planning and execution
TRANSCRIPT
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 1/89
1
Manufacturing Strategy,Planning and Execution
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 2/89
2
Major Issues
• Types of manufacturing environments
• Overview of corporate and business strategies
• Order winners and qualifiers
• Operations strategy overview
• Market and resource perspectives of operations strategy
• Functional strategies
• Manufacturing planning and execution
• The reconciliation of functional perspectives
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 3/89
3
Major Issues
• Production planning
• Demand management
• Resource planning
• Capacity issues in production planning
• Master Production Scheduling and MRP
• Execution of plans
• Best Manufacturing Practices (BMP)
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 4/89
4
Characteristics ofManufacturing Environment
• Increased product diversity
• Reduced product life cycles
• Increased awareness of the environment – impact of products & manufacturing
systems
• Difficulties of estimating the costs andbenefits
• Changing social expectations
-
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 5/89
5
Discrete ManufacturingEnvironments
• Make-to-Stock (MTS)
• Assemble-to-Order (ATO)
• Make-to-Order (MTO)
• Engineer-to-Order (ETO)
Level of
complexity
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 6/89
6
Discrete Manufacturing: MTO
• An MTO product is finished after receipt of thecustomer order. Frequently long lead timecomponents are planned prior to the orderarriving in order to reduce the delivery time tothe customer. Where options or othersubassemblies are, the stocked prior tocustomer orders arriving, the term „assembleto order‟ is frequently used”
APICS (1987)
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 7/89
7
Discrete Manufacturing: ATO
• Typically, delivery time requirements are shorterthan total manufacturing lead time
• Production is usually started in anticipation of
customer orders• Basic components and subassemblies are
produced using a push system (MRP)
• Final assembly is managed via a pull system(JIT)
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 8/89
8
Major Issues
• Types of manufacturing environments
• Overview of corporate and business
strategies
• Order winners and qualifiers
• Operations strategy overview
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 9/89
9
Corporate Strategy
• How the firm plans to use all its resources andfunctions to gain competitive advantage
• Corporate objectives typically include: – Growth
– Survival – Profit – Return on Investment – Other financial measures
– Employee policies – Environmental policies – ...
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 10/89
10
General Business Strategy
• Cost leadership
• Differentiation – Create unique products commanding a premium
price based on:
• Brand image
• Quality
• Features/options
• Rapid delivery• Superb customer service
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 11/89
11
Major Issues
• Types of manufacturing environments
• Overview of corporate and business
strategies
• Order winners and qualifiers
• Operations strategy overview
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 12/89
12
Competitive Priorities
• Basic strategies:
– Cost
– Quality
– Speed of delivery
– Product/volume flexibility
– Innovation
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 13/89
13
The Order Qualifiers
• These are product or service characteristics
that allow your company to be present in the
market. They include:
– Quality – Price
– Reputation
– Number of years in business
– Reliability
– ...
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 14/89
14
The Order Winners
• These are product or service characteristicsthat allow your company to win orders inthe market. They include:
– Quality – Price
– Speed of delivery
– Consistency of delivery
– Reliability – ...
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 15/89
15
Order Winners andQualifiers
• Over the lifetime of a product operations-related criteria are most important winnersand qualifiers
• The relative importance (weights) ofvarious order winners changes asproducts travel on the product lifecyclecurve (over time) and must becontinuously monitored and updated foreach product and each market segment
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 16/89
16
Major Issues
• Types of manufacturing environments
• Overview of corporate and business
strategies
• Order winners and qualifiers
• Operations strategy overview
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 17/89
17
Operations Strategy:Definition
• Operations strategy involves the decisionswhich shape the long-term capabilities ofthe company’s operations and theircontribution to overall strategy through theon-going reconciliation of marketrequirements and operations resources
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 18/89
18
Corporate Objectives
Marketing Strategy
Order Winning Criteria
Manufacturing Strategy
Process Choice Infrastructure
• Growth
• Survival
• Profit
• Return oninvestment
• Otherfinancialmeasures
• Product marketsand segments
• Range
• Mix
• Volumes
• Standardizationvs. customization
• Level of innovation
• Leader vs. follower
alternatives
• Price
• Conformancequality
• Delivery speed
• Delivery reliability
• Volume flexibility
• Color range
• Product range
• Design
• Brand image• Technical support
• After sales support
• Choice of alternativeprocesses
• Tradeoffs embodied in
process choice• Role of inventory in
process configuration
• Make of buy decisionsand supply chainmanagement
• Capacity size
• Capacity timing
• Capacity location
• Functional supportfor operations
• Manufacturing
planning and controlsystems
• Quality assuranceand control
• Manufacturingsystems engineering
• Clerical procedures
• Compensationagreements
• Work structuring
• Organizationalstructure
Developing an OperationsStrategy
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 19/89
19
Components of the OperationsStrategy
OperationsMission andStrategy
ProductDesignProcurement
QualityManagement
Schedule
Location
Layout
ProcessDesign
Reliability &Maintenance Inventory
HumanResources &Job Design
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 20/89
20
Operations has to cope with the clash between the nature of external markets and the nature of internal resources
Operations Resources are….
