production management i · pdf fileproduction management i (prof. schuh) operations control...
TRANSCRIPT
Production Management I (Prof. Schuh)
Operations Control L07 Page 1
Lecture 7
page 1© WZL / FIR
IntroductionChallenges
Methods and Strategies
Production Management I
Lecturer:M.Tech. Amit [email protected] Raum 209Tel.: 47705-439
- Lecture 7 -Operations Control
Learning target of this lecture:• Overview of tasks and objectives of operations control• Understanding of the challenges in real life• Understanding of the principles and processes of operations control• Knowledge of applicable methods
Production Management I (Prof. Schuh)
Operations Control L07 Page 2
Lecture 7
page 2© WZL / FIR
IntroductionChallenges
Methods and StrategiesShort content of the lectureIntroduction of the tasks of operations control (p. 4)
– Tasks and objectives of operations control will be defined and classified in the contextof production planning and control (PPC).
Challenges of operations control (p. 8)– The basic challenges of operations control will be specified and clarified with case studies.
Methods and strategies of operations control (p. 12)– In the main part methods and strategies of operations control will be introduced.
– Focus:Push and pull order release (p. 13)Flow scheduling (p. 17)Capacity balancing and capacity smoothing (p. 19)Load oriented order release (BOA) (p. 24)Priority rules for order release (p. 25)Kanban (p. 26)Dimension of time in operations control (p. 29)
Picture notes:
Production Management I (Prof. Schuh)
Operations Control L07 Page 3
Lecture 7
Index lecture 7:
Dangelmaier, W. Fertigungslenkung: Planung und Steuerung des Ablaufs der diskreten Fertigung; Springer-Verlag; Berlin; 1997
Eversheim, W. Organisation in der Produktionstechnik, Band 4: Fertigung und Montage; VDI-Verlag; Düsseldorf; 1989
Eversheim, W. Organisation in der Produktionstechnik, Arbeitsvorbereitung. Band 3; Springer-Verlag; Berlin; 1997
Eversheim, W. Produktionsplanung und -steuerung – Grundlagen, Schotten, M. Gestaltung, Konzepte; Springer-Verlag; Berlin; 1998Luczak, H.
Eversheim, W. Betriebshütte, Produktion und Management, Neu bearb.Schuh, G. (Hrsg.) Auflage. Springer-Verlag, Berlin, Heidelberg, New York, 1996
Hackstein, R. Produktionsplanung und -steuerung (PPS) VDI-Verlag, Düsseldorf, 1984
Lödding, H. Verfahren der Fertigungssteuerung, Springer-Verlag Berlin, Heidelberg 2005
Luczak H Rationalisierung und Reorganisation (Skript zur Vorlesung, Eigendruck, Aachen, 2004)
REFA Methodenlehre der Planung und Steuerung, Teil 3; HanserVerlag; München; 1985
Schuh, G. (Hrsg.) Produktionsplanung und -steuerung – Grundlagen, Gestaltung, Konzepte; 3. Auflage, Springer-Verlag; Berlin; 2006
Wiendahl, H.-P. Betriebsorganisation für Ingenieure, Hanser-Verlag; München; Wien; 1997
Wiendahl, H.-P. Fertigungsregelung – logistische Beherrschung von Fertigungsabläufen auf Basis des Trichtermodells; Hanser- Verlag; München;
1997
Production Management I (Prof. Schuh)
Operations Control L07 Page 4
Lecture 7
page 4© WZL / FIR
IntroductionChallenges
Methods and StrategiesDefinition of Operations Management
Costs Minimization by Optimization of Production-Economical Objectives
- High Due-Date Reliability- Short Lead Times- High Capacity Utilization- Low Shelf Inventories and Float Floor Stocks
- High Service Level- High Flexibility- Constant Capacity Load- High Level of Information- ...
Operations management:Operations management includes the arrangement for, the monitoring
and guaranteeing of quantity, deadline, quality, and cost
- Creation of programme and order- Determination of demand- Determination of deadline- Staging and task distribution
- Quantity and deadline- Quality- Budget accounting- Working conditions
- Intervention and modification to planning
- Quality management
Targe
t statusActual
status
Arrangement
Monitoring
Guaranteeing
ObjectivesTasks
Introduction
Picture notes:
Production Management I (Prof. Schuh)
Operations Control L07 Page 5
Lecture 7
page 5© WZL / FIR
IntroductionChallenges
Methods and Strategies
Tasks of Operations Management: The Aachen PPC-Model
In-plant production planning and
control
Procurement planning and
control
Data management
Production programme planning
Production requirements planning
Network configuration
Network marketing
Network requirement planning
Network Tasks Cross-sectional tasksCore tasks
Ord
er c
oord
inat
ion
Stor
age
PPC
-Con
trol
ling
(source: Eversheim)
Aachener PPC/ERP-Model
Introduction
Picture notes:
The function of the Production Planning and Control (PPC) is the time, capacity and quantitative planning and scheduling of the production and assembly (Eversheim 1989). Whereas the production planning has to organize the content and the single processes of the production and assembly, production control has to organize the operations in the production within the scope of order processing. The production control takes input from the production planning regarding the process sequence and associated logistics objectives.
