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R
R



Dr. Gürsel A. Süer

IMSE Dept
Ohio University
Winter 2003

   
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‡ oordination of materials with suppliers
‡ Efficient utilization of people and machines
‡ Efficient flow of materials
‡ ommunication with customers

›› lass Notes- hapter1


   
|
 
A Typical Manufacturing Systems

Materials
SU››
IERS USTOMERS
Machines
›eople
Raw Materials Finished ›roducts

›› lass Notes- hapter1

        


‡ Authors claim that ›› system does not
make decisions or manage the operations
‡ Managers perform these activities
‡ ›› system provides support for decision
making

›› lass Notes- hapter1

        

 
‡ However, developing intelligent software is
becoming increasingly feasible
‡ Software not only to support decision makers
but also make (at least) some of the decisions
‡ Expert Systems, Neural Networks, Genetic
Algorithms, Evolutionary ›rogramming,
Genetic ›rogramming, Tabu Search, Simulated
Annealing, etc. are available techniques
›› lass Notes- hapter1
 x   
 

‡ Materials ›lanning
‡ ›urchasing
‡ Raw Material Inventory ontrol

‡ apacity ›lanning
‡ Scheduling Machine and ›eople
‡ WI› Inventory ontrol
›› lass Notes- hapter1
 x   
 
 
‡ oordinate ustomer Orders
‡ Finished Goods Inventory ontrol

›› lass Notes- hapter1

  

  

›› requires a large # of indirect people

ompanies with ineffective ›› system will

have poor customer service, excessive
inventories, low equipment and people
utilization, high rate of part obsolescence,
large number of expediters

›› lass Notes- hapter1

   
Overall direction for ›› is provided by a
ompany Game ›lan
Game ›lan links various departments
(engineering, finance, marketing,
production)
It should be consistent with strategic plans,
budgets, and company¶s capabilities

›› lass Notes- hapter1

 r !  

1. Overall Manufacturing ›lanning

2. Detailed Materials and apacity ›lanning
3. Execution of ›lans

›› lass Notes- hapter1

 ›roduction ›lanning and ontrol
General Framework

Resources ›roduction Demand

›lanning ›lanning Management

Rough-cut Master ›roduction

apacity Scheduling
›lanning

Detailed Detailed Material

apacity ›lanning
›lanning

Material and
apacity ›lans

Shop Floor ›urchasing

Systems

›› lass Notes- hapter1

ë" 


  
Hierarchical ›lanning ont¶d



‡ Forecasting
‡ Order ›romising
‡ Order ›rocessing
‡ Order Entry
‡ Spare ›arts

›› lass Notes- hapter1

ë" 


  
Hierarchical ›lanning ont¶d
›


›
Monthly ›lans for ›roduct Families

 ›



  › 
Weekly ›lans for Individual ›roducts
M›S must sum up to ›roduction ›lan

›› lass Notes- hapter1

 #  $  
nk s
X X M›Sijkt = ››kt k=1,2,3,«..,f; t=1,2,3,«..,T
i=1 j=1

s number of subperiods in a period

nk number of products in family k
M›Sijkt master production schedule for product i of
family k in subperiod j of period t
››kt production plan for family k in period t
f number of families
T number of periods
›› lass Notes- hapter1

%

›roduct Family: Markers

›roducts: Red, Blue, Green Marker

Note:Usually a period is one month and a

subperiod is one week (s=4).

›› lass Notes- hapter1


%  
›roduction ›lan
Months
1 2
Marker Family 100000 120000

Master ›roduction Schedule

›roducts Weeks
1 2 3 4 1 2 3 4
Red 10 10 10 10 15 15 15 15
Blue 10 10 10 10 10 10 10 10
Green 5 5 5 5 5 5 5 5

›› lass Notes- hapter1

ë" 


  
Hierarchical ›lanning ont¶d
è 

›
‡
ong-Range apacity Requirements
‡ Number of Machines
‡ Number of Employees
‡ Overtime
‡ Shifts
‡ ›lants
›› lass Notes- hapter1
ë" 


  
Hierarchical ›lanning ont¶d
è
 
›
apacity Requirements for Master ›roduction
Scheduling
‡ Overall Factor
‡ apacity Bills
‡ Resource ›rofiles

›› lass Notes- hapter1

     
Hierarchical ›lanning ont¶d

 ›
›roduction rates can be used in simpler
manufacturing systems.
Materials Requirements ›lanning (MR›) can be
used in more complex systems. MR› determines
time-phased requirements (period-by-period) for
all purchased and manufactured parts such as raw
materials, components, parts, subassemblies, etc.

›› lass Notes- hapter1

     
Hierarchical ›lanning ont¶d
  
›

abor Hours Required
Machine apacity Required

In an MR› environment, this task is

accomplished by using the apacity
Requirements ›lanning ( R›) technique.
›› lass Notes- hapter1
 0
% 
 

Hierarchical ›lanning ont¶d






‡ onventional Approach, ›rocess
ayout
Similar machines are grouped into workcenters
Use workorders to schedule the jobs through
workcenters / departments
Schedule machine and other workcenters
Determine start and completion times of orders
Update the schedule
›› lass Notes- hapter1
 0
% 
 

Hierarchical ›lanning ont¶d







‡ Recent Trend, Manufacturing ells
Similar parts are grouped into families
orresponding machine cells are formed
Use production rates
Use schedules to control production (Family
Sequencing, ›roduct Sequencing, ell
oading,
ell Scheduling, etc.)
Use Kanban System (›ull, Just-in-Time) to control
production ›› lass Notes- hapter1
 0
% 
 

Hierarchical ›lanning ont¶d
›

‡ ›urchasing ›lan
‡ Vendor Search
‡ Quotation
‡ Order Release
‡ Order Follow-up
‡ Vendor apacity
›› lass Notes- hapter1
  

‡ ›lans are made

‡ Results are compared with plans (control)
‡ Results are OK l Wait until next control
period
‡ Results are not OK l Go to Step 1 (Revise
plans)

›› lass Notes- hapter1

 An Example
è 

Assume that a jewelry manufacturing company
decided to open three manufacturing sites (US,
Ireland and Singapore).

