DISTQIBUTION TRANSFORMER COMPANY LIMIETED (DTCL)

PRODUCTION OPERATION MANAGEMENT

NewGate India Hyderabad, Andhra Pradesh- 500038

Website: www.newgate.in

Email: contact@newgate.in Slideshare URL :

http://www.slideshare.net/newgateindia

Introduction

DTCL(Distribution Transformer Company Limited)is a Company manufacturing Transformers for Power Sectors.

Owing to Financial Crisis,channelised their efforts to tap the Export Market.

Previously manufactured only Single Phase Transformers but later expanded to Distribution Transformers.

Issues Faced by Engineering Department

Customer Specifications varying widely owing to Company going Global.

Longer Lead times to meet new Specifications.

Rejection at the last moment due to Quality Issues.

Activity no. Description

1 Processing and circulation of customer order

2 Preparation of customer drawings

3 Customer drawings to marketing

4 Checking and forwarding to customer

5 Getting approval from customer

6 Preparation of manufacturing drawings

7 Issuing manufacturing drawings to planning

8 Issue from planning to other departments

9 Material procurement-prototype

10 Processing tools required for manufacturing

11 Manufacturing- prototype

12 Material processing-final order execution

13 Manufacturing-final order execution

14 Organizing customer inspection through marketing

16 Dispatch

List of Activities Given

Activities Includes

Activity no. Description

1 Processing and circulation of customer order

2 Preparation of customer drawings

3 Customer drawings to marketing

4 Checking and forwarding to customer

5 Getting approval from customer

5’ Customer comments

6 Preparation of manufacturing drawings

7 Issuing manufacturing drawings to planning

8 Issue from planning to other departments

8’ Revision

9 Material procurement-prototype

10 Processing tools required for manufacturing

11 Manufacturing- prototype

12 Material processing-final order execution

13 Manufacturing-final order execution

14 Organizing customer inspection through marketing

16 Dispatch

Domestic Export

Activity no. Description Order-1 Order-2 Order-1 Order-2

1 Processing and circulation of customer order 2 2 3 3

2 Preparation of customer drawings 30 18 13 16

3 Customer drawings to marketing 2 3 1 1

4 Checking and forwarding to customer 2 1 3 3

5 Getting approval from customer 447 98 396 93

05’ Customer comments

6 Preparation of manufacturing drawings 400 120 400 23

7 Issuing manufacturing drawings to planning 2 3 17 1

8 Issue from planning to other departments 1 2 2 1

08’ Revision

9 Material procurement-prototype

10 Processing tools required for manufacturing 603 228 486 167

11 Manufacturing- prototype

12 Material processing-final order execution 341 160 36 5

13 Manufacturing-final order execution

14 Organizing customer inspection through

marketing

16 Dispatch 8 130 18 15

Time of activities

Time in days

Domestic Export

Activity no. Description Order-1 Order-2 Order-1 Order-2

1 Processing and circulation of customer order 2 2 3 3

2 Preparation of customer drawings 30 18 13 16

3 Customer drawings to marketing 2 3 1 1

4 Checking and forwarding to customer 2 1 3 3

5 Getting approval from customer 447 98 396 93

05’ Customer comments

6 Preparation of manufacturing drawings 400 120 400 23

7 Issuing manufacturing drawings to planning 2 3 17 1

8 Issue from planning to other departments 1 2 2 1

08’ Revision

9 Material procurement-prototype

10 Processing tools required for manufacturing 603 228 486 167

11 Manufacturing- prototype

12 Material processing-final order execution 341 160 36 5

13 Manufacturing-final order execution

14 Organizing customer inspection through

marketing

16 Dispatch 8 130 18 15

Assumptions

Time in days

Domestic Export

Activity no. Description Order-1 Order-2 Order-1 Order-2

1 Processing and circulation of customer order 2 2 3 3

2 Preparation of customer drawings 30 18 13 16

3 Customer drawings to marketing 2 3 1 1

4 Checking and forwarding to customer 2 1 3 3

5 Getting approval from customer 447 98 396 93

05’ Customer comments 3 3 3 3 6 Preparation of manufacturing drawings 400 120 400 23