The focus is on the company internal planning and control processes. Due to diverse customer demand, globalisation of procurement, sales markets, substitution of goods and the increasing process of globalisation, companies are under immense pressure to strengthen and focus on value adding processes in the whole supply chain. To cater this growing integration in the supply chain, the Aachener PPS Model has introduced in the network to manage the dependence.
The tasks of production planning and control can be divided into core tasks and cross-sectional tasks. While core tasks advance the order processing, cross-sectional tasks aid to integrate and optimise the production planning and control.
Production Management I (Prof. Schuh)
Operations Control L07 Page 6
Lecture 7
page 6© WZL / FIR
IntroductionChallenges
Methods and StrategiesERP Workflow (“Aachener PPC-Modell”)
(source: Hornung et al.)
Introduction
Proc
urem
ent
mar
ket
Core tasksCross-sectional tasks
Customer order entry
Sale
s m
arke
t
Forecasting
Production programme planning
Production requirements planning
In-plant production planning and control
Procurement planning and control
Procurement programme
In-plant production programme
Production programme
Requirements programme
Dispatch handling Storage
Costing Pay calculation
Quality inspection
Construction/ Work
scheduling
Ord
er c
oord
inat
ion
Picture notes:
Core tasks are long term production programme planning, medium term production requirement planning, short term in-plant production planning and control and short term procurement planning and control. Cross-sectional tasks are order coordination, storage and the controlling of the ERP system itself.
During the planning process, resources are planned with increasing level of detail and decreasing planning horizon. The results of a planning step are input for the next step. Planning information is fed forward to the next planning step with the aid of a control loop. The core tasks of PPC are therefore portrayable in a flowchart.
Production Management I (Prof. Schuh)
Operations Control L07 Page 7
Lecture 7
page 7© WZL / FIR
IntroductionChallenges
Methods and StrategiesSubdivision of functions of the PPS/ERP
source : Luczak, Eversheim, 1997
Introduction
Primary requirement planningSales planning
Resource planning
Net secondary requirement determination
Production requirement planningGross secondary requirement determination
Allocation of kind of procurement
Capacity requirement calculationLead time scheduling
Capacity adjustment
Fine scheduling
Self-manufacturing planning and controlLot sizing
Detailed resource planning
Disposability planningSequence planning
Order enabling
Offer evaluationOrder invoice
Vendor selectionSubscription enabling
Operations planning
Materials management
Production program planning
External supply planning and control
Picture notes:
Operations Management includes methods which are necessary for the processing of orders according to the results of work scheduling. One factor that influences operations management is the kind of dissolution of orders. In addition, the tasks of operations management are influenced by products, procurement, workflows in manufacturing and assembly and by customer changing priorities during manufacturing.Inspite of the different characteristics of the specific factors in different companies, core tasks and cross-sectional tasks of operations management can be identified in a universal concept. Core tasks are production programme planning, production requirements planning, in-plant production planning and control and procurement planning and control.
Production Management I (Prof. Schuh)
Operations Control L07 Page 8
Lecture 7
page 8© WZL / FIR
IntroductionChallenges
Methods and StrategiesMulti-dilemma of operations controlChallenges
Equal & high workload:
- High stock of material
- Low capital
- High order capacity
Low capital commitment:
- Low stock of material
- Low capacity
- High workload
High date of delivery loyalty:
- High inventories
- High stock of material
- Low workload
Short lead time:
- Low stock of material
- High capacity
- Low workload
Lead time Scheduleddelivery date
Workload
Transfer tocapital lockup
Picture notes:
Two challenges must be taken into account within the multi-dilemma of operations control:• Conformity between workload in production (by customer orders respectively market specific orders) and own capital commitment• Adjustment of lead time of production orders with the scheduled delivery date. At this point, the waiting within the lead time and the delivery date should be considered
Production Management I (Prof. Schuh)
Operations Control L07 Page 9
Lecture 7
page 9© WZL / FIR
IntroductionChallenges
Methods and Strategies
Co-Ordination Materials Management / Assembly Control
100 %
(Example company)(source: Stolz)
70 %
17 %27 %
56 %
17 %13 %≤ 2
months
> 5months
2 - 5months
Quantity of object numbers
Inventory value
100 %
91 %
Troubles in total
Missing parts58 %
Production faults19 %
Engineering faults14 %
Wrong parts4.5 %
Pre-assembly faults3 %
Other faults1.5 %
material
Total number: 13,944
Breakdowns in assembly Structure of inventory
Challenges
Picture notes:Production Scheduling and Materials Management can not be separated in the handling process of production assignments. The coordination of the information with the associated physical flow of material is the core challenge of an effective production planning and scheduling.A lack of coordination between materials management and production & assembly scheduling will result in a disturbance of the assembly even though high stock levels are available. These disturbances increase with an increase of variety and complexity of the products in combination with variation of demand.As shown in the graphic that 91% of production disturbances are caused by material problems, despite of the high inventory level (the stock suffices for 70% of the code numbers for more than 5 month). It is significant that 53% of the material conditional disturbances are due to missing parts. A better coordination between material administration and assembly control can therefore reduce both the disturbance quota and inventory.
