Production Activity Control

9/1/2015
ProductionActivityControl
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M&DCPurchasing&SupplyChain:MaterialManagement
Production Activity Control
IntroductiontoMaterialManagement
MasterScheduling
Contents
MaterialRequirementsPlanning
CapacityManagement
1.
Introduction
2.
DataRequirements
Purchasing
3.
OrderPreparation
4.
Scheduling
5.
LoadLeveling
6.
SchedulingBottlenecks
7.
TheoryOfConstraintsAndDrumBufferRope
Forecasting
InventoryFundamentals
OrderQuantities
IndependentDemandOrderingSystems8.
Implementation
9.
Control
PhysicalInventoryandWarehouseManagement
PhysicalDistribution
1.Introduction
Thetimecomeswhenplansmustbeputintoaction.Productionactivitycontrol(PAC)isresponsible
forexecutingthemasterproductionscheduleandthematerialrequirementsplan.Atthesametime,it
mustmakegooduseoflaborandmachines,minimizeworkinprocessinventory,andmaintain
customerservice.
ThematerialrequirementsplanauthorizesPAC:
Toreleaseworkorderstotheshopformanufacturing.
Totakecontrolofworkordersandmakesuretheyarecompletedontime.
Toberesponsiblefortheimmediatedetailedplanningoftheflowofordersthrough
manufacturing,carryingouttheplan,andcontrollingtheworkasitprogressestocompletion.
Tomanagedaytodayactivityandprovidethenecessarysupport.
Figure6.1showstherelationshipbetweentheplanningsystemandPAC.TheactivitiesofthePAC
systemcanbeclassifiedintoplanning,implementation,
andcontrolfunctions.
http://www.mdcegypt.com/Pages/Purchasing/Material%20Management/Production%20Activity%20Control.asp
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a.Planning
Theflowofworkthrougheachoftheworkcentersmustbeplannedtomeetdelivery
dates,whichmeansproductionactivitycontrolmustdothefollowing:
Ensurethattherequiredmaterials,tooling,personnel,andinformationare
availabletomanufacturethecomponentswhenneeded.
Schedulestartandcompletiondatesforeachshoporderateachworkcenterso
thescheduledcompletiondateoftheordercanbemet.Thiswillinvolvethe
plannerindevelopingaloadprofilefortheworkcenters.
b.Implementation
Oncetheplansaremade,productionactivitycontrolmustputthemintoactionby
advisingtheshopfloorwhatmustbedone.Usuallyinstructionsaregivenbyissuinga
shoporder.Productionactivitycontrolwill:
Gathertheinformationneededbytheshopfloortomaketheproduct.
Releaseorderstotheshopfloorasauthorizedbythematerialrequirements
plan.Thisiscalleddispatching.
c.Control
Onceplansaremadeandshopordersreleased,theprocessmustbemonitoredto
learnwhatisactuallyhappening.Theresultsarecomparedtotheplantodecide
whethercorrectiveactionisnecessary.Productionactivitycontrolwilldothefollowing:
Ranktheshopordersindesiredprioritysequencebyworkcenterandestablish
adispatchlistbasedonthisinformation.
Tracktheactualperformanceofworkordersandcompareittoplanned
schedules.Wherenecessary,PACmusttakecorrectiveactionbyreplanning,
rescheduling,oradjustingcapacitytomeetfinaldeliveryrequirements.
Monitorandcontrolworkinprocess,leadtimes,andworkcenterqueues.
Reportworkcenterefficiency,operationtimes,orderquantities,andscrap.
Thefunctionsofplanning,implementing,andcontrollingareshownschematicallyin
Figure6.2.
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d.ManufacturingSystems
Theparticulartypeofproductioncontrolsystemusedvariesfromcompanyto
company,butallshouldperformtheprecedingfunctions.However,therelative
importanceofthesefunctionswilldependonthetypeofmanufacturingprocess.
Manufacturingprocessescanbeconvenientlybrokendownintothreecategories:
1.
Flowmanufacturing.
2.
Intermittentmanufacturing.
3.
Projectmanufacturing.
Flowmanufacturing.
Flowmanufacturing.Flowmanufacturingisconcernedwiththe
productionofhighvolumestandardproducts.Iftheunitsarediscrete
(e.g.,carsandappliances),theprocessisusuallycalledrepetitive
manufacturing,andifthegoodsaremadeinacontinuousflow
(e.g.,gasoline),continuousmanufacturing.Therearefourmajor
characteristicstoflowmanufacturing:
1.
Routingsarefixed,andworkcentersarearrangedaccording
totherouting.Thetimetakentoperformworkatonework
centerisalmostthesameasatanyotherworkcenterinthe
line.
2.
Workcentersarededicatedtoproducingalimitedrangeof
similarproducts.Machineryandtoolingareespecially
designedtomakethespecificproducts.
3.
Materialflowsfromoneworkstationtoanotherusingsome
formofmechanicaltransfer.Thereislittlebuildupinworkin
processinventory,andthroughputtimesarelow.
4.
Capacityisfixedbytheline.
Productionactivitycontrolconcentratesonplanningtheflowofwork
andmakingsurethattherightmaterialisfedtothelineasstatedin
theplannedschedule.Sinceworkflowsfromoneworkstationto
anotherautomatically,implementationandcontrolarerelatively
simple.
Intermittentmanufacturing.
Intermittentmanufacturingischaracterizedbymanyvariationsin
productdesign,processrequirements,andorderquantities.This
kindofmanufacturingischaracterizedbythefollowing:
1.
Flowofworkthroughtheshopisvariedanddependsonthe
designofaparticularproduct.Asordersareprocessed,they
willtakemoretimeatoneworkstationthanatanother.Thus,
theworkflowisnotbalanced.
2.
Machineryandworkersmustbeflexibleenoughtodothe
varietyofwork.Machineryandworkcentersareusually
groupedaccordingtothefunctiontheyperform(e.g.,all
lathesinonedepartment).
3.
Throughputtimesaregenerallylong.Schedulingworkto
arrivejustwhenneededisdifficult,thetimetakenbyanorder
ateachworkcentervaries,andworkqueuesbeforework
centers,causinglongdelaysinprocessing.Workinprocess
inventoryisoftenlarge.
4.
Thecapacityrequireddependsontheparticularmixof
productsbeingbuiltandisdifficulttopredict.
Productionactivitycontrolinintermittentmanufacturingiscomplex.
