Advance concepts in Operations Planning and Control.


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Helpful to understand KanBan, CONWIP, TOC, IT in planning etc.

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Advance concepts in Operations Planning and Control.

  1. 1. “Advance Concepts in OPC” Presented By:- SWAPNILKUMAR PAWAR(13253) 1
  2. 2. Contents • OPC • Push –Pull Systems • KanBan • KanBan cards • Advantages • ConWIP model • TOC • Applications of TOC • IT in planning • Planning for services 2
  3. 3. What Is PPC? • Production planning is the system for specifying the production procedure to obtain the desired output in a given time at optimum cost in conformance with specified standard of quality • Control is essential to ensure that manufacturing takes place in the manner stated in the plan 3
  4. 4. Push And Pull Systems Push Strategy Pull Strategy Push- Pull boundary End Customer Raw Materials Supply chain time line 4
  5. 5. 5
  6. 6. • Kanban is the Japanese word for card • The card is an authorization for the next container of material to be produced • A sequence of kanban pulls material through the process • Many different sorts of signals are used, but the system is still called a kanban 6
  7. 7. ORIGIN • In late 1940’s Toyota was studying supermarkets • Customer can get what is needed, at the time needed, in the amount needed • Supermarkets stock what it believes it will sell • Customers only take what they require • In 1953, Toyota applied this logic in their main plant machine shop 7
  8. 8. 1. User removes a standard sized container 2. Signal is seen by the producing department as authorization to replenish Part numbersPart numbers mark locationmark location SignalSignal marker onmarker on boxesboxes 8
  9. 9. • When the producer and user are not in visual contact, a card can be used • When the producer and user are in visual contact, a light or flag or empty spot on the floor may be adequate • Since several components may be required, several different kanban techniques may be employed 9
  10. 10. • Usually each card controls a specific quantity or parts • Multiple card systems may be used if there are several components or different lot sizes • In an MRP system, the schedule can be thought of as a build authorization and the kanban a type of pull system that initiates actual production 10
  11. 11. • Need to know the lead time needed to produce a container of parts • Need to know the amount of safety stock needed Number of kanbansNumber of kanbans (containers)(containers) Demand duringDemand during SafetySafety lead timelead time ++ stockstock Size of containerSize of container == 11
  12. 12. Daily demand = 500 cakes Production lead time = 2 days (Wait time + Material handling time + Processing time) Safety stock = 1/2 day Container size = 250 cakes Demand during lead time = 2 days x 500 cakes = 1,000 Number of kanbans = = 5 1,000 + 2501,000 + 250 250250 12
  13. 13. • Reduce WIP • Allow only limited amount of faulty or delayed material • Problems are immediately evident • Puts downward pressure on bad aspects of inventory • Standardized containers reduce weight, disposal costs, wasted space, and labor 13
  14. 14. ADVANTAGES contd… • A simple and understandable process • Provides quick and precise information • Low costs associated with the transfer of information • Avoids overproduction • Is minimizing waste 14
  15. 15. Feature to develop Tasks in queue Tasks in progress Tasks complete Feature complete KanBan Example 15
  16. 16. KanBan Boards 16
  17. 17. Constant Work In Process (CONWIP) It is one of the variant of pull system. It is known for its ease of implementation. CONWIP systems are easier to implement and adjust, since only one set of system cards is used to manage system WIP For example, no part is allowed to enter the system without a card (authority). After a finished part is completed at the last workstation, a card is transferred to the first workstation and a new part is pushed into the sequential process route. 17
  18. 18. Assumptions for CONWIP • The production line consist of single routine along which all parts flow. • WIP can be measured in units, i.e. number of jobs or parts in the line. 18
  19. 19. A CONWIP Production Line. 19
  20. 20. COMPARISON Sr. No Kanban CONWIP 1 Focuses on individual work station Focuses on system as whole 2 Best in environment that is stable and predictable Best in environment that has variability in production 3 Focuses on specific part no Does not focuses on specific part no 4 Comparatively difficult to implement Easier to implement 5 Suitable for continuous or repetitive production Suitable for job shop production 20
  21. 21. Theory Of Constraints(TOC) • Theory of Constraints (TOC) is an overall management philosophy introduced by Dr. Eliyahu M. Goldratt in his 1984 book titled The Goal. • A system's constraint "is that part of the system that constrains the objective of the system.“ • The TOC process of ongoing improvement seeks to identify the constraint and restructure the rest of the organization around it, through the use of the Five Focusing Steps 21
  22. 22. The Basic principles of TOC  Convergence " that the more interconnected a system is the fewer degrees of freedom it has, and consequently the fewer points must be touched (managed) to impact the whole system.  Consistency "If two interpretations of a natural phenomenon are in conflict, one or possibly both must be wrong".  Respect this principle is states that people are not inherently irrational. 22
  23. 23. BASIC PROCESSES 1. Identify the constraint (the resource/policy that prevents the organization from obtaining more of the goal) 2. Decide how to exploit the constraint (make sure the constraint's time is not wasted doing things that it should not do) 3. Subordinate all other processes to above decision (align the whole system/organization to support the decision made above) 4. Elevate the constraint (if required/possible, permanently increase capacity of the constraint; "buy more") 5. If, as a result of these steps, the constraint has moved, return to Step 1. Don't let inertia become the constraint. 23
  24. 24. Application of TOC • Operations  Drum-Buffer-Rope  Simplified Drum-Buffer-Rope • Supply chain / logistics  TOC-Distribution  TOC-VMI( Vendor Managed Inventory) • Finance and accounting • Project management  A-Plants. • Marketing and sales 24
  25. 25. IT IN PLANNING  Information technology is the term used to describe technologies which enable users to record ,store ,process , retrieve ,transmit and receive information which helps the users for strategic planning and control of organization.  Information Technology Management is concerned with exploring and understanding Information Technology as a corporate resource that determines both the strategic and operational capabilities of the firm in designing and developing products and services for maximum customer satisfaction, corporate productivity, profitability and competitiveness. 25
  26. 26. IT IN PLANNING • IT is playing a significant role in planning various activities in an organization ‘ • Due to IT we are able to store data in software and retrieve it at any time and anywhere through Internet. • Organization is able to process data faster and more reliably. 26
  27. 27. IT IN PLANNING Computer entry Computer entry Information system Computer Computer Intranet 27
  28. 28. IT IN PLANNING 28
  29. 29. PLANNING FOR SERVICES Service Management is integrated into Supply Chain Management as the joint between the actual sales and the customer The aim of high performance Service Management is to optimize the service-intensive supply chains, which are usually more complex than the typical finished-goods supply chain. Most service-intensive supply chains require larger inventories and tighter integration with field service and third parties. 29
  30. 30. BENEFITS High service costs can be reduced, i.e. by integrating the service and products supply chain. Inventory levels of service parts can be reduced and therefore reduce total inventory costs. Customer service or parts/service quality can be optimized. Increasing service revenue. Reduce obsolescence costs of service parts through improved forecasting. Improve customer satisfaction levels. Reduce expediting costs - with optimized service parts inventory, there is no need to rush orders to customers. 30
  31. 31. THANK YOU 31