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Planning phase
-Prior Planning
• Fore-casting
– Estimation of future activities
– establishment of future requirements of men, machine, material, money, and
time
• Order writing
– Providing authority to peoples to do a particular job
• Product design
– Collect the information necessary to describe the work in detail
– Drawings, bill-of-materials, specification
- Action planning
• Process planning: The determination of most economical method of performing an
activity all factors being considered.
• Routing- The arrangement of work stations is determined by the route.
• Material control: Determination of material requirements and control of material
(Inventory Control).
• Tool Control : Tool control may be sub divided into two categories
– Design and procurement of new tools.
– Control storage and maintenance of tools after procurement.
• Loading: Determination and control of equipment and man power requirements.
Loading may be defined as the assignment of work to be facility. The facility may be
equipment, manpower or both.
• Scheduling: Determination when the work is to be done. Scheduling consists of time
phasing of loading (Work load) i.e., setting both, starting and ending time for the
work to be done.
• The common practice dictates that routing, loading and scheduling be performed
simultaneously.
Action Phase
(ii) PMTS
• Predetermined motion time system (PMTS) is a work measurement technique whereby times
established for basic human motions are used to build up the time for a job at a defined level of
performance.
• PMTS also called predetermined time system (PTS), is a database of basic motion elements
and their associated normal time values, together with a set of procedures for applying the data to
analyze manual tasks and establish standard times for the tasks.
• The PMTS database is most readily conceptualized as a set of tables listing time values that
correspond to the basic motion elements, the lowest level in our hierarchy of manual work
activity
They include motions such as reach, grasp, move, and release.
Advantages
Does not disrupt the actual production operation.
No performance ratings are necessary.
No allowance factors are necessary.
Unions tend to accept it as fair.
Particularly effective in firms that employ many workers performing similar tasks, i.e.
it is cost-effective.
Can be used for planning purposes because the time standard can be set before the job actually
exists.
Master Production Schedule (MPS): MPS is designed to meet the market demand (both the firm orders and forecasted
demand) in future in the taken planning horizon. MPS mainly depicts the detailed delivery schedule of the end products.
However, orders for replacement components can also be included in it to make it more comprehensive.
Bill of Materials (BOM) File: BOM represents the product structure. It encompasses information about all sub
components needed, their quantity, and their sequence of buildup in the end product. Information about the work centers
performing buildup operations is also included in it.
Inventory Status File: Inventory status file keeps an up-to-date record of each item in the inventory. Information such as,
item identification number, quantity on hand, safety stock level, quantity already allocated and the procurement lead time
of each item is recorded in this file.
Routing File: This file specifies the sequence of operations required to manufacture components, sub-assemblies and
finished goods.
Master Parts File: It contains information about production time of sub-assemblies and components produced internally
and lead time for externally procured items.
After getting input from these sources, MRP logic processes the available information and gives information about the following:
Planned Orders Receipts: This is the order quantity of an item that is planned to be ordered so that it is received at the
beginning of the period under consideration to meet the net requirements of that period. This order has not yet been
placed and will be placed in future.
Planned Order Release: This is the order quantity of an item that is planned to be ordered in the planned time period for
this order that will ensure that the item is received when needed. Planned order release is determined by offsetting the
planned order receipt by procurement lead time of that item.
Order Rescheduling: This highlight the need of any expediting, de-expediting, and cancellation of open orders etc. in
case of unexpected situations.
15. (a) Write short notes on computer aided Production Planning and Control
Key features of CAPPC are
Engineering and manufacturing database
Material requirements planning
Capacity planning
Inventory management
Shop floor control
Cost planning and control
Comprises all the information needed to fabricate the components and assemble the
products.
Routing file
Tool file
MRP
A closed loop MRP is followed in that purchase and production activities control modules
interfaced with MRP-module.
Dynamic updating of order status done by purchasing interface generates updated order
status from which new planned order releases.
Shop floor interface updates MRP production status by collecting daily production and
operator time-sheet data.
Once an MRP system is in place, inventory data can be augmented by other useful information
Labor hours
Material costs
Capital costs
Then the system is called MRP II or Manufacturing Resource Planning. An extension of the
MRP system to tie in customers and suppliers
3. capacity planning
Concerned with determining the labor and equipment resources needed to meet the production
schedule.
employment levels
inventory stockpiling
order backlogs
subcontracting
4. Inventory management
The inventory management module of the CIPMS should accomplish two major functions.
Inventory accounting
Inventory accounting is concerned with inventory transactions and inventory
records. Inventory transactions include receipts, issues, returns & loans
Many of the planning and control activities are accomplished by the MRP module.
Other functions include
5. Shop floor control is concerned with monitoring the progress of orders in the factory and
reporting the status of each order to management so that effective control can be exercised. The
functions of a shop floor control system are
Cost control
It estimates what is the Expected cost? Collect the information of actual coat incurred and then
find the difference and why difference.
It receives data from all other CIPMS modules and reduces them to a lowest common
denominator : money.
15. (b) Explain the main functions and methodology adopted in implementing ERP.
• ERP is the next evolution of the MRP system.
• It attempts to integrate the information flow from all departments of the company:
finance, marketing, production, logistics and human resources.
• A properly set up ERP system allows all departments to intercommunicate and monitor a
customer order at any point in time.
Module Function
Sales and This module records sales orders and scheduled deliveries. Information
Distribution (SD) about the customer including pricing, address and shipping instructions,
billing details, etc., is maintained and accessed from this module.
Materials This module manages the purchasing of raw materials from suppliers and
Management the subsequent handling of raw materials inventory, from storage to work-
(MM) in-progress goods to shipping of finished goods to the customer.
Production This module maintains production information. This module facilitates to
Planning (PP) create production plans and schedule productions, and record information
on actual production activities.
Plant This module helps to manage maintenance resources and facilitates
Maintenance planning for preventive maintenance of plant machinery in order to
(PM) minimize equipment breakdowns.
Asset This module helps the company to manage fixed-assets including plant and
Management machinery and their related depreciation.
(AM)
Human Resources This module facilitates employee recruiting, hiring, and training. This
(HR) module also includes payroll and benefits of employees.
Project System This module facilitates the planning and control of research and
(PS) development, construction, and marketing projects.
Financial This module records transactions in the general ledger accounts. This
Accounting (FI) module generates financial statements for external reporting purposes.
Workflow (WF) This module includes set of tools that can be used to automate any of the
activities in ERP system
Controlling (CO) This module serves internal management purposes, assigning
manufacturing costs to products and to cost centers so the profitability of
the company’s activities can be analyzed. The CO module supports
managerial decision making.
16. (a) A gear manufacturer has gear shaper and gear hobbers.
The gear can be processed on gear shaper as well as gear hobber. The following is given. Which of the two
machines will you choose to do the job if the order quantity is
(i) 1000 numbers and order is unlikely to repeat
(ii) 1000 numbers and the order is likely to repeat for 3 years?
Cost parameters Gear shaper Gear hobber
Machine time
12 04
per piece (min)
Machine cost
45 120
per hour
Set up time
60 90
(min)
Tooling up
400 200
cost (Rs)
16. (b) Explain the procedural steps involved in the work sampling study and illustrate how work
sampling is used for the computation of standard time for an operation which involves both
manual and machine elements.