Each plant is going to run one shift except plating

area which will be run 2 shifts due to high
investment requirement.

›› lass Notes- hapter1

 Example ont¶d




Demand is forecasted for different product families and
different plants as follows:

US plant Ireland plant

Singapore
plant
Earrings 300000units/yr 200000units/yr 150000units/yr
›endants 350000 225000 200000
Rings 150000 100000 75000

›› lass Notes- hapter1

 Example ont¶d
› ›


›lant
onths
1 2 3 4 5 6 7 8 9 10 11 12
Earring 20 20 20 20 20 20 30 30 30 30 30 30
›endant 20 20 20 20 20 20 30 40 40 40 40 40
ing 10 10 10 10 10 10 15 15 15 15 15 15

› TIN › N I ›E›E  IELN N

IN ›E ›LNT  WELL.

›› lass Notes- hapter1

 Example ont¶d



 
ollo ing manpo er and resources requirements are estimated or
each plant:

 plant Ireland plant ingapore

plant
anpo er 300 200 150
achine
Type X 50 40 30
achine
Type Y 100 120 50
achine
Type Z 150 40 70

›› lass Notes- hapter1

 Example ont¶d
 ›   
 ›lant ± Earring amily ± 1T onth

Weeks
1 2 3 4
old Earring 1 1 1 2
old Earring ith red 1 1 2 1
stone
ilver Earring 1 2 1 1
ilver Earring ith red 2 1 1 1
stone
TTL 5 5 5 5

TE  ELE I ›E›E  E  NT

(›I LY  TE 1T ›LE  NT, NT 
TE ENTIE YE) N › T 
ILY.
›› lass Notes- hapter1
 Example ont¶d
è   
› 

anpo er and machine requirements are revised.


 plant

anpo er 330

achine
Type X 55

achine
Type Y 95

achine
Type Z 190

›› lass Notes- hapter1

 Example ont¶d




Detailed material plans are prepared for subassemblies and
parts to be manufactured; components and raw materials to
be purchased.

Weeks
1 2 3 4 5 6 7 8 9 10 11 12
Gold 3kg 3kg 2.5kg 2.5kg «
Silver 5kg 5kg 4kg 4kg «
Red 3K 2K 3K 2K «
Stone
›lated 5K 5K 5K 5K «
parts

›› lass Notes- hapter1

 Example ont¶d
R


è 


Weeks
1 2 3 4 5 6 7 8 9 10 11 12
Manpower 320 310 330 322 «
Machine 52 55 60 57 «

Machine 90 92 98 95 «

Machine 178 163 172 170 «

›› lass Notes- hapter1

 Example ont¶d
›  
ontact vendors, evaluate quotes and cut purchase orders.

 
   
ssign parts to be plated to di erent plating lines

Load manu acturing cells ith products and determine start

and completion times

ell1 Job1 Job 3 Job 7

ell2 Job 2 Job 4
ell3 Job 5 Job 8 Job 6
0 5hr 7 10 22 25 34 38
›› lass Notes- hapter1
  

planning ›lans

no
control OK? Revise
yes
Stop
›› lass Notes- hapter1
! & !! ' 
! ( 

Number of
Subparts ›M/›ERT
MR›
Just-in-Time
Repetitive
Flow

Seconds Minutes Days Weeks Months

Time between successive units

Examples: Oil, food, drugs, watches, TV, trucks, planes, houses, ships

›› lass Notes- hapter1

! & !! ' 
! ( 

1. Flow-Oriented Manufacturing Systems

Very short time between successive units
A few components needed
Flow rate is the measure
Ex: hemical, food, petroleum

›› lass Notes- hapter1

! & !! ' 
! ( 
 
2. Repetitive-Nature Manufacturing Systems
Short time between successive units
Assemble similar products
Flow Rate or Assembly Rate is the measure
Ex: Televisions, Radios, Watches, ars

›› lass Notes- hapter1

! & !! ' 
! ( 
 
3. Just-in-Time
High production volume

ow ›roduct Variety
Reduced Inventory and
eadtime
Ex: ars, omputers, Jewelry, opy
Machines

›› lass Notes- hapter1

! & !! ' 
! ( 
 
4. Materials Requirements ›lanning (MR›)
Batch production
High product variety

ow production quantity
Ex: Electric Motors, Fans

›› lass Notes- hapter1

! & !! ' 
! ( 
 
5. ›M/›ERT

ong leadtimes

ow production quantity
Ex: Airplanes, ships

›› lass Notes- hapter1

 ( 
!
Typical Responses

Shorter ›roduct
ife ycles

Marketplace dictates Time Based ompetition
Technology Quality Requirements
›roducts ompany strategy
›rocesses
Systems
Flexibility/Responsiveness
Techniques Reduced Overhead costs
Manufacturing Strategy

Simplification
Manufacturing
Automation
processes ›roduction ells

MR›
M› system JIT

›› lass Notes- hapter1