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Chapter 6
“The time comes when plans must be
put into action”
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Production Activity Control
• Responsible for executing the:
– Master Production Schedule (MPS)
– Materials Requirements Plan (MRP)
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Production
Planning
Master
Planning Production
Scheduling
Material
Requirements
Planning
Input/
Output
Implement
Production Control
and
Purchasing Activity
Control
Control
Operation
Figure 6.1 Sequencing
Priority planning and production activity control
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Planning
• To meet delivery dates
• Ensure:
– The required materials, tooling, personnel and
information
• Schedule:
– Start and completion times for each shop order
– Develop load profiles for the work centres`
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Implementation
• Gather information needed to make the
product
• Release orders to the shop floor
– MRP authorized
“Dispatching”
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Control
• The production order has been released
• Is corrective action necessary?
– Rank the orders by priority
– Establish a dispatch list
– Track performance to planned schedule
– Replan, reschedule, adjust capacity
– Monitor and control WIP, lead times, cues
– Report work center effciency, scrap, times
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
PRODUCTION ACTIVITY CONTROL
PLAN
Schedule
Replan
EXECUTE CONTROL
Work Compare
Authorization Decide
Dispatch Feedback
MANUFACTURING OPERATIONS
Figure 6.2 Production control system
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Manufacturing Systems
• Flow manufacturing
• Intermittent manufacturing
• Project manufacturing
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Flow Manufacturing
• High volume
• Standard products
– Repetitive or
– Continuous
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Flow Manufacturing
• Routings are fixed
– Work centers arranged according to the routing
• Dedicated to a limited range of products
– specifically designed equipment
• Use of mechanical transfer devices
– Low WIP and throughput times
• Capacity is fixed by the line
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Flow Manufacturing
• Production Activity Control
– Plans the flow of work
– Planned schedule of materials to the line
– Implementation and control are relatively
simple
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Intermittent Manufacturing
• Many variations in:
– product design
– process requirements
– order quantities
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Intermittent Manufacturing
• Flow of work is varied - work flow not
balanced
• Machinery and workers must be flexible
– Usually grouped according to function
• Throughput times are generally long
• Capacity required depends on product mix
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Intermittent Manufacturing
• Production Activity Control is complex:
– number of products made
– variety of routings
– scheduling problems
– PAC is a major activity
• Controlled through shop orders for each
batch
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Project Manufacturing
• One or a small number of units
• Usually in one place
• Close coordination between:
– Manufacturing, Marketing, Purchasing,
Engineering
• Examples:
– Shipbuilding
– House construction
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Data Requirements
• Need to know:
– What and how much to produce
– When parts are needed
– What operations and times are required
– Work center capacities
• Organized into databases:
– Planning or Control
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Planning Files
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Item Master File
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Product Structure File
• Bill of material file
– A listing of single-level components to make an
assembly
– Forms a basis for a „pick list‟
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Routing File
• Step-by-step instructions on how to make
the product
– Operations and their sequence
– Operation descriptions (brief)
– Equipment tools and accessories
– Operation setup times
– Operation run times
– Lead times for each operation
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Work Center Master File
• Details on each work center
– Work center number
– Capacity
– Shifts, machine hours and labor hours per week
– Efficiency
– Utilization
– Average queue time
– Alternative work centers
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Control Files
• Shop order master file
– Summarized data on each shop order
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Shop Order Master File
• Shop order number
• Order quantity
• Quantity completed
• Quantity scrapped
• Quantity of material • Due date
issued to the order • Priority
• Balance due
• Cost information
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Shop Order Detail File
• Operation number
• Setup hours planned and actual
• Run hours planned and actual
• Quantity complete (at this operation)
• Quantity scrapped (at this operation)
• Lead time remaining
