managing production and supply chains an introduction to the prosim production management simulation
TRANSCRIPT
Managing Production and Supply Chains
An introduction to the ProSim production management
simulation
ProSim A virtual company which
manufactures & markets three products (X, Y, Z)
Existing supply chain processes in place for key Marketing & Sales, Production Planning & Control, Purchasing & Payment
You will manage the PP&C process Process redesign or supply chain
restructuring are out of scope for now
Products Bills of MaterialsToy d
oll
Toy car w
/doll
Toy house w/ca
r & doll
Process Layout
Take a thinking break
What is the goal … or The Goal? How is this measured? What do we need information-wise to
make Goal oriented decisions? What analysis or information systems
based tools might help with the details and mechanics?
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Structural Issue: Rough Cut Capacity Limit
Visit ProSimPlanner Worksheet Where is the bottleneck? Maximum throughput? Assumptions regarding labor
productivity, efficiency, and rejects
Structural Issue: Make vs. Buy for Parts
Purchase cost? Make cost:
• Labor (labor productivity?)• Machine time (machine efficiency?)• Materials (reject rate?)
Sales: Estimating Customer Demand
Products are produced based on weekly schedules
Products are shipped at the end of each ‘month’ (i.e., every 4th week at the end of weeks 4, 8, 12, …)
Last year’s monthly demand data are available
Current month sales order base forecasts are adjusted weekly
Production Planning: What to produce week by week
Master Production Scheduling (MPS) Materials Requirements Planning
(MRP)
Human Resources: Operator Hiring & Training
For ‘simplicity’ we will only use workers 1 thru 9 this term; you can fire if you want but cannot hire (or re-hire).
Purchasing: Order size for parts?
Parts demand? Ordering & setup costs? Holding & carrying costs? Classic EOQ conclusion?
Purchasing: Ordering materials
Materials demand? Ordering & setup costs? Holding & carrying costs? Classic EOQ conclusion? (watch time
units – week, month, year?) Volume discounts? Adjusted EOQ conclusion?
Plant Management: Plant level decisions
Quality control plan Facility maintenance plan
Production Scheduling: Assigning operators, hours, machines, products & parts
True execution point – creating the weekly schedule
Communicate plant managers and purchasing decisions
Implement human resources recommendations
Convert production planners estimates to actions
Where we go from here It’s a deep looking pool but time to
jump in and get started Complete the reading and
assessment Look for in class lecture help
Managing Production and Supply Chains
End of presentation