Production Management I (Prof. Schuh)
Operations Control L07 Page 10
Lecture 7
page 10© WZL / FIR
IntroductionChallenges
Methods and Strategies
Planning Tasks and Levels of Operations Management
(source: Brankamp)
Challenges
Rough planning
shor
t
med
ium
lon
g
low
m
ediu
m
h
igh
Creation of production
order
Requirements explosion and
material planning
Detailed capacity planning
Work distribution
Throughput and capacity scheduling
Creation of shop-floor
order
Programme planning
Order planning
Production order
Shop-floor order
Planning horizon
Planning intensity
Customer order
Detailed planningMedium-term planning
„Informational Gap“
„EffectivityGap“
t
Picture notes:
The types of order triggers in a company vary, depending on the product and the prevailing conditions on the market. Producers who rely on constant ability to supply will standardise their products and produce for stock. The level of capital commitment rises with the resultant high stock levels. The consequence of increased emphasis on customer orientation is that deadline and capacity planning must meet more exact requirements. The ability to meet deadlines assumes a role of central importance for the success of any manufacturing.Production control is taking charge of the results of the production program plan as well as production requirement planning. Manufacturing orders as well as primary and secondary needs are available and contributed during the first step of job processing control, lead time and capacity scheduling.Graded planning is carried out on several levels in order to keep the large volume of data under control. For planning on higher levels, aggregated data are used; planning on higher levels is long-term. In contrast, planning on lower levels is short-term, but uses detailed data.Two basic planning problems arise. The "information gap" arises in early planning phases since enough information for a more intensive and therefore more detailed planning is not existing yet. The "effectiveness gap" during the later fine planning expresses that detailed data for the planning is existing but the intervention possibilities are restricted due to the temporal closeness to the production beginning.
Production Management I (Prof. Schuh)
Operations Control L07 Page 11
Lecture 7
page 11© WZL / FIR
IntroductionChallenges
Methods and Strategies
Types and Framework of Orders for a Mechanical Engineering Company
(source: Traub, 1991)
Challenges
~~~Customer order
120,000 / year100Assembly processes:
18,000 / year15Assembly orders:
1.2 mio. / year1,000In-house production parts:
3 mio. / year2,500Outsourced parts:
Yearly requirements:Framework of orders for one machine:
Production order
Shop-floor orderParts production
Shop-floor orderAssembly
1,200 Customer orders / yr.350 Machine types / yr.
Purchase order
Picture notes:
The difficulties of operations control are caused by a high number of different parts to be produced and obtained. A high number of orders which must be coordinated with regard to her completion appointments and capacity requirements results from it.This problem is found particularly with complex products and customer-specific production. Normally there are so many operations necessary that even a mid-sized company needs the support of a PPC-system for its operations control.
Production Management I (Prof. Schuh)
Operations Control L07 Page 12
Lecture 7
page 12© WZL / FIR
IntroductionChallenges
Methods and Strategies
Characteristics of Order Types for Production Control
Order types
Customer-anonymous
• Delivery ex stock
• Customer-anonymous production and assembly of lots for stock
• No customer demands
Customer-specific
• Delivery after running through engineering, operations planning, production, and assembly
• Nearly no stock or lot production
• All customer demands
Mixed
• Delivery determined by assembly time
• Production of basic components for stock, customer-specific production and assembly of variants
• Customer demands within the framework of combination
(source: Wiendahl)
Methods & Strategies
Picture notes:Based on the product and the present market situation, there are different types of solutions for an order. A producing company that needs to provide its goods on a continuous basis, will standardise its products and keep a high stock level. This results in a high level of capital costs. With an increasing customer orientation, the demand of time and capacity planning rises. The companies focus is to meet the delivery date on time.
