HOW CIM IMPROVES HOW CIM IMPROVES INVENTORY?INVENTORY?

Z. Merve AlptekinZ. Merve AlptekinDerya DelibaşDerya DelibaşSelcan BabürSelcan Babür

Alev EminoğluAlev EminoğluBirsen KayhanBirsen KayhanMehtap AltuntaşMehtap Altuntaş

HOW CIM IMPROVES INVENTORY? Alev

EminogluDerya

Delibaş

Merve Alptekin

Birsen Kayhan

Selcan Babur

Mehtap Altuntas

What is CIM?What is CIM?

Computer-integrated manufacturing Computer-integrated manufacturing (CIM) is the use of computer (CIM) is the use of computer techniques to techniques to integrateintegrate manufacturing activities. These manufacturing activities. These activities encompass all functions activities encompass all functions necessary to translate customer necessary to translate customer needs into a final product. CIM needs into a final product. CIM should not mix with FMS.should not mix with FMS.

What is FMS?What is FMS?

The fThe flexible manufacturing systemlexible manufacturing system (FMS) is a configuration of computer-(FMS) is a configuration of computer-managed numerical work stations managed numerical work stations where materials are automatically where materials are automatically handled and machine loaded. It handled and machine loaded. It consists of CNC machines, a cell consists of CNC machines, a cell computer and a robot. computer and a robot.

The Cell Controller The Cell Controller

The cell computer (typically a The cell computer (typically a programmable logic controller) is programmable logic controller) is interfaced with the microprocessors interfaced with the microprocessors of the robot and the CNCs. The of the robot and the CNCs. The supervision and coordination among supervision and coordination among the various operations in a the various operations in a manufacturing cell is also performed manufacturing cell is also performed by the cell computer. by the cell computer.

The Cell Robot The Cell Robot

In many applications, the cell robot In many applications, the cell robot also performs tool changing, staging also performs tool changing, staging of tools in the tool changer, and of tools in the tool changer, and inspection of tools for breakage or inspection of tools for breakage or expressive wear. When necessary, expressive wear. When necessary, the robot can also initiate emergency the robot can also initiate emergency procedures such as system shut-procedures such as system shut-down.down.

CIM vs FMSCIM vs FMS

CIM vs FMSCIM vs FMS

In order to achive CIM, there must be In order to achive CIM, there must be many connected FMS’s and used many connected FMS’s and used computer softwares and hardwares computer softwares and hardwares must be integrated to each other. must be integrated to each other. Because of that, our lab is NOT CIM lab. Because of that, our lab is NOT CIM lab. It includes only two flexible It includes only two flexible manufacturing cell which are CNC manufacturing cell which are CNC machine and assembly unit. In machine and assembly unit. In assembly unit there are two processes; assembly unit there are two processes; ball filling unit and gluing. ball filling unit and gluing.

WHAT IS INVENTORY?WHAT IS INVENTORY?

InventoryInventory is a list for is a list for goods and and materials, or those goods and , or those goods and materials themselves, held available materials themselves, held available in stock by a in stock by a business. .

Keeping inventory for meeting customer Keeping inventory for meeting customer demand is essential. However demand is essential. However balancing the amount required for balancing the amount required for keeping in inventory and its related keeping in inventory and its related cost needs a control system.cost needs a control system.

Types of InventoryTypes of Inventory

Raw materials are inventory items that are Raw materials are inventory items that are used in the manufacturer's conversion used in the manufacturer's conversion process to produce components, process to produce components, subassemblies, or finished products. subassemblies, or finished products.

Work-in-process (WIP) is made up of all the Work-in-process (WIP) is made up of all the materials, parts (components), materials, parts (components), assemblies, and subassemblies that are assemblies, and subassemblies that are being processed or are waiting to be being processed or are waiting to be processed within the system. processed within the system.

A finished good is a completed part that is A finished good is a completed part that is ready for a customer order. Therefore, ready for a customer order. Therefore, finished goods inventory is the stock of finished goods inventory is the stock of completed products.completed products.

AUTOMATIC AUTOMATIC INVENTORYINVENTORY

Automatic Identification and Data Automatic Identification and Data CaptureCapture (AIDC) refers to the methods of (AIDC) refers to the methods of recognizing objects, getting information recognizing objects, getting information about them and entering that data or about them and entering that data or feeding it directly into computer systems feeding it directly into computer systems without any human involvement. without any human involvement. Automatic identification and data capture Automatic identification and data capture technologies include barcodes, RFID, OCR, technologies include barcodes, RFID, OCR, magnetic stripes, smart cards and magnetic stripes, smart cards and biometrics.biometrics.