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Order Preparation
• A check for available:
– Tooling
– Materials
– Capacity - when it is needed
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Scheduling
• To meet delivery dates
• Make the best use of resources
• Need information on:
– Routing
– Capacity
– Competing jobs
– manufacturing lead times
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Manufacturing Lead Time
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Manufacturing Lead Time
Queue Setup Run Wait
Need a lift truck here
Move
Move
Queue Setup Run Wait
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Cycle Time
• “The length of time from when material
enters a production facility until it exits”
– APICS Dictionary 11th Edition
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Example Problem
= 34 hours, 45 minutes
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Scheduling Techniques
• Forward Scheduling • Backward Scheduling
– Start when the order is – Uses MRP logic
received – Schedule last operation
– May finish early to be complete on the
– Used to determine the due date
earliest completion – Schedule previous
date operations back from
– Determine promise the last operation
dates – Reduces inventory
– Builds inventory
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Forward and Backward Scheduling:
Infinite Load
Order Recieved Due Date
1 2 3 4 5 6 7 8 9
Forward Scheduling
Material 1st 2nd 3rd
Ordered Operation Operation Operation
Backward Scheduling
Capacity
Capacity Underload
Figure 6.5 Infinite load profile
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Forward and Backward Scheduling:
Finite Load
Order Recieved Due Date
1 2 3 4 5 6 7 8 9
Forward Scheduling
Material 1st 2nd 3rd
Ordered Operation Operation Operation
Backward Scheduling
Capacity
Smoothed Load
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Example Problem Answer
Part A
OP 10 OP 20
X
Part B Assembly
OP 10
85 90 95 100
Working Days
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Operation Overlapping
• The next operation is allowed to begin
before the entire lot is completed
• Reduces the manufacturing lead time
• Order is divided into at least two transfer
lots
Operartion A
SU Lot 1 Lot 2
T T Transfer Time
SU Lot 1 Lot 2
Operation B
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Operation Overlapping
• Costs involved:
• Handling costs between work centers
• May increase queue and wait for other
orders
• Idle time if the second batch doesn‟t arrive
in time
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Size of the Transfer Batch
SUA = Set up time operation A
SUB = Set up time operation B
RTA = Run time per piece operation A
RTB = Run time per piece operation B
QT = Total order size
T1 = size of the first transfer batch
T1 = QT x RTA - SUB T2 = QT - T1
RTA + RTB
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Size of the Transfer Batch
• If the second operation is slower than the
first make the first transfer batch small
– i.e. get the slower machine started early
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Example Problem
Operartion A
0 30 730 1,000 (Minutes)
30 70 x 10 = 700 30 x 10 = 300
T T Transfer Time
1,010
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Operation Splitting
One Machine
SU Run
SU Run
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Load Report
Work Center: 10 Available Time: 120 Hours per week
Description: Lathes Efficiency: 115%
Number of Machines: 3 Utilization 80%
Rated Capacity: 110 standard hours / wk
Week 18 19 20 21 22 23 Total
Released
80 30 0 0 315
Load 105 100
60 80 130 80 350
Planned Load
Total Load 105 100 140 110 130 80 665
Rated
110 110 110 110 110 110 660
Capacity
(Over) /
Under 5 10 (30) 0 (20) 30 (5)
Capacity
• Bottlenecks
– “a facility, function, department, or resource
whose capacityis equal to or less than the
demand put upon it.”
APICs Dictionary 11th Edition
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Throughput
• The total volume of product passing
through a facility
• Bottlenecks control the throughput
– Work centers feeding bottlenecks will build
inventory
– Work Centers fed by bottlenecks have their
throughput controlled by the bottleneck
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Example Problem - Bottlenecks
• Wagon Wheel Assembly - 1200 sets (2) per week
• Handle Assembly - 450 per week
• Final Assembly - 550 wagons per week
a. What is the capacity of the factory?
b. What limits the throughput of the factory?
c. How many wheel assemblies should be made?
d. What is the utilization of the wheel assembly?
e. What happens if utilization is 100%
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Example Problem - Bottlenecks
a. 450 units per week
b. Throughput is limited by the handle
assembly operation
c. 900 wheel assemblies per week
d. Utilization of the wheel assemblies =
900 ÷ 1200 = 75%
e. Excess inventory of wheel assemblies
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Bottleneck Principles (7)
1. Utilization of a non-bottleneck resource is not determined
by its potential, but by another constraint in the system.
2. Utilization of a non-bottleneck 100% of the time does not
produce 100% utilization.
