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Activities of OPC
Operations planning pre-operations [Operations implementation] Operations control during operations and
post operations
Operations/Production Planning
5W-1H on production/operation
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Product planning (A company designing their product and making) What to produce? Market requirements, market survey Sales forecast Value engineering Product design Bill of Materials (BOM)
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Process Planning How to produce? Planning of Production Process Organization of production system?
Production/Operation System
OBJECTIVES
MATERIAL ENERGY
FACILITY
CAPAITL LABOR
INPUTS
ELEMENTS OR SUBSYSTEMS
OUTPUT
OUTSOURCING
R/M HR
QCD
OPN I
QCD
OPN II
QCD
OPN III INSP
QCD
INV
QCD
PARTS
Seamed body
crimped shoulder
End component
shoulder
neck
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Tin plates
Store
Trim
Slit
Body maker
ends
shoulders
necks
end seamer
crimping
Pack
Pack
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Cold forging
Heat treatment
Grinding
ROLLERS
Super finishing
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Turning
Heat treatment
Grinding
OUTER RACES
Super finishing
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Turning
Heat treatment
Grinding
INNER RACES
Super finishing
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Punch -ing
CAGES
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INNER RACES
OUTER RACES
ROLLERS
ASSEMBLY
CAGES
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Outputs to meet objectives as above Inputs Raw materials Bought out parts Human skills Utilities
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Subsystems or elements of production Equipment Layout Material handling Nature of operations Sequence of operations Standard times Utilities
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Job shop?
One off?
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Procedure for production planning 1.Demand forecast 2.Specification of production requirement Demand Vs Capacity (equipment & labour) Process of production, sequence, route etc Outsourcing Delivery schedule Production schedule Procurement schedule
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Setting production rate Sales requirement and resultant work load on the operations Daily production? Capacity of production lines? Manpower requirement? Shifts planning? Overtime?
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Production/Operations control
Post production planning, during production and post production Functions of production control (importance, role) 1. Ensuring Quality, Quantity and Delivery of parts, subassemblies and products (major assemblies)
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2. Feed back to management on production activity, C/CA/PA taken 3. Maintain high level of productivity, effective utilization of resources 4. Ensure minimum cost and high customer service
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Benefits of production/operation control Profitability through 1. Balanced inventory levels of R/M, WIP, F/G inventory cost reduction 2. Effective utilization of equipment, tooling, manpower, manufacturing and storage space - productivity 3. Reduction in setup costs lead-time & cost reduction 4. Reduction scrap & rework costs cost reduction
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Competitive advantage 1. Reliable delivery to customers 2. Shorter customer lead-time 3. Pricing flexibility through lower production costs 4. Orderly planning & control for marketing of new products
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Elements of production control 1.Control of planning availability of sales information, BOM etc. on time 2.Control of materials procurement schedules 3.Control of tooling tools & dies readiness 4.Control of manufacturing capacity utilization of equipment capacity 5.Control of activities issuing orders and schedules 6.Control of quantity at every stage
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7. Control of materials handling material movement on the floor 8. Control of due dates - monitoring of schedules 9. Control of information on C/CA/PA for future plan
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4. To record machine utilization, indirect labour utilization, scrap and rework to improve productivity production report, scrap report
5. An information system for collecting and processing and display of the data
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Factors determining production control procedures Nature of production Complexity of operations 1. Number of parts in the final product 2. Number of sub assemblies 3. Number of operations in each part 4. Sequence of operations 5. Variations in output rates of the machines 6. Customers orders with specific delivery dates, customers order schedule 7. Small lot orders 35
Magnitude of operations Time required for the operation Distance of material movement
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Operations Planning & Control Making a plan to organize inputs and run subsystems to meet organizational objectives and Taking C/CA/PA to ensure that the plan remains focused on objectives
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1. OPC as a system
Set measurable objectives
Identify subsystems
Document procedures
2. Performing OPC functions
3. Maintain records
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Objectives of the company & role of OPC Expectation - customer Objective - supplier What does a customer expect? 1. Reliable yet reasonable delivery commitment 2. To be advised in case of delays 3. To be helped when he/she is in difficulty 4. Consistent good quality of products 5. Competitive rates
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Objectives of OPC
The broad objectives 1.To contribute in fulfilling corporate objectives and objectives of operations management
Specific objectives
1. Reliable yet reasonable delivery commitment Procurement Plan
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Production Plan
2. To be advised in case of delays Monitor the plan efficiently Do C/CA/PA on deviations When delays are beyond control keep the customer informed
Accidents
Strike
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Acts of God
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5. Competitive rates
Lower the price offered to the customer, higher is the order volume! But never at the cost of profit! Cost reduction areas
Time waste is most difficult to correct because it doesnt litter the floor! Henry Ford
Waiting time operator, material, tool
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i.
