Om lect 05_a(r0-aug-08)_manufacturing planning & scheduling_mms_sies

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Om lect 05_a(r0-aug-08)_manufacturing planning & scheduling_mms_sies

  1. 1. Manufacturing Planning & Scheduling N.K.Agarwal
  2. 2. PPC • PPC concerned with decision making regarding – – – – – – What to produce? How to produce? Where to produce? When to produce? Who will produce? How much to produce?
  3. 3. Production Planning & Control(PPC) • PPC is the organisation and planning of manufacturing process • PPC – Co-ordinates supply and movement of materials and labour – Ensures economic and balanced utilisation of machines and equipments, and – Other activities related with production • To achieve the desired manufacturing results
  4. 4. Production Planning & Control(PPC) • Production Planning involves – Formulation – Co-ordination, and – Determination of activities • In a manufacturing system • Production Control involves – Process of maintaining a balance between various activities involved in production planning providing • Most effective and efficient utilisation of resources
  5. 5. Production Planning • The function of the management that decides – The resources the firm will require for its future manufacturing operations, and – Allocating these resources to produce the desired output in required amount at least cost
  6. 6. Production Planning-Procedures • Production planning prepares – Procurement plans for materials and personnel, – Establishes work procedures and control, – Prepares and issues work authorisation,establishes finished goods inventory control, and – Maintains alternative plans of action
  7. 7. Production Planning-Procedures • Categories of production planning procedures – Routing – Scheduling, and – Loading
  8. 8. Production Planning-Routing • Routing means determination of path or route over which each piece is to travel in being transformed from raw material into finished product • Routing generally involves the following – Whether to make/buy – Form and shape of the material – Division of work to be done into operations
  9. 9. Production Planning-Routing – Choice of machines/ work centers on which each operation should be done and its duration – Sequence in which operations are to be performed – Division of operations into work elements – Choice of special tooling – Economic lot size of production order quantity – Estimation of amount of scrap
  10. 10. Production Planning-Scheduling • Scheduling is – Deciding when and where each operation in a production process is to be executed, and – Establishment of time table at which to begin and/or complete each event or operation involved in a procedure
  11. 11. Master Schedule • Developed by reviewing market forecasts, customer orders, inventory levels, facility loading & capacity information regularly • Plan for future production of end items over short range planning horizon • An important link between production and marketing
  12. 12. Functions of MPS • • • • • • • Translating aggregate plans into specific end items Evaluating alternative master schedules Generating material requirement Generating capacity requirement Facilitating information processing Maintaining valid priorities Utilising capacity effectively
  13. 13. MASTER PRODUCTION SCHEDULE- FLOW CHART DOMESTIC & INTERNATIONAL FORECAST & CUSTOMER ORDERS END PRODUCTS & SERVICE PARTS / SPARE PARTS AGGREGATE PLAN TENTATIVE MPS TRIAL FIT ON REVISE MASTER SCHEDULE MRP SYSTEM ARE MATERIALS NO ADEQUATE ? YES REVISE MASTER SCHEDULE CRP SYSTEM ARE CAPACITIES ADEQUATE ? FIRM MPS TO MRP & CRP SYSTEM NO YES CAPACITY REQUIREMENT PLAN (CRP)
  14. 14. MPS Environment • Make – to – stock – – – – – Production by the company in batches Carries finished goods inventory for most of the end items Mostly consumer products Orders from warehouses mostly Lot sizes of orders based on economics Efforts to prepare MPS are relatively less
  15. 15. MPS Environment • Make – to – order – Companies do not carry finished goods inventory – Builds customer orders as needed – Customers expected to wait for the design & manufacturing lead time • Example: Buildings, Jewellary making,Ship building – Lot size and number of products depends upon customer orders – Many product designs, products and orders to be included Efforts required to prepare MPS are more
  16. 16. MPS Environment • Assemble –to – order – Customer delivery times often less than total lead times – Flexibility maintained in manufacturing • Basic components and sub-assemblies produced • Final assemblies taken up only against customer order – Typical with very large number of possible end items made from combination of basic components and sub-assemblies – Example: Automobile manufacturing, Fork lifts with different specifications – End items not scheduled – Schedule units stated in planning bills of materials – Common parts and options form the MPS planning bill
  17. 17. Production Planning-Loading • Objectives – To plan new work orders on the basis of spare capacity available – To balance the work load in a plant – To maintain delivery promises – To check the feasibility of production programmes