BARCODING IN TOFAS/FIATBARCODING IN TOFAS/FIAT

The versions change according to their accessories, The versions change according to their accessories, the country that the car is being produced, and the the country that the car is being produced, and the type of the car, the description of the car and the type of the car, the description of the car and the picture list of the car. After this selection we select picture list of the car. After this selection we select the desired Doblo version. There are a lot of types the desired Doblo version. There are a lot of types of Doblo but in the example below you will see that of Doblo but in the example below you will see that the type Combi has 28 different versions in itself. the type Combi has 28 different versions in itself. When we select the parts that are used in the When we select the parts that are used in the assembling line of Doblo are shown. If we select a assembling line of Doblo are shown. If we select a part from these we see the details that are required part from these we see the details that are required for the parts installation. for the parts installation.

BODY ENGINE LUX

STANDARD ACCESSORIES

Immobilizer(With varying codes)Follow me homeHeaterFront seat beltsRear seat beltsTorpedoPassenger seat compartment

VERSION

FergonePanoromaCamboMalibuConnect

1242cc 8V1596cc 16 V1910 DS Asp1910 DS JTD

LL0 BASELL1 ELEGANCELL2

010,011,012,013,110,112,113,132,133,210,212,213,331,332,333,411,412,413,511,512,513,611,612,613,411,711,712,713,811,813

Body Lux

Floor

Engine

Benefits of Inventory Software Benefits of Inventory Software

Some of the benefits that the best software Some of the benefits that the best software incorporates include:incorporates include:

Reduce unnecessary raw materials by with MRP Reduce unnecessary raw materials by with MRP (Material Requirements Planning) (Material Requirements Planning)

Eliminate excess stored finished goods through JIT Eliminate excess stored finished goods through JIT (Just-In-Time) planning (Just-In-Time) planning

Connect directly to suppliers via EDI (Electronic Connect directly to suppliers via EDI (Electronic Data Interface) to ensure supplies are ordered Data Interface) to ensure supplies are ordered when needed when needed

Reduce hours spent counting inventory through Reduce hours spent counting inventory through barcode/RFID accountability barcode/RFID accountability

Spend less time locating inventory with location-Spend less time locating inventory with location-based tracking based tracking

Lot tracking and FIFO (First-In-First-Out) capabilitiesLot tracking and FIFO (First-In-First-Out) capabilities

INVENTORY MANAGEMENT INVENTORY MANAGEMENT TECHNIQUESTECHNIQUES

MRP AND MRP II.MRP AND MRP II.MRP and MRP II are computer-based MRP and MRP II are computer-based

resource management systems resource management systems designed for items that have designed for items that have dependent demand. MRP and MRP II dependent demand. MRP and MRP II look at order quantities period by look at order quantities period by period and, as such, allow discrete period and, as such, allow discrete ordering (ordering only what is ordering (ordering only what is currently needed). currently needed).

INVENTORY MANAGEMENT INVENTORY MANAGEMENT TECHNIQUESTECHNIQUES

JUST-IN-TIME (JIT)JUST-IN-TIME (JIT)Just-in-time (JIT) is a philosophy that Just-in-time (JIT) is a philosophy that

advocates the lowest possible levels advocates the lowest possible levels of inventory. JIT espouses that firms of inventory. JIT espouses that firms need only keep inventory in the right need only keep inventory in the right quantity at the right time with the quantity at the right time with the right quality. The ideal for JIT is one, right quality. The ideal for JIT is one, even though one hears lot size the even though one hears lot size the term "zero inventory" used.term "zero inventory" used.

LEAN MANUFACTURINGLEAN MANUFACTURING

Lean Production is defined as a production Lean Production is defined as a production type that consists no unnecessary type that consists no unnecessary component and failure, cost, component and failure, cost, inventoryinventory, , production area, loss and customer production area, loss and customer displeasure are at minimum level in its displeasure are at minimum level in its structure. In production and management, structure. In production and management, lean production uses “no mistake”, lean production uses “no mistake”, “continuos improvement”, “perfection”, “continuos improvement”, “perfection”, “attendance of workers” and “ just in “attendance of workers” and “ just in time” for describing its production style.time” for describing its production style.

Properties of Lean Properties of Lean ManufacturingManufacturing

It is a sum because:It is a sum because:

In every level of organization, it consists of the In every level of organization, it consists of the attendance of all workers and the union of ideas and attendance of all workers and the union of ideas and aims.aims.