Commitment of unrealistic delivery dates ii. Acceptance of too many rush orders iii. Delays in materials receipt
iv. Machine break downs due to frequent postponing of scheduled maintenance v. Manpower problems poor manpower plan
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Scope of Operation Planning & control Areas where OPC decisions are made 1.Materials: procurement planning Purchasing Inspection Storage Inventory control Standardization Variety reduction Value analysis
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2. Methods: Process plan sequence Tooling plan for tools, jigs & fixtures 3. Machines and equipment Relevant areas are Facilities planning Replacement policy Maintenance policy Maintenance schedules Tools manufacture maintenance 4. Manpower: skills, numbers, shifts
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5.Routing: determining the flow of work Processing steps m/c 1, m/c 2, m/c 3 Materials handling Temporary storage locations 6. Estimating: establishing operations times for workers and machines 7. Loading and scheduling: Allocation of jobs to machines as per routing and estimation to get maximum utilization Fixing delivery dates (calendar)
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8. Dispatching: Release of shop orders to commit raw materials Authorizing usage of resources by operations Making plan operational 9. Expediting: Chasing, follow up 10. Inspection: To maintain quality of product To evaluate the process and labour
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11. Evaluating: Evaluation of performance of machines, labour, process for management action Performance improvement 12. Cost control: Wastage reduction Value analysis Inventory control Resource utilization
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OPC makes what kind of decisions? What to produce? product planning Where to produce? facility planning When to produce? schedules Who will produce? man power plan How to produce? process plan How much to produce? production plan
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Organization of OPC function Factors which determine the OS 1. Status of the OPC in a company (i) if the nature of the work is repetitive and number of workmen is small, line staff would handle the OPC directly (ii) if the equipment is laid out as per sequence and machine capacities are same, OPC is a sub-function of Operations
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(iii) if the product variety is very large and a batch system is followed, OPC should be an independent function in par with other functions 2. The degree of centralization Centralized OPC is handled by staff specialists Line staff is free from planning activities But line staff are deprived of using their experience and skills in planning
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Should be considered when product variety is large and planning process is complex A decentralized OPC is handled by line staff Line staff contribute their expertise Suitable if planning is less complex 2. The internal structure The functions assigned to OPC
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Requirements of effective OPC system 1.computerized, fully integrated system 2. Quick response 3. Effective, efficient and economic 4. User friendly easy to operate 5. Flexible in the light of business environment 6. Ability to highlight variations as they occur 7. There must be minimum corrective actions 8. It must be proactive 9. Result oriented
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Measuring effectiveness of OPC Delivery OTD (number of orders delivered on time against number of orders delivered Inventory management, Inventory levels Average inventory held annually Value of obsolete inventory Non moving items Surplus inventory Inventory turn over ratio
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Production/operations management Planned production Vs actual Number of overtime hours Machine utilization ratio
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Functions of OPC
1. Order preparation Preparation of work order to operations department i. Samples, drawing or sketches ii. Engineering specifications iii. Sequence of operations
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2. Materials control
Job card preparation and issue i. Right material for the job ii. Material consumption at every stage of operation
5. Scheduling
Preparing a time schedule for the process to meet commitment to customer 6. Dispatching Preparing documentation to authorize use of material 7. Progressing
8. Expediting
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Optional functions of OPC 1. Cost estimation (costing dept or Industrial Engg. dept) 2. Work measurement (Industrial Engg. dept) 3. Sub contracting (materials management) 4. Capacity planning (Engineering dept) 5. Demand forecasting (Sales dept)
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