Production Management I (Prof. Schuh)
Operations Control L07 Page 13
Lecture 7
page 13© WZL / FIR
IntroductionChallenges
Methods and Strategies
Principles and Characteristics of Push-Pull Control
Storing of components
Job progress
Push
Push
Storing of customer-independent products,
sale ex stock
Sale of customer-specific products
Sale of customer-specific products
Material procurement according to production
programme
Customer-specific material procurement
Material procurement according to production
programme
Legend:
Direction of flow transferred by operations management
Push
Pull
Pull
Delivery period Capital tie-up
Methods & Strategies
Picture notes:The application of various methods depends on the product and/or order structure.
The different types of the order triggering require different mechanisms of operations control. One distinguishes basically in Pull and Push control (Wiendahl):1. Pull control (Pull)
Aim: Guarantee of the availability of a certain quantity within one period of timeFeatures: Order release triggered by a customer demand in direction of the material flow
Orders without closing date and job numberSynchronization of input and output
2. Push control (Push)Aim: Focus on completion on scheduleFeatures: Order release triggered by a superior planning level Orders with closing date as well as job number
No synchronization of input and outputThe limits of Pull and Push control circles have to be established specifically for every enterprise in dependence of capital relationship and desired delivery time. The structuring of products into assemblies and components without variant influence (neutral assemblies) supports the specification of these limits. Superordinated planning functions for long and short term planning are frequently affected by the push-principle and with approaching the start of production they are supplemented with control systems based on the pull principle
Production Management I (Prof. Schuh)
Operations Control L07 Page 14
Lecture 7
page 14© WZL / FIR
IntroductionChallenges
Methods and StrategiesEffects of Push Control
(Example company)
Control flow (push control)
Control flow (pull control)
Market
Forecast
Order management
Purchasing
Supplier
Production
High inventories in case of bad availability of material
Inventory
Assembly
Order
PUSH
CONTROL
Methods & Strategies
Picture notes:The application of the Push control principle means in the practice that a high inventory is necessary to make a custom-designed final assembly possible. This inventory grows with the increase of the diversity of variants since all variants must be on stock to meet the customer requirements.Since the planed inventory depends strongly on the quality of the forecast of the customer demand, an overestimation of the demand causes a very high inventory level. If the forecast values are below the actual demand, a low inventory leads to low material availability. Therefore the choice of the right forecasting method for the respective products therefore is of great importance (compare PM1 L8 (" material management").
Production Management I (Prof. Schuh)
Operations Control L07 Page 15
Lecture 7
page 15© WZL / FIR
IntroductionChallenges
Methods and Strategies
Expansion of Pull-Controlled Production Volume (Example)
JIT = Just in time
Control flow (pull control)
Assembly
Pre-assembly
Final assembly
Order
Market
Forecast
Purchasing
JIT
Reduction of inventory of up to 30% with
simultaneous increase of availability of material
PUSH
CONTROL
PULL
CONTROL
Control flow (push control)
DEMAND-ACTUATED
CONSUMPTION-DRIVEN
Supplier / Cost centre Pre-assembly
Synchronised inventory
Methods & Strategies
Picture notes:The introduction of assembly-synchronised production increases the planning flexibility in production and results in a reduction in stock levels in the assembly area. It is useful to implement this measure when assembly requires a long period and when high part value and/or part volume is involved.Example: air plane production: Supply of jet engines at the latest time possible
The assemblies and components necessary for the assembly are divided up into stock classes and customer anonymously manufactured (push controlled) according to there different use frequency. The corresponding variants then are produced custom-designed (pull controlled) in the assembly from the stored assemblies and parts. The pull controlled assembly makes a lower inventory possible since only assemblies and parts must be stored. The interface between pull and push control is called order penetration point.
.
Production Management I (Prof. Schuh)
Operations Control L07 Page 16
Lecture 7
page 16© WZL / FIR
IntroductionChallenges
Methods and Strategies
Tasks of the production requirement planning
Production Program
Secondary demand planning
Gross secondary demand
Net secondary demand In stock components
Flow scheduling
Product structure Effective date for capacities
Technological requirements
Capacity demand Balancing/AdaptationCapacity
availability
Capacity planning
Requirement Program
70x
210x
50x
80x
20h Sawing
6h Drilling
10h Millcuttling
2h Sawing
6h Drilling
12h Millcutting
Materials management
Methods & Strategies
Picture notes:The input information for the production requirement planning is the production plan that is the result of the production program planning. For a certain planning horizon for example a year the monthly lot size of the products or product parts are listed (planning pattern). The task of the production requirement planning is to secure the production program with adequate procurement programs. The considered resources (production factors) are production facilities, material (secondary demand), personal, transportation devices etc. that means everything that a production process incorporates. Secondary demand planning calculates the actually needed amount of raw materials, parts and groups and matches them with the appropriate procurement type (in house production/outside supply). Finally the classical tasks of time management (lead time scheduling and medium range capacity planning) occur. These are the basic tasks of operations control and are the basis for the short term planning of in house production.