Becauseofthenumberofproductsmade,thevarietyofroutings,
andschedulingproblems,PACisamajoractivityinthistypeof
manufacturing.Planningandcontrolaretypicallyexercisedusing
shopordersforeachbatchbeingproduced.OurdiscussionofPAC
assumesthiskindofenvironment.
Projectmanufacturing.
Projectmanufacturingusuallyinvolvesthecreationofoneorasmall
numberofunits.Largeshipbuildingisanexample.Becausethe
designofaproductisoftencarriedoutormodifiedastheproject
develops,thereisclosecoordinationbetweenmanufacturing,
marketing,purchasing,andengineering.
2.DataRequirements
Toplantheprocessingofmaterialsthroughmanufacturing,PACmusthavethefollowinginformation:
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Whatandhowmuchtoproduce.
Whenpartsareneededsothecompletiondatecanbemet.
Whatoperationsarerequiredtomaketheproductandhowlongtheoperationswilltake.
Whattheavailablecapacitiesofthevariousworkcentersare.
Productionactivitycontrolmusthaveadataorinformationsystemfromwhichtowork.Usuallythe
dataneededtoanswerthesequestionsareorganizedintodatabases.Thefilescontainedinthe
databasesareoftwotypes:planningandcontrol.
a.PlanningFiles
Fourplanningfilesareneeded:itemmasterfile,productstructurefile,routingfile,and
workcentermasterfile.
Itemmasterfile.
Thereisonerecordintheitemmastertileforeachpartnumber.The
filecontains,inoneplace,allofthepertinentdatarelatedtothepart.
ForPAC,thisincludesthefollowing:
Partnumber,auniquenumberassignedtoacomponent.
Partdescription.
Manufacturingleadtime,thenormaltimeneededtomakethis
part.
Quantityonhand.
Quantityavailable.
Allocatedquantity,quantitiesassignedtospecificworkorders
butnotyetwithdrawnfrominventory.
Onorderquantities,thebalancedueonalloutstandingorders.
Lotsizequantity,thequantitynormallyorderedatonetime.
Productstructurefile(billofmaterialfile).
Theproductstructuretile(billofmaterialfile)containsalistofthe
singlelevelcomponentsandquantitiesneededtoassembleaparent.
Itformsabasisforapicklisttobeusedbystoreroompersonnelto
collectthepartsrequiredtomaketheassembly.
Routingfile.
Theroutingfilecontainsarecordforeachpartmanufactured.The
routingconsistsofaseriesofoperationsrequiredtomaketheitem.
Foreachproduct,thisfilecontainsastepbystepsetofinstructions
describinghowtheproductismade.Itgivesdetailsofthefollowing:
Theoperationsrequiredtomaketheproductandthesequence
inwhichthoseoperationsareperformed.
Abriefdescriptionofeachoperation.
Equipment,tools,andaccessoriesneededforeachoperation.
Setuptimes,thestandardtimerequiredforsettingupthe
equipmentforeachoperation.
Runtimes,thestandardtimetoprocessoneunitthrougheach
operation.
Leadtimesforeachoperation.
Workcentermasterfile.
Theworkcentermasterfilecollectsalloftherelevantdataonawork
center.Foreachworkcenter,itgivesdetailsonthefollowing:
Workcenternumber.
Capacity.
Numberofshiftsworkedperweek.
Numberofmachinehourspershift.
Numberoflaborhourspershift.
Efficiency.
Utilization.
Queuetime,theaveragetimethatajobwaitsatthework
centerbeforeworkisbegun.
Alternateworkcenters,workcentersthatmaybeusedas
alternatives.
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b.ControlFiles
Controlinintermittentmanufacturingisexercisedthroughshopordersandcontrol
filesthatcontaindataontheseorders.Therearegenerallytwokindsoffiles:the
shopordermasterfileandtheshoporderdetailfile.
Shopordermasterfile
Eachactivemanufacturingorderhasarecordintheshoporder
masterfile.Thepurposeistoprovidesummarizeddataoneach
shopordersuchasthefollowinginformation:
Shopordernumber,auniquenumberidentifyingtheshop
order.
Orderquantity.
Quantitycompleted.
Quantityscrapped
150Chapter6
Quantityofmaterialissuedtotheorder.
Duedate,thedatetheorderisexpectedtobefinished.
Priority,avalueusedtoranktheorderinrelationtoothers.
Balancedue,thequantitynotyetcompleted.
Costinformation.
Shoporderdetailfile.
Eachshoporderhasadetailfilethatcontainsarecordforeach
operationneededtomaketheitem.Eachrecordcontainsthe
followinginformation:
Operationnumber.
Setuphours,plannedandactual.
Runhours,plannedandactual.
Quantityreportedcompleteatthatoperation.
Quantityreportedscrappedatthatoperation.
Duedateorleadtimeremaining.
3.OrderPreparation
Onceauthorizationtoprocessanorderhasbeenreceived,productionactivitycontrolisresponsiblefor
planningandpreparingitsreleasetotheshopfloor.Theordershouldbereviewedtobesurethatthe
necessarytooling,material,andcapacityareavailable.Iftheyarenot,theordercannotbecompleted
andshouldnotbereleased.
Toolingisnotgenerallyconsideredinthematerialrequirementsplanning(MRP)program,soatthis
stage,materialavailabilitymustbechecked.IfMRPsoftwareisused,itwillhavecheckedthe
availabilityofmaterialandallocatedittoashopordersonofurthercheckingisnecessary.IfMRP
softwareisnotused,productionactivitycontrolmustmanuallycheckmaterialavailability.
Ifacapacityrequirementsplanningsystemhasbeenused,necessarycapacityshouldbeavailable.
However,atthisstage,theremaybesomedifferencesbetweenplannedcapacityandwhatisactually
available.Whencapacityrequirementsplanningisnotused,itisnecessarytodetermineifcapacityis
available.
Checkingcapacityavailabilityisatwostepprocess.First,theordermustbescheduledtoseewhen
thecapacityisneeded,andsecond,theloadonworkcentersmustbecheckedinthatperiod.
Schedulingandloadingarediscussedinthenexttwosections.