7 Issuing manufacturing drawings to planning 2 3 17 1

8 Issue from planning to other departments 1 2 2 1

08’ Revision 2 2 2 2 9 Material procurement-prototype

10 Processing tools required for manufacturing 603 228 486 167

11 Manufacturing- prototype

12 Material processing-final order execution 341 160 36 5

13 Manufacturing-final order execution

14 Organizing customer inspection through

marketing 3 3 3 3

16 Dispatch 8 130 18 15

Assumptions

Processing and circulation

Customer Drawing

Customer Approval

Customer comments

Drawing to marketing

Checking

Manufacturing Drawing

Issuing Drawing

Distributing to Departments

Material Requirement

Details of material

Tools and dies

Material Processing Manufacturing Inspection

Dispatch

Flow Chart Sequence

01 02 03 04 05

06

09

10

11

05’

07

08’

16

13 12

Revision

08 14

Domestic Export Activity no. Description Order-1 Order-2 Order-1 Order-2

1 Processing and circulation of customer order 2 2 3 3

2 Preparation of customer drawings 30 18 13 16 3 Customer drawings to marketing 2 3 1 1

4 Checking and forwarding to customer 2 1 3 3 5 Getting approval from customer 447 98 396 93

05’ Customer comments 3 3 3 3 6 Preparation of manufacturing drawings 400 120 400 23 7 Issuing manufacturing drawings to planning 2 3 17 1 8 Issue from planning to other departments 1 2 2 1

08’ Revision 2 2 2 2 9 Material procurement-prototype

10 Processing tools required for manufacturing 603 228 486 167 11 Manufacturing- prototype 12 Material processing-final order execution 341 160 36 5

13 Manufacturing-final order execution

14 Organizing customer inspection through

marketing 3 3 3 3

16 Dispatch 8 130 18 15

Calculating Average

Calculating Average of order 1 & 2

Time in days

Activity no. Description Domestic Average

Export Average

1 Processing and circulation of customer order 2 3 2 Preparation of customer drawings 24 14.5 3 Customer drawings to marketing 2.5 1 4 Checking and forwarding to customer 1.5 3 5 Getting approval from customer 272.5 244.5

05’ Customer comments 3 3 6 Preparation of manufacturing drawings 260 211.5 7 Issuing manufacturing drawings to planning 2.5 9 8 Issue from planning to other departments 1.5 1.5

08’ Revision 2 2 9 Material procurement-prototype

10 Processing tools required for manufacturing 415.5 326.5 11 Manufacturing- prototype 12 Material processing-final order execution 250.5 20.5 13 Manufacturing-final order execution 14 Organizing customer inspection through marketing 3 3 16 Dispatch 69 16.5

Average Time in days

Question1:

Develop a network representation of the execution

Of an order for distribution transformers at DTCL.

Question1:

Develop a network representation of the execution

of an order for distribution transformers at DTCL.

Answer 1: Nodal Network

PERT AON

PERT CHART 02 03 04 05’

06

09 10

D1

05

11 07

08

08’

12

13 14 16

01

D1

AON CHART

02 03 04 05 05’

06

09 10 11 07

08

08’

12

01

13 14 16

Question 2:

1. Use the network and develop time estimates for execution of the order.

2. What are the key activities that require better managerial control.

Question 2:

1. Use the network and develop time estimates for execution of the order.

2. What are the key activities that require better managerial control.

Answer 2:

• Calculate critical path time ( Domestic & Export)

• Identify the critical activities ( Domestic & Export)

For

Domestic Order

PERT CHART: Domestic Order 02 03 04

06

09 10

05

11 07

08

08’

12

13 14 16

01 2

24 2.5 1.5

260

415.5

2.5

0

3

272.5

1.5

2

250.5 3 69

05’ 05

D1

D1 0

PERT CHART: Domestic Order 02 03 04 05’

06

09 10

05

11 07

08

08’

12

13 14 16

01 2

24 2.5 1.5

260

415.5

2.5

0 3 272.5

1.5

2

250.5 3 69

Critical Path: 01-> 02-> 03->04->06

->10->07->08->08’->12->-13->14->16

D1 D1

0

Answer 2: Domestic Order Total Lead time = Time taken by critical path

= Tp (01,02,03,04,06,09,10,11,7,8,8’,12,13,14,16)

Total Lead time = 1034 days

The key activities that require better managerial control are:

01,02,03,04,06,09,10,11,7,8,8’,12,13,14,16

• This activities can be crashed

• Time associated with each of this critical activity can be optimized.