Production Management I (Prof. Schuh)
Operations Control L07 Page 17
Lecture 7
page 17© WZL / FIR
IntroductionChallenges
Methods and StrategiesOrder- and capacity-based scheduling
A
B
C
Deadline overview Deadline overview
Phase 1(Focus: work-piece)
Phase 2(Focus: machine)
Order-based scheduling Capacity-based scheduling
Deadline plan
Order 1 1.1, 1.2, 1.3
Deadline plan
Order 1 1.1, 1.2, 1.3Order 2 2.2, 2.3Order 3 3.1, 3.2, 3.3
1.1
1.2
1.3
Lead time for order 1
Wor
k sy
stem
s
Deadline
A
B
C
1.1
1.2
1.3
Lead time for order 1
Deadline
3.1
2.2 3.2
2.3 3.3
Methods & Strategies
Picture notes:When setting the dates for customer-oriented production, the start and completion dates for each step (operation) must be determined with the completion date in mind. Various types and methods of date-setting are used.
Within order-oriented scheduling, only the data relating to one order are taken into account. The basic scheduling methods (e.g. forward and back-ward scheduling )
Within capacity-oriented scheduling, the mutual dependency between orders and therefore between capacity limits is considered.
As a rule, at first order-oriented then capacity-oriented scheduling is conducted.
The results of lead time scheduling within production requirement planning are basic dates related to capacities respectively capacity groups. Later the actual state of charge can be taken into account (Wiendahl 1989).
Production Management I (Prof. Schuh)
Operations Control L07 Page 18
Lecture 7
page 18© WZL / FIR
IntroductionChallenges
Methods and StrategiesScheduling
Legend: Setup Time Operation Time Transitional Period
Centre SchedulingForward SchedulingBackward Scheduling
Distribution of Schedule Deviations
• Starting point is a fixed final date (e. g. desired delivery date of the customer)
• Calculation of the latest possible start date backwards from the final date
• If the calculated date is situated in the past, methods will be applied to reduce the lead time
• Starting point is a fixed start date• Calculation of the earliest possible final date
forward from the start date• Problem: material will be ordered too early⇒ Forward scheduling is only applied to
calculate the earliest possible delivery date, afterwards the latest start dates (and therefore order dates) are calculated with help of backward scheduling
• Starting point is a fixed centre date• Calculation of the latest possible start
date and the earliest possible final date• If the calculated date is situated in the
past, methods will be applied to reduce the lead time
• Application is useful, if the bottleneck capacities have to be taken into special account
Operations
Start Date (calculated)A100
A90A80
A70A60
A50A40 backwards
Final Date (fix)
Time
Operations
A100A90
A80
A60A50A50
A40
Start Date (fix)
Final Date (calculated)
A70
Timeforwards
Operations
forwardsbackwards
A100A90
A60A50
A40
Start Date (calculated)
Final Date (calculated)
A70A80
Time
Process Date for A90 (fix)
Methods & Strategies
Picture notes:The (period based) supply orders and particularly the in-house production are planed with a lead time scheduling. Therefore each process step has a fixed date according to the production sequence. The lead time is comprised of the processing time (start up time and operation time) and the waiting time (standby time before and after the processing, control time and transport time). Depending on the planning method unlimited or free capacities are the basis of the scheduling. That means that the constraints on the capacities are not yet considered in planning. The planning basis for these tasks are work schedules and transfer matrices. In a transfer matrix planned values of the inter operation time for each transfer from one workstation to another workstation are listed. The lead time scheduling differentiates between three different types of scheduling:
• Forward scheduling: Based on a fixed start date the earliest due date is calculated• Backward scheduling: Base on a fixed due date the latest start date is calculated to
fulfil the contract on time• Combined scheduling: Based on a fixed starting point a forward scheduling into the
future and a backward scheduling into the past is done. It is possible to start with any particular process when using the combined scheduling. For this process a fixed date can be planned. This method can be used if additional
considerations such as bottleneck machine haves have been taken into account.