4.Scheduling
Theobjectiveofschedulingistomeetdeliverydatesandtomakethebestuseofmanufacturing
resources.Itinvolvesestablishingstartandfinishdatesforeachoperationrequiredtocompletean
item.Todevelopareliableschedule,theplannermusthaveinformationonrouting,requiredand
availablecapacity,competingjobs,andmanufacturingleadtimes(MLT)ateachworkcenterinvolved.
a.ManufacturingLeadTime
Manufacturingleadtimeisthetimenormallyrequiredtoproduceaniteminatypical
lotquantity.Typically,MLTconsistsoffiveelements:
1.
Queuetime,amountoftimethejobiswaitingataworkcenterbeforeoperation
begins.
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2.
Setuptime,timerequiredtopreparetheworkcenterforoperation.
3.
Runtime,timeneededtoruntheorderthroughtheoperation.
4.
Waittime,amountoftimethejobisattheworkcenterbeforebeingmovedto
thenextworkcenter.
5.
Movetime,transittimebetweenworkcenters.
Thetotalmanufacturingleadtimewillbethesumoforderpreparationandreleaseplus
theMLTsforeachoperation.Figure6.3showstheelementsmakingupmanufacturing
leadtime.Setuptimeandruntimearestraightforward,anddeterminingthemisthe
responsibilityoftheindustrialengineeringdepartment.Queue,wait,andmovetimes
areunderthecontrolofmanufacturingandPAC.\
Thelargestofthefiveelementsisqueuetime.Typically,inanintermittent
manufacturingoperation,itaccountsfor85%95%ofthetotalleadtime.Production
activitycontrolisresponsibleformanagingthequeuebyregulatingtheflowofwork
intoandoutofworkcenters.Ifthenumberoforderswaitingtobeworkedon(load)is
reduced,soisthequeuetime,theleadtime,andworkinprocess.Increasingcapacity
alsoreducesqueue.Productionactivitycontrolmustmanageboththeinputoforders
totheproductionprocessandtheavailablecapacitytocontrolqueueandworkin
process.
Atermthatiscloselyrelatedtomanufacturingleadtimeiscycletime.Theninth
editionoftheAPICSDictionarydefinescycletimeasthelengthoftimefromwhen
materialentersaproductionfacilityuntilitexits.Asynonymisthroughputtime.
b.ExampleProblem
Anorderfor100ofaproductisprocessedonworkcentersAandB.Thesetuptime
onAis30minutes,andruntimeistenminutesperpiece.ThesetuptimeonBis50
minutes,andtheruntimeisfiveminutesperpiece.Waittimebetweenthetwo
operationsisfourhours.ThemovetimebetweenAandBistenminutes.Waittime
afteroperationBisfourhours,andthemovetimeintostoresis15minutes.Thereis
noqueueateitherworkstation.Calculatethetotalmanufacturingleadtimeforthe
order.
Answer
WorkCenterAoperationtime=30+(100x10)=1030minutes
Waittime=240minutes
MovetimefromAtoB=10minutes
WorkCenterBoperationtime=50+(100x5)=550minutes
Waittime=240minutes
MovetimefromBtostores=15minutes
Totalmanufacturingleadtime=2085minutes
=34hours,45minutes
c.SchedulingTechniques.
Therearemanytechniquestoscheduleshopordersthroughaplant,butallofthem
requireanunderstandingofforwardandbackwardschedulingaswellasfiniteand
infiniteloading.
Forwardschedulingassumesthatmaterialprocurementandoperationschedulingfor
acomponentstartwhentheorderisreceived,whatevertheduedate,andthat
operationsarescheduledforwardfromthisdate.ThefirstlineinFigure6.4illustrates
thismethod.Theresultiscompletionbeforetheduedate,whichusuallyresultsina
buildupofinventory.Thismethodisusedtodecidetheearliestdeliverydatefora
product.
Forwardschedulingisusedtocalculatehowlongitwilltaketocompleteatask.The
techniqueisusedforpurposessuchasdevelopingpromisedatesforcustomersor
figuringoutwhetheranorderbehindschedulecanbecaughtup.
BackwardschedulingisillustratedbythesecondlineinFigure6.4.Thelastoperation
ontheroutingisscheduledfirstandisscheduledforcompletionattheduedate.
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Previousoperationsarescheduledbackfromthelastoperation.Thisschedulesitems
tobeavailableasneededandisthesamelogicasusedintheMRPsystem.Workin
processinventoryisreduced,butbecausethereislittleslacktimeinthesystem,
customerservicemaysuffer.
Backwardschedulingisusedtodeterminewhenanordermustbestarted.Backward
schedulingiscommoninindustrybecauseitreducesinventory.
InfiniteloadingisalsoillustratedinFigure6.4.Theassumptionismadethatthe
workstationsonwhichoperations1,2,and3aredonehavecapacityavailablewhen
required.Itdoesnotconsidertheexistenceofothershoporderscompetingfor
capacityattheseworkcenters.Itassumesinfinitecapacitywillbeavailable.Figure
6.5showsaloadprofileforinfinitecapacity.Noticetheoverandunderload.
Finiteloadingassumesthereisadefinedlimittoavailablecapacityatany
workstation.Ifthereisnotenoughcapacityavailableataworkstationbecauseofother
shoporders,theorderhastobescheduledinadifferenttimeperiod.Figure6.6
illustratesthecondition.
IntheforwardschedulingexampleshowninFigure6.6,thefirstandsecondoperations
cannotbeperformedattheirrespectiveworkstationswhentheyshouldbebecausethe
requiredcapacityisnotavailableatthetimerequired.Theseoperations
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mustberescheduledtoalatertimeperiod.Similarly,intheexampleofscheduling
back,thesecondandfirstoperationscannotbeperformedwhentheyshouldbeand
mustberescheduledtoanearliertimeperiod.Figure6.7showsaloadprofileforfinite
loading.Noticetheloadissmoothedsothereisnooverloadcondition.
Chapter5givesanexampleofbackwardschedulingasitrelatestocapacity
requirementsplanning.ThesameprocessisusedinPAC.
d.ExampleProblem
Acompanyhasanorderfor50brandXtobedeliveredonday100.Drawabackward
schedulebasedonthefollowing:
Onlyonemachineisassignedtoeachoperation
Thefactoryworksone8hourshiftfivedaysaweek
Thepartsmoveinonelotof50.
Part
Operation
Time
10
20
5
3
10
10
AssemblyX
Answer
e.OperationOverlapping
Inoperationoverlapping,thenextoperationisallowedtobeginbeforetheentirelotis
completedonthepreviousoperation.Thisreducesthetotalmanufacturingleadtimes
becausethesecondoperationstartsbeforethefirstoperationfinishesallthepartsin
theorder.Figure6.8showsschematicallyhowitworksandthepotentialreductionin
leadtime.