  18. 18. PPC-Production Control • Production Control is the procedure – To regulate an orderly flow of materials, and – Co-ordinate various production activities • To accomplish the objective of producing the desired item – In the right quantity of desired quality at the required time by the best and the cheapest method » To attain highest efficiency in production
  19. 19. PPC-Production Control – Proper co-ordination of the operation of various sections/ departments responsible for production – To ensure timely supply of raw material at the desired place and of prescribed quality and quantity to avoid delays in production – To perform inspection of semi finished and finished goods and use of quality control techniques to ensure manufactured goods meeting required specifications – Also responsible for product design and development
  20. 20. Production Control- Levels • Three levels in production control – Programming • Planning the output of product for the factory as a whole – Ordering • Planning the output of components from suppliers and production departments – Dispatching • Considers each processing department in turn and plans the output from the machines, tools and other work centers so as to complete the order by due date
  21. 21. Production Control- Ordering • Ordering is – Process of placing orders, also known as work orders, to the suppliers and the processing departments for the materials and other parts needed to manufacture the product, and – To arrange the ordering quantity and delivery schedule in such a way • That all items are delivered in time to meet the production programme
  22. 22. Production Control- Dispatching • The decision of assigning various jobs to different machines is known as Dispatching • Functions – To check the immediate availability of materials – Ensuring availability of all production and inspection aids for use – Obtain appropriate drawings and specifications – Collate jobs, operation layouts, routine etc. with the design
  23. 23. Production Control- Dispatching – Processing information or inspection schedule – Assign work to definite machine, work place and men – Issue necessary materials and tools etc. to the required point for use – Issue production note indicating the start and finish time of the work – Inform progress regarding start of work – Instruction to start the work – Maintain all production records
  24. 24. Production Control- Follow - up • Follow-up/expediting or progressing is checking production activities so that production may be carried out as per plan – Involves measurement of output against plan, analysis of performance for short-falls and following up the line management to apply corrective action • The chaser is responsible for observing that any detail which is overlooked or not properly executed is set right
  25. 25. Scheduling of Process – Focused Production Systems • Scheduling becomes complex due to – Delivery dates have to be promised for work orders against customers’ orders – Production lots tend to become small & many require machine change over – Possibility of assigning / reassigning workers & machines to various work orders – Schedules to be specific and detailed machine wise to bring orderliness
  26. 26. Scheduling of Product - Focused System • • • • Relatively fewer standard product designs Production usually on produce – to – stock & sell basis Finished goods inventories are maintained Production rates of individual products exceed their demand – Much less pre production planning concerning route sheets, job instructions, process plans and product designs – Schedules based on economic production runs for products without firm delivery commitments – Major scheduling concerns are • Timing of production line change over • Length of production runs
  27. 27. PPC - Importance • Reduces cost of production by minimising wastage of material and economic utilisation of resources • Leads to lower investment by means of efficient and balanced utilisation of resources • Promotes employee morale by avoiding all sorts of bottlenecks • Enhances customer satisfaction and confidence
  28. 28. MPS and Shop Floor Planning & Control • MPS and shop floor planning & control results in – – – – Low inventory levels, Minimise the manufacturing cycle time, Full utilization of production services, and Helps in the development of positive customer relations • By meeting the promised delivery dates
  29. 29. References • Production Operations Management : Aswathappa / Bhat • Modern Production / Operations Management: Buffa / Sarin • Operations Management : Donald Waters • Manufacturing Planning & Control Systems : Vollman / Bery / Whybark • Operations Management: R.G.Schroeder
  30. 30. Thank You