Production Management I (Prof. Schuh)
Operations Control L07 Page 19
Lecture 7
page 19© WZL / FIR
IntroductionChallenges
Methods and Strategies
Alternati
ve-
machine optio
ns
Alternati
ve-
machine optio
ns
Load
Time
Technicalcapacity harmonisation
Time
Time-based capacity harmonisation
Time
Load
Alternati
ve
machine optio
ns
Machine AMachine B
Machine C
Machine AMachine B
Combination of technical and time-based capacity harmonisation
Time- and machine-based harmonisation of capacity Methods & Strategies
Picture notes:Within capacity planning, the distribution of activities among the individual units of capacity is optimised, under consideration of the load limitations. Capacity harmonisation and capacity adjustment are possible measures.A further distinction is made between technical (e.g. parallel dispatching of an order on another machine) and time-based capacity harmonisation (e.g. the same machine, but later dispatching).
In industrial practice, time-based and technical capacity harmonisation operations are usually combined. Normally, the time-based harmonisation is first, in order to retain optimum use of capacity in terms of both engineering and cost. Placing an order with an external company (extended work-bench principle) is a further option.
Production Management I (Prof. Schuh)
Operations Control L07 Page 20
Lecture 7
page 20© WZL / FIR
IntroductionChallenges
Methods and Strategies
occupied
free
Handling time
1. Cut within production
2. Cut within production
Transitional period Control periodStart-up of production A
1. Cut within production
2. Cut within production
Control period
Transitional period
Handling timeStart-up of production B
1. Day 2. Day 3. Day
1. Produktions-schnitt fürAuftrag B
2. Produktion-schnitt fürAuftrag B
Belegungdurch
Auftrag A
Belegungdurch
Auftrag C(Spittfaktor0)
FreiFrei1. Produktions-
schnitt fürAuftrag B
2. Produktion-schnitt fürAuftrag B
Belegungdurch
Auftrag A
Belegungdurch
Auftrag C(Spittfaktor0)
FreiFrei1. cut within
production for order B
2. cut within production for
order B
Occupied with order
A
Occupied with order C
(Split factor 0)
FreeFree
Cap
acity
of m
achi
ne 1
Capacity management (PPS-system) Methods & Strategies
Picture notes:Handling time/ Transitional period/ Control periodHandling and control time mark constant values. Handling time is added before the start-up of a process operation, control time is added after the ending of an operation. Both factors do not occupy any capacity but they heighten the machining time.The transitional period indicates a time exposure that arises from product transport within manufacturing from one workplace to an other or from an effort conditional on production after a process operation (e.g. cooling, drying etc.).
Split factor (cut within production)If the temporal effort of production for one process operation cannot take place on a single work day because of lack of capacity or duration of the production, time has to be spread on one or several days. If such a splitting is not possible or only in parts because of production reasons, the splitting can be managed by depositing the split factor within the process operation.
Capacity factorUsually, the basic capacity of a workplace is deposited within the machine group with 100% of the available time. This available capacity can be reduced because of external factors such as machine's cooling times, breakdown time, frequency and maintenance schedule Therefore, additional capacity reserves for critical situations should be created.
Production Management I (Prof. Schuh)
Operations Control L07 Page 21
Lecture 7
page 21© WZL / FIR
IntroductionChallenges
Methods and StrategiesMeasures for adapting to capacity Methods & Strategies
Selection and execution of measures geared to adapting to capacity
Internal influencing factors
External influencing factors
• effectiveness• duration• internal priority
• external priority• penalty • labour market• economic situation
Internal/ external alternative capacity
Overtime/ short-time working
K1
K2
K
Additional shift
2·K
K
InvestitionenInvestment
KK´
K ?
Picture notes:When the company-specific parameters change, e.g. expansion, acquisition of a new major customer etc., the capacity harmonisation measures are generally not enough and it becomes necessary to adapt capacity to the changed parameters.
Production Management I (Prof. Schuh)
Operations Control L07 Page 22
Lecture 7
page 22© WZL / FIR
IntroductionChallenges
Methods and Strategies
Tasks of In-House Production Planning and Control Methods & Strategies
In-House Production Program
Lot Size Calculation
Shop Floor Program
Large Inventory,Non Flexibility
High Setup-Timesand Costs
EconomicalManufacturing Lots for all Operations
Finite Operation Scheduling
OperationsOperation Timesand Transitional
Periods
Lead Time
Sequence PlanningQueue of Operations
Capacity orCapacity Group
Optimised Sequenceof Operations
130 13x10
th tnSawingDrillingMillcut.