Anorderisdividedintoatleasttwolots.Whenthefirstlotiscompletedonoperation
A,itistransferredtooperationB.InFigure6.8,itisassumedoperationBcannotbe
setupuntilthefirstlotisreceived,butthisisnotalwaysthecase.While
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operationAcontinueswiththesecondlot,operationBstartsonthefirstlot.When
operationAfinishesthesecondlot,itistransferredtooperationB.Ifthelotsaresized
properly,therewillbenoidletimeatoperationB.Themanufacturingleadtimeis
reducedbytheoverlaptimeandtheeliminationofqueuetime.
Operationoverlappingisamethodofexpeditinganorder,buttherearesomecosts
involved.First,movecostsareincreased,especiallyiftheoverlappedoperationsare
notclosetogether.Second,itmayincreasethequeueandleadtimeforotherorders.
Third,itdoesnotincreasecapacitybutpotentiallyreducesitifthesecondoperationis
idlewaitingforpartsfromthefirstoperation.
Theproblemisdecidingthesizeofthesublot.IftheruntimeperpieceonoperationB
isshorterthanthatonA,thefirstbatchmustbelargeenoughtoavoididletimeon
operationB.
f.ExampleProblem
Refertothedatagivenintheexampleprobleminthesectiononmanufacturinglead
time.ItisdecidedtooverlapoperationsAandBbysplittingthelotof100intotwo
lotsof70and30.WaittimebetweenAandBandbetweenBandstoresis
eliminated.Themovetimesremainthesame.SetuponoperationBcannotstartuntil
thefirstbatcharrives.Calculatethemanufacturingleadtime.Howmuchtimehas
beensaved?
Answer
OperationtimeforAfor = 30 + (70 10) = 730minutes
lotof70
x
MovetimebetweenA
andB
= 10minutes
OperationtimeforBfor = 50 + (100x5) = 550minutes

lotof100
MovetimefromBto
stores
= 15minutes
Totalmanufacturing
leadtime
= 1305minutes
= 21hours,45
minutes
Timesaved=2085
1305=
780minutes
= 13hours
g.OperationSplitting
Operationsplittingisasecondmethodofreducingmanufacturingleadtime.The
orderissplitintotwoormorelotsandrunontwoormoremachinessimultaneously.If
thelotissplitintwo,theruntimecomponentofleadtimeiseffectivelycutinhalf,
althoughanadditionalsetupisincurred.Figure6.9showsaschematicofoperation
splitting.
Operationsplittingispracticalwhen:
Setuptimeislowcomparedtoruntime.
Asuitableworkcenterisidle.
Itispossibleforanoperatortorunmorethanonemachineatatime.
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Thelastconditionoftenexistswhenamachinecyclesthroughitsoperation
automatically,leavingtheoperatortimetosetupanothermachine.Thetimeneededto
unloadandloadmustbeshorterthantheruntimeperpiece.Forexample,ifthe
unload/loadtimewastwominutesandtheruntimewasthreeminutes,theoperator
wouldhavetimetounloadandloadthefirstmachinewhilethesecondwasrunning.
h.ExampleProblem
Acomponentmadeonaparticularworkcenterhasasetuptimeof100minutesand
aruntimeofthreeminutesperpiece.Anorderfor500istobeprocessedontwo
machinessimultaneously.Themachinescanbesetupatthesametime.Calculate
theelapsedoperationtime.
Answer
Elapsedoperationtime100+3X250=850minutes
=14hoursand10minutes
5.LoadLeveling
LoadprofileswerediscussedinChapter5inthesectiononcapacityrequirementsplanning.Theload
profileforaworkcenterisconstructedbycalculatingthestandardhoursofoperationforeachorderin
eachtimeperiodandaddingthemtogetherbytimeperiod.Figure6.10isanexampleofaloadreport.
ThisreporttellsPACwhattheloadisontheworkcenter.Thereisacapacityshortageinweek20of
30hours.Thismeanstherewasnopointinreleasingalloftheplannedordersthatweek.Perhaps
somecouldbereleasedinweek18or19,andperhapssomeovertimecouldbeworkedtohelpreduce
thecapacitycrunch.
WorkCenter:10AvailableTime:120hours/week
Description:LathesEfficiency:115%
NumberofMachines:3Utilization80%
RatedCapacity:
110standardhours/week
Week
18
19
105
100
80
30
60
80
TotalLoad
105
100
140
110
RatedCapacity
110
110
110
10
30
ReleasedLoad
PlannedLoad
(Over)/Under
Capacity
20
21
22
23
Total
315
130
80
350
130
80
665
110
110
110
660
20
30
Figure6.10Workcenterloadreport.
6.SchedulingBottlenecks
Inintermittentmanufacturing,itisalmostimpossibletobalancetheavailablecapacitiesofthevarious
workstationswiththedemandfortheircapacity.Asaresult,someworkstationsareoverloadedand
someunderloaded.Theoverloadedworkstationsarecalledbottlenecksand,bydefinition,arethose
workstationswheretherequiredcapacityisgreaterthantheavailablecapacity.Inthenintheditionof
theirdictionary,APICSdefinesabottleneckasafacility,function,department,orresourcewhose
capacityisequaltoorlessthanthedemandplaceduponit.
Throughput.Throughputisthetotalvolumeofproductionpassingthroughafacility.Bottlenecks
controlthethroughputofallproductsprocessedbythem.Ifworkcentersfeedingbottlenecksproduce
morethanthebottleneckcanprocess,excessworkinprocessinventoryisbuiltup.Therefore,work
shouldbescheduledthroughthebottleneckattherateitcanprocessthework.Workcentersfedby
bottleneckshavetheirthroughputcontrolledbythebottleneck,andtheirschedulesshouldbe
determinedbythatofthebottleneck.
a.ExampleProblem
Supposeamanufacturermakeswagonscomposedofaboxbody,ahandleassembly,
andtwowheelassemblies.Demandforthewagonsis500aweek.Thewheel
assemblycapacityis1200setsaweek,thehandleassemblycapacityis450aweek,
andfinalassemblycanproduce550wagonsaweek.
a.
b.
c.
d.
Whatisthecapacityofthefactory?