It is implemented on all of the regions and activities of the It is implemented on all of the regions and activities of the firm.firm.

It is quality because:It is quality because:

It consists of the quality of managers’ and workers’works.It consists of the quality of managers’ and workers’works.

It consists of product and service quality.It consists of product and service quality. It is control because:It is control because:

Error creators are determined instead of picking out Error creators are determined instead of picking out errors and Main points are controllederrors and Main points are controlled

Some systems are developed to prevent repetition of Some systems are developed to prevent repetition of errors.errors.

Lean Provides Better Inventory Lean Provides Better Inventory ControlControl

Lean manufacturing eliminates Lean manufacturing eliminates unnecessary processes, arranges the unnecessary processes, arranges the stages of continuous processes and stages of continuous processes and uses continuous improvement uses continuous improvement techniques. These improvements techniques. These improvements provides better inventory control.provides better inventory control.

Inventory CuttingInventory Cutting

In order to achieve lean production In order to achieve lean production improvement starts in small work improvement starts in small work teams. By these improvements, teams. By these improvements, setup-time is reduced. By using small setup-time is reduced. By using small lot production system, lead time is lot production system, lead time is reduced. Application of Kanban and reduced. Application of Kanban and JIT production provides Inventory JIT production provides Inventory cutting. In order to reduce inventory , cutting. In order to reduce inventory , CIM must be implemented.CIM must be implemented.

LEAN VS TRADITIONALLEAN VS TRADITIONAL

Lean Manufacturing Traditional Manufacturing

Simple and Visual ComplexBuild to Demand Build to ForecastMinimal Inventory Excessive InventoryFocus on Non-Value Added Focus on Value Added

WorkMinimum Size Batch ProcessesMinimal Lead Times Long Lead TimesQuality Through Process Quality Through InspectionValue Stream Owners Departmental Supervision

Lean Production MethodsLean Production Methods1.1. KanbanKanban

2.2. Mix Loading and Production SmoothingMix Loading and Production Smoothing

3.3. One-piece FlowOne-piece Flow

4.4. Synchronization between machines Synchronization between machines

5.5. U-lines, Shojinka, Work RotationsU-lines, Shojinka, Work Rotations

6.6. Poka-Yoke and AutonomationPoka-Yoke and Autonomation

7.7. Total Productive Maintenance(TPM)Total Productive Maintenance(TPM)

8.8. Single Minute Exchange of Dies(SMED)Single Minute Exchange of Dies(SMED)

1. KANBAN1. KANBANOne of the principles of the lean One of the principles of the lean

manufacturing is to produce a product at manufacturing is to produce a product at the required time and required amount. the required time and required amount. The aim is to prevent the factory from The aim is to prevent the factory from producing unnecessary products. To producing unnecessary products. To achieve this every production station achieve this every production station should produce the amount that the next should produce the amount that the next station can insert into its process. This station can insert into its process. This production style can be called as pulling production style can be called as pulling system.system.

Pull SystemPull System

In the pull system, the production schedule In the pull system, the production schedule is given to the station 1. The station 1 is given to the station 1. The station 1 accordingly makes the first component accordingly makes the first component and pushes it to the station 2 and so on. and pushes it to the station 2 and so on. In this way, along with the material flow In this way, along with the material flow station 1 is giving the information target station 1 is giving the information target also to the station 2, that how many also to the station 2, that how many components it needs to make.components it needs to make.

Push SystemPush System

In the push system, the production In the push system, the production schedule is given to the station 4. schedule is given to the station 4. the station 4 demands the number of the station 4 demands the number of components required from station 3 components required from station 3 and so on. In this way the and so on. In this way the information is passed on from station information is passed on from station 4 to station 3, that how many 4 to station 3, that how many components it needs to make.components it needs to make.

TOFAS WAREHOUSE TOFAS WAREHOUSE AUTOMATION SYSTEMAUTOMATION SYSTEM

TOFAS main production database is TOFAS main production database is called NPRC. According to include called NPRC. According to include datas, orders are given with 2 ways: datas, orders are given with 2 ways: internal and external. Internal orders internal and external. Internal orders are made within departments. are made within departments. External orders are given to supplier External orders are given to supplier automatically with the amount of automatically with the amount of recorded data. recorded data.