15s 6s11s 8s14s 12s
SawingDrillingMillcutting
Operations planning
Picture notes:The planning result of the manufacturing orders based on the production requirement planning assures that the resources are available. The planned orders contain operations that are executed in different manufacturing sectors. Trough a finite resource planning the availability of the needed capacities can be secured. Capacity planning relies heavily on material management to provide the raw materials as planned in production.The internal production planning and scheduling particularises the guidelines of the available material planning tolerance and the conversion is controlled. The material planning tolerance is the difference between earliest and latest start date of the production and the allocation of the quantities to the manufacturing orders.At the end of this planning task is to assign manufacturing orders to machines. The final order release can occur in a variety of possible algorithms.
Production Management I (Prof. Schuh)
Operations Control L07 Page 23
Lecture 7
page 23© WZL / FIR
IntroductionChallenges
Methods and StrategiesComparison of Some Control Strategies
Release strategy
Inventory
Date
Push control principlePull control principle
Principle
Parameter
• Progress rate system (FZS)
• KANBAN
• Load-oriented order release (BOA)
• Material Requirement Planning (MRP I)
• Management Resource Planning (MRP II)
• Optimized Production Technology (OPT)
Methods & Strategies
Picture notes:Different control strategies can be compared on the basis of control principle during the materials allocation on one hand and the control parameters on the other hand. Detailing of different release strategies will be discussed to a large extent in production management II.
Production Management I (Prof. Schuh)
Operations Control L07 Page 24
Lecture 7
Picture notes:Load-dependent order release (“belastungsorientierte Auftragsfreigabe”, BOA) is a stochastic method. The controlling factor of this period-oriented method is the backlog in front of work stations, which is constantly calculated. Only those orders which have to be finished within a defined deadline are considered part of the urgent backlog. When an order is part of the urgent backlog, it will be checked if its load dues fit within a defined load limit.Indirect load dues will be considered with a reduced load due accordance to the reduced arrival probability. If there is no capacity for any production step, the whole order will be retained.The advantage of the BOA method is the high flexibility in case of varying order numbers. However, there are problems in controlling of orders that consist of many steps.
page 24© WZL / FIR
IntroductionChallenges
Methods and StrategiesLoad-dependent order release (BOA)
customer storage requirements
storage
knownbacklog
urgentAuftragsbestand
releasedrbacklog
VH
regulative parameter “load limit"(Parameter reading in percentage EPS)
EPS
regulative parameter "deadline"(Parameter anticipation horizon
stock level
planned capacity
scheduling
Methods & Strategies
Production Management I (Prof. Schuh)
Operations Control L07 Page 25
Lecture 7
page 25© WZL / FIR
IntroductionChallenges
Methods and StrategiesUse of Priority Rules for Sequence Planning
FCFS First come first served
SPT Shortest processing time
RAN Random number per operation
RAND Random number per order
SROT Shortest remaining operation time
TERM Finish date
SLACK Slack time
LPT Longest processing time
OP/RE Operation time / remaining machining time
STRUN Shortest processing time with limitation of waiting time
S-SL SPT if slack time sufficient, otherwise SLACK
Queue of shop-floor orders Priority rules
Shop-floor order in
machining
Methods & Strategies
Picture notes:Queues arise from the allocation of orders to the individual jobs/machines. The order of the orders to be worked on can be defined with the help of priority rules if the fine planning of the workshop doesn't find any exact specifications. The priority rules should be selected according to the aim.
Production Management I (Prof. Schuh)
Operations Control L07 Page 26
Lecture 7
page 26© WZL / FIR
IntroductionChallenges
Methods and StrategiesUse of the pull principle: kanban method
Kanban-CardCost center:Grindery
Part-Nr.
Partdescription
Container
Containercapacity
5135 - 371 Model-Typ
Appearance
Process(operation)
grindingbolt
Box
500 pieces
Storage depot-Nr. P371-3450
371
Kanban is a production control method using the pull control principle that makes permanent intrusions of a central control unit unnecessary. It is solely oriented at the customer demand.
Definition Kanban:
kan bannote, card
Methods & Strategies
Picture notes:Description:Decentralized self-regulating control circuit• Production starts as a reaction to a requirement notice from the next production level.• Flexible use of production facilities and personal balances fluctuation of requirement rate.• Buffer storage between production levels.• Kanban cards as information device between communicating sites.Use:Introduced by Toyota the Kanban principle is used for the communication between different production levels in operations control. For example the supply of an assembly line with small parts or self produced components can be accomplished without the central PPC system.