Whatlimitsthethroughputofthefactory?
Howmanywheelassembliesshouldbemadeeachweek?
Whatistheutilizationofthewheelassemblyoperation?
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e.
Whathappensifthewheelassemblyutilizationisincreasedto100%?
Answer
a.
450unitsaweek.
b.
Throughputislimitedbythecapacityofthehandleassemblyoperation.
c.
900wheelassembliesshouldbemadeeachweek.Thismatchesthe
capacityofthehandleassemblyoperation.
d.
Utilizationofthewheelassemblyoperationis900120075%.
e.
Excessinventorybuildsup.
b.ExampleProblem
Aworkcenteristoprocess150unitsofgearshaftSG123onworkorder333.The
setuptimeis1.5hours,andtheruntimeis0.2hoursperpiece.Whatisthestandard
timeneededtoruntheorder?
Answer
Totalstandardtime=setuptime+runtime
=1.5+(150x0.2)
=31.5standardhours
c.Somebottleneckprinciples.
Sincebottleneckscontrolthethroughputofafacility,someimportantprinciplesshould
benoted:
1.
Utilizationofanonbottleneckresourceisnotdeterminedbyitspotential,butby
anotherconstraintinthesystem.Inthepreviousexampleproblem,the
utilizationofthewheelassemblyoperationwasdeterminedbythehandle
assemblyoperation.
2.
Usinganonbottleneck100%ofthetimedoesnotproduce100%utilization.lf
thewheelassemblyoperationwasutilized100%ofthetime,itwouldproduce
1200setsofwheelsaweek,300setsmorethanneeded.Becauseofthe
buildupofinventory,thisoperationwouldeventuallyhavetostop.
3.
Thecapacityofthesystemdependsonthecapacityofthebottleneck.Ifthe
handleassemblyoperationbreaksdown,thethroughputofthefactoryis
reduced.
4.
Timesavedatanonbottlenecksavesthesystemnothing.Suppose,inaflash
ofbrilliance,theindustrialengineeringdepartmentincreasedthecapacityofthe
wheelassemblyoperationto1500unitsaweek.Thisextracapacitycouldnot
beutilized,andnothingwouldbegained.
5.
Capacityandprioritymustbeconsideredtogether.Supposethewagon
manufacturermadewagonswithtwostylesofhandles.Duringsetup,nothingis
produced,whichreducesthecapacityofthesystem.Sincehandleassemblyis
thebottleneck,everysetupinthisoperationreducesthethroughputofthe
system.Ideally,thecompanywouldrunonestyleofhandleforsixmonths,then
switchovertothesecondstyle.However,customerswantingthesecondstyle
ofhandlemightnotbewillingtowaitsixmonths.Acompromiseisneeded
wherebyrunsareaslongaspossiblebutpriority(demand)issatisfied.
6.
Loadscan,andshould,besplit.Supposethehandleassemblyoperation(the
bottleneck)producesonestyleofhandlefortwoweeks,thenswitchestothe
secondstyle.Thebatchsizeis900handles.Ratherthanwaitinguntilthe900
areproducedbeforemovingthemtothefinalassemblyarea,themanufacturer
canmoveadaysproduction(90)atatime.Theprocessbatchsizeandthe
transferbatchsizearedifferent.Thus,deliverytothefinalassemblyismatched
tousage,andworkinprocessinventoryisreduced.
7.
Focusshouldbeonbalancingtheflowthroughtheshop.Thekeyisthroughput
thatendsupinsales
d.Managingbottlenecks.
Sincebottlenecksaresoimportanttothethroughputofasystem,schedulingand
controllingthemisextremelyimportant.Thefollowingmustbedone:
1.
Establishatimebufferbeforeeachbottleneck.Atimebufferisan
inventory(queue)placebeforeeachbottleneck.Becauseitisofthe
utmostimportancetokeepthebottleneckworking,itmustneverbe
starvedformaterial,anditcanbestarvedonlyiftheflowfromfeeding
workstationsisdisrupted.Thetimebuffershouldbeonlyaslongasthe
timeofanyexpecteddelaycausedbyfeedingworkstations.Inthisway,
thetimebufferensuresthatthebottleneckwillnotbeshutdownforlack
ofworkandthisqueuewillbeheldatapredeterminedminimumquantity.
2.
Controltherateofmaterialfeedingthebottleneck.Abottleneckmustbe
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fedatarateequaltoitscapacitysothetimebufferremainsconstant.
Thefirstoperationinthesequenceofoperationsiscalledagate
operation.Thisoperationcontrolstheworkfeedingthebottleneckand
mustoperateatarateequaltotheoutputofthebottlenecksothetime
bufferqueueismaintained.
3.
Doeverythingtoprovidetheneededbottleneckcapacity.Anythingthat
increasesthecapacityofthebottleneckincreasesthecapacityofthe
system.Betteruti
lization,fewersetups,andimprovedmethodstoreduce
setupandruntimearesomemethodsforincreasingcapacity.
4.
Adjustloads.Thisissimilartoitem3butputsemphasisonreducingthe
loadonabottleneckbyusingsuchthingsasusingalternatework
centersandsubcon
tracting.Thesemaybemorecostlythanusingthe
bottleneck,bututilizationofnonbottlenecksandthroughputofthetotal
systemisincreased,resultinginmorecompanysalesandincreased
profits.
5.
5.Changetheschedule.Dothisasafinalresort,butitisbettertobe
honestaboutdeliverypromises.
Oncethebottleneckisscheduledaccordingtoitsavailablecapacityandthemarket
demanditmustsatisfy,thenonbottleneckresourcescanbescheduled.Whenawork
orderiscompletedatthebottleneck,itcanbescheduledonsubse
quentoperations.
Feedingoperationshavetoprotectthetimebufferbyschedulingbackwardintimefrom
thebottleneck.Ifthetimebufferissetatfourdays,theoperationimmediatelypre
cedingthebottleneckisscheduledtocompletetherequiredpartsfourdaysbeforethey
arescheduledtorunonthebottleneck.Eachprecedingoperationcanbehack
scheduledinthesamewaysothepartsareavailableasrequiredforthenext
operation.
Anydisturbancesinthefeedingoperationsareabsorbedbythetimebuffer,and
throughputisnotaffected.Also,workinprocessinventoryisreduced.Sincethequeue
islimitedtothetimebuffer,leadtimesarereduced.
