INDRANIL SENGUPTA(ROLL NO:-32)

PRODUCTION & OPERATIONS MANAGEMENT:-(MATERIAL MANAGEMENT)

1. CONWIP
Production control systems can be classified as pull and push systems (Spearman et al. 1990). In
a push system, the production order is scheduled and the material is pushed into the production
line. In a pull system, the start of each product assembly process is triggered by the completion
of another at the end of production line. One variant of a pull system is the Constant Work in
Process (CONWIP) system (Spearman et al. 1990) which is known for its ease of
implementation.

CONWIP is a kind of single-stage kanban system and is also a hybrid push-pull system. While
Kanban systems maintain tighter control of system WIP through the individual cards at each
workstation, CONWIP systems are easier to implement and adjust, since only one set of system
cards is used to manage system WIP. CONWIP uses cards to control the number of WIPs. For
example, no part is allowed to enter the system without a card (authority). After a finished part is
completed at the last workstation, a card is transferred to the first workstation and a new part is
pushed into the sequential process route. In their paper, Spearman et al. (1990) used a simulation
to make a comparison among the CONWIP, kanban and push systems, and found that CONWIP
systems can achieve a lower WIP level than kanban systems.

Card control policy in CONWIP system

In CONWIP system, card is shared to all kinds of products. However, Duenyas (1994) proposed
a dedicated card control policy in CONWIP and he stated that this policy could perform as
multiple chain closed queuing network.

2. C-VARWIP
Circular - VARiable Work in Process (C-VARWIP) is the synthesis to both Push (first
generation) and Pull (second generation) production control systems when the system is taken as
unitary, when whole-system analysis is performed.

Of primary relevance to systems engineering is the problem of telos or purpose, C-VARWIP

gives purpose to observed behavior in push production control systems as well as pull production
control systems.
 1. JUST-IN-TIME
Just-in-time (JIT) is an inventory strategy that strives to improve a business's return oN
investment by reducing in-process inventory and associated carrying costs. To meet JIT
objectives, the process relies on signals between different points in the process. This means the
process is often driven by a series of signals, or Kanban, which tell production when to make the
next part. Kanban are usually 'tickets' but can be simple visual signals, such as the presence or
absence of a part on a shelf. Implemented correctly, JIT can dramatically improve a
manufacturing organization's return on investment, quality, and efficiency.

Quick notice that stock depletion requires personnel to order new stock is critical to the
inventory reduction at the center of JIT. This saves warehouse space and costs. However, the
complete mechanism for making this work is often misunderstood.

For instance, its effective application cannot be independent of other key components of a "lean"
system or it can, as its academic founder noted, "...end up with the opposite of the desired result."
In recent years manufacturers have continued to try to hone forecasting methods (such as
applying a trailing 13 week average as a better predictor for JIT planning), however research of
today's leading corporations demonstrates that basing JIT on the presumption of stability is
inherently flawed.

2.MATERIAL REQUIREMENT PLANNING

Material Requirements Planning (MRP) is a software based production planning and
inventory control system used to manage manufacturing processes. Although it is not common
nowadays, it is possible to conduct MRP by hand as well.

• An MRP system is intended to simultaneously meet three objectives:

• Ensure materials and product are available for production and delivery to customers.
• Plan manufacturing activities, delivery schedules and purchasing activities.

3. BILL OF MATERIAL
Bill of materials (BOM) is a list of the raw materials, sub-assemblies, intermediate assemblies,
sub-components, components, parts and the quantities of each needed to manufacture an end
item (final product)

It may be used for communication between manufacturing partners, or confined to a single

manufacturing plant.

A BOM can define products as they are designed (enfineering bill of material), as they are
ordered (sales bill of material), as they are built (manufacturing bill of material, or as they are
maintained (service bill of material). The different types of BOMs depend on the business need
and use for which they are intended. In process industries, the BOM is also known as the
formula, recipe, or ingredients list. In electronics, the BOM represents the list of components
used on the printed wiring board or printed circuit board. Once the design of the circuit is
completed, the BOM list is passed on to the PCB layout engineer as well as component engineer
who will procure the components required for the design.

BOMs are hierarchical in nature with the top level representing the finished product which may
be a sub-assembly or a completed item. BOMs that describe the sub-assemblies are referred to
modular boms. as an example of this is the NAAMS BOM that is used in the automative industry
to list all the components in an assembly line. The structure of the NAAMS BOM is System,
Line, Tool, Unit and Detail.

The first hierarchical databases were developed for automating bills of materials for
manufacturing organizations in the early 1960s.

A bill of materials "implosion" links component pieces to a major assembly, while a bill of
materials "explosion" breaks apart each assembly or sub-assembly into its component parts.