  31. 31. PPC - Objectives • Determining the nature and magnitude of various input factors to manufacture the desired output • To co-ordinate labour, machines and equipment in the most effective and economic manner • Establishing targets and checking these against performance • Ensuring smooth flow of materials by eliminating bottlenecks in production • Utilisation of under employed resources • To manufacture the desired output of right quality and quantity at right time
  32. 32. Production Planning-Objectives • Systematic co-ordination and regulation of various activities • To maintain proper balance of the activities for efficient production • Determination of raw materials, machines, equipment etc. and other inputs for desired output • Anticipation of business changes and reacting to them in proper manner • To have optimum usage or resources with optimum cost and time • To provide alternative production strategies in case of emergencies
  33. 33. Production Planning-Routing • Various types of proformas to record details of production process at different stages also to be designed • In manufacturing plants, routing of an order carried out using Route Sheets
  34. 34. Route Sheet Manufacturing Order no. Drawing no. Description of the item No. of pieces on order/Economic lot size Date of completion Remarks Spoilage allowance Total items to be produced Material description Quality of material allotted. Purchase Order no. Stores requisition no. Time/ Piece Due date. Tool Description Setup time/lot operation no. Time allowance
  35. 35. PPC-Production Control • Objectives of Production control – Provision of raw materials , equipment, machines and labour – To organise production in conformity with the demand forecast – Ensure utilisation of resources in the best possible manner such that the cost of production is minimised and delivery date is maintained – Determination of economic production runs with a view to reduce the setup costs
  36. 36. Production Control- Techniques • Programming: Objectives – – – – Reliable delivery to customers Even loading of the plant Even loading of the labour in total man -hours per week Efficient use of capital • Lack of production programming in any manufacturing system results in late delivery to customers
  37. 37. SCHEDULING SERVICES • ECONOMIC ACTIVITIES IN WHICH PRIMARY OUTPUT IS NEITHER A PRODUCT NOR A CONSTRUCTION • VALUE IS ADDED TO THIS OUTPUT THAT CANNOT BE INVENTORIED LIKE CONVENIENCE, COMFORT, SECURITY, AND THE OUTPUT IS CONSUMED AS PRODUCED – – – – TRANSPORTATION UTILITIES COMMUNICATIONS FINANCE, BANKING, INSURANCE, POST & TELEGRAPH
  38. 38. SERVICE OPERATIONS • SERVICE SYSTEMS – – – – DO NOT HOLD INVENTORIES DEMAND ON THEM HIGHLY VARIABLE OPERATIONS LABOUR INTENSIVE PRIMARILY PERFORMED THROUGH PERSONNEL • AS SUCH, PERSONNEL SCHEDULING BECOMES COMPLEX
  39. 39. SERVICE OPERATIONS • ALSO KNOWN AS NON-MANUFACTURING OPERATIONS, CAN BE CLASSIFIED AS – STANDARD SERVICES – CUSTOMER SERVICES • CLASSIFICATION ACCORDING TO THE DEGREE OF STANDARDISATION OF THE OUTPUTS AND THE PROCESS PERFORMED BY THE SERVICE SYSTEM
  40. 40. SERVICE OPERATIONS • STANDARD SERVICES – SYSTEMS MORE LIKE PRODUCT-FOCUSSED MANUFACTURING • SERVICES STANDARD FOR MOST CUSTOMERS • PROCESS ONCE BEGUN CARRIED THROUGH TO COMPLETION WITHOUT MUCH DELAY • SIGNIFICANT DIFFERENCE WITH PRODUCT-FOCUSSED MANUFACTURING BEING THAT SERVICES PRODUCED ACCORDING TO CUSTOMER ORDER RATHER THAN FOR FINISHED GOODS INVENTORY – TRNASPORT COMPANIES, FAST FOOD RESTAURANTS, POSTAL SERVICES, AIRLINES • SOPHISTICATED SCHEDULING SUCH AS ON-LINE COMPUTER BASED SCHEDULING SYSTEMS USED
  41. 41. SERVICE OPERATIONS • CUSTOMER SERVICES – SYSTEMS LIKE JOB SHOPS AND HENCE SCHEDULING MUCH LIKE JOB SHOPS • SMALL SERVICES LIKE A DOCTOR’S CLINIC, SMALL RETAILERS, LOCAL TRANSPORT COMPANIES – NO FORMAL SCHEDULING SYSTEMS EMPLOYED – SIMPLE SCHEDULING SYSTEMS SUCH AS APPOINTMENT SCHEDULES, TOKEN SYSTEM, FIRST-COME-FIRST-SERVICE ETC USED TO ASSIGN PRIORITIES TO CUSTOMERS – PART TIME WORKERS AND STAND-BY EQUIPMENT FREQUENTLY USED DURING HIGH DEMAND PERIOD – HOSPITALS USE MORE SOPHISTICATED SCHEDULING SYSTEM • INCLUDING A MOST CRITICAL NEED CRITERIA ;FIRST-COMEFIRST-SERVED
  42. 42. SCHEDULING PERSONNEL IN SERVICES • USE OF WAITING LINES(BASED ON FIRST-COME-FIRST-SERVED PRIORITY) AS A BUFFER FOR DIFFERENCE BETWEEN CUSTOMER DEMAND AND SYSTEM CAPACITY – ENABLES SCHEDULING PERSONNEL TO MAINTAIN UNIFORM SYSTEM CAPACITY FROM TIME TO TIME • USE OF APPOINTMENT SCHEDULES TO LEVEL OUT THE DEMAND FOR SERVICES – ENABLES SCHEDULING PERSONNEL SO THAT THE SYSTEM CAPACITY IS ALMOST UNIFORM • APPOINTMENT SCHEDULES IN MEDICAL, LEGAL SERVICES • EMERGENCY CUSTOMERS ACCORDED PRIORITY AND REMAINING SERVICED BY APPOINTMENT
  43. 43. SCHEDULING PERSONNEL IN SERVICES • PERSONNEL SCHEDULES DEVELOPED TO ALLOW SYSTEM CAPACITIES WHICH MATCH THE CUSTOMER DEMAND – SYSTEM CAPACITY VARIED BY VARYING NUMBER OF PERSONNEL TO WORK DURING EACH HOUR OF THE DAY – PART TIME PERSONNEL MAY BE EMPLOYED DURING PERIODS OF PEAK DEMAND • FOR EMERGENCY SERVICES LIKE FIRE OR POLICE, SCHEDULING DONE FOR 24 HOUR FULL CREW COVERAGE – DURING PEAK DEMAND PERIODS, OFF-DUTY PERSONNEL CALLED IN AND COMPENSATED WITH OVERTIME PAYMENT OR TIME-OFFS

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