3. The capacity of the system depends on the capacity of the
bottleneck.
4. Time saved at a non-bottleneck saves the system nothing.
5. Capacity and priority must be considered together.
6. Loads can and should be split.
7. Focus should be on balancing the flow in the shop.
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Managing Bottlenecks
1. Establish a time buffer before each bottleneck.
2. Control the rate of material feeding the bottleneck.
3. Do everything to provide the bottleneck with
capacity.
4. Adjust loads.
5. Change the schedule.
Back schedule before the bottleneck; forward
schedule after the bottleneck.
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Theory of Constraints
• 1. Identify the constraint
Marketing sells
5 per hour?
Figure 6.11
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Theory of Constraints continued
2. Exploit the constraint. (idle time?)
3. Subordinate everything to the constraint.
4. Elevate the constraint.
5. Once the constraint is a constraint no-
longer, find the new one and repeat the
steps.
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Drum-Buffer-Rope
• Drum - pace of production set by the
constraint
• Buffer - inventory established before the
constraint
• Rope - coordinated release of material
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
X
Example Problem Y Z
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Shop Order Information
• Order number, • Material Issue Tickets
description
• Tool Requisitions
• Engineering Drawings
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Figure 6.12 Review Order
Order Release
Process Check Tooling
and Material
Availability
No
Okay? Resolve
Yes
Check Capacity
Requirements
and Availability
No
Okay? Resolve
or
Yes Reschedule
Release
Order
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Control
• Control the work going into and out of a
work center: Input/output control
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Input / Output Control
Input Rate
Control
Queue
(Load, WIP)
Output Rate
Control
Figure 6.13
Input/output control
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Work Center: 201
Capacity per period: 40 standard hours
Period 1 2 3 4 5 Total
Planned Input 38 32 36 40 44 190
Actual Input 34 32 32 42 40 180
Cumulative Variance -4 -4 -8 -6 -10 -10
Planned Backlog 32 30 22 18 18 22
Actual Backlog 32 34 30 18 16 20
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Cumulative Variance
• The difference between the total planned for
a given period and the actual total for that
period
• Cumulative variance
= previous cumulative variance + actual
- planned
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Work Center: 201
Capacity per period: 40 standard hours
Period 1 2 3 4 5 Total
Planned Input 38 32 36 40 44 190
Actual Input 34 32 32 42 40 180
Cumulative Variance -4 -4 -8 -6 -10 -10
Planned Backlog 32 30 22 18 18 22
Actual Backlog 32 34 30 18 16 20
Planned Input 45 40
Actual Input 42 46
Cumulative Variance
Planned Output 40 40
Actual Output 42 44
Cumulative Variance
Planned Backlog 30
Actual Backlog 30
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Operations Sequencing
• “a technique for short term planning of
actual jobs to be run in each work center
based on capacities and priorities.”
APICS Dictionary 11th Edition
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Dispatching Rules
• FCFS - First come, first served
• EDD - Earliest job due date
• ODD - Earliest operation due date
• SPT - Shortest processing time
• CR - Critical ratio
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Critical Ratio
CR= due date - present date CR<1 Behind
lead time remaining Schedule
CR=1 On Schedule
= actual time remaining
lead time remaining CR>1 Ahead of
Schedule
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Sequencing Rules
Process Sequencing Rule
Arrival Due Operation
Job Time
Date Date Due Date FCFS EDD ODD SPT
(days)
A 4 223 245 233 2 4 1 3
B 1 224 242 239 3 2 2 1
C 5 231 240 240 4 1 3 4
D 2 219 243 243 1 3 4 2
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Production Reporting
• Feedback of what is actually happening on
the shop floor
• Needed for management decisions
on-hand on-order
job status shortages
scrap material shortages
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.
Production Activity Control
Summary
• Converting MRP plans into action
– Reporting results
– Revising plans
• Need:
– detailed and current schedules and priorities
• Results:
– on-time deliveries, well utilized labor, and
equipment, minimum inventory levels
Arnold, Chapman, & Clive: Intro Materials © 2008 Pearson Education, Upper Saddle River, NJ 07458.
Management, 6th ed. All Rights Reserved.