7.TheoryOfConstraintsAndDrumBufferRope
TheprevioussectionSchedulingBottleneckswasdevelopedbyEliyahuM.GoldrattinhisTheoryof
Constraints.Ithasallowedmanypeopletorethinktheirapproachestoimprovingandmanagingtheir
productionprocesses.Thefundamentalconceptbehindtheworkisthateveryoperationproducinga
productorserviceisaseriesoflinkedprocesses.Eachprocesshasaspecificcapacitytoproduce
thegivendefinedoutputfortheoperation,andthatinvirtuallyeverycase,thereisoneprocessthat
limitsorconstrainsthethroughputfromtheentireoperation.RefertoFigure6.11foranexampleofan
operationproducingproductA.
Thetotaloperationisconstrainedbyprocess3at4perhour.Nomatterhowmuchefficiencythereis
intheotherprocessesandhowmanyprocessimprovementsaremadeinprocesses1,2,and4,itwill
neverbepossibletoexceedtheoveralloperationaloutputof4perhour.Increasedefficiencyand
utilizationinprocesses1and2willonlyincreaseinventorynotsales.
a.ManagetheConstraint
Severalfundamentalguidelineshavebeendevelopedforunderstandinghowtomanage
aconstrainingprocessorbottleneck.Someofthemorenoteworthyincludefocusingon
balancingtheflowthroughtheshop,timelostatabottleneckistimelosttothewhole
systembuttimelostatanonconstraintisamirage,andtransferbatchesdonothave
tobethesamesizeasprocessbatches.Allofthesewerediscussedintheprevious
sectionSomeBottleneckPrinciples.
b.ImprovetheProcess
Onceaconstrainthasbeenidentified,thereisafivestepprocessthatis
recommendedtohelpimprovetheperformanceoftheoperation.Thefivestepsare
summarizedasfollows:
1.
Identifytheconstraint.Thisimpliestheneedtoexaminetheentireprocessto
determinewhichprocesslimitsthethroughput.Theconceptdoesnotlimitthis
processexaminationtomerelytheoperationalprocesses.Forexample,in
Figure6.11,supposethesalesdepartmentwasonlysellingtheoutputatthe
rateof3perhour.Inthatcase,saleswouldbetheconstraintandnotprocess
3.Itmustberememberedthataconstraintlimitsthroughput,notinventoryor
production.
2.
Exploittheconstraint.Findmethodstomaximizetheutilizationoftheconstraint
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towardproductivethroughput.Forexample,inmanyoperationsallprocessesareshut
downduringlunchtime.Ifaprocessisaconstraint,theoperationshouldconsider
rotatinglunchperiodssothattheconstraintisneverallowedtobeidle.
3.
Subordinateeverythingtotheconstraint.Effectiveutilizationoftheconstraintisthe
mostimportantissue.Everythingelseissecondary.
4.
Elevatetheconstraint.Thismeanstofindwaystoincreasetheavailablehoursofthe
constraint,includingmoreofit.
5.
Oncetheconstraintisaconstraintnolongerfindthenewoneandrepeatthesteps.
Astheeffectiveutilizationoftheconstraintincreases,itmayceasetobeaconstraint
asanotherprocessbecomesone.Inthatcasetheemphasisshiftstothenew
processconstraint.
c.SchedulingwiththeTheoryofConstraints
EventheschedulingsystemdevelopedfortheTheoryofConstraintshasitsown
specificapproach.ItisoftendescribedasDrumBufferRope:
Drum.Thedrumofthesystemreferstothedrumbeatorpaceof
production.Itrepresentsthemasterschedulefortheoperation,whichis
focusedaroundthepaceofthroughputasdefinedbytheconstraint.
Buffer.Sinceitissoimportantthattheconstraintneverbestarvedfor
neededinventory,atimebufferisoftenestablishedinfrontofthe
constraint.Itiscalledatimebufferbecauseitrepresentstheamountof
timethattheinventoryinthebufferprotectstheconstraintfrom
disruptions.
Rope.Theanalogyisthattheropepuilsproductiontotheconstraintfor
necessaryprocessing.WhilethismayimplyaKanbantypepullsystem,
itcanbedonebyawellcoordinatedreleaseofmaterialintothesystem
attherighttime.
Eventheschedulingsystemhasitsprimaryfocusoneffectivemanagementofthe
organizationsconstrainttothroughputandsales.
b.ExampleProblem
ParentXrequiresoneeachofcomponentYandZ.BothYandZareprocessedon
workcenter20whichhasanavailablecapacityof40hours.Thesetuptimefor
componentYisonehourandtheruntime0.3hoursperpiece.ForcomponentZ,setup
timeistwohoursandtheruntimeis0.20hoursperpiece.CalculatethenumberofYs
andZsthatcanbeproduced.
Answer
AvailablecapacityforYsandZs=40hours
Letx=numberofYsandZstoproduce
Time~+Timex=40hours
1+0.3x+2+0.2x=40hours
0.5x=37hours
X=74
Therefore,workcenter20canproduce74Ysand74Zs.
8.Implementation
Ordersthathavetooling,material,andcapacityhaveagoodchanceofbeingcompletedontimeand
canbereleasedtotheshopfloor.Otherordersthatdonothaveallofthenecessaryelementsshould
notbereleasedbecausetheyonlycauseexcessworkinprocessinventoryandmayinterruptworkon
ordersthatcanbecompleted.TheprocessforreleasinganorderisshowninFigure6.12.
Implementationisarrivedatbyissuingashopordertomanufacturingauthorizingthemtoproceedwith
makingtheitem.Ashoppacketisusuallycompiledwhichcontainstheshoporderandwhateverother
informationisneededbymanufacturing.Itmayincludeanyofthefollowing:
Shopordershowingtheshopordernumber,thepartnumber,name,description,andquantity.
Engineeringdrawings.
Billsofmaterial.
Routesheetsshowingtheoperationstobeperformed,equipmentandaccessoriesneeded,
materialstouse,andthesetupandruntimes.
Materialissueticketsthatauthorizemanufacturingtogettherequiredmaterialfromstores.
Thesearealsousedforchargingthematerialagainsttheshoporder.
Toolrequisitionsauthorizingmanufacturingtowithdrawnecessarytoolingfromthetoolcrib.
Jobticketsforeachoperationtobeperformed.Aswellasauthorizingtheindividualoperations
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tobeperformed,theyalsocanfunctionaspartofareportingsystem.Theworkercanlogon
andoffthejobusingthejobticket,anditthenbecomesarecordofthatoperation.