Slacks • 05:Real Float = 403 days,

• 05 & 05’ :Real Float = 400

For

Export Order

PERT CHART: Export Order 02 03 04

06

09 10

05

11 07

08

08’

12

13 14 16

01 3

14.5 1 3

211.5

326.5

9

0

3

244.5

1.5

2

20.5 3 16.5

05’ 05

D1

D1 0

PERT CHART: Export Order 02 03 04

06

09 10

05

11 07

08

08’

12

13 14 16

01 3

14.5 1 3

211.5

326.5

9

0

3

244.5

1.5

2

20.5 3 16.5

05’ 05

D1

D1 0

Critical Path: 01-> 02-> 03->04->06

->10->07->08->08’->12->-13->14->16

Answer 2: Export Order Total Lead time = Time taken by critical path

= Tp (01,02,03,04,06,09,10,11,7,8,8’,12,13,14,16)

Total Lead time = 612 days

The key activities that require better managerial control are:

01,02,03,04,06,09,10,11,7,8,8’,12,13,14,16

• This activities can be crashed

• Time associated with each of this critical activity can be optimized.

Slacks • 05: Real float = 294 days,

• 05 & 05’: Real Float = 290 days,

Question 3:

1. Can you identify activities that require immediate attention. In order to reduce execution time.

2. How can DTCL organize the manufacture of transformers so that there will be a significant reduction in execution lead time.

Question 3:

1. Can you identify activities that require immediate attention in order to reduce execution time.

2. How can DTCL organize the manufacture of transformers so that there will be a significant reduction in execution lead time.

Answer 3: 1. Draw AON chart. Group activities to work stations. The works station

having the most balanced delay ( very high or very low time) compared to other work station needs to be given first attention.

2. Then reararnge the activities and group them to work stations and try reducing the balanced delay.

Processing and circulation

Customer Drawing

Customer Approval

Customer comments

Drawing to marketing

Checking

Manufacturing Drawing

Issuing Drawing

Distributing to Departments

Material Requirement

Details of material

Tools and dies

Material Processing Manufacturing Inspection

Dispatch

Flow Chart Sequence

01 02 03 04 05

06

09

10

11

05’

07

08’

16

13 12

Revision

08 14

W1 Engineer Drawing

W2 Marketing Dept

W3 Production Dept

For

Domestic Order

02 03 04 05 05’

06

09 10 11 07

08

08’

12

01

13 14 16

W1 Engineer Drawing

W2 Marketing Dept

W3 Production Dept

272.5 24 2.5 1.5

2

3

260

415.5

2.5

1.5

2

250.5 3 69

AON: Domestic Order

W1 W2 W3

Activities 01,02,03,06,07 04,05,05',

14,16

08,08',09,10,11 ,12,13

Time 2+24+2.5 +260+2.5

1.5+272.5+3 +3+69

1.5+2+415.5 +250.5

Total Time 291 days 349 days 669.5 days

AON: Domestic Order

Total Processing Time Tp = 291 + 349 + 669.5 Tp = 1309.5 days Cycle time CL= Max ( T1,T2,T3) = Max( 291,249,669.5) CL = 669.5 days Balance Delay Bd = ( n CL - Tp ) X 100 = (3 X 669.5 – 1309 ) X 100 n CL 3 X 669.5

Bd = 34.82%

Processing and circulation

Customer Drawing

Customer Approval

Customer comments

Drawing to marketing

Checking

Manufacturing Drawing

Issuing Drawing

Distributing to Departments

Material Requirement

Details of material

Tools and dies

Material Processing Manufacturing Inspection

Dispatch

Rearranging Flow Chart Sequence

01 02 03 04 05

06

09

10

11

05’

07

08’

16

13 12

Revision

08 14

W1 Engineer Drawing

W2 Marketing Dept

W3 Production Dept

W4 Procurement

Dept

Rerranging AON: Domestic Order

02 03 04 05 05’