Difficult to change
Technicallyconstrained
Complex
Market Requirements are….
Dynamic
Heterogeneous
Ambiguous
The Dichotomy of BusinessViews
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 21/89
21
“Hard” issues
“Soft” issues
ProcessTechnology
Development andOrganization
Supply NetworkCapacity
Operations Decisions areStructural & Infrastructural
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 22/89
22
Understanding Markets
• Understanding markets and agreeing on how toapproach them is critical to strategyimplementation success – In-depth debate about the markets, their needs and
manufacturing/operations capabilities must involve allfunctions (cross-functional team approach)
– Each organizational function must develop strategiesto support current and future market needs
– Each function’s strategic contributions are expressed
in terms of priorities, developments and investmentsor resources
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 23/89
23
Major Issues
• Market and resource perspectives ofoperations strategy
• Functional strategies
• Manufacturing planning and execution
• The reconciliation of functional perspectives
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 24/89
24
OperationsResources
MarketRequirementsOPERATIONSSTRATEGY
StrategicReconciliation
Operations strategy reconciles the requirements of the
market with the capabilities of operations resources
Market Needs vs. OperationsCapabilities
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 25/89
25
Understandingmarkets
Understandingresources and
processes
PerformanceObjectives
MarketPositioning
CustomerNeeds
Competitors‟
Actions
Requiredperformance
OperationsStrategyDecision Areas
Tangible andIntangibleResources
Operations Capabilities
OperationsProcesses
Strategicdecisions
Two Operations StrategyPerspectives
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 26/89
26
PERFORMANCE OBJECTIVES
•Dependability•Speed of delivery•Conformance quality•Speed to market
MARKET POSITION
•Innovative products•Time to market•Product range•Coordinated launches
Differentiation based on:
CUSTOMERS
Segmentation based on:
COMPETITORS
Traditionally weak in:
•Promotion•Design innovation•Conformance quality
Example: The MarketAnalysis for a Hydraulic
Pumps Manufacturer •Purchase volume•End-item application•OEM or replacement•Geographic location
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 27/89
27
ResourcesTangible
•Equipment•Staff
Intangible•Reputation•Relationships
(internal and external)•Experience
• Application of leading-edge high-pressuretechnology and electroniccontrols
• Articulation of client
requirements
Capabilities
• Integration of equipment
supply and clientrequirements
• Design process
•Supplier liaison process
Processes
•Location•Computer simulation capability•Internet specking by customers•Supplier development•Order tracking system•Organizational structure/culture
•Staff meetings
Operations StrategyDecisions
Example: OperationsStrategy Decisions for a
Hydraulic Pumps
Manufacturer
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 28/89
28
Operations Resources
UnderstandingResources and
Processes
StrategicReconciliation Market Requirements
UnderstandingMarkets
Capacity Supply networks Process technology Development and organization
Quality Speed Dependability Flexibility Cost
OperationsProcesses
OperationsResources
OperationsCompetences
MarketPositioning
MarketSegmentation
CompetitorActivity
StrategicDecisions
OperationsStrategy
Decisions
RequiredPerformance
PerformanceObjectives
Operations strategy is the strategic reconciliation ofmarket requirements with operations resources
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 29/89
29
Major Issues
• Market and resource perspectives ofoperations strategy
• Functional strategies
• Manufacturing planning and execution
• The reconciliation of functional perspectives
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 30/89
30
Functional Strategies
• Functional strategies are typically developedindependently of one another and may beinconsistent with corporate strategic objectives
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 31/89
31
Functional Perspectives
• Inputs from all functions that are engaged in theprovision of product or interface with themarketplace hold insights into customerrequirements
• One function cannot dominate the process sincethis leads to overemphasizing the need torespond to customer’s actual or perceivedneeds and demands
• Checking the impact on a business must be partof a firm’s overall assessment of a market,segment or customer
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 32/89
32
Functional Strategies
Firm/business unit strategy
R&D Marketing Engineering Manufacturing
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 33/89
33
Functional Strategies
• Functional strategies should be developed in anintegrated process and be consistent withcorporate strategic objectives
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 34/89
34
Functional Strategies