A BOM can be displayed in the following formats:

• A single-level BOM that displays the assembly or sub-assembly with only one level of
children. Thus it displays the components directly needed to make the assembly or sub-
assembly.
• An indented BOM that displays the highest-level item closest to the left margin and the
components used in that item indented more to the right.
• modular bill of materials (modular BOM) is type of bill of materials (BOM) and a
critical element in defining the product structure of an end-item

Modular BOMs define the component materials, documents, parts and engineering
drawings needed to complete a sub-assembly. While the terms BOM and modular BOM
are most commonly used in association with physical products, the concept can be used
in a variety of industries (e.g. software, medical records). Modular BOMs are used by
modern information systems to serve a variety of purposes, such as defining the
components needed to produce a sub-assembly, and providing cost information for each
component and "rolled-up" cost information for the overall sub-assembly.

For option-based, configurable products (e.g. automobiles, PCs) companies needed to

plan every combination and permutation of options to ensure they could fulfill customer
demands. With a modular BOM structure, companies can plan the demand for each
module independent of the end-item demand by estimating the popularity of the module
sub-assembly.
 4.MANUFACTURINGRESOURCE PLANNING
Manufacturing Resource Planning (MRP II) is defined by APICS as a method for
the effective planning of all resources of a manufacturing company. Ideally, it
addresses operational planning in units, financial planning in dollars, and has a
simulation capability to answer "what-if" questions and extension of closed-loop
MRP.

This is not exclusively a software function, but a marriage of people skills,

dedication to data base accuracy, and computer resources. It is a total company
management concept for using human resources more productively.

5.SCHEDULING(PRODUCTION PROCESS)
Scheduling is an important tool for manufacturing and engineering, where it can have a
major impact on the productivity of a process. In manufacturing, the purpose of scheduling
is to minimize the production time and costs, by telling a production facility what to make,
when, with which staff, and on which equipment. Production scheduling aims to maximize
the efficiency of the operation and reduce costs.

Production scheduling tools greatly outperform older manual scheduling methods. These provide
the production scheduler with powerful graphical interfaces which can be used to visually
optimize real-time work loads in various stages of production, and pattern recognition allows the
software to automatically create scheduling opportunities which might not be apparent without
this view into the data. For example, an airline might wish to minimize the number of airport
gates required for its aircraft, in order to reduce costs, and scheduling software can allow the
planners to see how this can be done, by analyzing time tables, aircraft usage, or the flow of
passengers.

Companies use backward and forward scheduling to allocate plant and machinery resources, plan
human resources, plan production processes and purchase materials.

Forward scheduling is planning the tasks from the date resources become available to determine
the shipping date or the due date.

Backward scheduling is planning the tasks from the due date or required-by date to determine the
start date and/or any changes in capacity required.

The benefits of production scheduling are in the next page:-

 • Process change-over reduction
• Inventory reduction, leveling
• Reduced scheduling effort
• Increased production efficiency
• Labor load leveling
• Accurate delivery date quotes
• Real time information

6.ENTERPRISE RESOURCE PLANNING

Enterprise resource planning (ERP) is a company-wide computer software system used to
manage and coordinate all the resources, information, and functions of a business from shared
data stores

An ERP system typically has modular hardware and software units and "services" that
communicate on a local area network. The modular design allows a business to add or
reconfigure modules (perhaps from different vendors) while preserving data integrity in one
shared database that may be centralized or distributed.

7.MASTER PRODUCTION SCHEDULE

A Master Production Schedule (MPS) is a plan for production, staffing, inventory, etc. It is
usually linked to manufacturing where the plan indicates when and how much of each product
will be demanded. This plan quantifies significant processes, parts, and other resources in order
to optimize production, to identify bottlenecks, and to anticipate needs and completed goods.
Since an MPS drives much factory activity, its quality dramatically affects a factory's
profitability. Typical MPS's are created by software with significant user input and tweaking.

Due to software limitations, but especially the intense work required by the "Master Production
Schedulers", schedules do not include every possible aspect of production, but only key elements
that have proven their control effectivity, such as forecast demand, production costs, inventory
costs, lead time, working hours, capacity, inventory levels, available storage, and parts supply.
The choice of what to model varies among companies and factories. The MPS is a statement of
what the company expects to produce and purchase (ie. quantity to be produced, staffing levels,
dates, available to promise, projected balance).

The MPS translates the business plan, including forecast demand, into a production plan using
planned orders in a true multi-level optional component scheduling environment. Using MPS
helps avoid shortages, costly expediting, last minute scheduling, and inefficient allocation of
resources. Working with MPS allows businesses to consolidate planned parts, produce master
schedules and forecasts for any level of the Bill of Material (BOM) for any type of part.