06

09 10 11 07

08

08’

12

01

13 14 16

W1 Engineer Drawing

W2 Marketing Dept

W3 Production Dept

W4 Procurement

Dept

272.5 24 2.5 1.5

2

3

260

415.5

2.5

1.5

2

250.5 3 69

W1 W2 W3 W4

Activities 01,02,03,06,07 04,05,05',

14,16 08,08',12,13 09,10,11

Time 2+24+2.5 +260+2.5

1.5+272.5+3 +3+69

1.5+2 +250.5

415.5

Total Time

291 days 349 days 254 days 415.5 days

Rearranging AON: Domestic Order

Total Processing Time Tp = 291 + 349 + 254 + 415.5 Tp = 1309.5 days

Cycle time CL= Max ( T1,T2,T3,T4) = Max( 291,249,254,415.5) CL = 415.5 days

Balance Delay Bd = ( n CL - Tp ) X 100 = (3 X 415.5 – 1309 ) X 100 n CL 3 X 415.5

Bd = 21.23%

Balanced Delay reduced by

39%

Answer 3: Domestic Order

1. The activities that require immediate attention is the procurement as it takes 415.5 days.

2. It can be done by proper vendor management

• By ensuring delivery on time

• Properly forecasting the expected demand

• Adopting practices to reduce time on logistics

• Better inventory management of raw materials with proper defined reorder level.

Keep 4 works stations

W1 W2 W3 W4

Activities 01,02,03,06

,07

04,05,05', 14,16

08,08',12,13 09,10,11

For

Export Order

02 03 04 05 05’

06

09 10 11 07

08

08’

12

01

13 14 16

W1 Engineer Drawing

W2 Marketing Dept

W3 Production Dept

244.5 14.5 1 3

3

3

211.5

326.5

9

1.5

2

20.5 3 16.5

AON: Export Order

W1 W2 W3

Activities 01,02,03,06,07 04,05,05',

14,16

08,08',09,10,11 ,12,13

Time 3+14.5+1+211.5+9 3+244.5+3+3+16.5 1.5+2+326.5+20.5

Total Time 239 days 270 days 350.5 days

AON: Export Order

Total Processing Time Tp = 239 + 270 + 350.5 Tp = 859.5 days Cycle time CL= Max ( T1,T2,T3) = Max(239,270.350.5) CL = 350.5 days Balance Delay Bd = ( n CL - Tp ) X 100 = (3 X 350.5 – 859.5 ) X 100 n CL 3 X 350.5

Bd = 18.26%

02 03 04 05 05’

06

09 10 11 07

08

08’

12

01

13 14 16

W1 Engineer

Drawing

W2 Marketing Dept

W3 Production Dept

W4 Procurement

Dept

244.5 14.5 1 3

3

3

211.5

326.5

9

1.5

2

20.5 3 16.5

Rearranging AON: Export Order

W1 W2 W3 W4

Activities 01,02,03,06,07 04,05,05',

14,16 08,08',12,13 09,10,11

Time 3+14.5+1+211.5

+9

3+244.5+3+3+16.5

1.5+2+326.5 20.5

Total Time

239 days 270 days 330 days 20.5 days

Rearranging AON: Export Order

Total Processing Time Tp = 239 + 270 + 330 + 20.5 Tp = 859.5 days

Cycle time CL= Max ( T1,T2,T3,T4) = Max(239,270,330,20.5) CL = 330 days

Balance Delay Bd = ( n CL - Tp ) X 100 = (3 X 330 – 859.5 ) X 100 n CL 3 X 330.5

Bd = 34.88 %

Balanced Delay increased by

91%

Answer 3: Export Order

1. The activities that require immediate attention is the production as it takes 350.5 days.

2. It can be done by proper optimizing the process

• By avoiding abnormal wastage

• Reducing the error or failure rates

• Finding optimal product mix stratigies

• Maintaining a constant lead time and safety stock

Keep 3 works stations

W1 W2 W3

Activities 01,02,03,06,07 04,05,05',

14,16

08,08',09,10,11 ,12,13

Thank You

Questions Please????