Firm/business unit strategy
R&D Marketing Engineering Operations
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 35/89
35
Major Issues
• Market and resource perspectives ofoperations strategy
• Functional strategies
• Manufacturing planning and execution
• The reconciliation of functional perspectives
M f t i Pl i d
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 36/89
36
Manufacturing Planning andExecution
Resource Planning Production Planning Demand Management
Master Production
Scheduling
Detailed Material
Planning
Detailed Capacity
Planning
Material and Capacity
Plans
PurchasingOrder Release
Front End
Engine
Back End
Planning
Execution
M f t i Pl i d
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 37/89
37
Manufacturing Planning andExecution
• Overall manufacturing planning
• Detailed material planning
• Executing the plans
M f t i Pl i d
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 38/89
38
Manufacturing Planning andExecution
• Planning involves converting firm ordersand demand forecasts into materialrequirements using:
– Production plans (months)
– MPS (weeks)
– MRP (weeks)
M f t i Pl i d
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 39/89
39
Manufacturing Planning andExecution
• Execution involves, for each work center:
– Issuing daily assembly schedules
– Using component inventories to convert them
into finished products for order fulfillment
– Issuing daily shipping schedules
M f t i Pl i d
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 40/89
40
Manufacturing Planning andExecution
• It is expected to have a discrepancybetween the resources planned vs. theresources available during execution
• Deficiencies in planning must beovercome by actions in execution
M f t i Pl i d
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 41/89
41
Manufacturing Planning andExecution
• Approaches to addressing discrepanciesbetween planned and available resourcesduring execution:
– Discipline in execution – sticking to the MPS
– Total cycle time reduction
– Simplifying product lines
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 42/89
42
Major Issues
• Market and resource perspectives ofoperations strategy
• Functional strategies
• Manufacturing planning and execution
• The reconciliation of functional perspectives
The Reconciliation of
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 43/89
43
Firm orders
from known
customers
Forecast
of demand
from random
customers
Aggregate
Product Plan
Master
Production
Schedule
(MPS)
Material
Requirements
Planning
(MRP)
Engineering
design changes
Bill of Materials
(BOM) file
Inventory
transactions
Inventoryrecords
file
Reports
The Reconciliation ofFunctional Perspectives
The Linkages of Functional
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 44/89
44
The Linkages of FunctionalPlanning
• Various functions including marketing, financeand production, interact in formulating a “game
plan”
• A game plan reconciles market and resourceperspectives in formulating a production plan
The Linkages of Functional
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 45/89
45
Resource Planning Production Planning Demand Management
Master Production
Scheduling
Marketing Planning “The Game Plan” Financial Planning
Markets
The Linkages of FunctionalPlanning
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 46/89
46
Major Issues
• Production planning
• Demand management
• Resource planning
• Capacity issues in production planning
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 47/89
47
Production Planning
• Production planning is the forum forreconciling various functional perspectivesfrom the point of view of operations
• Production planning facilitates a dialoguebetween manufacturing and topmanagement
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 48/89
48
Production Planning
• Production planning uses a commonbusiness terminology in communicatingwith manufacturing and non-
manufacturing executives
• It is stated in commonly understoodmeasures, such as aggregate units
Top Management Role in
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 49/89
49
Top Management Role inFormulating a Game Plan
• Commitment to the game planningprocess
• Align functional strategies with thecorporate strategy
– Resolve conflicts between functional goals
– Resolve tradeoffs between functions prior to
approving plans
The Role of Functions in
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 50/89
50
The Role of Functions inExecuting a Game Plan
• All functional areas must “hit” the agreed
upon plan
– Communication … especially in instances
when there are problems in hitting the plan
• The most critical issue is integration ofplanning and control between marketing
and production
Overall Manufacturing
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 51/89
51
Resource Planning Production Planning Demand Management
Master Production
Scheduling
Markets
Overall ManufacturingPlanning
Overall Manufacturing
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 52/89
52
Overall ManufacturingPlanning