Production Management I (Prof. Schuh)
Operations Control L07 Page 27
Lecture 7
page 27© WZL / FIR
IntroductionChallenges
Methods and StrategiesOne card control circuit: sketch Methods & Strategies
Productionkanban
5
1
2
34
6
7
Source Drain
Productionkanban-Collecting box
Picture notes:1. To obtain the needed parts for the production, a worker from the drain moves with the empty containers to the
buffer storage of the control circuit. He will place the empty containers in their intended places.2. He takes the needed amount of full containers out of the buffer storage.3. After the removal of the attached Kanban he places the Kanban Card in the Kanban collecting box.4. Then he moves with the full containers to his work place and starts with the production.5. A worker of the source takes a Kanban out of the Kanban collecting box. This Kanban is a production order for
the source.6. The worker of the source retrieves the container that is listed on the Kanban out of the buffer storage and
moves to his workplace where he starts producing the needed parts.7. The finished parts will be put in the empty container. Then he attaches a Kanban to the full container and
delivers the container to the buffer storage where he places the container on the intended place that is mentioned on the Kanban.
Production Management I (Prof. Schuh)
Operations Control L07 Page 28
Lecture 7
page 28© WZL / FIR
IntroductionChallenges
Methods and StrategiesAdvantages and disadvantages of kanban Methods & Strategies
● A small amount of buffer stock leads to a break in production of the following levels if a disruption occurs.
● Highly fluctuating amounts are not controllable
● Small multiplicity of variants/high amount of constant components
Disadvantages
Kanban
● Small amount of stocks
● High service level and punctuality
● Reduction of lead time
● High transparency of flow of material
● Low control costs
● Low data management and production data collecting costs
● Higher responsibility of the employees
● Low stocks result in an accurateness of the employees
Advantages
Picture notes:
Production Management I (Prof. Schuh)
Operations Control L07 Page 29
Lecture 7
page 29© WZL / FIR
IntroductionChallenges
Methods and StrategiesComposition of Throughput Time
(source: Stommel)
Throughput time
Machining time (including setting-up)
Transport time
Control time
Queuing time
100 %
10 %
2 %
3 %
85 %
Queuing time caused by work process
Storing time
Queuing time caused by interruptionsQueuing time caused by persons
75 %
5 %
3 %
2 %
oa
Methods & Strategies
Picture notes:In case of lot manufacturing, the actual proportion of unproductive time within the throughput time rises with increasing lot-size. In addition to the transition times between two operations, lot-size dependent waiting times within production can be optimised by reducing lot size. The trade off here is between the optimal lot size and the set up time of machines. The ideal lot size for any organisation to minimise Work In Progress is 1.
Production Management I (Prof. Schuh)
Operations Control L07 Page 30
Lecture 7
page 30© WZL / FIR
IntroductionChallenges
Methods and StrategiesShare in Throughput Time of Lots and Units
time
Quantity
Setting-up Machining x Queuing time
(after machining) TransportQueuing time
(before machining)
Machin-ing yS
Throughput time (order)
Part I
Part II
Assembly
Machining time (Order) Transfer time
Throughput time (work process, lot)
Part n
Part 2
Part 1
Lot size
Transfer time (unit)Average throughput time (unit)
Machining time (unit)
(source: Heinemeyer)
Methods & Strategies
Picture notes:In the case of lot manufacturing, the actual proportion of unproductive time within the throughput time rises with increasing lot-size. In addition to the transition times between two operations, lot-size related waiting times within an operation can also be reduced.On the on hand a large lot size causes a short changeover time, but on the other hand all work pieces have to wait on each other. The determination of optimal lot size is not trivial.
See also PM1 V5: Determination of the optimal lot size
Production Management I (Prof. Schuh)
Operations Control L07 Page 31
Lecture 7
page 31© WZL / FIR
IntroductionChallenges
Methods and Strategies
Methods of Reducing Production Throughput Time
Splitting of operations
Overlapping production
Combination of operations having the
same setting-up
Normal production cycle
t
Machining time
A 20 A 30A 10Order A
Setting-up time Transfer time
A 20/2 A 30A 10
A 20/1
t
t
A 20A 30
A 10
t
A 20A 10
tOrder B
A 30B50
t
t
avoid blocking of production resources
build part families / technology families
Methods & Strategies
Picture notes:There are different possibilities of reducing the transmission delay of an order. When splitting operations e.g. a work step can be carried out at the same time on two machines instead of only one machine. Another method is overlapping the production, this means the next work step doesn't start after the completion of the whole lot but after the completion of just a part. Furthermore the setting up of operations with the same set-up process can be joined together for saving make-ready times so that parts of the order A are produced together with parts of the order B.The allocation of orders to the individual workplaces results in queues. The sequence in which the orders are to be processed can be determined using priority rules in case the detailed shop-floor plans do not contain any exact specifications. Rules are selected depending on the objective.
Rule selection is not static!
SPT: highest order throughput!Large orders are not processed (see LPT)
SLACK: machining time remaining / throughput time remaining