TOFAS WAREHOUSE TOFAS WAREHOUSE AUTOMATION SYSTEMAUTOMATION SYSTEM

When orders come to TOFAS entrance When orders come to TOFAS entrance some of the supplied parts goes some of the supplied parts goes quality control to inspection others quality control to inspection others go directly to warehouse. After go directly to warehouse. After inspection process non-conformity inspection process non-conformity parts send to shipping zone for giving parts send to shipping zone for giving back to supplier. However, the back to supplier. However, the conforming parts are used in conforming parts are used in workshop for production.workshop for production.

INFORMATION FLOW at INFORMATION FLOW at TOFASTOFAS

Information Flow DatabasesInformation Flow Databases

POINT: ( CAR PRODUCTION SYSTEM ) POINT: ( CAR PRODUCTION SYSTEM ) WMF ( WORLD MATTERIAL FLOW ) WMF ( WORLD MATTERIAL FLOW ) MPM ( COST SYSTEM ) MPM ( COST SYSTEM ) IQF ( INDICATORI QUALITA FORNITORI ) IQF ( INDICATORI QUALITA FORNITORI ) SGV ( SISTEMI GESTIONE VELOCE ) SGV ( SISTEMI GESTIONE VELOCE ) DBP ( DISTINTA-BASE PRODUZIONE ) DBP ( DISTINTA-BASE PRODUZIONE ) NPRC ( SUPPLIERS PROGRAMS ) NPRC ( SUPPLIERS PROGRAMS ) PDP ( PROGRAMMA DALLA PRODUZIONE ) PDP ( PROGRAMMA DALLA PRODUZIONE )

Information Flow AplicationsInformation Flow Aplications

The core car production system is The core car production system is called POINT and the production called POINT and the production tree management application is tree management application is called DBP, the supplier called DBP, the supplier determination application is determination application is called SGV and export parts called SGV and export parts orders management is called orders management is called WMF. WMF.

Information FlowInformation Flow

The information flow within The information flow within departments is managed via the departments is managed via the integrated computer systems.integrated computer systems.

As an example of the information flow As an example of the information flow within a department, the information within a department, the information flow of the production planning and flow of the production planning and MRP department is provided. MRP department is provided.

Production Planning Production Planning Department Information FlowDepartment Information Flow

The production planning department enters The production planning department enters the 6 month’s production plans to FIAT the 6 month’s production plans to FIAT system (PDP) by evaluating the production system (PDP) by evaluating the production parameters entered to FIAT system parameters entered to FIAT system (POINT). The department performs specific (POINT). The department performs specific simulations on the production plans and simulations on the production plans and decides on a production plan. During the decides on a production plan. During the simulations, the working calendar, simulations, the working calendar, production capacity and type details for production capacity and type details for each brand is taken into account.each brand is taken into account.

INFORMATION FLOW at INFORMATION FLOW at TOFASTOFAS

Production Planning Production Planning Department Information FlowDepartment Information Flow

The production planning department uses The production planning department uses the order estimations entered to the the order estimations entered to the system by the commercial channel system by the commercial channel logistics services. The decided production logistics services. The decided production plan (DPD) is sent to the NPRC supplier plan (DPD) is sent to the NPRC supplier system weekly. By this flow each car is system weekly. By this flow each car is only produced within the production plan only produced within the production plan and order number. The production and order number. The production planning and MRP department performs planning and MRP department performs these operations by using the PDP system these operations by using the PDP system and the information is used and shared and the information is used and shared among the department via this system.among the department via this system.

TOFAS SYSTEMTOFAS SYSTEM

All these production related All these production related systems integrate on an systems integrate on an application called NPRC in TOFAS application called NPRC in TOFAS to structure master production to structure master production plan data. This information is plan data. This information is transferred from production transferred from production departments both to FIAT Italy departments both to FIAT Italy and to TOFAŞ local systems.and to TOFAŞ local systems.

HOW CIM IMPROVES HOW CIM IMPROVES INVENTORY?INVENTORY?

MarketDemand

Productionplan

Problems?

Rough-cutcapacity planning

Yes No YesNo

Finance

Marketing

Manufacturing

Adjustproduction plan

Masterproduction schedule

MRP

Capacityplanning

Problems?Requirementsschedules

Ad

just

maste

r sch

ed

ule

CONCLUSIONCONCLUSION

As can be seen in figure CIM As can be seen in figure CIM integrates all business functions integrates all business functions (MRP, MPS, Capacity Planning (MRP, MPS, Capacity Planning etc.) with other departments etc.) with other departments (Finance, Marketing, (Finance, Marketing, Manufacturing etc.) within Manufacturing etc.) within organization. organization.

Thank you for listening…Thank you for listening…