Moveticketsthatauthorizeanddirectthemovementofworkbetweenoperations.
9.Control
Onceworkordershavebeenissuedtomanufacturing,theirprogresshastobecontrolled.Tocontrol
progress,performancehastobemeasuredandcomparedtowhatisplanned.Ifwhatisactually
happening(whatismeasured)variessignificantlyfromwhatwasplanned,eithertheplanshavetobe
changedorcorrectiveactionmustbetakentobringperformancebacktoplan.
Theobjectivesofproductionactivitycontrolaretomeetdeliverydatesandtomakethebestuseof
companyresources.Tomeetdeliverydates,acompanymustcontroltheprogressofordersonthe
shopfloor,whichmeanscontrollingtheleadtimefororders.Asdiscussedearlierinthischapter,the
largestcomponentofleadtimeisqueue.Ifqueuecanbecontrolled,deliverydatescanbemet.
Chapter1discussedsomecharacteristicsofintermittentoperationsinwhichmanydifferentproducts
andorderquantitieshavemanydifferentroutings,eachrequiringdifferentcapacities.inthis
environment,itisalmostimpossibletobalancetheloadoveralltheworkstations.Queueexists
becauseofthiserraticinputandoutput.
Tocontrolqueueandmeetdeliverycommitments,productionactivitycontrolmust:
Controltheworkgoingintoandcomingoutofaworkcenter.Thisisgenerallycalled
input/outputcontrol.
Setthecorrectpriorityoforderstorunateachworkcenter.
a.Input/OutputControl
Productionactivitycontrolmustbalancetheflowofworktoandfromdifferentwork
centers.Thisistoensurequeue,workinprocess,andleadtimesarecontrolled.The
input/outputcontrolsystemisamethodofmanagingqueuesandworkinprocesslead
timesbymonitoringandcontrollingtheinputto,andoutputfrom,afacility.Itis
designedtobalancetheinputrateinhourswiththeoutputratesothesewillbe
controlled.
Theinputrateiscontrolledbythereleaseoforderstotheshopfloor.Iftherateofinput
isincreased,queue,workinprocess,andleadtimesincrease.Theoutputrateis
controlledbyincreasingordecreasingthecapacityofaworkcenter.Capacitychange
isaproblemformanufacturing,butitcanbeattainedbyovertimeorundertime,
shiftingworkers,andsoforth.Figure6.13showstheideagraphically.
Input/outputreport.
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Tocontrolinputandoutput,aplanmustbedevised,alongwitha
methodforcomparingwhatactuallyoccursagainstwhatwasplanned.
Thisinformationisshownonaninput/outputreport.Figure6.14is
anexampleofsuchareport.Thevaluesareinstandardhours.
WorkCenter:201
CapacityperPeriod:40standardhours
Period
Total
PlannedInput
38
32
36
40
44
190
ActualInput
34
32
32
42
40
180
Cumulative
Variance
10
10
PlannedInput
40
40
40
40
40
200
ActualInput
32
36
44
44
36
192
Cumulative
Variance
12
Planned
Backlog
32
30
22
18
18
22
ActualBacklog
32
34
30
18
16
20
Figure6.14Input/outputreport.
Cumulativevariance
Cumulativevarianceisthedifferencebetweenthetotalplannedfora
givenperiodandtheactualtotalforthatperiod.Itiscalculatedas
follows:
Cumulativevariance=previouscumulativevariance+actual
planned
Cumulativeinputvarianceweek2=4+3232=4
Backlogisthesameasqueueandexpressestheworktobedonein
hours.Itiscalculatedasfollows:
Plannedbacklogforperiod1=previousbacklog+plannedinputplanned
output
=32+3840
=30hours
Thereportshowstheplanwastomaintainaleveloutputineach
periodandtoreducethequeueandleadtimebytenhours,butinput
andoutputwerelowerthanexpected.
Plannedandactualinputsmonitortheflowofworkcomingtothework
center.Plannedandactualoutputsmonitortheperformanceofthe
workcenter.Plannedandactualbacklogsmonitorthequeueandlead
timeperformance.
b.ExampleProblem
Completethefollowinginput/outputreportforweeks1and2.
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Week
PlannedInput
45
40
ActualInput
42
46
CumulativeVariance
PlannedOutput
40
40
ActualOutput
42
44
CumulativeVariance
PlannedBacklog
ActualBacklog
30
30
Answer
Cumulativeinputvarianceweek1=4245=3
Cumulativeinputvarianceweek2=3+4640=3
Cumulativeoutputvarianceweek1=4240=2
Cumulativeoutputvarianceweek2=2+44406
Plannedbacklogweek1=30+4540=35
Plannedbacklogweek2=35+4040=35
Actualbacklogweek1=30+4242=30
Actualbacklogweek2=30+4644=32
c.OperationSequencing
ThenintheditionoftheAPICSDictionarydefinesoperationsequencingasatechnique
forshorttermplanningofactualjobstoberunineachworkcenterbasedoncapacity
andpriorities.Priority,inthiscase,isthesequenceinwhichjobsataworkcenter
shouldheworkedon.
Thematerialrequirementsplanestablishesproperneeddatesandquantities.Over
time,thesedatesandquantitieschangeforavarietyofreasons.Customersmay
requiredifferentdeliveryquantitiesordates.Deliveriesofcomponentparts,eitherfrom
vendorsorinternally,maynotbemet.Scrap,shortages,andoveragesmayoccur,and
soon.Controlofprioritiesisexercisedthroughdispatching.
Dispatching.
Dispatchingisthefunctionofselectingandsequencingavailablejobs
toberunatindividualworkcenters.Thedispatchlististheinstrument
ofprioritycontrol.Itisalistingbyoperationofallthejobsavailableto
berunataworkcenterwiththejoblistedinprioritysequence.It
normallyincludesthefollowinginformationandisupdatedand
publishedatleastdaily:
Plant,department,andworkcenter.
Partnumber,shopordernumber,operationnumber,and
operationdescriptionofjobsattheworkcenter.
Standardhours.
Priorityinformation.
Jobscomingtotheworkcenter.
Figure6.15isanexampleofadailydispatchlist.
Dispatchingrules.
