturing
project.
An understanding of Interrelationships between the
activities of task is essential by the operation team.
171
172. Steps involved in managing manufacturing projects.
•Project planning ( Drawing the network )
•Time estimation of the project ( Network analysis . Identifying activity
time and critical path)
•Scheduling : ( identifying the amount of slack in the activities and in
the project )
•Time- cost trade off : ( Arriving at a time where the overall cost of
executing the project is minimum with out compromising on any
activity.
•Resource allocation : ( Checking the feasibility for doing each activity
at most optimistic schedule )
172
173. Guide lines for managing project based network
manufacturing work.
• Break the task in to detailed activities.
• Identify the start & end of each activity. (Node ).
• Estimate the time required to perform each activity.
• Establish dummy activities to show logical
relationship between the activities .
• All activities of the network should terminate in to final
destination .
• Establish relationship between activities such as
173
preceding , concurrent , succeeding etc.
174. Critical Path of a Project : Critical path of a project network is
the longest path in the network . It is identified by listing all
possible path of the network & selecting the path having
maximum sum of the critical activity time.
Total Floats of the project: Total time that a project completion
time of an activity can be delayed without affecting the actual
project completion time.
Free Floats : Total time that an activity can be delayed with out
affecting earliest start time. Of immediate successor activity .
When time of the activities are given in three different time
estimates like a = Pessimistic time
m= Most likely time
b = Optimistic Time
mean time has to be calculated. 174
175. Optimistic time is the time when the execution goes
extremely good.
Pessimistic time is when the execution goes very badly.
Most likely time is when execution is with in normal
expectation.
µ = Mean time = ( a+ 4m+b) / 6
² ²
(Variance ) = [(b-a)/6]
175
176. Following activities are involved in doing a production work. Activity
time & relation ship is indicated. Draw a network
Sr no Activity Time Predecessor
1 A 2 days _
2 B 5 A B E F
C
3 C 3 A A
D
4 D 4 A
5 E 6 B,C,
6 F 7 E,D
176
A long series of supply chain advances has delivered a long series of temporary competitive advantages. And another is on the way. In the early 70s Japan brought the quality revolution and Just In Time. Better cheaper customer service with far less inventory. Esp for early implementers About 1985-86, QR was born as an application of JIT to general merchandise, particularly softgoods. Better cheaper customer service with far less inventory. Esp. for early. VMI or co-managed inventories was the next leap, with similar results if the CG did not cheat to make quartlery $. About 1992, after general merchandise started eating the grocers’ lunches with cost-effective customer service, supermarkets started to apply QR-like ideas plus some other good ones for better customer service with far less inventory. Esp for early. About 7 years ago, supply chain management, which offers, you guessed it, better customer service with far less inventory. Early implementers gaining well, esp CGs. Next, wave is something with collaborative. CYY. Next great competitive advantage. Millions for consulting & software. The next great gain is collaborative, but operating closer to real time. Buyers and suppliers share the data on sales and promotions and related topics. Systems compare actual to plan and alert mangers to the biggest problems to solve as they arise. Companies ratchet down inventories while keeping customer service levels at the highest economic level for increased in-stock sales. Data is synchronized at buyer and seller. And for early implementers it will come JIT.
A long series of supply chain advances has delivered a long series of temporary competitive advantages. And another is on the way. In the early 70s Japan brought the quality revolution and Just In Time. Better cheaper customer service with far less inventory. Esp for early implementers About 1985-86, QR was born as an application of JIT to general merchandise, particularly softgoods. Better cheaper customer service with far less inventory. Esp. for early. VMI or co-managed inventories was the next leap, with similar results if the CG did not cheat to make quartlery $. About 1992, after general merchandise started eating the grocers’ lunches with cost-effective customer service, supermarkets started to apply QR-like ideas plus some other good ones for better customer service with far less inventory. Esp for early. About 7 years ago, supply chain management, which offers, you guessed it, better customer service with far less inventory. Early implementers gaining well, esp CGs. Next, wave is something with collaborative. CYY. Next great competitive advantage. Millions for consulting & software. The next great gain is collaborative, but operating closer to real time. Buyers and suppliers share the data on sales and promotions and related topics. Systems compare actual to plan and alert mangers to the biggest problems to solve as they arise. Companies ratchet down inventories while keeping customer service levels at the highest economic level for increased in-stock sales. Data is synchronized at buyer and seller. And for early implementers it will come JIT.
Webster's definition: Act of working together as in writing a book. Cooperating with the enemy.
Use Minitab to have students record the results and have the students display using Graph..Histogram Note how “rough” the graph looks Redo using Basic Statistics …. Descriptive Statistics and display using the Graphical Summary. Walk through the normal curve transform: Mean (Arithmetic Average) Standard Deviation Skew (How off center the data is skewed -=left) Kurtosis (How flat or peaked the data is -=flat) Show the Box Plot: Quartile (25% of the Data Points) Median (50% of the Data Points on Each Side) Show the 95% Confidence Interval and Explain how it relates to the data.