• Activities for overall direction setting formanufacturing
– Demand Management
– Resource Planning
– Master Production Scheduling
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 53/89
53
Major Issues
• Production planning
• Demand management
• Resource planning
• Capacity issues in production planning
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 54/89
54
Demand Management
• Forecasting
• Order entry
• Order promising
• Distribution planning
• Other activities
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 55/89
55
• Is a link to the market place
• It should enable coordination betweenmanufacturing, markets, other plans andwarehouses
• Demand management provides inputs to:
– MPS (for end items)
– MRP (for spare parts)
Demand Management
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 56/89
56
• Account for all sources of demand
– Finished products
– Spare parts
– Intra-company requirements
– Samples
– Pipeline inventory
Demand Management
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 57/89
57
Major Issues
• Production planning
• Demand management
• Resource planning
• Capacity issues in production planning
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 58/89
58
Resource Planning
• Long range capacity planning to produceproducts
– Involves converting aggregate production
plans into resources such as labor hours andmachine hours
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 59/89
59
Resource Planning
• Long range capacity planning to produceproducts
– Involves converting aggregate production
plans into resources such as labor hours andmachine hours
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 60/89
60
Major Issues
• Production planning
• Demand management
• Resource planning
• Capacity issues in production planning
Capacity Issues in
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 61/89
61
Resource PlanningResource Planning Production Planning Demand Management
Master Production
Scheduling
Material Requirement
Planning
Capacity Requirement
Planning
Vendor Systems
Rough-cut Capacity
Planning
Shop-Floor SystemsInput/Output
Analysis
Finite Loading
Capacity Issues inProduction Planning
Rough-Cut Capacity Planning
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 62/89
62
Rough-Cut Capacity Planning(RCCP)
• Rough estimate of capacities required tosatisfy the master production schedule
– RCCP does not take into account WIP
inventory,scheduled receipts, planned orders,etc.
Example: Rough-Cut Capacity
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 63/89
63
Example: Rough-Cut CapacityPlanning
• Suppose that 35,000 hrs of final assembly timeare available per week. The MPS for a product is2,000 units/week. One unit requires 20 hrs of
assembly time. The capacity required is(2000)(20) = 40,000 hrs.
• Therefore, an additional 5,000 hrs of finalassembly capacity will be needed in that period
Capacity Requirements
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 64/89
64
Capacity RequirementsPlanning (CRP)
• Detailed capacity plans
• Capacity need for machine centers andlabor
– CRP takes into account WIPinventory,scheduled receipts, planned orders,etc.
Example: Capacity
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 65/89
65
Example: CapacityRequirements Planning
• Suppose that 35,000 hrs of final assemblytime are available per week. Also, anequivalent of 7,500 hrs is available in the
form of WIP inventory• Therefore, in reality, we have 2,500 hrs of
excess capacity
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 66/89
66
Finite loading
• Allocation of capacity to work orderssubject to available capacity constraint
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 67/89
67
Input/Output Analysis
• Monitoring consumption of capacity duringexecution phase
• Compare actual inputs with planned inputs
and
• Actual outputs with planned outputs
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 68/89
68
Major Issues
• Master Production Scheduling and MRP
• Execution of plans
• Best Manufacturing Practices (BMP)
Master Production Scheduling
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 69/89
69
Master Production Scheduling(MPS)
• Master Production Schedule (MPS) is ananticipated build schedule for finished(end) products given production capacity
constraints and capacity utilization desires – MPS is NOT a forecast
– MPS is a primary input to generate material
requirement plans (MRP)
Master Production Scheduling
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 70/89
70
Master Production Scheduling(MPS)
• In an ATO environment, Final AssemblySchedule (FAS) is the actual buildschedule, i.e. it is the build schedule with
the exact end-item options
Master Production Scheduling
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 71/89
71
Master Production Scheduling(MPS)
• MPS is the basis for key inter-functionaltrade-offs
– For example, order processing activity
coordinates marketing and productionperspectives
• MPS is the basis for developing