Therankingofjobsforthedispatchlistiscreatedthroughthe
applicationofpriorityrules.Therearemanyrules,someattemptingto
reduceworkinprocessinventory,othersattemptingtominimizethe
numberoflateordersormaximize
DISPATCHLIST
WorkCenter:10
RatedCapacity:16standardhoursperday
ShopDate:250
OrderPartOrderSetupRunTotalQuantityLoad
OperationDates
NumberNumberQuantityHoursHoursHoursCompletedRemainingStartFinish
12365541001.51516.5753.75249
250
1217345500.53030.51024249
251
14226875000.27575.2075250
259
TotalAvailableLoadinStandardHours102.75
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JobsComing
14577452000.72020.7020.7251
253
1352832201.21.02.702.7253
254
TotalFutureLoadinStandardHours23.4
Figure6.15Dispatchlist(basedon2machinesworkingone8hourshiftperday
theoutputoftheworkcenter.Noneisperfectorwillsatisfyall
objectives.Somecommonlyusedrulesare:
Firstcome,firstserved(FCFS).Jobsareperformedinthe
sequenceinwhichtheyarereceived.Thisruleignoresdue
datesandprocessingtime.
Earliestjobduedate(EDD).Jobsareperformedaccordingto
theirduedates.Duedatesareconsidered,butprocessingtime
isnot.
Earliestoperationduedate(ODD).Jobsareperformed
accordingtotheiroperationduedates.Duedatesand
processingtimearetakenintoaccount.Aswell,theoperation
duedateiseasilyunderstoodontheshopfloor.
Shortestprocesstime(SPT).Jobsaresequencedaccordingto
theirprocesstime.Thisruleignoresduedates,butit
maximizesthenumberofjobsprocessed.Orderswithlong
processtimestendtobedelayed.
Figure6.16illustrateshowthesesequencingruleswork.Noticethat
eachruleusuallyproducesadifferentsequence.
Oneotherrulethatshouldbementionediscalledcriticalratio(CR).
Thisisanindexoftherelativepriorityofanordertootherordersata
workcenter.Itisbasedontheratiooftimeremainingtowork
remainingandisusuallyexpressedas:
Duedatepresent
dateactualtimeremaining
CR=.=
.
Leadtimeremaining
leadtimeremaining
Leadtimeremainingincludesallelementsofmanufacturingleadtime
andexpressestheamountoftimethejobnormallytakesto
completion.
Iftheactualtimeremainingislessthantheleadtimeremaining,it
impliesthereisnotsufficienttimetocompletethejobandthejobis
behindschedule.Similarly,ifleadtimeremainingandactualtime
remainingarethesame,thejobisonschedule.Iftheactualtime
remainingisgreaterthantheleadtimeremaining,
Job Process Arrival Due Operation
Time
(days)
SequencingRule
Date Date DueDate
223
245
233
224
242
239
231
240
240
219
243
242
FCFS EDD ODD SPT
Figure6.16Applicationofsequencingrules.
thejobisaheadofschedule.Iftheactualtimeremainingislessthan
one,thejobislatealready.Thefollowingtablesummarizesthesefacts
andrelatesthemtothecriticalratio:
CRlessthanI(actualtimelessthanleadtime).Orderisbehind
schedule.
CRequaltoI(actualtimeequaltoleadtime).Orderison
schedule.
CRgreaterthan1(actualtimegreaterthanleadtime).Orderis
aheadofschedule.
CRzeroorless(todaysdategreaterthanduedate).Orderis
alreadylate.
Thus,ordersarelistedinorderoftheircriticalratiowiththelowestone
first.Criticalratioconsidersduedatesandprocesstime.However,itis
noteasilyunderstood.
d.ExampleProblem
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Todaysdateis175.OrdersA,B,andChavethefollowingduedatesandleadtime
remaining.Calculatetheactualtimeremainingandthecriticalratioforeach.
LeadTime
OrderDueDateRemaining(days)
A18520
B19520
C20520
Answer
OrderAhasaduedateof185,andtodayisday175.Thereare10actualdays
remaining.Sincetheleadtimeremainingis20days,
10
Criticalratio==
0.5
20
Similarly,theactualtimeremainingandthecriticalratiosarecalculatedforordersB
andC.Thefollowingtablegivestheresults:
LeadTimeActualTime
OrderDueDateRemaining(days)Remaining(days)CR
A18520100.5
B19520201.0
C20520301.5
OrderAhaslessactualtimeremainingthanleadtimeremaining,sotheCRisless
than1.Itis,therefore,behindschedule.OrderBhasaCRof1andisexactlyon
schedule.OrderChasaCRof1.5greaterthan1andisaheadofschedule.
Dispatchingrulesshouldbesimpletouseandeasytounderstand.Asshowninthe
precedingexample,eachruleproducesadifferentsequenceandhasitsown
advantagesanddisadvantages.Whicheverruleisselectedshouldbeconsistentwith
theobjectivesoftheplanningsystem.
e.ProductionReporting
Productionreportingprovidesfeedbackofwhatisactuallyhappeningontheplant
floor.ItallowsPACtomaintainvalidrecordsofonhandandonorderbalances,job
status,shortages,scrap,materialshortages,andsoon.Productionactivitycontrol
needsthisinformationtoestablishproperprioritiesandtoanswerquestionsregarding
deliveries,shortages,andthestatusoforders.Manufacturingmanagementneeds
thisinformationtomakedecisionsaboutplantoperation.Payrollneedsthis
informationtocalculateemployeespay.
Datamustbecollected,sorted,andreported.Theparticulardatacollecteddepend
upontheneedsofthevariousdepartments.Themethodsofdatacollectionvary.
Sometimestheoperatorreportsthestartandcompletionofanoperation,order,
movement,andsoon,usinganonlinesystemdirectlyreportingeventsasthey
occurviadataterminals.Inothercases,theoperator,supervisor,ortimekeeper
reportsthisinformationonanoperationreportingformincludedintheshoppacket.
Informationaboutinventorywithdrawalsandreceiptsmustbereportedaswell.
Oncethedataarecollected,theymustbesorted,andappropriatereports
produced.Typesofinformationneededforthevariousreportsinclude:
Orderstatus.
Weeklyinput/outputbydepartmentorworkcenter.
Exceptionreportsonsuchthingsasscrap,rework,andlateshoporders.
Inventorystatus.
Performancesummariesonorderstatus,workcenteranddepartment
efficiencies,andsoon
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Date Date DueDate

FCFS EDD ODD SPT

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