manufacturing budgets in line withfinancial budgets
Master Production Scheduling
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 72/89
72
Master Production Scheduling(MPS)
• In determining MPS trade-offs need to bemade between market and resourceperspectives
– Accommodating too many changes in MPSresults in productivity loss and inefficiency
– Allowing too few changes in MPS may result
in poor customer service and increaseinventory
Master Production Scheduling
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 73/89
73
Master Production Scheduling(MPS)
• Hence, marketing and production shouldwork together to respond to product mixchanges
Master Production Scheduling
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 74/89
74
Master Production Scheduling(MPS)
• Hitting the production plan defined:
(FAS) =
(MPS) = Production Plan
– Ideally, the planned and actual resource
usage to meet the market requirementsshould be the same
Master Production
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 75/89
75
Master Production
Scheduling
Material RequirementPlanningDetailed CapacityPlanning
Material and Capacity
Plans
PurchasingOrder Release
Master ProductionScheduling (MPS)
Material Requirements
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 76/89
76
Material RequirementsPlanning (MRP)
• Detailed material plans for dependentdemand items
• Period-by-period plans for parts and raw
material
• MRP is a priority-setting scheme
Independent vs. Dependent
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 77/89
77
A
Independent DemandItems
B(4) C(2)
D(2) E(1) D(3) F(2)
Dependent Demand
Items
Independent vs. DependentDemand
Material Requirements
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 78/89
78
Material RequirementsPlanning (MRP)
• Basic Inputs to MRP
– MPS
– Bill of Material (BOM)
• A list and amount of components and/or materialrequired to produce a product
– Inventory Status File
M j I
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 79/89
79
Major Issues
• Master Production Scheduling and MRP
• Execution of plans
• Best Manufacturing Practices (BMP)
E ti f Pl
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 80/89
80
Execution of Plans
• Execution of plans uses the purchased orinternally manufactured materials for orderfulfillment
– Shop-floor scheduling and control ---releasing production orders and control
– Vendor scheduling and control --- releasing
purchasing orders and follow-up
E ti f Pl
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 81/89
81
Execution of Plans
• Measurement of actual execution resultsrelative to the plans
• Order status information and warning
signals to MRP
• Peaks and valleys in capacityrequirements make execution more
complicated and difficult
M j I
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 82/89
82
Major Issues
• Master Production Scheduling and MRP
• Execution of plans
• Best Manufacturing Practices (BMP)
Best Manufacturing
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 83/89
83
gPractices (BMP) Areas
1. Lead Time Reduction
2. Streamlined Flow
3. Quick Changeover
4. Cellular Manufacturing (FocusedFactories)
5. Empowered Teams
6. Cross-Functional Teamwork
Best Manufacturing
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 84/89
84
gPractices (BMP) Areas
7. Employee Involvement & Commitment
8. Process Reliability
9. Continuous Improvement
10.In-Process Quality
11.Seamless Shift Operations
12.Standard Operating Procedures
Best Manufacturing
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 85/89
85
gPractices (BMP) Areas
13.Goal Deployment
14.Visual Management Systems
15.Incentives, Rewards & Recognition
16.Plant Safety, Loss Prevention& Housekeeping
Best Manufacturing
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 86/89
86
gPractices (BMP) Areas
17.High-Performance Leadership
18.Supplier Partnerships
19.Cross-training
20.World-Class Performance Measures
Source: http://www.granite-bay.com/best-manufacturing-practices.html
Best Manufacturing
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 87/89
87
gPractices: Local Examples
• Kohler Generatorshttp://www.kohlerco.com/hub/powersystem.html
– Migrating products from MTO to ATOenvironments
• Use of pull system for final assembly
• Use of push system for material planning
• Use of manufacturing cells for subassemblies
• Exploring commonality of parts
Best Manufacturing
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 88/89
88
gPractices: Local Examples
• Kohler Generatorshttp://www.kohlerco.com/hub/powersystem.html
– Innovations in visual inventory management
– Innovations in managing suppliers• Expanding the scope of vendor-managed inventory
• Enforcing discipline in deliveries
• Globalization of supply chain
Best Manufacturing
8/2/2019 Planning and Execution
http://slidepdf.com/reader/full/planning-and-execution 89/89
gPractices: Local Examples
• Kohler Generatorshttp://www.kohlerco.com/hub/powersystem.html
– Process improvements
• New painting technology
• Optimization software for laser cutting of sheetmetal